BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 1177                   HEARING DATE: April 13, 2010   

          AUTHOR: Kehoe                      URGENCY: No   
          VERSION: As Introduced             CONSULTANT: Bill Craven 
          DUAL REFERRAL: Food and AgricultureFISCAL: Yes  
          SUBJECT: Agriculture: 22nd District Agricultural Association:  
          greenway zone.  
          
          BACKGROUND AND EXISTING LAW
          Section 3873 of the Food and Agriculture Code establishes the  
          22nd District Agricultural Association. This state agency's  
          activities include the San Diego County Fair and horseracing in  
          the summer at the Del Mar Thoroughbred Club. Its activities  
          occur on state land. The fair is advertised as the largest in  
          the state. The association has approximately 400 acres of land  
          on which it operates these facilities, plus another  
          approximately 50 acres on the east side of I-5.

          The fairgrounds property is surrounded by more than 600 acres of  
          natural habitat including an $80 million restoration project of  
          Southern California Edison that was required for mitigation of  
          the San Onofre Nuclear Generating Station (SONGS). 

          The largest piece of the property used by the agricultural  
          district's facilities is located on the north side of San  
          Dieguito River very close to where the river empties into the  
          Pacific Ocean. The eastern border of the fairgrounds is I-5, and  
          the northern border is a street, Via de la Valle. The southern  
          edge of the property essentially borders the river, although  
          parts of the southernmost lands are in the floodway of the river  
          or are marsh lands.  Jimmy Durante Boulevard bisects the site  
          and provides access to the parking lots and continues southward  
          into the City of Del Mar. The property is bordered by Del Mar  
          and the City of San Diego. 

          The San Dieguito River has a long history of overflowing its  
          banks and flooding the fairgrounds property, including its  
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          parking lots. The fairground is located within the floodplain of  
          the river. 

          The agricultural association is proceeding with its plans to  
          develop a hotel and convention center and other new facilities  
          on the land. Some documents refer to the hotel as a "condominium  
          hotel." These projects are part of a 15 year Master Plan that  
          would be developed in stages. It  proposes a total of 18  
          separate projects including a new parking structure, a hotel and  
          convention center, and a 60,000 square foot sports/fitness  
          complex with lighted playing fields on top of three of the  
          buildings. As a state agency, the proposed project is not  
          subject to the zoning ordinances adopted by the City of Del Mar  
          or the City of San Diego and the tallest proposed buildings  
          would exceed the applicable height limits of the two cities. 

          The site is in the coastal zone and was built on filled  
          wetlands, prior to the Coastal Act. The draft environmental  
          impact report (DEIR) generated significant public and agency  
          comments, including comments from the Coastal Commission and two  
          wildlife agencies, the U.S. Fish and Wildlife Service and the  
          California Department of Fish and Game. 
          The ongoing mitigation of the coastal lagoon has created more  
          than 150 acres of coastal wetlands, restored the flows of the  
          river at its mouth,  more than doubled the presence of bird  
          species and created a huge fish population (estimated at 12  
          million) where once no fish could live. 

          Given that the fairgrounds are within the coastal zone, the  
          Coastal Commission comments were supportive of the district's  
          effort to modernize and improve the visitor experience at the  
          fairgrounds. However, it questioned why the DEIR failed to  
          mention the restoration of the coastal lagoon and the sections  
          of the Coast to Crest Trail that are proposed for the footprint  
          of the proposed fairground complex. It was also concerned that  
          the project could reduce public access to the coast and  
          adversely affect sensitive habitat and wetlands. It expressed  
          concern about the possible proposed filling of wetlands to  
          create parking lots which would not be permissible under the  
          Coastal Act. It was also concerned the proposed hotel and a  
          protective berm would be located within 100 feet of the river,  
          which may not be an adequate setback from the river or adequate  
          to protect sensitive habitat. 

          The commission stated that the proposed project should  
          incorporate a significant greenbelt along the river to enhance  
          recreational user and visitor experience through the area in  
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          ways that are consistent with the Coastal Act. 

          DFG, in conjunction with the U.S. Fish and Wildlife Service,  
          also had a range of comments on the proposed projects effects on  
          biological resources. Specific to the issue of a buffer, these  
          comments noted that while the agricultural district was  
          proposing a narrow buffer adjacent to the river that would  
          include a 10 foot wide public trail, that the proposed buffer  
          was too narrow and inconsistent with Fish and Game Commission  
          policy. The two wildlife agencies recommended a minimum 100 foot  
          buffer between the proposed development and the wetlands in  
          order to minimize potential disturbance of fish and wildlife  
          from noise and human activities. 

          Over the years, as various projects along the San Dieguito River  
          were considered, the cities of Solano Beach and Del Mar often  
          broached the question of how to establish a permanent buffer  
          zone along the river that could be incorporated into the  
          restoration of the lagoon, increase public access to the site,  
          reduce flooding risks, and assist in developing a more robust  
          eco-tourism industry.  Those discussions have not resulted in an  
          agreement. 

          A small portion of the Coast to Crest Trail now exists along the  
          south side of the river. For the trail to be extended inland as  
          proposed, it would need to cross the river to the fairgrounds  
          side in order to avoid some railroad tracks.  

          The administration has signaled its support in selling some of  
          the land. The City of Del Mar has signaled its interest in a  
          purchase. No agreements have been announced. In fact, there is  
          no public information on whether negotiations are underway. 

