A real estate management firm will procure the Orange County Fairgrounds, California’s state-owned property for $100 million as part of dealing with the state’s budget problem. According to state officials on Wednesday, Facilities Management West would put-together $20 million as an initial payment for the Costa Mesa, a state-owned property.
The Department of General Services said that Facilities Management West could pay the initial down payment and then pay-off the rest of the amount for the next 35 years.
According to the department’s acting director, Ron Diedrich, the sale of the 150-acre state-owned property will generate new income flow to patch up the state’s budget deficit, as well as preventing more cuts in any government program and avoiding a possible tax increase.
General Services’ officers originally estimated the worth of the fairground between $96 million to $180 million. The property also received bids which range from $1,000 to $56 million, but it was rejected last year by the state because it’s too low.
Residents and local politicians have raised their opinions and opposition regarding the selling of the state-owned property. The fairgrounds have hosted the yearly Orange County Fair since 1949.
Jose Solorio, a Democratic Assemblyman believes that the state-owned property must stay under public ownership. He also said that there would be a legislation seeking to stop the transaction in December.
Facilities Management spokesman, Guy Lemon pledge in a statement that the firm will be sensitive to the concerns of the community regarding the state-owned property, as well as its historic commitments.