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Breaking News

County Lawyer Seeks State Probe of OC Fair Privatization Plan

By R. Scott Moxley, Monday, Nov. 16 2009 @ 4:00PM
Comments (24)
Categories: Moxley, Politics
dickyackerman.jpg
What has Dick been doing?
​
The County of Orange's lawyer is calling on the California Attorney General to investigate potential illegal deals that could give private control of the $100 million-plus Orange County Fairgrounds property in Costa Mesa to well-connected political insiders.

In an Oct. 30, 2009, letter to Gary Schons--the state AG's top-ranking official in Southern California--County Counsel Nicholas S. Chrisos writes, "it appears" that the public board of the state-owned fairgrounds began violating open meeting and conflict-of-interest laws in July by secretly forming a private foundation to bid on the property, secretly naming themselves to the foundation's private board and hiring--without a bid process--former State Senator Dick Ackerman's law firm as the private entity's consultant.

The fair board was so concerned about secrecy it asked Ackerman's Nossaman, Guthner, Knox and Eliot to create the foundation in July--"eight days before the [law firm's] consulting contract was approved" in public, according to Chrisos.

A July 29 fair board agenda cryptically informed residents that item number 7 concerned the "Governor's Initiative to Sell Orange County Fair & Event Center." There was no mention of creating a foundation or spending money to hire related consultants. The fair board routinely blocks open public inspection of its requests for bids by oddly requiring citizens to obtain a password for online access. Governor Arnold Schwarzenegger wants to sell valuable public properties in an alleged effort to reduce the state's multi-billion dollar deficit. 

Chrisos provided Schons with other concerns, including that the fair board members "would have a direct personal interest" in the new private foundation's "financial interests;" and that public funds were illegally used to hire the two law firms for the private foundation. It's the governor who appoints individuals to state fair boards. In OC, at least, the composition is usually a who's who of political operatives, consultants or campaign contributors.

Robin Wachner, spokesperson for the fair, declined to answer in-depth questions about the board's creation of a private foundation. Wachner said she would ask either board Chairwoman Kristina Dodge or Vice Chairman Dave Ellis to call me to respond to questions. Neither one has called back. Normally chatty Dick Ackerman is mum, too.

Officials at Nossaman told me today that they "handed over" the foundation's articles of incorporations responsibilities to Jones Day lawyer John R. Beeson. Beeson could not be reached for an interview this afternoon. Jones Day represented sheriff-turned-convicted-felon Mike Carona on federal corruption charges earlier this year.

A fascinating side note that gives a glimpse into the incestuous inner workings of OC politics: Linda Ackerman, Dick's wife, is running to replace disgraced state Assemblyman Mike Duvall, a longtime Ackerman pal. The special election is Tuesday. As vice chairman of a state committee overseeing utility companies, Duvall had openly bragged about his juicy sexual affair with a head lobbyist for utility giant Sempra. When KCBS/KCAL reported last month on another alleged past sexual relationship between Duvall and Linda Ackerman's fundraiser, an outraged Dick Ackerman got Jones Day's Thomas Malcolm to threaten a series of news outlets (including this publication) with hostile legal action.

Will the Malcolm/Ackerman duo team up against the media again on the secretive fair privatization issue?

--R. Scott Moxley / OC Weekly

Tags:

Dick Ackerman, John R. Beeson, Jones Day, Linda Ackerman, Nossaman, OC Fair, privatization, Sempra, Thomas Malcolm
Comments (24) Write Comment
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More About:

  • Dick Ackerman
  • Nicholas Chrisos
  • Mike Duvall
  • Linda Ackerman
  • Fairs and Carnivals

Comments (24)

OC Progressive says:

Thanks for finally picking up a story that's been covered by local blogs for months.

You guys are getting to be like the Orange County Register, late to the story, and failing to give attribution to the folks who been doing the grunt work,

Posted On: Monday, Nov. 16 2009 @ 4:37PM
El Gringo says:

So a professional politician is threatening the OC Weekly with a lawsuit.
As the late OC newsman and former Hearstling Stan Dunn said, "You know you've made it when the politicians sue or threaten to sue you."

Posted On: Monday, Nov. 16 2009 @ 4:48PM
OC Progressive says:

Kudos to the Weekly for publishing my somewhat critical comment. It's a big county, with lots of scandals, and the Weekly only has so many resources.

