Fair Board Reflections

Iwas recently informed by Governor Newsom’s Appointment Secretary that my term on the Board of Directors of the 22^nd District Agricultural Association would end the following day. The almost 7 years I served on the Board included some of most challenging times ever to face the Del Mar Fairgrounds, and I am pleased to report that Board decisions helped to meet and overcome these challenging events.

First, a little information about the Fair Board and fairgrounds operations:

• The Board has 9 Directors, each appointed by the Governor for a term of 4 years. Terms are automatically extended until a replacement is appointed.
• The Board provides policy direction to the CEO of the fairgrounds.
• Board Directors receive no compensation, but they are subject to state regulations regarding open public meetings and training required of management level state employees.
• The fairgrounds has two state-owned properties, the main campus in Del Mar and Horse Park one mile east.
• Since 2011, the state has provided no funding to the fairgrounds. The primary sources of income are the annual San Diego County Fair and the revenue from horse racing.

The challenges:

• The COVID pandemic caused the cancellation of the 2020 fair. The loss of fair revenues caused the layoff of 2/3 of the fair’s 156 permanent staff, which was implemented after a 6-month delay because of regulations for state employees.
• Horse racing continued in 2020 but with no patrons. Revenue was down over 90% for the year. Securing state funds and a federal PPP loan helped essential operations survive.
• Tim Fennell resigned as CEO and was replaced by Carlene Moore in 2020. Carlene and then Board President Richard Valdez worked tirelessly to obtain funding to keep the fairgrounds afloat.
• The 2021 Fair was cancelled and replaced with a much smaller event called “Home Grown Fun.” The fairgrounds also hosted a COVID vaccine Superstation in 2021.
• The fairgrounds was faced with significant litigation challenges resulting from the E. coli-related death of a child attending the 2019 fair and ride operators contesting contracts for the cancelled 2021 fair. Both of these cases have been settled.
• The PPP loan received in 2020 had to be repaid in 2025 because the federal government asserted that the 22^nd DAA was a state agency, even though it is not funded by the state.
• The $15M water reclamation project was completed on time and on schedule in spite of all the turmoil listed above.

The good news is that the fairgrounds has recovered, has a new CEO who has led the recovery, and is on sound financial footing. Key senior personnel have been recruited, and the satellite wagering facility has been replaced by The Sound, a successful music venue. The strategic planning effort has resumed with public outreach being conducted in partnership with Southwest Strategies.

I am proud to have been on the Board during these trying times, and I am pleased that the Del Mar Fairgrounds is in much better place that when I joined the board in 2018.