BILL ANALYSIS                                                                                                                                                                                                    



                        SENATE FOOD and AGRICULTURE COMMITTEE
                            Senator Dean Florez, Chairman

          BILL NO:    SB 1177                   HEARING:  4/20/10
          AUTHOR:   Kehoe                       FISCAL:  Yes
          VERSION:  2/18/10                     CONSULTANT:  John Chandler  

          
            Agriculture: 22nd District Agricultural Association: greenway  
                                        zone.

          BACKGROUND AND EXISTING LAW

          Over 140 years ago, California began organizing what is today  
          one of the largest fair systems in the nation.  The 54 district  
          agricultural associations, state agency fairs, are managed under  
          the Department of Food and Agriculture (CDFA) in the Division of  
          Fairs and Expositions.  Each fair operates with a degree of  
          autonomy with a board of directors appointed by the governor and  
          in accordance with state law governing the operation of state  
          agencies.  

          The 22nd District Agricultural Association (22nd DAA) manages  
          and operates the Del Mar Fairgrounds; its nearby equestrian  
          facility, the Horsepark; and the Del Mar Golf Center, on behalf  
          of the State of California.  Purchased in 1936, the 22nd DAA is  
          located in San Diego County between the Pacific Ocean and  
          Interstate 5 in the town of Del Mar.  

          In 2009 Governor Schwarzenegger proposed selling the 22nd DAA  
          fairgrounds along with other state properties to help reduce  
          California's multibillion dollar shortfall.  However, during the  
          budget debate, the sale of the 22nd DAA was removed from  
          consideration.

          The 22nd DAA is currently in the process of developing a 2008  
          Master Plan for Del Mar Fairgrounds and Horsepark (2008 Master  
          Plan) to update the 1985 Master Plan.    The CDFA Division of  
          Fairs and Expositions recommends that fairs adopt master plans  
          in order to qualify for certain types of funding for capitol  
          projects to assist with the greater self-sufficiency of  
          fairgrounds statewide.  The 2008 Master Plan proposes a number  
          of physical improvements to the Del Mar Fairgrounds such as new  
          exhibit halls with rooftop sports fields, condominium hotels,  
          and other key physical improvements in an attempt to promote the  
          Del Mar mission as a self-sustainable regional entertainment,  
          recreational, cultural, and community asset.

          SB 1321 (Kehoe) would specify that the Director of the  




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          Department of General Services and Secretary of Food and  
          Agriculture may designate a deputy to act in his or her place on  
          the State Race Track Leasing Commission with all the rights and  
          powers as the respective director if they were personally  
          present.  Currently, this bill is in the Senate Food and  
          Agriculture Committee.

          PROPOSED LAW

          SB 1177 would do the following:

                 Require the 22nd DAA to develop, manage, and maintain a  
               100-foot wide greenway zone along the north bank of the San  
               Dieguito River from Interstate 5 to the Burlington Northern  
               Santa Fe Railroad right-of-way to protect and enhance the  
               overall environmental quality of the river.  

                 Require the 22nd DAA to develop, manage, and maintain a  
               public access trail to provide safe travel in the greenway.  
                This trail shall be designed in consultation with the  
               Department of Fish and Game and Department of Parks and  
               Recreation.

                 Require the 22nd DAA to submit a development plan for  
               the greenway and public access trail to Department of Fish  
               and Game and Department of Parks and Recreation prior to  
               July 1, 2011.  Department of Fish and Game and Department  
               of Parks and Recreation shall review and submit  
               recommendations prior to January 1, 2012.

                 Require the 22nd DAA to include recommendations  
               submitted by Department of Fish and Game and Department of  
               Parks and Recreation and apply for required permits by   
               January 1, 2012.

                 Specify that construction of the greenway be complete by  
               January 1, 2014.

                 Prohibit any development or parking in the greenway  
               zone.

                 Specify that in the event the 22nd DAA sells the  
               property or ceases to exist the greenway and public access  
               trail will remain.

