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What Johnson Consulting Didn't Tell You About the OC Fairgrounds Master Site Plan Bond Financing Plans

A Master Site Plan proposal for the OC Fairgrounds (also called Orange County Fair and Event Center or OCFEC) created by a team of Johnson Consulting, HPI Architecture, and landscape architects SWA relies upon a $170 million bond issue to fund projects including doubling the size of the Administration Building, moving the Main Entrance about 200 ft closer to the 55 Freeway, demolishing the Equestrian Center, and reviving a parking garage next to a residential neighborhood cancelled in 2015 after loud neighborhood opposition, among other changes. The $170 million bond funding proposal was glossed over in two slides which are deficient in material facts, at the most charitable. As you consider these matters, remember that over a quarter of a million dollars has been paid to the consultants to create this work product in addition to countless hours of staff and Board Directors involved with the Master Site Plan process.

OCFEC was founded in 1949 by a grant of land from the former Santa Ana Army Air Base (SAAAB) for use as a public park, fairground, and recreation. Download the deed and most recent title report  

Since 1949, construction has been financed without going into debt. This has allowed OCFEC to weather economic problems better than other fairgrounds.  For unknown and unclear reasons, Johnson Consulting, HPI Architecture, and SWA propose a high priced set of projects of little real value which could bankrupt OCFEC or force a major change in operations while causing long term and irreversible harm to the surrounding residential neighborhoods. This process cost over a quarter of a million dollars in consultant fees, uncounted staff time, and took over a year to conduct.  More scrutiny is needed of what has transpired before the Master Site Plan process can move ahead. 

The two slides about bond finacing presented by Johnson Consulting, HPI Architecture and SWA follow and can be downloaded here  Download Financials_CHJC-OCFEC-Board-Presentation-April-2018

Balance Sheet Bond Slides_Board-Presentation-April-2018

Phases Bond Slides_Board-Presentation-April-2018

Bond Payments are Missing from the Financial Projections

The phased build out of the Master Site Plan proposal takes more than a decade and relies on $170 million in bond financing. No analysis of the impacts of bond financing or supporting information is presented in the April 2018 proposal. The hard consequences of the massive debt issue are ignored, at the most charitable. Payments for the bonds are missing from the financial projections prepared by the consultants.  Estimated payments on a one time capital infusion of $170 million at 6% is about $15 million per year for 30 years.  Johnson Consulting, HPI Architecture, and SWA slides show project phases being paid for and revenues generated by the phases but do not show the $15 million per year deduction needed to pay for the $170 million in bond debt.  

When asked about this during the April 2018 Board meeting, representatives from Johnson Consulting seemed surprised that this was an issue. 

 

Nearly Half a Billion Dollars Paid Out to Build What Amounts to Parking Lots

Interest more than doubles the $170 million bond to $450 million (30 years X $15 million/year = $450 million). Paying nearly half a billion dollars to build what amounts to a few more parking places is insane. This proposal was a non-starter and should have been shredded instead of being brought forward. 

 

Project Locked In & Cannot Be Changed Under Bond Financing

Bond financing locks in a project once the bonds are underwritten. The underwriting process sets the cash flows which must be obtained to maintain solvency and to meet debt covenants entered into as part of the bond underwriting process. It is difficult if not impossible to change a project once the bonds are sold. A future Board would face a high if not impossible hurdle to changing a project funded by bonds.  Representatives from Johnson Consulting did not mention this during the April 2018 Board meeting and it is not clear if OCFEC Directors understand that bond financing locks in a project. 

 

No Good Choices Come from $170 Million in Bonds: Bankrupt OCFEC or Quadruple Annual Revenues to Pay Debt Service 

Annual payments on the $170 million bond issue are $15 million per year for 30 years at 6%. Each and every year a $15 million check needs to be written to pay off the debt of building what amounts to parking lots. Current OCFEC operations have revenues of around $45 million per year and around 10% in net proceeds in 2017 which is about $4.5 million. How is that going to pencil out? 

Choose to Declare Bankruptcy: Once the $15 million annual debt payment starts, current reserves of about $45 million only last a few years until an over $10 million deficit occurs each year because the $4.5 million in annual net proceeds is not enough to pay the $15 million in debt payment.  At that point, OCFEC faces long term insolvency of their own making. A private company could declare bankruptcy to restructure the debt but it is not clear what happens to a state agency which becomes bankrupt caused by actions of the state agency.

Choose to Quadruple Annual Revenues to Avoid Bankruptcy: Quadrupling annual revenues from $45 million to about $180 million can produce annual net proceeds of $18 million, if everything goes just right. Annual revenues of $180 million pay the annual debt bill due but do not provide enough cash flow to re-build depleted cash reserves. Going to five (5) times annual revenues which is about $225 million per year allows debt to be paid and reserves to be re-built.

