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Comments made by bulldog2221

Sale of Del Mar Fairgrounds Arranged Behind Closed Doors

Typical back door deals by the State. There are land swaps on I-5 of Caltrans land for land of much less value going on for the 'sake' of the I-5 widening. Look specifically at anything to do with Caltrans and Scripps. Auditors should go crack the books on I-5 right now to make sure that the taxpayer doesn't pay for shady backroom deals.

October 9, 2010 at 7:47 p.m. ( | suggest removal )

Schwarzenegger Makes Stop In San Diego To Promote State Budget

Nobody should be in the real estate business if they know nothing about real estate. This does not mean, however, that they should just give away their real estate assets for pennies on the dollar. Speaking of which, the value of the Del Mar Fairgrounds apparently has been estimated based on the current income production. Any shavetail real estate school graduate knows that value should be based upon POTENTIAL income rather than historical income of underutilized property. "Gross Rent Multiple" or GRM, is a valid amateur guesstimate tool only if the property has been developed to its "highest and best use" as "income property." Politicos are fond of imagining that vacant land has no value when it produces no revenue, so they should be able to get or give such property for free. Show me a vacant downtown or oceanfront lot that you can get for free. For valuation of the 400 acre fairgrounds, they should consider recent sales of comparable property. In the absence of comparable sales, the purest measure of value is what the property would sell for at a public auction. If the State wants to sell the fairgrounds, they should advertise it for auction, subject to whatever environmental and developmental restrictions would be in the best interests of the taxpayers. Common sense indicates that the fairgrounds would sell for a couple billion or more. Otherwise, the $120 million deal will appear to be just another typical Kehoe backroom sweetheart deal.

October 9, 2010 at 4:46 a.m. ( | suggest removal )

Sale of Del Mar Fairgrounds Arranged Behind Closed Doors

Here is how the Del Mar Fairgrounds deal will probably go down: We all vigorously objected to the sale of such a huge State-owned revenue-producing asset. The backroom deal has now changed the issue, however, from "if" to "when and for how much." We are now merely outraged that the State plans to sell a "$400 - $700 million" asset for only $120 million. First of all, one can be certain that no full appraisal has been done. 400 acres at $700 million is only four dollars per square foot. That would be $20,000 for a typical 5,000 square foot homesite. Is that a good price for oceanview property? Is $4 per square foot a good price for an oceanview hotel site? Let's pretend for this exercise that it is. Now, there will be plenty of opportunity for politicos to argue that the State should receive top dollar for the sale rather than only $120 million (sixty-nine cents per square foot!) Arguments against the higher figure will involve savings to the State for disposing of what will be depicted as a burdensome property, with its costs of management, maintenance, potential liabilities, etc. The buildings will be found to be antiquated, full of asbestos, and possibly even dangerous in some way. Costs of redevelopment will be estimated at a scary amount. Takeover by the city of Del Mar will be somehow depicted as a net public benefit, probably with visions like "nature preserve trails" and "children's cultural center" thrown in for good measure. After a few weeks of posturing, the politicos, amidst much hearty backslapping, finally will agree on the $700 million figure. At this point, Del Mar will threaten to back out of the deal, raising the spectre of sale to a private developer who would want to build condos, probably at the west end in the fair ride area. A special payment deal will then be cut, whereby the city does not pay any "real" money, but instead pays with some kind of IOU. Once the city owns the property, they may discover that they still need or want more money. The Fair will go on as they have promised, but look for it at the east side of the racetrack, maybe with a new parking structure to replace the open lots lost to hotel etc development. Just guessing.

October 7, 2010 at 10:08 a.m. ( | suggest removal )