BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1177
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          Date of Hearing:   June 30, 2010

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                     SB 1177 (Kehoe) - As Amended:  June 1, 2010

           SENATE VOTE  :   21-13

           NATURAL RESOURCES   6-3          
                                           
           ------------------------------------ 
          |Ayes:|Chesbro, Brownley, DeLeon,    |
          |     |Hill, Huffman, Skinner        |
          |     |                              |
          |-----+------------------------------|
          |Nays:|Gilmore, Knight, Logue        |
          |     |                              |
           ------------------------------------ 
           SUBJECT  :  Agriculture: 22nd District Agricultural Association:  
          greenway zone.

           SUMMARY  :  Requires the 22nd District Agricultural Association  
          (22nd DAA) to develop, manage and maintain a 100-foot wide  
          greenway zone (greenway) along the San Dieguito River (River)  
          and develop a public access trail (trail) for the greenway.   
          Specifically,  this bill  :   

          1)Requires the 22nd DAA to develop, manage, and maintain two  
            sections of a 100-foot wide greenway zone along the north bank  
            of the River on the Del Mar fairgrounds.  

             a)   Requires the eastern section of the greenway, from  
               Interstate 5 to Jimmy Durante Boulevard (JD Blvd.) and the  
               JD Blvd. Bridge, to be completed by January 1, 2012,  
               subject to California Coastal Commission (CCC) permits if  
               needed.  Requires the section to include the River Park  
               Joint Powers Authority (JPA) education boardwalk and the  
               Coast to Crest trail (CCT).

             b)   Requires the western section of the greenway, from the  
               JD Blvd. Bridge to the San Diego Northern Railway right of  
               way, prior to or with the replacement of the exhibit hall,  
               as described in the 22nd DAA 2008 Master Plan (MP), subject  
               to CCC permits, if needed.









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          2)Requires the greenway to be designed in consultation with the  
            JPA, the Department of Fish and Game (DFG), and the Department  
            of Parks and Recreation (DPR).  Requires the greenway  
            accommodate the CCT, to be designed in consultation with the  
            JPA, DFG and DPR, and, that this portion of the CCT be managed  
            and maintained by the JPA.

          3)Requires the 22nd DAA, prior to the implementation of any 2008  
            MP projects, to remove all stored materials as specified.   
            Requires the 22nd DAA to issue an easement to the JPA for an  
            extension of the CCT.

          4)Declares that each section of the greenway be developed to  
            enhance and restore the environmental quality of the adjacent  
            water ways.  Requires native plants to be planted in the  
            greenway.  Declares the extension of the CCT is not limited by  
            the design of other sections of the CCT.

          5)Requires the 22nd DAA to develop a trail along the western  
            portion of the greenway as specified, in consultation with the  
            JPA, DFG and DPR.  Requires the 22nd DAA to acquire all the  
            permits for the construction of the trail.

          6)Requires the 22nd DAA to submit plans for the whole greenway  
            to the CCC prior to the date it applies for costal development  
            permits to replace the existing exhibit hall.  Requires the  
            western section of the greenway to be completed before the  
            issuance of a certificate of occupancy for the new exhibit  
            hall.

          7)Requires that if the 22nd DAA ceases to exist or sells the  
            property, the greenway and trail will remain open to the  
            public as a condition of any sale or be transferred to the JPA  
            or DFG. 

          8)Requires that truck trailers, in certain areas of the  
            fairgrounds, may only be used for storage during the annual  
            fair season and the annual horse racing season, when the  
            fairground is open to the public.  Bans the use of signage on  
            truck trailers at anytime.

           EXISTING LAW  creates 54 DAAs in the state, with the powers and  
          duties to run county fairs. (Food and Agriculture Code (FAC)  
          Section 3801-4060)









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          Allows the 22nd DAA to expend funds for a horse racing operation  
          on the fairgrounds and requires the State Race Track Leasing  
          Commission to prepare a master plan for the long-range  
          comprehensive development and improvement of, and construction  
          upon, the property of the 22nd DAA. (FAC section 4155-4156)

          Requires a person proposing development in the costal zone to  
          obtain a costal development permit from the CCC.  (Public  
          Resource Code Section 30000-30900) 

           FISCAL EFFECT  :  This bill has been keyed fiscal by Legislative  
          Counsel.

           COMMENTS  :  The 22nd DAA manages and operates the Del Mar  
          Fairgrounds, the Horsepark, and the Del Mar Golf Center, on  
          behalf of the State of California.  The 22nd DAA, in operation  
          since 1938, is located in San Diego County between the Pacific  
          Ocean and Interstate 5 along the River.  In 2009, Governor  
          Schwarzenegger proposed selling the 22nd DAA fairgrounds, along  
          with other state properties, to help reduce California's  
          multibillion dollar shortfall.  

          According to a recent news article, Bill Leonard, the State and  
          Consumer Services Agency Secretary, announced a deal that would  
          transfer the fairgrounds in Costa Mesa to the newly formed  
          Orange County Fairgrounds Authority, jointly owned by the city  
          of Costa Mesa and the Costa Mesa Public Finance Authority.

          The 22nd DAA's 2008 MP for Del Mar Fairgrounds and Horsepark  
          updates the 1985 MP.  The 2008 MP proposes a number of  
          improvements to the Del Mar Fairgrounds, such as new exhibit  
          halls with rooftop sports fields, condominium hotels, and other  
          key improvements in an attempt to promote the Del Mar mission as  
          a self-sustainable regional asset.  The 2008 MP final  
          Environmental Impact Report (EIR) is due out later this year.