Achieving annual revenues of at least $180 million will bring heavy year round use of OCFEC such as that experienced by the residential neighborhoods during the annual OC Fair. Traffic will clog public streets, lights and noise will continue into the night every night of the year and it is unclear if the drive to book events for the sake of booking events will be kicked into hyperdrive to make more money to stay solvent. Who knows what events will be booked to make at least $180 million a year in revenues.

The current buildings may not be enough to bring in $180 million in annual revenues. New buildings may be needed to have more events to make the minimum required $180 million in annual revenue. New buildings will need new debt financing because OCFEC does not have significant reserves at this time because OCFEC is barely keeping up with what they owe. More debt needs more revenue and the debt death spiral of OCFEC becomes obvious. OCFEC destroys College Park, Mesa del Mar, and Vanguard neighborhoods along with themselves with self-created problems arising from their greed.

Johnson Consulting, HPI and SWA did not discuss the financially destructive nature of the proposal brought forward by their firms.  The Public is owed answers from Johnson Consulting, HPI and SWA regarding these matters. 

 

Bond Financing Proposal Shows Why Audits of Fairgrounds Operations are Needed

The April 2018 Master Site Plan should have never seen the light of day and was treated like a homework assignment that had to be handed in to be checked off in a grade book.  Consultants and staff handed in their homework and expected a star sticker in return but were met with well earbed negative responses and hard questions regarding the plans. Over a quarter of a million dollars has been paid to consultants who did not seem to notice that their proposal would offer OCFEC a choice between bankruptcy or destroying OCFEC along with the quality of life in the surrounding neighborhoods. Board Directors who wanted to press forward on the Master Site Plan process without having a workable, buildable plan which is supported by the Public in hand are not serving the interests of the Public who own OCFEC and whom the Directors represent.  

A Board Director who touts her financial credentials did not question the impact of the bond payments on OCFEC solvency and wanted to hurry the process along for the sake of moving things along. A Director such as this is not needed and may find themselves to be happier outside the scrutiny of the Public and with more free time to use as they choose. We thank you for your service and wish you well on your future endeavors. 

 

What Needs to Happen to Regain Public Trust
Work on the Master Site Plan needs to stop.  An audit of the Master Site Plan process is needed to find out where the money went, how two sets of Master Site Plan proposals which were not acceptable to the Public and destroy the nature of  OCFEC were brought forward and who could benefit from these proposal, among other questions to be answered. 

The Voice of OC has joined Director Nick Berardino in calling for a performance auditor to be hired at OCFEC to aid in staff oversight. Empowering a performance auditor is supported. Hiring a performance auditor is money well spent and needs to happen as soon as possible.

  

Contact Information to Follow Up on Issues

Contact the Fair Board 

Chair Barbara Bagneris bbagneris@ocfairboard.com
Vice Chair Robert Ruiz rruiz@ocfairboard.com
Newton Pham npham@ocfairboard.com
Sandra Cervantes scervantes@ocfairboard.com
Stan Tkaczyk stkaczyk@ocfairboard.com
Doug La Belle dlabelle@ocfairboard.com
Gerardo Mouet gmouet@ocfairboard.com
Ashleigh Aitken aaitken@ocfairboard.com
Nick Berardino nberardino@ocfairboard.com

Contact CEO Kathy Kramer kramer@ocfair.com

Contact VP of Operations Ken Karns  kkarns@ocfair.com

Contact the Governor's Appointments Secretary Mona Pasquil Rogers at mona.pasquil@gov.ca.gov to discuss OCFEC Director performance issues. Fair Board Directors are appointed by the Governor and may be removed for cause by the Governor at any time. (Cal. Food & Agriculture Code § 3959-3960.)

Contact Parent State Agency OCFEC is a state agency under the California Department of Food and Agriculture (CDFA)  because OCFEC is a state run county fair created to support California agriculture. Please refer to as OCFEC as the 32nd District Agricultural Association (32nd DAA) when dealing with the state.

CDFA Secretary Karen Ross 916-654-0433 secretary.ross@cdfa.ca.gov

Fairs and Exhibitions (F&E) are under the Marketing Services Division. 

F&E Branch Chief John Quiroz 916-900-5025 john.quiroz@cdfa.ca.gov


April 2018 OC Fairgrounds Master Site Plan Concept and Proposed Phasing Released

The OC Fairgrounds (Orange County Fair and Event Center aka OCFEC) has released the draft of the process for the Master Site Plan and draft proposal with phasing of costs. Problematic elements featured in the prior Master Site Plan proposal such as demolition of the recently constructed Main Mall and construction of massive convention center buildings have been removed from the proposal. The proposed phasing of the construction is:

Phase I - Expand Administration Building at a cost of $22.9 million.
Phase II - Replace livestock barn, upgrade Action Sports Arena & equestrian facilities relocation and upgrade at a cost of $21.8 million.
Phase III - Repurpose current equestrian center space at a cost of $16.1 million.
Phase IV - Build new education center and upgrade Centennial Farm at a cost of $27.4 million.
Phase V - Install perimeter fence at a cost of $9.4 million. 
Phase VI- Relocate Main Entrance to align with Main Mall at a cost of $50.8 million. 
Phase VII - Build parking garage and bridge to OCC at corner of Fairview Road and Arlington Drive. 
 
