BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1177
                                                                  Page  1

          Date of Hearing:  June 21, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                     SB 1177 (Kehoe) - As Amended:  June 1, 2010

           SENATE VOTE  :  21-13
           
          SUBJECT  :  22nd District Agricultural Association (District):   
          greenway zone

           SUMMARY  :  Requires the District to develop two sections of a  
          greenway zone at the Del Mar Fairgrounds; this zone must include  
          extensions of the Coast to Crest Trail (CCT).

           EXISTING LAW  :

          1)Section 3873 of the Food and Agriculture Code establishes the  
            District (there are 54 such districts in the state).  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.

          2)The California Coastal Act of 1976 requires a person proposing  
            development in the coastal zone to first obtain a coastal  
            development permit from the California Coastal Commission  
            (CCC).

           THIS BILL  :

          1)Requires the District to develop, manage, and maintain  
            two-sections of a minimum 100-foot wide greenway zone along  
            the north bank of the San Dieguito River at the Del Mar  
            Fairgrounds:

             a)   The first section, from Interstate 5 to Jimmy Durante  
               Boulevard (JD Blvd.) and the JD Blvd. Bridge, must be  
               developed by January 1, 2012, subject to the issuance of a  
               coastal development permit (CDP) by the CCC, if required.   
               This section must include the existing San Dieguito River  
               Park Joint Powers Authority (JPA) educational boardwalk and  
               the CCT, and be completed.

             b)   The second section must be developed from the JD Blvd.  
               Bridge west to the San Diego Northern Railway right-of-way  








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               prior to or contemporaneous with the construction of a  
               replacement exhibit hall, as specified and subject to the  
               issuance of a CDP by the CCC.

          2)Requires the greenway zone to be designed in consultation with  
            the JPA, the Department of Fish and Game (DFG), and the  
            Department of Parks and Recreation, and the maintenance of the  
            CCT to be the responsibility of the JPA.

          3)Restricts certain activities of the District with respect to  
            the CCT and requires it to issue an easement to the JPA for  
            the design, construction, maintenance, and monitoring of the  
            CCT extension.

          4)Requires each section of the greenway zone to be developed for  
            the purpose of protecting, enhancing, and restoring the  
            overall environmental quality of the San Dieguito River and  
            adjacent wetlands.  The greenway zone must be permanently  
            dedicated to the use and enjoyment of the public.

          5)Requires the District to develop, and seek necessary permits  
            for the construction of, a public access trail as an extension  
            of the CCT in the greenway zone between JD Blvd. and the San  
            Diego Northern Railroad right-of-way.

          6)Requires the District to submit its plan for implementation of  
            the entire greenway zone to the CCC at any time prior to, but  
            no later than, the date the district applies for a CDP for the  
            replacement of an existing exhibit hall.

          7)Specifies that, unless otherwise directed, the use of certain  
            truck trailers must be limited to the annual fair season when  
            the San Diego County Fair is open to the public, and during  
            the annual period when live horse racing is open to the  
            public.

           FISCAL EFFECT :  According to the Senate Appropriations  
          Committee, $1.4 million to develop the greenway zone and CCT.   
          However, these costs may be required as a condition of future  
          regulatory permits regardless of the enactment of this bill.

           COMMENTS  :  This bill embodies a conflict in values between the  
          District, who desires to redevelop the Del Mar Fairgrounds,  
          including a limited trail and buffer area, according to its  
          vision, and the author, who believes the environmentally  








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          sensitive and biologically productive setting of the fairgrounds  
          deserves a more expansive greenway zone (e.g., 100 feet) that  
          would complement and enhance on-going restoration efforts of the  
          San Dieguito River Valley and lagoon.

           1)Background  :  The District is a state agency that operates the  
            400-acre Del Mar Fairgrounds, located in the City of Del Mar  
            and the City of San Diego. The District has circulated a Draft  
            Environmental Impact Report (DEIR) for its Master Plan  
            amendments that propose phased development of a condo-hotel,  
            conference center and 60,000 square foot sports and fitness  
            complex with lighted playing fields.  A Final EIR is expected  
            later this year.  The amendments update a 1985 Master Plan and  
            will guide the development of the fairgrounds for the next 15  
            years.  Master Plans generally propose capital projects that  
            will allow districts to become more self-sufficient.  In this  
            case, the District is seeking to diversify its revenue base  
            given a significant decline in revenue from horseracing  
            operations.

          The fairgrounds were developed on historic tidal marshland,  
            filled wetlands, and the floodplain of the San Dieguito River,  
            which has a long history of overflowing its banks and flooding  
            portions of the fairgrounds.  They are surrounded by more than  
            600 acres of natural habitat including a Southern California  
            Edison restoration project required as mitigation for the San  
            Onofre Nuclear Generating Station.  This mitigation has  
            created more than 150 acres of coastal wetlands, opened the  
            river lagoon at its mouth, more than doubled the presence of  
            bird species, and now sustains diverse fish populations.  The  
            JPA and DFG also manage habitat near the fairgrounds.

          Finally, the Administration has signaled its support for selling  
            all or part of the fairgrounds to the City of Del Mar.   
            Negotiations are apparently on-going.  It is unclear how a  
            sale will affect development of the Master Plan.

