Horses, Not Houses at Fairgrounds

Now that Cattelus Development has walked away from developing the Santa Clara Fairgrounds, I hope the County will consider something other than housing.  Perhaps a fee based sports complex or even…a horse track.

The goal of the Fairground’s property is to bring in revenue for the long term. Selling the land at a depressed price is not optimal. A long-term lease would be preferred because it could bring in a source of revenue which is every local government’s dream.

Currently, the Fairgrounds is home to off-track betting for horseraces, an operation called San Jose Fair Downs. Although the actual horse track does not exist, gambling does take place at the Fairgrounds. People can go to the Fairgrounds and bet on horseraces from the Belmont Stakes to the Kentucky Derby. So, since gambling already exists at the Fairgrounds, why then not consider using part of the many acres of the Fairgrounds parcel for a horse racing track?

The horse track in San Mateo, Bay Meadows, is now closed and was sold for housing at height of the real estate market. The only other horse track around here is Golden Gate Fields in Berkeley. This lack of horse racing facilities would allow Santa Clara County to have large market share for half of the Bay Area. Further, the land would then be mostly open space instead of thousands of housing units.

The County would make money on the gambling fees, parking, food and beverages. Some quantity of jobs would be created to maintain and service the facility. A racetrack would lock up the land for 10-20-30 years and then if the next generation wanted to change the use of the land they could do so at that time. Perhaps there is a revenue potential for other equestrian uses since some San Jose residents drive and pay to ride horses in other cities.

The horse track could be built in such a way that the infield acts as a park or sports fields by allowing the center of the track to have a dual use. I remember attending the Kentucky Derby and thought the infield was enormous.  So, here is an idea for the County to make money and the city in turn does not have to deal with thousands of more housing units.

I just hope that the County does not intend on adding another public golf course at the Fairgrounds. And, if they do decide to ponder the idea, perhaps the recent Santa Clara Civil Grand Jury report calling San Jose’s public Golf Courses a financial sand trap will change their minds.
To view the 11 page report, go to this link: http://www.sccsuperiorcourt.org/jury/GJ.html

 

 

38 Comments

  1. Pier,

    Agreed, adding more housing stock would be imprudent for a number of reasons. 

    Unless I’m mistaken, we are in drought conditions and water will never again be plentiful around here. 

    As well, we have more and more spare-the-air days each year – adding more residents would only further degrade our air quality. 

    Lastly, if the County adds to the housing stock, I would hope that San Jose doesn’t plan on incorporating the area in the future.  Let the County pay for the required infrastructure; San Jose simply cannot afford to do so.

  2. The Fairgrounds could develop a horse track there which could pay for itself.  I know that Hazelnut, the guy that talks about how fun it would be to shoot up Santa Clara City Hall, loves to talk about the Fairgrounds.  I would much rather this type of solution be explored.

  3. I would rather have the city spend money on crossing guards then subsidizing golf.
    Friday night live music nights were fun at Bay Meadows.

  4. Zone the land however you deem appropriate, but please, don’t get into the real estate leasing business.

    I may be the last of a dying breed, but I don’t want the taxpayers to have to subsidize golf, horse-racing, baseball stadiums, mansions, art, charities, high-rise condos, or any other non-essential service.

    How about widening the freeways and paving the roads?

  5. #4—I’m not sure the city “subsidizes” golf.  As I undrstand it, the city-owned/operated golf courses have a small operating profit.  The problem is that the construction costs were funded by bonds, for which there is a debt service.  If the city can give Lew Wolf land to build a stadium, and it can forgive the indebtedness of the G.I. Forum for the pre-riot festivities on Cinco de Mayo, and it can forgive indebtedness owed by The Fairmont, and it can (via the RDA) forgive $2million owed by Legacy partners for the land on which the 360 residences were built, surely it can pay the bond indebtedness to construct the golf courses.  Actually, I’m kidding—none of that should have happened.

  6. I enjoyed Bay Meadows and wouldn’t mind seeing a track at the Fairgrounds.  Would a new track be able to get racing days allocated, though?  I think that there is a set number of racing days that are shared among all of the tracks in California.  I’m not sure how Bay Meadows’ races were distributed after it closed, but it may not be real easy to get days allocated to a new track.  I’d love to hear from somebody who knows more about it whether or not this would be an issue.

  7. Obviously, the Fairgrounds needs a general aviation airport built on the land.  After all, just look at how much East San Jose benefits from Reid-Hillview. 

    Then we could expose even more children to lead poisoning, oops I mean inspire even more children.

    Of course, a race track will benefit more than the approximate 2000 county residents who occasionally use RHV.

  8. Horse Racing seems OK. I’d vote for it. Some more revenue into the stream, but highly regulated and controlled. Reason? Nearby residents and businesses.

