CA Governator Office Reaches Deal to Sell OC Fairgrounds Property to City of Costa Mesa
The ORANGE COUNTY FAIRGROUNDS property at Costa Mesa
This CA state owned property was subject of land use election on June 9, 2010, when voters confirmed its use as fairgrounds and agricultural.
The CA state office has reached tentative agreement for sale of this OC Fairgrounds property to the City of Costa Mesa as buyer with down payment at $19.2 million and total purchase price to be $96 million.
The city of Costa Mesa has reached agreement for its purchase of the OC Fairgrounds property from the State of California.
The $19.2 million down payment is to be made by Facilities Management, a private company, and the fee for the 150-acre property would be paid by the city before the close of escrow.
If the sale transaction is finalized between the state and Costa Mesa and the down payment made, the Orange County Fairgrounds Authority will not have to make a mortgage payment until the sixth year. Facilities Management West, a Newport Beach-based private real estate company, would finance and operate the fairgrounds for the city and would make initial $19.2 million in payment to CA and subsequent mortgage payments for next 40 years.
While Costa Mesa would hold the title of the property, it would not be financially responsible. According to this agreement, Facilities Management will pay Costa Mesa $750,000 in annual rent for the first five years of the lease, which would go up to $3.2 million through lease term, and would lease the fairgrounds for the next 55 years and run business there including the Orange County Fair.
If approved and finalized, this agreement would ensure that the OC fairgrounds property will remain used as a fairgrounds and exposition center and that the land will not be developed for other purposes.
Source: DailyPilot.com
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Harrison K. Long, REALTOR® & broker, Explore Group, Coldwell Banker Previews, Irvine, CA. CA DRE #01410855. ExploreProperties@gmail.com. 949-854-7747. National Association of Realtors, California Association of Realtors, and Orange County Association of Realtors. California State Bar Association #69137. Serving Laguna Beach, Irvine, Newport Beach, Newport Coast, Costa Mesa, and South Orange County.
posted by Harrison K. Long @ 9:14 AM
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