Speaking for those of us in the blogosphere, we're delighted when the bulldogs at the Weekly sink their teeth into a scandal.

We're amateurs, and we have deep and abiding faith in the professionals at the Weekly.

Go get em, just drop a link to ocprogressive.com or pacificprogressive.com once in a while.

Posted On: Monday, Nov. 16 2009 @ 5:05PM
Gustavo Arellano says:

Gus Ayer: Stop whining. And where has your blog been on the issue of Loretta Sanchez breaking the hearts of undocumented students for failing to endorse the DREAM Act? That's right: nowhere, other than your apologist remarks on my Facebook account.

Posted On: Monday, Nov. 16 2009 @ 5:09PM
Matt Coker says:

Finally picking up a story? WTF? I won't make any claims that we were first on this, because I don't know, but we have previously blogged about the proposed sale:

Foes of Proposed Orange County Fair Sale Launch Website: 9/21/09 http://blogs.ocweekly.com/navelgazing/a-clockwork-orange/orange-county-fair-unfair-webs/

What's It Gonna Take to get You to Drive Off With These Fairgrounds: 10/09/09 http://blogs.ocweekly.com/navelgazing/a-clockwork-orange/oc-unfair-fairgrounds-sale/

Posted On: Monday, Nov. 16 2009 @ 5:21PM
OC Progressive says:

Gustavo: Stop whining yourself!
Someone disagrees with you mildly on Facebook and it's a grudge match forever?

My point on Facebook was not to defend Loretta. Rather it was to bemoan the fact that journalism in the OC lacks any liberal voice. I'd love to see a world where there was the Register attacking Loretta, a less regressive paper covering her honestly, and you carrying the alternative message.

I agree with you completely on the Dream Act. We're just missing a moderate or liberal voice to even report on Loretta.

This is one of those meta points, where I agree with criticism of Congresswoman Sanchez when she makes a mistake, but it still grates that there's no liberal voice to compliment her when she's doing exactly the right thing.

In the broader world of the progressive blogosphere, I take pains defending Loretta as someone who voted against the invasion of Iraq abd against FISA, and as someone who is far more liberal than her district, yet gets lumped in with the worst of the blue dogs.

And as to what our blog does, I don't feel the need to repeat something that someone else has done very well, and your criticism of Congresswoman Sanchez on this issue has been on point.

Posted On: Monday, Nov. 16 2009 @ 5:50PM
Gericault says:

They call it "consultant" but in the Daily Pilot Oct 18th article they said, "Fair board members said they hired Dick Ackerman to lobby the state for the sale". Dick Ackerman himself is quoted as lobbying on behalf of the fair to the state. This represents a clear legal voilation. Termed- out Dick Ackerman has a one year restriction on lobbying activities. Where have you guys been? Right after Moxley called they probably fired up the shredders at Nossaman....

Posted On: Monday, Nov. 16 2009 @ 5:55PM
hbrocks says:

hey hey
ho ho
This corrupt Fair Board has got to Go!

Posted On: Monday, Nov. 16 2009 @ 7:03PM
Ed Ribose says:

This thread is juicier than the fair board story: Gustavo outs OC Progressive, Progressive notes Gustavo's legendary thin skin... Can't wait for the next post!

Posted On: Monday, Nov. 16 2009 @ 7:27PM
Gustavo Arellano says:

Gus: Take your last line in consideration next time you try to compare us to a rag.

Ed: I actually have a skin of steel, but I don't take attacks against my colleagues lightly. Also, there's no "outing" of Gus--just go to his blog, and you'll see who's who.

Posted On: Monday, Nov. 16 2009 @ 8:58PM
The Pot Stirrer says:

OK, you kids done? Let's get back to the issue, here. This a HUGE story that has reeked from the very beginning. And, the tenticles seem to be reaching throughout the county. Righeimer's smoke screen attempt to "save the fair", Linda Ackerman's bid for Duvall's Assembly seat, and on and on. Tuesday the Costa Mesa City Council will debate whether to send a strongly-worded letter to the Governor on the whole Fair Sale issue. In the meantime, they are proceeding to so burden the Fairgrounds with use restrictions that no one will want to buy it. Kudos to Moxley and The Weekly for this info... keep up the good work.