    The land is probably suitable for that but also consider the crowds that ALREADY go to the Fairgrounds for Paintball.

    I’ve been a attendee of many events at the Fairgrounds over the years and used to love going to the Fair. I’d hate to see all of that given up for a Johnny One Note idea.

    If some astute businessperson could come up with a low budget mini-convention center complex plan, that too could help. In good times our Hotels were getting good business as well as fully booked convention seasons. Even a large indoor Flea Market to replace our vanishing outdoor ones would be welcomed by me. Have we looked at what other successful counties are doing with their properties?

    Maybe a dual use hosting site could be accommodated and a short recess for the Fair.

    The grounds are probably too close to residents to have a multiplicity of concerts there. I live 10 miles away and often heard the noise from the Fair, i.e. fireworks and musical events but they ended early in the night. Can’t imagine the people living near by with noise at 2 AM.

  9. San Jose city leaders were told Monday that the drop in first quarter sales tax revenue was more than triple what they expected, creating an immediate shortfall in the city’s current year budget.

    The State Board of Equalization told the city that its sales tax revenue for the January-March quarter dropped by 29 percent, or $10.9 million, over the same quarter last year. The city had prepared for a 10 percent drop of about $3 million.

    Mayor Chuck Reed called for the city council to dip into its reserve funds to cover the shortfall.

    “Today’s news is a clear sign that economic recovery is taking longer than we all hoped,” Reed said in a prepared statement. “San Jose has prudently budgeted for a significant decline in sales tax revenue, however our bad scenario wasn’t bad enough. This bad news creates a $7 million hole in this year’s budget.”

    The news came as Reed and the city council prepared for the final public hearing on next year’s city budget Monday night. The city council vote on that budget was scheduled for Tuesday

    Reed warned that the new sales tax shortfall will require more than tapping into reserves to six. “The state of California is in fiscal failure and threatening to take millions in local revenue. After seven straight years of deficits, reserves alone cannot close next year’s shortfall.”

  10. P.O—-I understand that Bay Meadows was a bit run down (in my opinion) but I don’t think they were attracting that many people.  I could be wrong.  How about a full sports book? 

    #4 JMO—Wow, I knew that we just gave some $6 mil away but I didn’t know about that other stuff.  And the city doesn’t have money???  I’m confused.  Just because it is a special fund?  How much is in this fund?

    I was just at the Center of Performing Arts last week.  How about redeveloping that with some of that money. Get some big hotels to kick in and then a major contributor such as Adobe right next door, ebay or cisco and make a real nice theater.  Like the Kodak Theater or something like that. Perhaps we can get a broadway show and attract some people.

    Then afterwards they can go to the horse races I guess.

  11. #15

    You paid far less for your house over there than you would have in other areas of SJ.

    Interesting theory.  Are you saying that Reid-Hillview depresses property values?  That translates into reduced revenue for the city and county. 

    Does the tax revenue generated by Reid-Hillview make up for the lost property tax revenue? 

    Does the tax revenue from Reid-Hillview make up for the lost revenue by using the land in a more productive manner?

    Does the tax revenue from Reid-Hillview make up for the lost revenue to the county when Santa Clara County eventually gets sued for exposing residents to airborne lead pollution from a recreational activity?

    Thanks for your help in understanding these issues?

  12. Tell ya’ what, Blue, I’ll answer your first question.  With a name like Blue Fox, you must be retired and, therefore, have plenty of time to research your other issues.

    Yes, RH, like many things, depresses the value of adjacent properties.  Others include railroad tracks, freeways, meat-processing and sewage treatment plants, cow dung piles, etc.  C’mon now, you’ve lived long enough to be in the blue hair crowd and you didn’t know this?!  I think you’re being coy.

  13. Any use that doesn’t draw the tatooed teardrops and tatooed necks crowd would be OK by me.  The couple of times I ventured there, it seemed like a parole officer’s dream—every criminal on parole in the county that hadn’t reported was there with his homies.

  14. Blue Fox,

    You’re a one-trick pony… you’ve been ragging about Reid-Hillview forever.  Get a life and move somewhere else.  You paid far less for your house over there than you would have in other areas of SJ.  So live with it or move on!

  15. It’s a shame that the County has gotten itself into such a position that it must regard the fairgrounds as a source of revenue. I believe we are in agreement though, that more housing is not an attractive option and I’m pleased that Catellus withdrew.

    Jason L. raised some pretty pertinent points about the horseracing potential. Even if we were able to get a schedule of races I’m not sure that it would result in positive revenue for Larry Stone et al. The off track betting facility that’s there now may already be attracting most of the racing (betting) fans that would attend live racing. 