A draft proposal is posted to be considered at the April 2018 Board meeting and is available for download here.  Download CHJC-OCFEC-Board-Presentation-April-2018-FINAL-DRAFT_040218
 
The constraints placed on the proposal included:
  •  No negative impact on the annual fair

  • Engage the OC Marketplace ownership on proposed changes

  • Review parking and engage Orange Coast College in parking opportunities

  • Insure education facility needs are reviewed

  • Re-visit community opportunities

  • Review Equestrian Center and Equine opportunities

The Master Site Plan Process Milestones to date are:

  1. Early to mid-2016 developed a Request for Proposal (RFP) to find a Master Site Planning (MSP) consultant

  2. Awarded a consulting contract to Johnson Consulting November 2016

  3. First quarter of 2017 information gathering

  4. January 2017 OCFEC Board of Directors stakeholder meeting

  5. March 2017 OCFEC staff stakeholder meeting

  6. April 2017 on grounds partners stakeholder meeting

  7. May 2017 facility users stakeholder meeting

  8. June 2017 Community partners stakeholder meeting

  9. June 2017 Town Hall public meeting

  10. September Board of Directors workshop

  11. Late 2017 early 2018 Develop CEQA consultant RFP

The next steps are:

  1. April 2018 Board of Directors workshop – work towards finalizing draft MSP concept

  2. Date, TBD, (Evening, May 2018) hold public meeting to present the draft MSP concept

  3. April 2018 award CEQA consultant contract

  4. Over the next several months work through the CEQA process


Community-Centered Alternatives to Consider for OC Fairgrounds Master Site Plan

During May 2017, a group of residents met with OC Fairgrounds (Orange County Fair and Event Center aka OCFEC) staff and presented their ideas for how to improve the OCFEC during the Master Site Plan process. The complete presentation is available here  Download Community Master Plan Executive May 17

 Highlights from the presentation are follow.

Proposals center on the Community, Agricultural, Recreational, Educational Space and Programming (CARES Space and Programming). This is a community-centered series of alternatives. These are reasonable and feasible alternatives which maintain current programming while allowing for increased use by both the community and revenue generating groups.

CARES_Community Master Plan Executive May 17 (1)

Alternative 1 is to remodel and improve existing structures which are currently in use. 

Alt1 Community Master Plan Executive May 17 (1)

The next 4 alternatives create green space by relocating parking to a parking structure behind the billboard at the corner of Newport Blvd and Fair Drive. A legal settlement with the City of Costa Mesa limits occupancy outside of the annual OC Fair to about 25,000 persons, which is about the number served by the current number of parking places. No new parking spaces need to be added because of the cap on occupancy. However, parking can be relocated to create open space and make the OC Fairgrounds feel more like a fairground and less like a huddle of buildings hiding in the back of a huge parking lot. 

Alternatives include moving the main entrance to Newport Blvd and making the needed changes to make traffic move quickly off the 55 Fwy and into the parking lots. Stacking traffic waiting to park or making cars turn onto Fair Drive and then onto Fairview Road or even onto Arlington Drive to park should be eliminated because OCFEC has more than enough space to stack cars waiting to park on their property and not on City streets. 

Walking paths are included in the Alternatives to connect the Arlington Drive trail with the interior of the property to provide recreation the the community and to aid in pedestrian flow inside the property.

Alt 2 Community Master Plan Executive May 17 (1)

Unlike the Master Site Plan proposals brought forward by Johnson Consulting, the open space was supposed to be open space with grass or plants and not trees in a parking lot as proposed in the proposals from Chicago based Johnson Consulting. The alternatives also maintain the current footprint of the annual OC Fair. 

Alt 3 Community Master Plan Executive May 17 (1)

Alt 4 Community Master Plan Executive May 17 (1)

Alt 5 Community Master Plan Executive May 17 (1)

What are your ideas for a new Master Site Plan for the OCFEC?

 


OC Fairgrounds Master Site Plan Information from March 2018 Board Meeting

Attention Question (1)

During the March 22, 2018 OC Fair Board meeting at the Orange County Fair and Event Center, the following updated information regarding the Master Site Plan process was provided:

  • A workshop will be held during the Thursday, April 26, 2018, Board meeting. The meeting starts at 9 AM with the workshop scheduled to begin around 10:30 AM.  If you want to speak during the workshop, your card to speak must be handed in before the meeting begins at 9 AM. 
  • More than one site plan concept will be brought forward to the Board Directors.
  • Work product from Johnson Consulting hired to manage the Master Site Plan process will be posted on the OC Fair website on or around April 2, 2018. The work product posted is promised to be the same as the information given to the Board. 
  • A second workshop to be held in the evening during early May has been promised but not scheduled as of this time.
  • A request for proposal (RFP) for services related to the California Environmental Quality Act (CEQA) has been released.
  • The Board Directors will review draft concepts at the May 24, 2018, Fair Board meeting. The formal CEQA process will start after the draft concepts are reviewed.
  • No final selection of a plan will take place until after the Environmental Impact Report (EIR) is certified.
  • The CEQA process is expected to take 6 to 8 months.

