City looking into buying O.C. fairgrounds

Costa Mesa officials, concerned that a new owner could develop the Orange County fairgrounds, are considering the city’s purchase of the fairgrounds.

City Council members, along with City Manager Allan Roeder and lawyers, are scheduled to meet in closed session Tuesday to explore the idea of Costa Mesa buying the fairgrounds.

“This is a very recent development, and it’s one of many options that came up that the council needs to consider,” said Mayor Allan Mansoor. “I’m open to the idea, and everything is on the table, as long as the fairgrounds continues with its current format.

This comes on the heels of Tuesday’s announcement by the Orange County Board of Supervisors that the county will explore buying the property.

The council also will discuss the state Department of General Services’ threat of possible litigation made in a recent letter to the city, Roeder said.

The department sent a letter asking the city to reconsider its plan to restrict future uses of the fairgrounds to fairs only. The letter warns the city that the state will exercise its options to ensure that the property be sold at the highest value.

The state has put the 150-acre fairgrounds in Costa Mesa up for sale as part of a plan to sell expensive state-owned properties to help plug a deficit in the California budget. However, the county fairgrounds is the only one up for sale.

The deadline for potential buyers to submit bids is Jan. 8.

The city will discuss buying the fairgrounds on its own or through partnering with Orange County or the OC Fair & Event Center Foundation, which formed to raise funds and buy the property.

The city is less likely to afford the property on its own given the current economy and the amount of money the state is asking for, Roeder said. This year’s Costa Mesa budget totals around $100 million. The state is asking between $90 million to $180 million for the fairgrounds.

“We don’t think the fairgrounds is valued at that level as a fair and exposition center,” Roeder said. “You’re talking a huge commitment of public dollars. A few public agencies have the kind of financial capacity it would take to purchase it.”