    The County wants revenue? There are hundreds of contractors in the valley who need a secure place to park their equipment. The City of San Jose and it’s relentless “infilling” policy has made it very difficult to find storage for work vehicles. The County could lease a portion of the land to a firm who would sublease space to contractors.

    Also, they could let the VTA employees who currently park their RVs for free over off Zanker Rd., instead pay market rate to park them at the Fairgrounds land.

    Oooh. The unions wouldn’t like that. Better take that off the table.

  16. 21 – A leftist strategy? Advance an agenda? You really need to get over your paranoia. In the real world not everything is divided up by left and right. I realize it is in your world, but for the rest of us we look at information and make our decisions—without regard to left and right.
    Also, just what agenda is being advanced? Concern over air quality and what pollutants we are breathing into our lungs? Sounds pretty leftist.

  17. #13—I just read yesterday that The IMprov. got $5.1 million in lease subsidies to open up at the old Jose Theatre.  And let’s not forget the $6 million to Tom McEnery to EXPAND San Pedro Square, ( including building more housing,while Axis, The 88, and 360 are virtually empty) at a time when San Pedro Square’s three largest venues are empty!  And our so-called leaders wonder why we have deficits?

  18. #21

    Unfortunately, medical research has now shown that any amount of lead in the blood of a child younger than 6, or in the blood of pregnant woman, can result in permanent, measurable, cognitive impairment (IQ loss) for the child or fetus.  Additionally, medical research has shown that inhaled airborne lead is absorbed into the blood.  Finally, EPA research concludes that the airborne lead level in neighborhoods around GA airports is at least 2-3 higher than neighborhoods elsewhere.

    Rather than being “trumped up environmental scare tactics”, it is simply the facts.

    Trying to justify lead poisoning in the present by saying that it was worse in the past is one of the most idiotic, asinine, moronic, and stupid things ever posted on SJI.

  19. Blue Fox,

    If you’re over 40 you grew up in a cloud of “lead pollution” and somehow managed to survive. We’re supposed to be worried about the fallout from a few light planes passing overhead? Give me a break.
    Using trumped up environmental scare tactics to advance an agenda is a classic and tiresome leftist strategy.

  20. #25,

    You should be thanking me for my honesty, champ.
    Maybe your fancy studies and statistics aren’t as compelling as you imagine them to be. Since Reid Hillview continues to operate, it appears obvious that most people are as dismissive of your fearmongering as I am. They’re just too polite to tell you how stupid, idiotic, moronic, asinine, AND, I might add, futile your campaign has been.

    But do continue to post. Your obsessive remarks are a perpetual source of amusement on SJI.

  21. Yes, let’s build Bay Meadows II at the fairgrounds. Let’s also move the Sobrato Building, the Pavilion Shopping Center, the Center for the Performing Arts, both the new and old (vacant) City Halls, the old MLK library, and the Mexican-American Heritage Center, and put the Fallon and Quetzalcoatl statues at the entrance. We could turn the fairgrounds into a museum: the Believe-It-Or-Not Museum of the Greatest Economic Blunders of Silicon Valley! And to get there, folks could take either the Winchester or Almaden VTA light rail lines!

  22. #31,

    Greyhound racing is considered by many to be inhumane. (It probably is.)
    But Golden Gate Fields runs Wiener Dog Races now and then and they’re pretty popular. The problem is finding suitable jockeys.

  23. 29—Are you always such a nasty, angry, bitter, unpleasant person, or are you just that way in what you write here?
    Your attempted insults add nothing to the postings here and your delight in making non-factual statements pretty much speak for themselves.

  24. 34 – If you’ve paid attention to anything #33 has said you’d probably know he could care less about the dogs. He probably thinks it is a silly, leftist ideal that animals should have any rights. You play right into his game by complimenting for something that was probably tongue-in-cheek at best.

  25. #33-John Galt,
    “Greyhound racing is considered by many to be inhumane. (It probably is.)”

    Thank you on behalf of the hundreds of thousands of retired and injured Grey Hounds that are dumped after out living their use. These dogs have a very difficult life, have very little human contact, and need an incredible amount of socialization once they are dumped at shelters for euthanasia. They are beautiful, loving dogs that deserve a much better life. I deeply appreciate your comment as education is vital to those who don’t know the facts.

  26. Whippet,
    John Galt is not kidding about the Grey Hounds. He has a more compassionate heart than you know. He was kidding about the Wiener Dog Races, but that is just who he is.

  27. Bless you Kathleen.
    I was kidding about the jockeys but GGF really does have Wiener Dog Races every so often- just a promotional gimmick with no gambling associated.

  28. I have been to other city and they have great sports complexes. San Jose could use a well thought out softball complex. Softball tournaments would attract teams and attendees from around the country that would add money to the San Jose economy. We don’t need more housing at least in that area.

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