OC Fair Board Director Contact Info Added May 3, 2018

Chair Barbara Bagneris bbagneris@ocfairboard.com
Vice Chair Robert Ruiz rruiz@ocfairboard.com
Ashleigh Aitken aaitken@ocfairboard.com
Nick Berardino nberardino@ocfairboard.com
Sandra Cervantes scervantes@ocfairboard.com
Doug La Belle dlabelle@ocfairboard.com
Gerardo Mouet gmouet@ocfairboard.com
Newton Pham npham@ocfairboard.com
Stan Tkaczyk stkaczyk@ocfairboard.com

Questions to Executive Management can be sent to CEP Kathy Kramer kkramer@ocfair.com and VP of Operations Ken Karns kkarns@ocfair.com.  

 

 

 

 

 

 


"No Cost Rentals" at OC Fair & Event Center Are a Good Idea But More Details Are Needed

Chicken Scooter Question (2)

The Orange County Fair and Event Center (OCFEC) also known as the OC Fairgrounds is owned and operated by the state of California (called the 32nd District Agricultural Association or 32nd DAA) and has recently started a "No Cost Rental" program for non-profits, community groups and government agencies.  This is a good move, but more information is needed about how to apply for the program, what is included, what is excluded, and how the program will be administered in a content and values neutral way which does not discriminate or display favoritism.

 A list of a dozen questions to start to clarify how the No Cost Rental program works were sent to CEO Kathy Kramer and the Board of Directors. If we hear back on this, we will post the information.

  1. Please provide copies of any and all policies and procedures regarding the No Cost Rentals program.

  2. Please provide information regarding the application process for the No Cost Rental program and the supporting documentation which must be submitted during the application process.

  3. Please provide information regarding how eligibility to participate in the No Cost Rental program is determined.

  4. Please provide information regarding the screening process for applications to participate in the No Cost Rental program.

  5. Please provide information regarding the limitations placed on the No Cost Rental program including number of times an eligible group may participate, budget, schedule, and any other limitations on the No Cost Rental program.

  6. Please provide information regarding exclusions placed on the No Cost Rental program including schedule, facility, cost, and any and all other exclusions.

  7. Please provide information regarding the decision made to allow or not allow participation in the No Cost Rental program including: decision criteria; decision process; 32nd DAA Executive Management, and staff participating in the decision; and the appeals process when participation in the No Cost Rental program is not allowed.

  8. Please provide information regarding costs, fees, reimbursement, and charges included in the No Cost Rental program.

  9. Please provide information regarding costs, fees, reimbursements, and charges excluded from the No Cost Rental program.

  10. Is the No Cost Rental program in addition to or a substitute for the existing discounts given to non-profit groups and the rental assistance program previously announced?

  11. If the answer to (10) is “yes”, please provide information regarding existing discount and rental assistance programs which are altered or discontinued by No Cost Rental program.

  12. Please provide information regarding how the No Cost Rental program will be administered in a viewpoint and content neutral non-discriminatory manner.

Contact CEO Kathy Kramer kkramer@ocfair.com

Contact VP of Business Development Michele Richards who approves facility bookings  mrichards@ocfair.com

Contact the OCFEC Board Added May 3, 2018

Chair Barbara Bagneris bbagneris@ocfairboard.com
Vice Chair Robert Ruiz rruiz@ocfairboard.com
Ashleigh Aitken aaitken@ocfairboard.com
Nick Berardino nberardino@ocfairboard.com
Sandra Cervantes scervantes@ocfairboard.com
Doug La Belle dlabelle@ocfairboard.com
Gerardo Mouet gmouet@ocfairboard.com
Newton Pham npham@ocfairboard.com
Stan Tkaczyk stkaczyk@ocfairboard.com

Public Records Requests cpra@ocfair.com


Clarifying "Community Use" in the Master Site Plan

Man Question (2)

Statements have been made that the 20,000 sq ft  ballroom and 50,000 sq ft to 150,000 Ag-Expo Center shown in the Master Site Plan proposals are for "community use".  It's not clear what is driving the perceived need for a massive amount of "community use" space at the OC Fairgrounds, and a letter was sent to the Directors asking for more information about "community use" claims. The letter is as follows: 

Members of the community are trying to understand how the Educational Meeting Center with a 20,000 sq ft ballroom, the Ag-Expo Center ranging from 50,000 sq ft to 150,000 sq ft, and other new buildings proposed to be included in the Master Site Plan will be used only for community use and not for commercial rental use. I am seeking your assistance in obtaining information about community usage of facilities at the 32nd District Agricultural Association (32nd DAA). Please assist the public by providing the following information to help us better understand what is being contemplated:

1 .Please identify community groups which wanted to have events at the 32nd DAA but were unable to conduct the event due to inadequate facilities for their event for the period from 2015 to present.


