According to a prepared statement, in the event the Legislature adjourns without passing this necessary legislation, the Department of General Services will work to find new buyers to purchase the fairgrounds on terms that will result in the highest, most certain return to the state.

In January, the Department of General Services held a public auction to sell the fairgrounds after the Governor and the Legislature authorized the sale of the 150-acre property as part of a sweeping plan to change how the state manages real estate and create opportunities to raise revenue. The high bid of $56.5 million was rejected by DGS in March after it was determined that offer would not obtain the highest, most certain return for the state.

DGS is on schedule to complete the sale of the property by December of 2010. DGS will sell the property “as is” and is encouraging bidders to include “value added” elements, such as profit participation, in the event that any portion of the property is ever developed or used for anything other than its current use as a fair and event center.

In September 2009, the Department issued a similar RFP for the disposition of the property. The resulting bids were rejected by the Department because the Department determined the State would not obtain the highest and most certain return from those bids. This RFP, while similar to the September 2009 RFP, is a distinct and stand-alone RFP with revised conditions to the sale opportunity to include, but not limited to: a minimum bid price of $96 million; the state’s acceptance of a secured promissory note subject to specific terms; and the elimination of an auction format after bids are opened.

The property is bounded by major multi-lane public thoroughfares on all but the north side. Bordering streets include: Arlington Drive to the north; Newport Boulevard to the east; Fair Drive to the south; and Fairview Road to the west. Vanguard University and the City’s administrative offices / police and fire services are located on the south side of Fair Drive directly across the street from the property’s main entrance. Remaining land uses include Orange Coast College, singlefamily residential, and a church to the west, schools, parks, and the United States Army Reserve to the north, and the Costa Mesa Freeway to the east.

Because the property is state owned, the State of California has acted as the lead land use authority in both the development and operation of the property as a fairground and event facility. However, once title to the property transfers to a private entity, the city of Costa Mesa will become the lead land use authority.