City talks fair funds

Following demands for more transparency regarding a potential purchase of the Orange County Fairgrounds, Costa Mesa City Manager Allan Roeder gave a presentation at Wednesday’s special City Council meeting on the city’s negotiations to buy the 150-acre complex from the state.

Roeder shared with the public some of the city’s goals as it continues to look for ways to make a purchase, but gave no details as to how much the city is willing to pay for the fairgrounds or how a purchase would be financed. The state estimates that it could fetch between $96 million and $180 million, but the city and county previously bid $6.5 million.

“I’m not at liberty to talk about the details,” Roeder said.

However, Roeder shed some light on the direction that the city is taking to pay for the fairgrounds, which could include working with the existing fairgrounds businesses, such as swap meet operators, to absorb some of the costs.

Costa Mesa will be ready to make an offer by Wednesday, which, Roeder said, is the deadline the state has set for the city.

“The city intends to purchase the OCFEC [OC Fair & Event Center] without utilizing Costa Mesa public funds or putting Costa Mesa taxpayers at risk,” Roeder said during a PowerPoint presentation. “This means the city will seek financing through a consortium of interested entities for the purchase of the property.”

With that in mind, the city will ensure a smooth transition for the fairgrounds’ existing employees, who are employed by the state, he said.

It remained unclear whether the city will keep the property’s employees if it acquires the fairgrounds.

A proposal to the state will include the price, financing and dates for transferring the property from the city to the state. If the state accepts the city’s offer, a business plan, governance structure, financing and a transition plan will be drafted and agreed upon before the opening of an escrow, Roeder said.

The proposal will also include a request for Gov. Arnold Schwarzenegger to lift restrictions on the future scheduling of fairgrounds’ activities.

After Roeder’s presentation, he and the council moved into closed session to discuss the purchase price and terms of the deal that it hopes to strike with the state.