California Budget Proposal Calls For Sale Of L.A. Coliseum

State Senator Says Selling L.A. Coliseum Is A Bad Idea Because It's Well-Used, Profitable

California Gov. Arnold Schwarzenegger has proposed that the state sell some of its assets, including the L.A. Memorial Coliseum, Cal Expo and Del Mar Fairgrounds, "to raise cash amid the state's growing fiscal crisis," according to a front-page piece by Michael Rothfeld of the L.A. TIMES. Schwarzenegger today will unveil his revised budget plan, which claims that the sale of the properties would raise between $600M-1B, "although it would not provide financial relief for two to five years." It is "not clear whether lawmakers would be willing to part with the real estate" Schwarzenegger has proposed, which also includes the Orange County Fairgrounds and San Quentin State Prison, among others. But proposals to sell the Coliseum and San Quentin "have not advanced in the Legislature in recent weeks." State lawmakers yesterday were "of mixed minds" about the plan. State Sen. Roderick Wright said that "selling the Coliseum is a bad idea, because it is well-used and turning a profit." Wright: "You've got a depressed market, so you are not going to get its full value. To try to sell the Coliseum now in a fire sale is not a prudent thing to do." But Rothfeld notes if the state does elect to sell the stadium, USC, which "signed a long-term lease last year, could be a likely buyer." USC Associate Senior VP/Real Estate & Asset Management Kristina Raspe said, "If that were the only way to ensure the Coliseum would be improved and maintained for its current uses, for the right price the university would have to consider it." Prior to reaching a new lease with the Coliseum last year, USC had offered to operate the stadium and invest $100M for improvements (L.A. TIMES, 5/14).

Del Mar Dir Shocked By Track Being Included In Proposal

OTHER VENUES: In a front-page piece for the SAN DIEGO UNION-TRIBUNE, Michael Gardner notes the Del Mar Fairgrounds "sits on slightly more than 400 acres of prime coastal real estate and is a popular venue for horse racing, the San Diego County Fair and other events." Del Mar Dir Michael Alpert said the proposal is "shocking to me. I know these are very tough times, but I can't even imagine (it)." State Assemblyman Martin Garrick said that there "will be little support in San Diego County for dispatching" the Fairgrounds (SAN DIEGO UNION-TRIBUNE, 5/14). In Sacramento, Kevin Yamamura notes in a front-page piece that the budget proposal "does not address how a Cal Expo sale would fit into the plan that Cal Expo officials and the NBA are considering to redevelop the site with an arena" for the NBA Kings. Under that proposal, the state "would retain ownership of the land but lease the property to private interests," while the land would "remain a leased public asset with development coming from private money." Taxes from the businesses "planted there would build a new arena for the Kings and new facilities" for the State Fair, but if the "project fell apart, taxpayers would be obligated to pick up the pieces" (SACRAMENTO BEE, 5/14).