2. For each community group identified in (1), please provide a description of the event, the planned date(s) of the event, and the reasons stated by the community group for not being able to hold the event at the 32nd DAA.


3. Please identify community groups which wanted to have events at the 32nd DAA but were unable to conduct the event due to budget concerns for the period from 2015 to present.


4. For each community group identified in (3), please provide information regarding the proposed budget and the actual budget needed to conduct the event at the 32nd DAA.


5. Please identify community groups which have used the conference rooms in the Administration Building for the period from 2015 to present.


6. For each community group identified in (5), please provide a description of the event, the planned date(s) of the event, and the cost of the event for the period from 2015 to present. If a contract was signed, a copy of the fully executed contract with all amendments, riders, and attachments, and event reconciliation should be provided.


7. Please provide copies of fully executed contracts with all amendments, riders, and attachments and event reconciliations for all events considered to be “community events” by the 32nd DAA for the period from 2015 to present.

 

8. Please provide copies of any and all documents, studies, research, and analysis of the need for community use facilities in Orange County which were considered in the Master Site Plan process for the period from 2015 to present. 

Contact CEO Kathy Kramer at kkramer@ocfair.com

Contact VP of Operations Ken Karns who is in charge of the Master Site Plan at kkarns@ocfair.com

Contact Fair Board Directors Added May 3, 2018

Chair Barbara Bagneris bbagneris@ocfairboard.com
Vice Chair Robert Ruiz rruiz@ocfairboard.com
Ashleigh Aitken aaitken@ocfairboard.com
Nick Berardino nberardino@ocfairboard.com
Sandra Cervantes scervantes@ocfairboard.com
Doug La Belle dlabelle@ocfairboard.com
Gerardo Mouet gmouet@ocfairboard.com
Newton Pham npham@ocfairboard.com
Stan Tkaczyk stkaczyk@ocfairboard.com


Gun Show at OC Fairgrounds Shows Room for Improvements in Transparency & Accountability

Check It Out (1)

Students are walking out of school on March 14, 2018, to protest the deaths of students and others from gun violence. While Los Angeles County bans gun shows, Orange County allows gun shows. The Crossroads of the West gun show takes place at the Orange County Fair and Event Center (OCFEC), also known as the OC Fairgrounds, several times a year and is a steady source of over $300,000 in annual facility use revenue in addition to parking and concessions revenues.  About a year ago, OCFEC closed for the weekend because the Make America Great Again rally announced that they would hold their unpermitted rally near Fair Drive and Fairview Road on the same weekend as the Crossroads of the West gun show, which caused the cancellation of the gun show for that weekend. The irony is the gun show caused their own cancellation because they agreed to host the Make America Great Again rally without permission to do so.  The gun show was allowed to reschedule the date of the show which was cancelled due to their own actions. 

A recent trip to the gun show raises questions about the conduct of the show including:

  • Photography and video recording are prohibited.
  • A list of of sellers is not available.
  • A "pentagon AR-15 coupler" which attaches five ten-round magazines to an AR-15 was for sale. This apparently legal workaround allows up to fifty rounds to be fired in quick succession. The video linked to is for illustrative purposes only.
  • Several gun show sellers specialize in AR-15 weaponry and accessories.
  • It is not clear if a person is able to obtain the parts needed to assembly an AR-15 from the sellers at the gun show. 
  • Booths do not have signs with the name of the business at each and every booth and not all booths had marketing materials or business cards with the business name and contact information.
  • A number of sellers do not match to a list of Costa Mesa business licenses although a Costa Mesa business license is required to conduct business at OCFEC.  See Costa Mesa Municipal Code Title 9, Chapter I to learn more about business license requirements. A Costa Mesa business license allows sales tax generated at OCFEC to be paid to the City of Costa Mesa, Orange County, and Orange County Transportation Authority (OCTA), among other agencies. OCTA uses the M1 and M2 OC Go sales tax increments to fund transportation improvements.  
  • Pawn shops which are called "second hand dealers" in statute are among the sellers.  Pawn shops/ second hand dealers need permission from the Costa Mesa Police Department to operate in Costa Mesa. See Costa Mesa Municipal Code Title 9, Chapter II, Article 12 to learn more about business license requirements for pawn shops/ second hand dealers. 
  • A man was observed pushing a hand truck with a box of ammunition for sale throughout the show for several hours. He was holding a handwritten cardboard sign asking people to purchase items from his box. There was less product in the box later in the day than at the beginning of the day.