          COMMENTS






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          1.Proponents of this bill state that the 22nd DAA 2008 Master  
            Plan does not include adequate preservation and accessibility  
            along the San Dieguito River.  SB 1177 would require the 22nd  
            DAA to develop a 100-foot greenway along the San Dieguito  
            River and maintain a public access trail.  A greenway would  
            help reduce the impact of the proposed fair development on the  
            San Dieguito River which is part of a larger 600-acre natural  
            habitat and Southern California Edison restoration project.   
            Further, a greenway would enhance public access along the San  
            Dieguito River.  U.S. Fish and Wildlife Service and California  
            Department of Fish and Game have recommended that the 22nd DAA  
            incorporate a minimum 100-foot buffer along the San Dieguito  
            River to comply with the Fish and Game Commission Policy on  
            the Retention of Wetland Acreage and Habitat Values.  

          2.Opponents state that SB 1177 would severely impact the  
            financial viability of the 22nd DAA.  The 22nd DAA estimates  
            that the impact of the proposed 100-foot greenway across the  
            southern edge of the fairground would exceed $6 million in  
            reduced revenues and an estimated $12 million in  
            implementation costs.  Such impacts could threaten the ability  
            of the DAA to meet its bond pledge covenant required revenue  
            to debt service of 200%, thus violating the bond covenants to  
            which CDFA, Department of Finance, and Department of General  
            Services are also pledged.  Further, opponents state that the  
            financial impact of      SB 1177 on the 22nd DAA could include  
            job loss at the fair and in the community due to reduced  
            functionality of exhibit halls near the proposed greenway due  
            to the loss of a service access road and maintenance  
            facilities within the proposed greenway.

          3.Currently, Jimmy Durante Boulevard runs through the proposed  
            greenway zone and across the San Dieguito River.  The author's  
            office has stated that it is not the intent of this bill to  
            remove this road or bridge across the river.  The committee  
            may want to consider specifying the author's intent that the  
            road or bridge not be impacted by the proposed greenway zone.

          4.SB 1177 specifies that Department of Fish and Game and  
            Department of Parks and Recreation submit recommendations to  
            the 22nd DAA's plan for the greenway zone prior to January 1,  
            2012.  The bill further specifies that the 22nd DAA include  
            all the recommendations and apply for required permits by  
            January 1, 2012.  This timeline seems very short, not allowing  
            any time for turnaround or discussion of the recommendations  
            before requiring the 22nd DAA to apply for all the needed  
            permits.  The committee may want to consider adjusting the  





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            timeline to allow more time between the submission of  
            recommendations and applications for permits to begin the  
            project.

          5.SB 1177 specifies that in the event the 22nd DAA leaves the  
            property or ceases to exist the greenway and public access  
            trail would remain.  The committee may wish to consider who  
            would be responsible for the greenway zone and public access  
            trail management and maintenance in the event the 22nd DAA  
            sells the property or ceases to exist. 

          PRIOR ACTIONS
          
          Senate Natural Resources and Water5-3

          SUPPORT
          
          Buena Vista Audubon Society
          California Chaparral Institute
          California Native Plant Society
          Citizens Coordinate for Century III
          City of Del Mar
          City of Solana Beach
          Coastwalk California
          Endangered Habitats League
          Friends of the San Dieguito River Valley
          Lakeside's River Park Conservancy
          Move San Diego
          North County Coastal Group of the Sierra Club
          Project Wildlife
          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 Lagoon Preservation Committee
          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
          13 individuals

          OPPOSITION
          
          22nd District Agricultural Association





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          California Thoroughbred Breeders Association
          Chuckwagon
          Del Mar Race Track Authority
          Event Food Services
          Kuma Bonsai Nursery
          Lori's Concessions
          Mendenhall Wool Ranch
          Premier Food Services
          Rawlings Concessions
          Reno's Fish & Chips, Inc.
          San Diego Regional Chamber of Commerce
          Santa Anita Park
          Sippers and More
          Total Graphics, Inc.
          Western Fairs Association
          10 individuals