At first glance, California’s tentative sale of the OC Fair & Event Center in Costa Mesa looks like a blue-ribbon winner. The cash-strapped state receives $96 million—$19.2 million now and the balance with interest over 40 years. Costa Mesa pays nothing yet gets ownership of the 150-acre site, lease income that eventually will reach $3.2 million a year and a cut of royalties. It’s all paid for by Facilities Management West, a group of local businessmen that will operate the fairgrounds for 55 years. But for the plan to pencil out, FMW may need midway magic. Its annual mortgage and lease payments will be more than $8 million within a few years, far exceeding the $2 or $3 million of cash flow the state has typically generated. FMW point man Guy Lemmon says his group plans to add events, ramp up marketing and build a conference center: “Private enterprise has a better ability than a state agency to drive things on a profit motive. We’re going to take risks.” Lemmon is chief operating officer of Newport Beach-based Fait Family Trust, a partner in FMW with developer Richard Dick and entrepreneur David Pyle. Lemmon says everything will be done within current zoning and FMW will not, as some critics contend, try to build offices, condominiums or hotel rooms. Lemmon does want to stage year-round concerts at the amphitheater but says the group will work within court-imposed noise and parking restrictions: “I think we have a way to mitigate it.” Some estimate FMW can reduce payroll expenses by 40%. Lemmon sidesteps the matter, praising the fairgrounds’ state employees as “very dedicated” and saying he hopes to hire them …
Costa Mesa had a couple of ringers on its negotiating team—Arnel Development Prez Dave Ball and real estate adviser Rick Kapko. Planning Commission Chairman Jim Righeimer, a shopping center developer who persuaded the two Costa Mesa-based dealmakers to donate their services, says they were “instrumental” in turning the city’s “horrible poker hand” into a winner. Even Councilwoman Katrina Foley, who voted against the deal, says Ball “played the most significant role of anyone” on the city’s behalf. “I wanted to save the fair for Orange County. It’s a part of who we are,” says Ball, a Newport Beach resident who grew up in Fullerton. Ball says most of the credit should go to council negotiators Foley and Gary Monahan, which elicits a chuckle from Foley: “Of course he’ll say that. Dave knows his place” …
But the deal’s not done yet. Some Latino state lawmakers have threatened to hold up enabling legislation to punish Costa Mesa for its hard line against illegal immigration … Anaheim Mayor Curt Pringle says the 36 Mickey Mouse statues stationed throughout SoCal to promote the July 13 All-Star Game at Angel Stadium “are mounted on a 989-pound base and have a graffiti-resistant coating.” Still, “some of them have been attacked!”
