Aging Cal Expo cries out for modernization
By Mary Lynne Vellinga - Bee Staff Writer
Published 12:00 am PDT Thursday, June 21, 2007
Story appeared in MAIN NEWS section, Page A1
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Cal Expo's master plan would reduce seating for horseracing by two-thirds, officials said. Sacramento Bee/José Luis Villegas
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As the start of the California State Fair nears, the staff at Cal Expo is rushing to pretty up the place. Rows of potted trees wait to be dragged out onto the grounds. A man-made rain forest is rising in the floriculture area.
But temporary beautification efforts can't conceal that CalExpo, now nearing 40 years old, needs a deep makeover. Its 1960s-era concrete towers look dated, its buildings lack creature comforts, and its electrical and water systems need modernizing.
Workers routinely cannibalize parts from one of the four aging monorail trains to keep the other three running.
State Fair attendance, meanwhile, has stagnated, and fair officials are struggling to come up with ways to draw more people and make the sprawling facility more appealing to event organizers in non-fair months.
"I think it's underutilized," said state Sen. Darrell Steinberg, D-Sacramento, an ex-officio member of the Cal Expo board. "And physically, it's not that attractive. We all feel that hot concrete during the State Fair."
Cal Expo occupies 360 acres of prime real estate near Arden Fair mall. City and fair officials agree that the property could be put to much better use while still maintaining room for the fair. They have yet to come up with firm proposals, but have suggested retail as one possibility.
Cal Expo's central location and its wealth of land recently caught the eye of the National Basketball Association, which is trying to devise a plan to build a new arena for the Kings.
Brian May, Cal Expo's deputy general manager, said NBA consultant John Moag toured the facility when he was in town about six weeks ago. May hasn't heard from Moag since.
"He was just fact-finding," May said. "He was impressed with the property ... by its scale, its location, its curb appeal.
City Councilman Rob Fong, who has been in periodic contact with Moag, said the NBA appears to have narrowed its arena search down to two possible sites: Cal Expo and the downtown railyard. The railyard was the site of last year's failed attempt by the city and county to secure voter approval for a sales tax increase to build an arena.
"I think the (NBA) is still talking with the folks at Cal Expo, and they're certainly still asking about the railyard as well; those are really the two places," Fong said.
May said there have been no discussions about exactly where such an arena would go, or how it would be financed. In his mind, the most desirable spot would probably be the dirt field that now serves as overflow parking along the Capital City Freeway.
While Cal Expo's central location, land and freeway access make it attractive as a potential arena site, there's one big downside: traffic. The fairgrounds sit alongside one of Sacramento's worst freeway bottlenecks.
In addition, May said, there's no way Cal Expo could help pay for an arena. The fairgrounds don't generate enough cash to make a dent in its own $40 million list of deferred maintenance needs, let alone invest in sports facilities. Cal Expo doesn't receive any money from the state general fund.
Cal Expo recently studied the idea of building a smaller arena for minor league hockey, concerts and other events, but dropped the idea, May said.
"The study concluded it would probably break even, at best," he said.
Cal Expo currently generates $30 million a year -- about 60 percent of it from the State Fair. Other revenue sources include trade shows and rent payments from such tenants as harness racing and Raging Waters, the new operator of the former Water- World USA. May said every dollar is pumped back into the facility.
"The State Fair is our business, and it will always be our business," May said. "We won't let anything impact the State Fair."
Despite the name "California State Fair," nearly all the people who attend come from within a 75-mile radius. Increased competition from amusement parks dotted around the state -- and other entertainment venues -- has weakened the pull of a fair featuring carnival rides and farm animals. More people now attend the Los Angeles County Fair.
Given this reality, Cal Expo's board is searching for ways to boost the fair's appeal, and also to put Cal Expo to better use at different times of year.
Cal Expo now hosts more than 200 events annually, ranging from home and garden shows to the winter Christmas tree sale. Earlier this week, girls in town for a volleyball tournament cruised around the grounds on skateboards and scooters.
But most of the business comes during the weekend from consumer related events, May said. The spread-out campus of Spartan buildings holds less appeal for corporate meeting planners, often sitting empty on weekdays.
A master plan adopted by the Cal Expo board in 2004 calls for knocking down Cal Expo's centerpiece, the eight-building concrete complex known as Expo Center, which needs about $9 million in seismic upgrades. May said the board would like to replace Expo Center with a single building that has breakout rooms for smaller groups, something Cal Expo now lacks.
The plan also recommends razing two-thirds of the racing grandstand, which can seat 6,000.
"Given the state of horseracing today, 600 seats is probably what's needed, not 6,000," May said.
In another move to free up space, Cal Expo is looking at moving its farm and forestry exhibits into the 400 acres it owns in the American River Parkway next to the developed portion of Cal Expo.
Cal Expo currently lacks the funds to carry out any of these ideas. It is sponsoring a bill by state Sen. Dave Cox, R-Fair Oaks, that would set up an authority that could issue bonds to improve the fairgrounds.
"We're talking somewhere in the neighborhood of $150 million," Cox said. "That would allow them to modernize the fair."
Cal Expo still needs to figure out how to pay the bonds back, however.
May said the fair board plans to explore possible partnerships with private developers to build retail or other business enterprises that may work well with the fair, and improve the facility's bottom line.
"The ideal vision is to build a business model that will enable Cal Expo to survive another 40 years."