Posted On: Monday, Nov. 16 2009 @ 9:18PM
Fact Check says:

Good Article. The Carona cronies can't seem to keep their hooks out of the OC Fairgrounds.

Posted On: Tuesday, Nov. 17 2009 @ 8:20AM
Vern says:

We're happy that Moxley is writing about this now, and also hope everyone knows that Gus has been on this issue all year like white on rice. One recent influential masterpost:

http://ocprogressive.com/diary/996/will-jerry-brown-get-in-front-of-the-orange-county-fairgrounds-scandal

Don't miss tonight's Costa Mesa City Council meeting for the premiere of "Tainted Sale!"

Posted On: Tuesday, Nov. 17 2009 @ 9:16AM
Gustavo Arellano says:

And Gus: It's even sadder when you don't allow comments on your blog from the general public.

Posted On: Tuesday, Nov. 17 2009 @ 9:40AM
MadDog says:

I too was wondering why you guys were slacking on this. Check into Riggy and Ellis relationship. More Costa Mesa drama? Councilwoman Leece slapping God on the walls of the Chambers. Get on it.

Posted On: Tuesday, Nov. 17 2009 @ 1:39PM
OC Progressive says:

Eh??

Petty grievances aside, it's the issue that's important, and everybody's happy to see the bulldogs at the OCWeekly, the only real investigative journalists in the OC, sink their teeth into the hide of the scoundrels trying to bring back their patronage machine.

Posted On: Tuesday, Nov. 17 2009 @ 1:59PM
Art Pedroza says:

Gustavo,

I recently invited Gus Ayer to cross-post on my blog, in order to pump up the readership at his blog.

His response? Well, let's just say he was not very appreciative. Apparently he doesn't dig that we go after his blue hack pals.

I wonder why Gus won't post his readership data? Even Lib OC does that.

That said, great post Moxley! Game on for these cabrones. It would be great to see Dick Ackerman dragged off in chains - after his clueless wife loses to Norby today.

Posted On: Tuesday, Nov. 17 2009 @ 2:26PM
Stop the Sale! says:

It does seem strange that the people appointed to handle the fair can simultaneously form a private group to buy the same said fairgrounds? I hope it gets looked into. Once the fairgrounds are gone, they are lost forever to OC.

Posted On: Tuesday, Nov. 17 2009 @ 2:36PM
MadDog says:

The Fair Board only recently publicly posted their meeting agendas and minutes on their website. They all need to be removed. Trinity (TBN) might be the highest bidder.

Posted On: Tuesday, Nov. 17 2009 @ 4:01PM
joe says:

OC Progressive allows public comments, you just have to register.

Gus and Art Pedroza have more in common than they will care to admit. They both have fiery temperaments.

Art has a great blog. People read it. It's entertaining. So is Navel Gazing.

Don't get mad at Gus, he goes to meetings, reads agendas, reads staff reports and did a bang up job on how screwed up the toll roads are. And he's been writing about the shenanigans at the fair for weeks now.

Not many people are reading those reports and going to these mettings, and given the restraints on journalists these days, they can't be everywhere.

So we need Gus.

Posted On: Tuesday, Nov. 17 2009 @ 10:56PM
Gustavo Arellano says:

Joe: You compare me to Art as if I'm supposed to be insulted by it. Shit, we ourselves have said that Orange Juice! is the Weekly of the blogosphere. And I never insulted Gus; just went after his assertion that we're like the Reg.

Posted On: Wednesday, Nov. 18 2009 @ 7:17AM
Joe says:

No I was comparing the other Gus to Art.

Sorry for being imprecise.

Posted On: Wednesday, Nov. 18 2009 @ 3:20PM
Ltpar says:

Seems to me there is a simple solution to this situation. The Governor should fire the entire Fair Board and replace them with folks who don't have a conflict of interest and who will focus on running the Fairgrounds. The current Board would then be free to spend all their time building their non-profit Corporation and raising money to pay fair market value, for this taxpayer owned property.

Posted On: Wednesday, Nov. 18 2009 @ 7:43PM
JT says:

I thought Duvall voted against the sale of the OC Fairgrounds? Not sure what connection is there between Duvall and Ackerman with regards to the sale of the OC Fairgrounds.

Posted On: Wednesday, Nov. 18 2009 @ 8:53PM

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