          PROPOSED LAW
          SB 1177 would direct the agricultural association to consult  
          with DFG and the California Department of Parks (DPR) in  
          designing a greenway of at least 100 feet on fairgrounds  
          property from I-5 west to the railroad tracks along the northern  
          edge of the San Dieguito River. The purpose of the greenway is  
          to enhance and restore the overall quality of the San Dieguito  
          River and the adjacent wetlands and to help reduce flooding. The  
          district would develop and manage a trail in the greenway zone.  
          DFG would consult on habitat issues and DPR would consult on the  
          trail construction. The agricultural association would submit  
          its implementation plan to DFG and DPR prior to July 1, 2011.  
          The two consulting agencies would respond by January 1, 2012.  
          The agricultural association would incorporate the  
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          recommendations of the two agencies and apply for all necessary  
          permits prior to January 1, 2012. The bill directs the  
          association to complete construction by January 1, 2014. The  
          greenway could not be used for development or parking and would  
          be permanently dedicated to the use and enjoyment of the public  
          so that if the fairgrounds is sold, the greenway and public  
          access would remain. 

          ARGUMENTS IN SUPPORT
          According to the author, the buffer zone proposed by the  
          agricultural district is inadequate to meet the needs of the  
          public. Parts of the district's proposed buffer are wide, but  
          those areas are within relatively unusable marshlands. Nearer to  
          the proposed new development, beginning near Jimmy Durante  
          Blvd., the agricultural district proposal is for buffer zone  
          that ranges from 105 feet to 30 feet at its narrowest, including  
          a trail that would be 10 feet wide. Such a narrow buffer would  
          not be suitable for a trail that would be safe for pedestrians,  
          bicyclists, children in strollers, rollerbladers, and visitors  
          in wheelchairs, the author stated. 

          The San Diego River Coalition said its experience with  
          inadequate buffers along its namesake river should not be  
          repeated along the San Dieguito River. Adequate buffers can  
          provide space for groundwater infiltration, natural water  
          treatment capabilities, space for wildlife, and space for  
          people. 

          The San Dieguito River Valley Conservancy underscores the  
          importance of understanding that the fairgrounds property is  
          state land and that the agricultural association is a state  
          agricultural agency. Given the development proposals of the  
          association, the conservancy argues that direct, protective  
          legislation is needed. The conservancy points out that the river  
          is the central feature of the 55-mile regional San Dieguito  
          River Park and is an element in the $86 million lagoon  
          restoration project, and that the development would adversely  
          affect the plan to extend the Coast-to-Crest trail along this  
          stretch of the river. `

          The California Chaparral Institute argues that the restoration  
          efforts in the affected watershed that have been a focus of  
          several nonprofit groups and local governments have the  
          potential to turn this location into one of the great urban  
          parks in the country. 

          San Diego Coastkeeper says that the northern parts of San Diego  
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          County contain a series of lagoons, including San Dieguito, that  
          serve an important role for wildlife and for improving and  
          maintaining water quality. It also supports enhanced public  
          access to this area through the requirements of the greenbelt  
          provision. 

          The Endangered Habitats League supports the greenway in light of  
          the extensive development planned by the agricultural  
          association. 

          ARGUMENTS IN OPPOSITION
          The Del Mar Fairgrounds opposes the bill based in part on its  
          view that the bill would adversely affect the fairgrounds  
          revenues to such an extent that its covenants involved in  
          specific bond agreements would be violated. It projects a $6  
          million decrease in revenues which would trigger the  
          association's inability to meet the minimum bond coverage ratios  
          required in its bond covenants. It also projects a $7 million  
          decrease in food vendor receipts. The Fairgrounds state that the  
          revenue to debt service requirement is 200% and that in recent  
          years, because of the decrease in revenues in the horse racing  
          industry, that the association's  ratios in 2008 and 2009 were  
          216% and 228%, respectively. 

          According to the letter from the fairgrounds, SB 1177 would also  
          affect 1900 jobs at the fair causing an annual loss of $150  
          million to the region, jeopardize capital improvements in the  
          horse-racing facilities, eliminate emergency response to a major  
          portion of the property, increase traffic on Jimmy Durante  
          Blvd., and effect the fairgrounds' ability to serve as a county  
          evacuation site. 

          The President of the Del Mar Fairgrounds separately stated that  
          at least on the southeastern portion of the fairgrounds property  
          that a greenway and "pathway" have already been constructed and  
          he objects to the "minimum 100 foot" requirement in SB 1177. 


          SUPPORT
          City of Del Mar
          City of Solana Beach
          C3 - Citizens Coordinate for Century 3
          California Chaparral Institute
          Coastwalk California
          Endangered Habitats League
          Friends of the San Dieguito River Valley
          Lakeside's River Park Conservancy
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          Move San Diego
          North County Coastal Group of the Sierra Club
          Project Wildlife
          San Diego Audubon Society
          San Diego Coastkeeper
          San Diego County Bicycle Coalition
          San Diego County Supervisor Pam Slater-Price
          San Diego River Coalition
          San Diego River Park Foundation
          San Dieguito River Park Joint Powers Authority
          San Dieguito River Valley Conservancy
          Sierra Club - San Diego Chapter
          The Nature Conservancy
          The Trust for Public Land
          Torrey Pines Community Planning Board
          12 Individuals

          OPPOSITION
          President of Del Mar Fairgrounds
          Del Mar Fairgrounds
          Premier Food Service
          Chuckwagon 
          Reno's Fish and Chips
          Santa Anita Park 
          20 individuals






















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