           2)Resources agencies express unequivocal support for a wider  
            greenway  :  The DEIR appears to propose construction of a  
            10-foot wide recreational path along or within a landscaped  
            berm of varying width (about 20-60 feet wide) along the San  
            Dieguito River.  Comments submitted by the CCC, DFG, and U.S.  
            Fish and Wildlife Service (USFWS) all cite the need for a  
            minimum 100-foot buffer along the river with the path sited on  
            the outside edge of the buffer and fencing between the path  








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            and buffer to prevent human or pet encroachment.  As stated in  
            a comment letter from the latter two agencies, "Buffers should  
            be of sufficient width and should be designed to eliminate  
            potential disturbance of fish and wildlife resources from  
            noise, human activity, feral animal intrusion, and any other  
            potential sources of disturbance.  Therefore, [DFG and USFWS]  
            recommend that a minimum 100-foot buffer be included between  
            the proposed development and wetlands."

          The basis for this recommendation is clear: three state or  
            federally-endangered bird species and their nesting sites have  
            been observed on or near the fairgrounds site; environmentally  
            sensitive riparian habitat, including remnant wetlands; and,  
            extensive restoration efforts to create over 150 acres of  
            coastal wetland habitat.

          Among other concerns, the CCC has questioned whether the  
            proposed condo-hotel, to be sited on public trust lands, would  
            be consistent with its recreation and "lower-cost visitor"  
            policies.  Since the condo-hotel would constitute a  
            quasi-residential use, CCC staff has stated it would not  
            endorse such a proposal and the State Lands Commission has  
            objected to the sale of trust lands for private residential  
            use.

           3)Recipe for building a 100-foot greenway zone  :  In extremely  
            detailed fashion, this bill outlines specific development and  
            procedural requirements for a greenway zone.  It requires the  
            District to develop a minimum 100-foot wide greenway zone  
            along the San Dieguito River in two phases: the first phase,  
            to be developed furthest from existing fairground buildings,  
            is required to be developed by January 1, 2012; the latter  
            would be developed contemporaneous with the build-out of  
            certain portions of the Master Plan.  Additionally, the bill  
            details agency consultation requirements, development of an  
            extension of the adjacent Coast to Crest Trail, interim  
            activities and prohibitions, and requirements to obtain  
            regulatory approvals, such as a CDP.  Some of the bill's  
            provisions codify recommendations of CCC, DFG, or USFWS  
            contained in DEIR comments.

          One could argue that the bill may be premature given that fact  
            that the EIR process has not yet concluded and regulatory  
            review has not yet commenced.  Nonetheless, it is entirely  
            within the author's prerogative to codify the above  








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            requirements given the potential adverse impacts associated  
            with development of the Master Plan, the ecological and  
            regional importance of the area, and the priority the author  
            places on ensuring its continued revival.  The bill has also  
            motivated on-going negotiations with the District on language  
            that will be acceptable to all parties.

           4)Opposition concerns  :  In opposition to the bill, the District  
            argues that a 100-foot greenway zone will force the District  
            to suffer $6 million in future revenue losses presuming build  
            out of its Master Plan.  The District alleges that the  
            greenway will encroachment upon an access road, a recycling  
            area, two maintenance buildings, and 104,000 square feet of  
            exhibit space, and other facilities.  It believes that such  
            revenue loss would prevent the District from meeting minimum  
            bond coverage ratios required in its bond covenants.  It also  
            projects a $7 million decrease in food vendor receipts, a loss  
            of 1900 fair-related jobs leading to a decrease of $150  
            million to the region.

          These estimates, prepared by the District, appear to represent a  
            worst-case scenario.  The District is a number of years away  
            from receiving any permits for its project and may not be  
            pursuing development in the near future due to economic  
            conditions.  Moreover, a proposed conference center and hotel  
            complex within a few miles of the fairgrounds may bring  
            competitive pressures even more challenging than a greenway.

           5)Technical amendments  :  Amendments are necessary in  
            subdivisions (e) and (h) of the bill to ensure internal  
            consistency between "public access trail," "recreational  
            trail," and "Coast to Crest Trail," all of which refer to the  
            same thing.  Another amendment is necessary in subdivision (f)  
            to eliminate the presumption that a CDP would be required.  If  
            approved by this committee, these amendments will be adopted  
            in Assembly Agriculture Committee should it approve the bill.

           6)Dual-referral  : This bill will be re-referred to the Assembly  
            Agriculture Committee should it be approved by this committee.  
           
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Buena Vista Audubon Society








                                                                  SB 1177
                                                                  Page  6

          City of Del Mar
          City of Solano Beach
          Coastwalk California
          Friends of San Dieguito River Valley
          Endangered Habitats League
          Move San Diego
          Nature Conservancy
          Pam Slater-Price, San Diego County Board of Supervisors
          San Diego Coastkeeper
          San Diego County Bicycle Coalition
          San Dieguito River Park Joint Powers Authority
          Torrey Pines Community Planning Board
           
            Opposition 
           
          22nd District Agricultural Association (Del Mar Fairgrounds)
          Art Attacks Ink, LLC
          Barmaper & Associates
          Chicken Charlie's
          Chuckwagon
          DBA Granite Transformations of San Diego
          Fay Brothers, Inc.
          La Valencia Hotel
          Legoland California Resort
          Premier Food Services, Inc.
          Foxy's Restaurant
          R.A. Rauch & Associates
          Rancho Bernardo Inn
          Reno's Fish & Chips, Inc.
          Santa Anita Park
          Skyline Sunrooms Inc.
          The Cooper Kettle
          Total Graphics, Inc.
          Vita-Mix Corp
          16 Individuals


           Analysis Prepared by  :  Dan Chia / NAT. RES. / (916) 319-2092