 

Reform of gun laws is outside the jurisdiction of the OCFEC Board but the Board can require changes to be made in the way all public events are conducted on the property. Shows open to the public, with free or paid admission, should publish a list of all sellers and exhibitors at the event. The list should state the business name, mailing address, phone number, and email to allow sellers and exhibitors to be contacted outside of the show. Show promoters should be required to have the list available at the show and the information should be kept on file by the OCFEC staff to be provided to the public. One simple change to enhance transparency and accountability which is within the grasp of the OC Fair Board is a step in the right direction. 

Contact CEO Kathy Kramer kkramer@ocfair.com

Contact VP of Operations Ken Karns kkarns@ocfair.com

Contact VP of Business Development Michele Richards mrichards@ocfair.com

Contact the OCFEC Board Added May 3, 2018

Chair Barbara Bagneris bbagneris@ocfairboard.com
Vice Chair Robert Ruiz rruiz@ocfairboard.com
Ashleigh Aitken aaitken@ocfairboard.com
Nick Berardino nberardino@ocfairboard.com
Sandra Cervantes scervantes@ocfairboard.com
Doug La Belle dlabelle@ocfairboard.com
Gerardo Mouet gmouet@ocfairboard.com
Newton Pham npham@ocfairboard.com
Stan Tkaczyk stkaczyk@ocfairboard.com

Public Records Requests cpra@ocfair.com

 

 

 


Master Site Plan: "Development Report"

When Everything is for Sale (1)

The Master Site Plan process is a revenue centered process, not a community, education, agriculture, or recreation centered process.  This is the section from the winning proposal for the Master Site Plan process which discusses the plans for development of the Master Site Plan. It should be noted that multiple requests have been made for documents regarding this work and no documents have been produced. [A] This section is from pgs. 24-25 of the C. H. Johnson Consulting, Inc. proposal:

TASK 8 – MASTER SITE PLAN DEVELOPMENT

This task will produce a Master Site Plan Report containing summary of key findings and initial recommendations for planning and future use of the Fairgrounds. Our recommendations will stem from a thorough understanding of background data, community input, operational and facilities optimization, market demand, and the OCFEC mission, thereby translating community-based programming and operational strategies into physical place-making that serves the County for generations to come.

The master site planning will include evaluation of local market demand to formulate and evaluate alternative approaches to uses, relationship of uses, phasing, and integration of existing activities.

The cohesive development of a comprehensive, data-driven, visionary MSP will be the culmination of the well- established fluid exchange of information (data) and ideas from the Internal and Community Stakeholders which will empower the 32nd District Agricultural Association’s Board of Directors to make the most informed decisions regarding the future of how OCFEC will fulfill its Mission Statement: “Celebration of Orange County’s Communities, Interests and Heritage.”

TASK 8.1 – MASTER SITE PLAN

Following the Options Workshop/Meetings, and based on additional input from internal and community stakeholders, we will prepare a Master Site Plan with initial recommendations for future use of the OCFEC site and facilities.

Our team’s approach to physical master planning will stem from an understanding of local conditions and an intimate relationship with the site, including topography, drainage, existing uses, relationship to surroundings, and the social context of human activities. It will incorporate sustainable, low impact development techniques that will allow a more intensified program of uses to “sit lightly” on the land. The master plan will be suitable as a basis for detailed site planning and entitlement processing to be conducted as part of a future contract.

The master planning process will translate community-based, evidence-driven programming and operational strategies into physical place-making. This will include alternative land use concepts that describe different approaches to uses, relationship of uses, phasing, and integration of existing activities.

  • Establish zones for County Fair and other major events, active and passive open space, neighborhood and community destinations and recreation, and economic “drivers” including an optimized mix of new infill development.

  • Integrate usable buildings and outdoor spaces that will provide efficiency and serve as high-functioning venues for community activities.

  • Address site drainage through sustainable system integrated into the roadway and open space network.

  • Incorporate sustainable landscape strategies and a multi-purpose open space system.

  • Design for walkability and interconnected urban form and compact relationship of complementary uses.

  • Create possibilities for a hierarchy of circulation, entry, identity, and image for key landmarks, with more private or support uses buffered and served by more minor roadways.

TASK 8.2 – PREPARE REPORT DELIVERABLES

The Consulting Team, in conjunction with the Executive Management Team and Key Management Support, and Master Site Plan Committee, will prepare drafts and a final fully documented 10-Year OCFEC Master Site Plan that addresses the best options for the District and addresses all of the key issues and planning process listed in your RFP. A presentation will be made to the full Board of Directors for review prior to implementation.

 

[A] The documents showing the work performed may have been disposed of or in the custody or control of another unnamed state or local agency or may not be able to be located according to CEO Kathy Kramer. 