          Supporters of this bill state the 22nd DAA 2008 MP does not  
          include adequate preservation and accessibility along the River.  
           By requiring the 22nd DAA to develop a 100-foot greenway along  
          the River and maintain a public access trail, there would be a  
          reduced impact of the proposed fair development on the River,  
          which is part of a larger 600-acre natural habitat and  
          restoration project.  A greenway would enhance public access  
          along the River.  U.S. Fish and Wildlife Service and DFG have  
          recommended that the 22nd DAA incorporate a minimum 100-foot  








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          buffer along the River for the retention of wetlands and  
          biological resources.  

          According to the author, the 100-foot greenway along the north  
          bank of the River, within the fairgrounds property, represents  
          less than 4% of the Fairgrounds property.  It is consistent with  
          the policy of the CCC, DFG and Game and U.S. Fish and Wildlife  
          Service.  Supporters state that this bill will preserve and  
          enhance a one of a kind River front and make it available for  
          future generations.

          Opponents state the proposed greenway will cause the 22nd DAA to  
          lose $6 million in future revenue based on the 2008 MP.  The  
          greenway will encroach on an access road, a recycling center,  
          two maintenance buildings, over 100,000 feet of exhibit space  
          and other facilities on the fairgrounds.  Such a loss would  
          prevent the 22nd DAA from meeting its bond coverage ratio  
          required by its bond contract.  The 22nd DAA projects up to a $7  
          million decrease in food vendor receipts and up to 1900 fair  
          related jobs lost, with a negative $150 million economic impact  
          on the region.  As the California State budget has tighten in  
          the past decade, California fairs have needed to become more  
          self-sufficient and self-funded, opponents point out that this  
          bill would have an adverse on the ability of the 22nd DAA to  
          remain self-sufficient.

          Opponents also point out that the loss of the access road may  
          cause problems for public safety vehicles and response time for  
          emergencies on the fair grounds.  The Office of the State Fire  
          Marshal states that without the access road there is no  
          alternative to provide adequate fire department access and would  
          violate California Fire law.  The access road, during the fair  
          season, accommodates 640 daily busses.  Without the access road,  
          traffic on JD Blvd will worsen.  The committee may wish to  
          consider if the loss of the access road creates public safety  
          issues that require mitigation or require that the access road  
          remain open for use by the 22nd DAA and public safety vehicles. 

          The 22nd DAA 2008 Master plan's EIR has not been finalized.  The  
          CCC acknowledged that all the projects included in the 2008 MP  
          will require coastal development permits from the CCC or the  
          cities of Del Mar and San Diego.  Furthermore, the bulk of the  
          2008 MP projects will most likely be subject to direct CCC  
          review and approval.  This bill would supersede the normal  
          regulatory review process, which has not begun in full.  The  








                                                                  SB 1177
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          committee may wish to consider if it is appropriate to impose  
          the greenway on the 22nd DAA before the 2008 MP has had a chance  
          to move through the regulatory process.

          The committee may wish to consider three alternative options for  
          the Del Mar fairgrounds greenway as follows: 1) Require a 100  
          foot greenway as a condition of the sale of the 22nd DAA  
          property; 2) Require a minimum 50 foot greenway, which may only  
          be reduced if public safety is compromised and only for that  
          area where public safety is needed; or 3) Require that the 22nd  
          DAA development plans require a greenway which will not impact  
          public safety . 

          The committee may wish to consider the following technical  
          amendments, which were agreed upon in the Assembly Committee on  
          Natural Resources, to ensure internal consistency as it relates  
          to the differing referencing to the greenway trail, to eliminate  
          in subdivision (f) the presumption that a coastal development  
          permit would be required and clarifying language. 

           RELATED LEGISLATION  :  SB 1321 (Kehoe) of 2010 would authorize  
          that the director of the Department of General Services and  
          secretary of the Department of Food and Agriculture may  
          designate a deputy to act in his or her place on the State Race  
          Track Leasing Commission (SRTLC) with all the rights and powers  
          as the respective director for SRTLC.  SB 1321 is on Assembly  
          third reading.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           

          Buena Vista Audubon Society
          California Chaparral Institute
          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
          Project Wildlife
          San Diego Coastkeeper
          San Diego County Bicycle Coalition








                                                                  SB 1177
                                                                  Page  6

          San Diego County Supervisor:
               Pam Slater-Price
          San Diego River Coalition
          San Diego River Park Foundation
          San Dieguito River Park Joint Powers
          Authority
          Sierra Club, San Diego Chapter
          The Nature Conservancy
          Torrey Pines Community Planning Board
          13 individuals 
           
            Opposition 
           

          22nd District Agricultural Association 
               (Del Mar Fairgrounds)
          Art Attacks Ink LLC.
          Barmapers & Associates
          California Thoroughbred Breeders Association
          Chicken Charlie's
          Chuckwagon
          Del Mar Thoroughbred Club
          Event Food Services
          Granite Transformation of San Diego
          Keep Safe of California
          La Valencia Hotel
          Legoland California Resort
          Lori's Concessions
          Premier Food Service, Inc.
          R.A. Rauch & Associates
          Rancho Bernardo Inn
          Rawlings Concessions
          Reno's Fish and Chips, Inc.
          Roxy's Restaurant
          Santa Anita Park
          Skyline Sunrooms Inc.
          Slipper and More
          The Copper Kettle
          Total Graphics
          Vita-Mix
          Western Fairs Association
          10 individuals


           Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  








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