By Mary Lynne Vellinga - Bee Staff Writer
Published 12:00 am PDT Thursday, June 21, 2007
Story appeared in MAIN NEWS section, Page A1
Print | E-Mail | Comments (0) | Digg it | del.icio.us
Cal Expo's master plan would reduce seating for horseracing by two-thirds, officials said. Sacramento Bee/José Luis Villegas
See additional images
As the start of the California State Fair nears, the staff at Cal Expo is rushing to pretty up the place. Rows of potted trees wait to be dragged out onto the grounds. A man-made rain forest is rising in the floriculture area.
But temporary beautification efforts can't conceal that CalExpo, now nearing 40 years old, needs a deep makeover. Its 1960s-era concrete towers look dated, its buildings lack creature comforts, and its electrical and water systems need modernizing.
Workers routinely cannibalize parts from one of the four aging monorail trains to keep the other three running.
State Fair attendance, meanwhile, has stagnated, and fair officials are struggling to come up with ways to draw more people and make the sprawling facility more appealing to event organizers in non-fair months.
"I think it's underutilized," said state Sen. Darrell Steinberg, D-Sacramento, an ex-officio member of the Cal Expo board. "And physically, it's not that attractive. We all feel that hot concrete during the State Fair."
Cal Expo occupies 360 acres of prime real estate near Arden Fair mall. City and fair officials agree that the property could be put to much better use while still maintaining room for the fair. They have yet to come up with firm proposals, but have suggested retail as one possibility.
Cal Expo's central location and its wealth of land recently caught the eye of the National Basketball Association, which is trying to devise a plan to build a new arena for the Kings.
Brian May, Cal Expo's deputy general manager, said NBA consultant John Moag toured the facility when he was in town about six weeks ago. May hasn't heard from Moag since.
"He was just fact-finding," May said. "He was impressed with the property ... by its scale, its location, its curb appeal.
City Councilman Rob Fong, who has been in periodic contact with Moag, said the NBA appears to have narrowed its arena search down to two possible sites: Cal Expo and the downtown railyard. The railyard was the site of last year's failed attempt by the city and county to secure voter approval for a sales tax increase to build an arena.
"I think the (NBA) is still talking with the folks at Cal Expo, and they're certainly still asking about the railyard as well; those are really the two places," Fong said.
May said there have been no discussions about exactly where such an arena would go, or how it would be financed. In his mind, the most desirable spot would probably be the dirt field that now serves as overflow parking along the Capital City Freeway.
While Cal Expo's central location, land and freeway access make it attractive as a potential arena site, there's one big downside: traffic. The fairgrounds sit alongside one of Sacramento's worst freeway bottlenecks.
In addition, May said, there's no way Cal Expo could help pay for an arena. The fairgrounds don't generate enough cash to make a dent in its own $40 million list of deferred maintenance needs, let alone invest in sports facilities. Cal Expo doesn't receive any money from the state general fund.
Cal Expo recently studied the idea of building a smaller arena for minor league hockey, concerts and other events, but dropped the idea, May said.
"The study concluded it would probably break even, at best," he said.
Cal Expo currently generates $30 million a year -- about 60 percent of it from the State Fair. Other revenue sources include trade shows and rent payments from such tenants as harness racing and Raging Waters, the new operator of the former Water- World USA. May said every dollar is pumped back into the facility.
"The State Fair is our business, and it will always be our business," May said. "We won't let anything impact the State Fair."
Despite the name "California State Fair," nearly all the people who attend come from within a 75-mile radius. Increased competition from amusement parks dotted around the state -- and other entertainment venues -- has weakened the pull of a fair featuring carnival rides and farm animals. More people now attend the Los Angeles County Fair.
Given this reality, Cal Expo's board is searching for ways to boost the fair's appeal, and also to put Cal Expo to better use at different times of year.
Cal Expo now hosts more than 200 events annually, ranging from home and garden shows to the winter Christmas tree sale. Earlier this week, girls in town for a volleyball tournament cruised around the grounds on skateboards and scooters.
But most of the business comes during the weekend from consumer related events, May said. The spread-out campus of Spartan buildings holds less appeal for corporate meeting planners, often sitting empty on weekdays.
A master plan adopted by the Cal Expo board in 2004 calls for knocking down Cal Expo's centerpiece, the eight-building concrete complex known as Expo Center, which needs about $9 million in seismic upgrades. May said the board would like to replace Expo Center with a single building that has breakout rooms for smaller groups, something Cal Expo now lacks.
The plan also recommends razing two-thirds of the racing grandstand, which can seat 6,000.
"Given the state of horseracing today, 600 seats is probably what's needed, not 6,000," May said.
In another move to free up space, Cal Expo is looking at moving its farm and forestry exhibits into the 400 acres it owns in the American River Parkway next to the developed portion of Cal Expo.
Cal Expo currently lacks the funds to carry out any of these ideas. It is sponsoring a bill by state Sen. Dave Cox, R-Fair Oaks, that would set up an authority that could issue bonds to improve the fairgrounds.
"We're talking somewhere in the neighborhood of $150 million," Cox said. "That would allow them to modernize the fair."
Cal Expo still needs to figure out how to pay the bonds back, however.
May said the fair board plans to explore possible partnerships with private developers to build retail or other business enterprises that may work well with the fair, and improve the facility's bottom line.
"The ideal vision is to build a business model that will enable Cal Expo to survive another 40 years."