Contact CEO Kathy Kramer at kkramer@ocfair.com

Contact VP of Operations Ken Karns who is in charge of the Master Site Plan at kkarns@ocfair.com

Contact Fair Board Directors Ashleigh Aitken, Barbara Bagneris, Nick Berardino, Sandra Cervantes, Doug La Belle, Gerardo Mouet, Newton Pham, Robert Ruiz, Stan Tkaczyk by emailing Summer Angus sangus@ocfair.com

C. H. Johnson Consulting, Inc. from Chicago, IL  is the contractor for the Master Site Plan process. A copy of the entire proposal is available on the "OC Fairgrounds Documents" page listed on the right side of this page. We have no idea why the OC Fairgrounds hired a company from Chicago and could not find a planning firm in the Los Angeles-Orange County area or even in California.   

This is one in a series of posts looking at individual Master Site Plan tasks to gain a greater understanding of how the OC Fair Board Directors (Ashleigh Aitken, Barbara Bagneris, Nick Berardino, Sandra Cervantes, Doug La Belle, Gerardo Mouet, Newton Pham, Robert Ruiz, Stan Tkaczyk) and Executive Management want to push the OC Fairgrounds away from being the fairground we currently enjoy. 

 


More About the Master Site Plan Process: Financial Plans, Projections & Funding Sources

When Everything is for Sale (1)

The Master Site Plan process is a revenue centered process, not a community, education, agriculture, or recreation centered process.  This is the section from the winning proposal for the Master Site Plan process which discusses financial plans and projections. It should be noted that multiple requests have been made for documents regarding this work and no documents have been produced. [A] This section is from pgs. 23-24 of the C. H. Johnson Consulting, Inc. proposal:

TASK 7 – FINANCIAL PLAN & PROJECTIONS [A]

This Task commenced in Task 5 and will be finalized in this Task (Task 7). It will consider the initial work done by all parties and will result in finalized financial projections, considering revenue, expenses and profit from each business element as well capital improvement assumptions prepared by HPI.

Based on the market data and demand projections, working closing with the Executive Management Team and the Audit Consultant, the Consulting Team will prepare a 10-year operating pro forma for the proposed OCFEC initiatives discussed in the previous tasks. The model will list all revenues and fixed and variable expenses in line-item detail throughout the period of the projection, and include data for each individual type of business use initiative.

The analysis will document OCFEC’s approach to delivery of services, such as staffing, food and beverage, parking, and other major line items affecting the operation, thus providing the District with a clear understanding of how the initiative will earn and spend money, fit into the broader operations of the OCFEC, and what the expected financial picture will be at the end of each year. To the extent that public dollars are to be used to support operations, capital improvements, or other items, these sources will also be considered and integrated into the financial analysis.

We will also offer a specific discussion regarding revenue sources that are available to public assembly facilities, including benefactor naming rights and other specialized revenue streams, such as advertising, and based on market conditions.

The Team will outline potential funding sources that could be considered for the proposed OCFEC business initiative, as well as for ongoing operating support, that will consist of a detailed analysis for each option. These approaches may include private investments, incentives, sales, meals and room taxes, Tax Increment Finance Districts, revenue bonds, empowerment/enterprise zones, tax-exempt bonds, and taxable bond revenue streams, among other tools.

[A] The documents regarding the work performed may have been disposed of or in the custody or control of another unnamed state or local agency or may not be able to be located according to CEO Kathy Kramer. 

Contact CEO Kathy Kramer at kkramer@ocfair.com

Contact VP of Operations Ken Karns who is in charge of the Master Site Plan at kkarns@ocfair.com

Contact Fair Board Directors Ashleigh Aitken, Barbara Bagneris, Nick Berardino, Sandra Cervantes, Doug La Belle, Gerardo Mouet, Newton Pham, Robert Ruiz, Stan Tkaczyk by emailing Summer Angus sangus@ocfair.com

C. H. Johnson Consulting, Inc. from Chicago, IL  is the contractor for the Master Site Plan process. A copy of the entire proposal is available on the "OC Fairgrounds Documents" page listed on the right side of this page. We have no idea why the OC Fairgrounds hired a company from Chicago and could not find a planning firm in the Los Angeles-Orange County area or even in California.   

This is one in a series of posts looking at individual Master Site Plan tasks to gain a greater understanding of how the OC Fair Board Directors (Ashleigh Aitken, Barbara Bagneris, Nick Berardino, Sandra Cervantes, Doug La Belle, Gerardo Mouet, Newton Pham, Robert Ruiz, Stan Tkaczyk) and Executive Management want to push the OC Fairgrounds away from being the fairground we currently enjoy. 

