BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  SB 1177|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 1177
          Author:   Kehoe (D)
          Amended:  6/1/10
          Vote:     21

           
           SENATE NATURAL RES. & WATER COMMITTEE  :  5-3, 4/13/10
          AYES:  Pavley, Kehoe, Lowenthal, Simitian, Wolk
          NOES:  Cogdill, Hollingsworth, Huff
          NO VOTE RECORDED:  Padilla

           SENATE FOOD AND AGRICULTURE COMMITTEE  :  3-1, 4/20/10
          AYES:  Florez, Hancock, Wolk
          NOES:  Hollingsworth
          NO VOTE RECORDED:  Maldonado

           SENATE APPROPRIATIONS COMMITTEE  :  7-3, 5/27/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Denham, Walters, Wyland
          NO VOTE RECORDED:  Cox


           SUBJECT  :    Agriculture:  22nd District Agricultural  
          Association: 
                      greenway zone

           SOURCE  :     Author


           DIGEST  :    This bill directs the agricultural association  
          to consult with the San Dieguito River Park Joint Powers  
          Authority (JPA), the Department of Fish and Game, and the  
          Department of Parks and Recreation in designing and  
                                                           CONTINUED





                                                               SB 1177
                                                                Page  
          2

          constructing a 100-foot buffer zone that includes the JPA  
          educational boardwalk and the Coat to Crest Trail between  
          Interstate 5 to Jimmy Durante Boulevard along the northern  
          edge of the San Dieguito River to be completed by January  
          1, 2012.  The development of the greenway zone will be  
          implemented as required by state agencies, including the  
          California Coastal Commission.

           ANALYSIS  :    Existing law provides that the state is  
          divided into agricultural districts in which 50 or more  
          persons, who are residents of a district, may form a  
          district agricultural association for the purpose of  
          holding fairs for exhibiting all of the industries and  
          industrial enterprises, resources, and products of the  
          state and constructing, maintaining, and operating  
          recreational and cultural facilities.

          This bill directs the agricultural association to consult  
          with the JPA, the Department of Fish and Game (DFG), and  
          the Department of Parks and Recreation (DPR) in designing  
          and constructing a 100-foot buffer zone that includes the  
          JPA educational boardwalk and the Coat to Crest Trail  
          between Interstate 5 to Jimmy Durante Boulevard along the  
          northern edge of the San Dieguito River to be completed by  
          January 1, 2012.
           
          The development of the greenway zone will be implemented as  
          required by state agencies, including the California  
          Coastal Commission.
           
          This bill also directs the agricultural association to  
          consult with the JPA, the DFG, and the DPR for a 100-foot  
          buffer zone from Jimmy Durante Boulevard west to the San  
          Diego Northern Railway right-of-way, prior to or at the  
          same time as when the association begins replacement of  
          exhibits halls
          as detailed in the association's adopted master plan.
           
          The purpose of both greenways is to enhance and restore the  
          overall quality of the San Dieguito River and the adjacent  
          Wetlands and to help reduce flooding.  The greenway will  
          also connect and extend the Coast to Crest Trail that will  
          be managed and maintained by the JPA.








                                                               SB 1177
                                                                Page  
          3

           Background  

          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 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  







                                                               SB 1177
                                                                Page  
          4

          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 United  
          States Fish and Wildlife Service and the California  
          Department of Fish and Game. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions          2010-11   2011-12    2012-13       Fund  

          Greenway construction           Up to $1,374 in some future  
          year                    Special*
          DFG/DPR consultation    Minor and absorbable          
          Various

           * Enterprise Fund; to an unknown extent, these costs may  
            be required as a condition of future regulatory permits,  
            regardless of the enactment of this bill.

           SUPPORT  :   (Verified  6/1/10)

          C3 - Citizens Coordinate for Century 3
          California Chaparral Institute
          Cities of Del Mar and 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







                                                               SB 1177
                                                                Page  
          5

          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

           OPPOSITION  :    (Verified  6/1/10)

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

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          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  
          Boulevard, 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  







                                                               SB 1177
                                                                Page  
          6

          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.

           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 percent and that in recent  
          years, because of the decrease in revenues in the horse  
          racing industry, the association's  ratios in 2008 and 2009  
          were 216 percent and 228 percent, respectively. 

          According to the letter from the fairgrounds, this bill  
          also affects 1,900 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 Boulevard, and affect the  
          fairgrounds' ability to serve as a county evacuation site. 


          CTW:mw  6/1/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****