This story was reported for San Diego News Network on June 9, 2009.
San Diegans expressed their concerns Tuesday over the proposed sale of the Del Mar Fairgrounds in an attempt to help deter the state from its $24.3 billion deficit.
The worries were offered at the 22nd District Agricultural Association board meeting, an entity of the state government that oversees the historic grounds prominent to San Diego. Less than one month ago, Gov. Arnold Schwarzenegger laid out his plan for balancing the budget and included his idea of selling the fairgrounds at an estimated $1 billion – although no developers have openly expressed their interest.
Regardless, the idea of even selling the fairgrounds is causing many to become angry.
“Fight the good fight,” said former Solana Beach Mayor Marcia Smerican to the governor-appointed board members. “Please tell Arnold … and in New York, they say it one word, ‘Forget-about-it’.”
The Governor first proposed his idea of selling the fairgrounds prior to the May 19 special election after he realized voters would reject five of his six propositions. Schwarzenegger considered the idea as part of his “Plan B” process and now that the propositions have failed, residents are anguished they could lose the fairgrounds to a private entity.
Nearly 100 attendees appeared at the monthly board meeting Tuesday, a majority of which stood up after board president Kelly Burt asked those opposing the idea to do so. Burt said, in his three years on the board, he had never seen so many people at a meeting and that he would do his best to carry out their wishes.
“At the outset, some of the things we’ve heard recently have caused me and the board great concern,” Burt said. “It is our responsibility to reflect the attitude of the public.”
Among those who spoke during public comment were employees of the fairgrounds, vendors and local officials — all of whom opposed the sale. No attendees there supported the sale.
Cardiff resident Linda Lutz said she has been an employee of the fairgrounds for four years. Lutz, who sits in a wheelchair, said she would be disheartened if the sale went through as it is already tough for her to find a job. While Betty Winsett, a representative of the annual Bridal Bizarre, said the sale would not only affect the organizers of the event but the 500 small businesses who display their merchandise there.
Former Solana Beach Councilmember David Roberts was also present during the meeting and told the board, the governor’s idea was “irresponsible.”
“I would say [to Schwarzenegger], ‘Sir, with all due respect, this is the dumbest, most fiscally irresponsible decision you could make’,” Roberts said. “Taking away a money-maker does not make sense in times like this. Take this dumb idea off the table now. It’s totally fiscally irresponsible.”
But, the most poignant public comment came from Steve Marcus, who spoke through tears. A life-long San Diegan, Marcus said he remembers when his father took him to the fairgrounds as a child and now, as an adult, he sees the same feeling of happiness in today’s children.
“This is sacred ground,” Marcus said. “I see people come here to the fair — they talk, they laugh, they cry — it’s like a reunion. I see fathers holding their daughters and sons resting on their shoulders after visiting the fair — they had a great time. Forget about the money, it would be a shame to lose the fairgrounds.”
Regardless of the major local opposition to the fairgrounds, the sale of it may not even be feasible.
According to local real estate economist Nathan Moeder, the governor’s proposal to sell the fairgrounds for $1 billion is not attractive to real estate developers. Moeder called the idea a “fire sale” because the governor made the proposal out of haste rather than rationality. He said real estate developers see the area as desirable but do not know what they can build on the fairgrounds as the entitlement process has not yet began. The entitlement process would require input over all the public agencies whose jurisdiction includes the fairgrounds. Further, he said, should the sale occur: $1 billion is a high price tag.
“If this project had a set of plans and we’re already approved by all the public entities, then developers would be more interested,” Moeder said. “The governor is just leaving a lot of money out on the table. I would be surprised if it sold for more than $750 million.”
Moeder also said he doesn’t know of any developers willing to purchase the land yet.
Assemblymember Martin Garrick (R-Carlsbad), whose district includes Del Mar, said he opposed the idea and that it wouldn’t be likely that any developer would purchase the fairgrounds.
“The current economic downturn makes it highly unlikely that the state could receive that much from a sale,” Garrick said. “On top of that, deed restrictions on the property and the environmental issues any developer would face make it an even tougher sell.”
“To my knowledge there has not been any interest from developers. However, its proximity to the ocean will always make it a desirable piece of land.”
The fairgrounds was established in 1935 and has about a $400 million economic impact to San Diego County. In addition, the fairgrounds supplies about 5,000 full-time jobs and hosts about 300 events year-round.
Aside from this proposal, Schwarzenegger has also proposed selling other state assets including the Governor’s mansion. In addition, he has proposed eliminating the Healthy Families Program, cutting $1 billion from the Medi-Cal program, slashing cash grants to 77,000 college students, imposing a five percent salary cut to state employees and releasing 40,000 prison inmates.
Schwarzenegger has also pitched the idea of borrowing up to $2 billion from local governments. This idea has also seen opposition and has caused San Diego Mayor Jerry Sanders to take two visits to Sacramento, lobbying against the idea, in less than three weeks.
Schwarzenegger’s office has responded to those opposing his ideas but has reiterated that they are all necessary to ensure that California will not further fall into an economic hole.
“Sacramento should not be in the real estate business, especially when we are in a fiscal crisis like this,” Schwarzenegger said. “Now, I know that the money that we receive from this property won’t go directly to the general fund; it will pay off debt. But that lowers our debt payment, which then does help the general fund.”
Nevertheless, 11-year-veteran of the board and vice president Barry Nussbaum asked those in attendance of the meeting to continue to lobby against the proposal.
“To serve on this board has been the greatest honor of my adult life besides being a parent,” Nussbaum said. “I would encourage all of you to be extremely diligent and extremely active as we move forward today or you will look back and regret this day if something happens that you don’t support.”
“Politics is an engaging game that we play,” Nussbaum said.
Hoa Quach is the political editor for the San Diego News Network.