Bever out of O.C. fair pursuit

Citing the “best interest” of Costa Mesa’s citizens, Councilman Eric Bever said Friday that he no longer can back the city’s $96-million proposal to buy the Orange County Fairgrounds from the state.

Bever’s withdrawal isn’t because he doesn’t want the city to own the fairgrounds, nor is it because he doesn’t want to preserve its use and history, he said.

In an open letter to the City Council, Bever said he was withdrawing his support for the proposal — although he had signed off on it along with the four other council members — because of concerns about whether the city could do its due diligence in meeting a new 30-day deadline from the state to find a buying partner.

“My biggest concern is the state is rushing the process too fast,” Bever said in an interview Friday. “I don’t support the process as it currently exits. The state is pushing such a short time frame. It’s making it very difficult for us.”

Bever said that the last straw for him was when he found out Thursday that the governor’s office had given Costa Mesa just 30 more days to produce an agreement with its prospective partners in a deal — the ones that the city would have to rely on to finance a $96-million purchase.

Costa Mesa met a previous 30-day deadline Wednesday, when city officials went to Sacramento to deliver Costa Mesa’s proposal to the governor’s office.

City Manager Allan Roeder, Councilwoman Katrina Foley and Councilman Gary Monahan handed the governor’s representatives a document promising that Costa Mesa would close the deal by the end of October.

In his open letter dated Friday, Bever said the purchase’s complexity demands more time.

“We are responsible for acting in the best interest of the 115,000 Costa Mesans who have entrusted us with their city’s future, and as such, we must be diligent and take the necessary time to do the job right,” Bever wrote. ”This is a 96 million dollar deal we are considering, not whether or not to remove a parkway tree.”

Bever said he still stands behind the upcoming June ballot, Measure C, which aims to lock down the fairgrounds’ use as a fair and exposition center.

“I’ve been frustrated because I’ve been making similar concerns in the meetings, but of course, the public doesn’t hear that because it’s in closed session,” he said in the interview. “I’ve done what I would do, and my hope is that the state starts dealing with us in a more workable time frame.”

Mayor Allan Mansoor said that he understands Bever’s concerns, but that he’s willing to do what he can while he’s still in office to preserve the fairgrounds before giving up.

“That’s his choice, but I want to continue to try to come up with something to work with toward a purchase,” Mansoor said. “But again, at the end of the day, if we don’t come to an agreement that works well for the city, I won’t support it either.”

The state put the 150-acre fairgrounds up for sale in an effort to shore up funds and plug a hole in the budget deficit.

Although the state never appraised the fairgrounds’ value, the state Department of General Services, which is charged with selling the land, estimated it would bring in between $96 million and $180 million from the sale.

The Department of General Services held a public auction in January, then rejected all of the offers in March as too low.

Costa Mesa is negotiating exclusively with the state for ownership of the fairgrounds.

Bever said if the state is willing to expand the time frame it gave the city to negotiate a purchase, he’s willing to reconsider his position.

“My constituents elected me to make sure I do their bidding in a meaningful business way and I’m trying to do that,” he said.

Asked if he believes that his new position will result in some backlash from the community, which has been supportive of the city’s efforts, Bever said, “There’s always that potential, and you know, for me, this is a matter of conscience and I cannot not take this action.”

Letter From Councilman Eric Bever

Editor’s note: A copy of this letter was delivered to the Daily Pilot on Friday.

An open letter to the City Council

Costa Mesa City Council

April 23, 2010

77 Fair Drive

Costa Mesa, CA 92626

I have supported the idea of the city owning the OC Fairgrounds and saving the Fair since the beginning of the discussion. Unfortunately, the process has become so time-constrained, as to preclude following best business practices.

As such, I hereby withdraw my support for continuing on the current path with the State of California.

In concept, working through the process and finalizing a deal in October 2010 seemed to be an achievable goal, however, at every turn the state has demanded excruciatingly short timeframes for the city to do its part. The State provided the city only 30 days to come to an agreement, and now demands a short 30 days to pick a private sector partner.

I cannot imagine how we can be expected to create a legal structure for our “partnership”, open the call for partners, allow time for their response, review those responses, and select a partner in 30 days. I also cannot fathom any responsible party agreeing to join us in this folly. Remember, we have not even been allowed to inspect the property yet.

This city rarely accomplishes anything of any complexity in such a short timeframe, and there is good reason for that. We are responsible for acting in the best interest of the 115,000 Costa Mesans who have entrusted us with their city’s future, and as such, we must be diligent and take the necessary time to do the job right.

This is a 96 million dollar deal we are considering, not whether or not to remove a parkway tree.

This drastically compressed schedule has limited the city’s ability to do its due diligence, and I believe that if we proceed, we do so at our community’s peril. Assessing the Fairgrounds operation includes gathering and digesting immense quantities of information regarding assets, liabilities, income, business relationships, building infrastructure, labor and, hazardous materials/pollution on the site. We cannot take any of this lightly, or on faith.

Early on, I recognized the opportunity that owning the fairgrounds afforded city, but unfortunately it seems we are allowing that opportunity to blind us to the potential pitfalls, and challenges. At the State’s urging we are driving full speed ahead in the dark without headlights.

Last Tuesday I reluctantly agreed to support this process however, given the new timeframe we are now expected to meet in naming a “partner”, I cannot in good conscience continue to support this process.

Sincerely,

Eric R. Bever,

Costa Mesa City Council

cc: Costa Mesa: City Clerk, City Manager, Daily Pilot