The Orange County Fair Board Approves Significant Rent Hikes for All Boarders and Trainers at the Orange County Fairgrounds Equestrian Center
Renters Hike
The Current Issue
At the March 2024 Orange County Fair Board meeting, the Board decided with a narrow 3-2 vote in favor of raising the monthly horse stall rates at the Orange County Equestrian Center. The increase will be implemented in stages: first by 45% on June 15, followed by an additional 10% hike on October 1, and another 10% rise by January 1, 2025. This decision will position the stall rates at this public equestrian facility as the highest among all others in Southern California.
Why is this Happening?
In 2022, the OC Fair Board and Staff released an Invitation For Bid (IFB) seeking an independent contractor to oversee the daily operations of the Orange County Fairgrounds Equestrian Center, encompassing barn and arena management. Despite public apprehension regarding the bidder's lack of experience in the equestrian sector and concerns over high daily operating expenses, only one bid was submitted and subsequently accepted. A member of the public cautioned that if the contract were approved, it could lead to a deficit exceeding $1 million for the OC Fair within a year.
One year later, the OC Fair Board and Staff confronted the anticipated consequence of their decision: a financial setback of approximately $1.4 million for the OC Fair & Event Center. This loss stemmed from the equestrian center’s accumulated operating expenses throughout 2023, primarily attributed to the independent contractor's management of the equestrian center and their high operating costs.
Instead of seeking ways to reduce operating expenses, OC Fair Staff suggested implementing increases in stall rentals, shifting the burden of covering high costs onto equine trainers and boarders who lease stalls on-site. The Board approved this item without discussing alternatives to cut cost before resorting to significant rent hikes.
Impact
The OC Fair Board's choice to almost double the rental rates for horse stalls doesn't just affect the welfare of the horses, boarders, and trainers. It also poses a serious risk to the long-term viability of the Orange County Fairgrounds Equestrian Center. This decision puts the accessibility and affordability of the center at risk, potentially resulting in its permanent closure for present and future generations, thereby depriving the community of a valuable resource.
At the meeting where the OC Fair Board approved the rent increase, Staff also introduced ideas for future programming intended to offer wider public benefits at the OC Fairgrounds Equestrian Center. These ideas included organizing a public horse show, implementing a program for veterans, and establishing a college veterinary tech program. However, when questioned about the source of the horses and the expertise required to care for them for these initiatives, Staff admitted that they had not yet resolved these details.
Boarders and trainers currently leasing stalls at the center, unable to afford the increased rental costs, now face a difficult choice: either sell their horses or seek alternative boarding locations, which are scarce in Orange County. The rent hike will inevitably result in the loss of current public programming provided by nonprofit businesses and trainers on-site, depriving the public of these affordable and accessible opportunities.
With low occupancy rate expected due to this decision, a crucial question arises: how does Staff envision their public programming strategy unfolding while maintaining the integrity of the entire 7.5 acres of the equestrian center if there are no longer horses, boarders, and knowledgeable trainers on-site? From a business standpoint, long-term high vacancy rates would inevitably lead to the center's scaled down operations or permanent closure, depriving future generations of yet another equine opportunity.