The RFP for the sale of the Orange County Fair and Exhibit Center (OCFEC) (aka OC Fairgrounds) has been released. Regarding profit participation, the RFP states, "In addition to the initial cash payment for the Property, the State will retain the right to profit participation in the Property in the event that all or a portion of the Property is no longer used for fairground and event uses. The State will exercise this right through the recordation of the profit participation covenant as a deed restriction on the title to the Property." In other words, if the Fairgrounds becomes retail or residential, the State still gets a cut of the profits from the sale and lease of the subsequent development.
As far as the future use of the Fairgrounds, the only restriction is that the mineral rights belong to the State. After the property is sold, Costa Mesa becomes the planning authority. The RFP also states that even though there was a Master Plan adopted in 2003 by the 32nd District Agricultural Association calling for the continued use of the property as a Fair and related activities, Costa Mesa never adopted the Master Plan. The RFP states, " It is important to note that the Master Plan has not been adopted by the City of Costa Mesa, and that upon the Property's transfer to a private entity, the Master Plan will carry no authoritative backing."
In other words, once sold, with enough votes on the Costa Mesa Planning Commission and City Council, the OC Fair could be carved up into retail, residential, an entertainment district or other uses. Costa Mesa would be left to police that, and, depending on the whims of Council, a hotel district or lots of condos or retail may look very attractive from a tax base standpoint. Fasten your seatbelts, it's going to be a bumpy ride.
Key Dates
Issuance of Proposal - October 7, 2009
Deadline for Written Questions - November 13, 2009
Responses to Questions Posted No Later Than - December 4, 2009
Final Bid Submission Date - January 8, 2010
Opening of Bids and Auction - January 14, 2010
Highest Bid Recorded - January 14, 2010
Buyer's Execution of Purchase Contract - January 21, 2010
State Review and Recommendation - January - February, 2010
State Execution of Purchase Contract (Subject to Legislative Notice) - March 15, 2010
Escrow Opened, Buyer's Deposit Increased - March 16, 2010
Estimated Close of Escrow - May - September, 2010
Buyer Control of Property - October 1, 2010
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