Editorial:

The hammer came down Thursday on the Orange County Fairgrounds. Developer Steven L. Craig and his company, Craig Realty Group of Newport Beach, emerged from Thursday’s live auction, which followed the opening of seven sealed initial offers on the 150-acre site, as the highest bidder.

But the state’s sale of the property, which is dear to the people of Costa Mesa, isn’t a done deal yet. There’s a glimmer of hope that Gov. Arnold Schwarzenegger could still scrub the transaction, because the winning bid of $56.5 million came in about $40 million below the minimum amount that state officials were looking to reap from a sale.

Because the bid was so low, the governor can now accept or reject it. Of course, we would like him to reject it and save the fairgrounds by calling off the sale altogether. But it’s doubtful that Schwarzenegger will change his mind. So far, he’s refused to budge on the issue, in spite of widespread opposition in Orange County, even from many of his fellow Republicans.

There’s a chance too that the Assembly could step in and rescue the fairgrounds by passing Assembly Bill 1590, a bill co-written by Assemblymen Van Tran (R-Costa Mesa) and Jose Solorio (D-Santa Ana), which calls for rescinding an earlier bill that authorized the sale. Last week, the Assembly’s Business and Professions Committee passed AB1590 by an 11-0 vote.

Should either of these potential roadblocks to the sale topple, and Craig seals the deal, we’re asking that this developer and operator of sprawling luxury shopping outlets — the Cabazon Outlets mall among them — consider preserving at least a portion of the fairgrounds for the public’s enjoyment as a venue for county fairs and events on a smaller scale.

After clinching the auction, Craig said he’d be happy to keep the fair there and improve what’s there, as long as that’s financially viable.

Hey, we can understand his motivation to turn a profit. After all, he’s a businessman.

Yet we can only hope that the people of Costa Mesa and the city’s leaders can arrive at some kind of win-win arrangement with him where everyone’s wishes are satisfied.