May 2, 2004

County set to approve Fairgrounds concert hall

By County Supervisor James Beall
Special to the Times

On May 4 the County Board of Supervisors will consider approving a ground lease for a concert hall to be operated by House of Blues at the County Fairgrounds. There has been a great deal of misinformation presented to the public about the proposed plan.

First, this decision is part of a broader and previously approved plan for revitalizing the fairgrounds site. The board of supervisors originally approved the Fairgrounds Revitalization Plan in June 1998. Public hearings were held resulting in modifications to the original proposal for an outdoor amphitheatre.

The revitalization project includes construction of the concert hall, 360 units of housing, a health clinic, an Expo Center, a community recreation facility, parking and improvements to Franklin McKinley School, as well as improvements to roadways.

Second, the concert hall plan involves no taxpayer money. The county will lease the land for the House of Blues operation. Development and operating financing will come from sale of tax-exempt bonds.

Santa Clara County will continue to own the land and receive revenue from the theatre operations. The county will not be at risk for either the financing or the debt service on the bonds. I strongly believe that private investment is the most appropriate means of funding the concert hall and will not approve an agreement that puts the county at risk.

Finally, the development of the fairgrounds site is consistent with other county asset development projects and with the objective of generating revenues for county services. The recent sale of surplus land near the Elmwood Jail resulted in development of over 700 units of housing and generated $200 million in revenue for the county.

In a period of increased demand for county services, and declining state and federal funding the county is searching for alternative methods of generating additional revenue.

The Board will decide on May 4 whether to approve the ground lease for the concert hall or not. If you are interested or have questions please contact my office at (408) 299-5040.