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Panel calls for review of failed fairgrounds sale

January 17, 2013|By Bradley Zint

A special committee charged with independently examining the proposed sale of the Orange County Fairgrounds called for an audit, additional review of the failed deal and greater overall transparency.

Among the Fair Sale Review Committee's nine principal recommendations — which a small contingent of the committee's 12 members presented during the Orange County Fair Board's meeting Thursday morning — were for all board members and fairgrounds executive staff to participate in training for ethics, state open-meeting laws, board policies, public records requests and other fields.

They also advised that the board urge the appeal of Assembly Bill X4 22, which permitted the sale of the fairgrounds, and for the board to never again take action that would cause the state attorney general's office to no longer represent the fairgrounds' interests.

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The committee's 17-page report said that in 2009, the attorney general's office withdrew its legal representation of the Fair Board, citing a conflict of interest between the board and the newly formed O.C. Fair and Event Center Foundation, which sought to buy the 150-acre fairgrounds.

That loss, the report contends, caused the board to hire outside counsel and consequently spend $804,000 in legal fees between February 2010 and September 2012.

"We are the poster child of how not to sell fairgrounds, and how this should not happen, mismanagement, et cetera," said committee member Theresa Sears who, along with committee Chairman Mike McCrary, gave the bulk of Thursday's presentation.

The board unanimously approved the recommendations, which will be discussed and potentially implemented by board members at a future meeting.

The report also questioned several contracts related to the deal, including one with former state Sen. Dick Ackerman's law firm, which subcontracted work through others. Ackerman worked with local officials and the state after then-Gov. Arnold Schwarzenegger called for the sale of public assets.

The agreement with Ackerman and other contractors were not publicly disclosed at the time of the negotiations, the report asserts.

Ackerman told the Orange County Register that the report was "off-base" and that "a lot of subcontracts are paid through other contractors."

Also questioned was $8 million paid by the fairgrounds to the now-defunct California Construction Authority, or CCA, for construction and planning services.

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