 


"Vetting of Business Opportunities" Key Component of Master Site Plan Process

When Everything is for Sale (1)

The Master Site Plan process is a revenue centered process, not a community, education, agriculture, or recreation centered process.  This is the section from the winning proposal for the Master Site Plan process which discusses business opportunities. It should be noted that multiple requests have been made for documents regarding this work and no documents have been produced. [A] This section is from pgs. 20-21 of the C. H. Johnson Consulting, Inc. proposal available the OC Fairgrounds Documents page:

TASK 5 - VETTING BUSINESS OPPORTUNITIES

This task will produce a report containing a summary of independent business cases for future uses/ initiatives of the OCFEC based upon vetted business ideas, opportunities and findings. The Team’s work will stem from a thorough understanding of background data, community input, operational and facilities optimization, market demand, and the District’s guiding principles; thereby translating community-based programming and operational strategies into physical placemaking that serves the District for generations to come.

The planning process will include evaluation of local market demand to formulate and evaluate business opportunities/ ideas, alternative approaches to existing and/ or proposed uses, relationship of uses, phasing, and integration of existing activities.

TASK 5.1 – MARKET AND DEMAND ANALYSIS [A]

The methodology we propose to assess market demand and estimate overall performance for each business sector is outlined below:

Market Demand and Supply Analysis:  We will analyze pertinent economic, demographic, and market factors that impact land use, business expansion, and space utilization within the area surrounding the site which could contribute to overall planning opportunities. This analysis will focus on key economic and real estate issues such as market demand and supply conditions and includes a trade area analysis of retail/entertainment (not including fairgrounds), office, residential, and others. The goal is to provide a comprehensive understanding of market conditions for the overall site.

Estimated Market Performance: Based upon our analysis of market demand and our recommendations outlined in the preceding work steps, we will address the market performance of the indicated uses. For each specific use, we will also profile operating expense information based upon information gathered and summarized in preceding tasks, as well as general information provided through industry resources and other credible secondary sources of information.

Cash Flow Analysis: From the results of the estimated market performance of potential additional/alternative business uses,which are the supporting mechanisms for pricing, performance, operating, and cost assumptions, we will prepare comprehensive cash flow analysis.

The demand profile, current cost structures, and data from existing operations as well as comparable facilities will be used to model the operating revenues and expenses of the proposed uses. Johnson Consulting has modeled numerous similar fairground facilities and will draw on its experience with these facilities. Projections will extend over a 10-year period.

Economic and Fiscal Impact Analysis: Each aspect of the business model will be added to the market. The procedures for the Economic and Fiscal analysis are described in the specific task requested in the RFP in Task 9, below.

TASK 5.2 – JUSTIFICATION/ P&L FOR EACH BUSINESS CASE  [A]

We will work with the MSP Committee to develop a justification analysis for the District on the advantages and/or disadvantages of the OCFEC relative to certain uses. We will develop a P&L and opportunities-and- constraints diagrams based on information obtained and review of the various business case initiatives proposed.

TASK 5.3 – PREPARE REPORT DELIVERABLE  [A]

Based on the Market Demand Analysis, we will research and report on the opportunities/ideas for planning and future business case uses of the OCFEC, as well as constraints. The Business Case Report will include business cases for uses of whatever portion of the venue is not needed for the OC Fair, Centennial Farm, Pacific Amphitheatre, Imaginology, Heroes Hall, and the other anticipated current programmed events and community-based activities, and will include rough schematic drawings of at least three (3) possible alternative facility and/or land use configurations for possible business initiatives, including their relative strengths and weaknesses. It will be both qualitative and quantitative, providing approximate market value estimates for what alternative business use can generate as potential ground rent to the District, for the area considered for new initiatives.

[A] The documents regarding the work performed may have been disposed of or in the custody or control of another unnamed state or local agency or may not be able to be located according to CEO Kathy Kramer. 

Contact CEO Kathy Kramer at kkramer@ocfair.com

Contact VP of Operations Ken Karns who is in charge of the Master Site Plan at kkarns@ocfair.com

Contact Fair Board Directors Ashleigh Aitken, Barbara Bagneris, Nick Berardino, Sandra Cervantes, Doug La Belle, Gerardo Mouet, Newton Pham, Robert Ruiz, Stan Tkaczyk by emailing Summer Angus sangus@ocfair.com

C. H. Johnson Consulting, Inc. from Chicago, IL  is the contractor for the Master Site Plan process. A copy of the entire proposal is available on the "OC Fairgrounds Documents" page listed on the right side of this page. We have no idea why the OC Fairgrounds hired a company from Chicago and could not find a planning firm in the Los Angeles-Orange County area or even in California.   

This is one in a series of posts looking at individual Master Site Plan tasks to gain a greater understanding of how the OC Fair Board Directors (Ashleigh Aitken, Barbara Bagneris, Nick Berardino, Sandra Cervantes, Doug La Belle, Gerardo Mouet, Newton Pham, Robert Ruiz, Stan Tkaczyk) and Executive Management want to push the OC Fairgrounds away from being the fairground we currently enjoy.