Del Mar-Solana Beach Debate : Assembly Panel OKs Racing Proceeds Bill

Legislation aimed at breaking an impasse between Del Mar and Solana Beach over proceeds from satellite wagering at the Del Mar Race Track won reluctant acceptance Tuesday in its first test of strength in the Assembly.

The Assembly Governmental Organization Committee approved the measure, by Assemblywoman Sunny Mojonnier (R-Encinitas), but only after the bill was amended to the satisfaction of a Del Mar lobbyist.

And several committee members said they feared the measure would set a precedent that might prompt cities throughout California to come clamoring at the Legislature’s door for similar assistance.

The committee’s vote was 14 to 1. The bill now goes to the Assembly Ways and Means Committee.

As it now reads, the legislation would give Del Mar two-thirds of the money that the Del Mar Fair Board, landlord for the race track, is allowed to set aside to help nearby agencies deal with problems created by horse racing. Solana Beach would get the remaining third.

‘Severely Impacted by Traffic’

Mojonnier was originally seeking a 50-50 split of the money.

“The fairgrounds are contiguous to the city of Solana Beach, and a major percentage of the traffic flowing to and out of the fairgrounds is routed through Solana Beach,” she said. “Solana Beach is severely impacted by the traffic, and yet it receives no funds from the fair board.”

Phillip Schott, a Sacramento lobbyist hired by Del Mar, said the city liked part of Mojonnier’s bill that would force the fair board to send the money along to the cities, which the board so far has not done.

But he said a 50-50 split would be unfair to Del Mar because the race track and its surrounding facilities are all within the Del Mar city limits.

Schott said Del Mar would agree to accept less than 100% of the money, but more than 50%, because Solana Beach’s boundaries run alongside the fair-district property.

“I don’t think there is another state agricultural district that operates a fair in which a single city is host city and another city is immediately contiguous to the property of the fairgrounds,” Schott said. “I really think you have a somewhat unique situation here, tortuously unique, sometimes.”

Schott’s willingness to accept the deal appeared to change the minds of several committee members who said they would have preferred to send the measure to a subcommittee that would study the issue and report back next year.

Assemblyman Richard Floyd (D-Hawthorne), chairman of the committee, said he fears that legislation involving a single fair’s racing proceeds would lead to a rush of bills next year affecting other fairs in the state.

“I don’t want to get involved in one-at-a-time things,” he said. “We’ll be doing one for every fair that has a problem or imagines it has a problem.”

Assemblyman Jim Costa (D-Fresno), the lone vote against the bill, also called for a more comprehensive examination of the issue.

‘A Similar Situation’

“Whatever we establish, we ought to bear in mind that there are a lot of other places around the state that have a similar situation,” Costa said. “What we do for one, we should do for all.”

Mojonnier aided the bill’s chances by suggesting that she might drop the measure if the cities could reach an agreement on their own.

“This bill is an attempt to keep the pressure on so they will work out an agreement,” she said. “The negotiations are going forward, and this bill is a trigger to get them completed. If they go ahead and reach an agreement, I don’t need the bill.”

The law that authorizes satellite wagering allows the Fair Board to earmark up to one-third of 1% of the profits for either Del Mar or the county government. After decades of ill will with Del Mar, the Fair Board decided that Solana Beach should also share in the satellite bonanza.

Mojonnier’s bill would both cut Solana Beach in on the take and settle the issue of the percentage split. Negotiations between the two cities failed to reach agreement on the split.

The one-third of 1% could translate into more than $400,000, a sizable amount for small cities such as Del Mar and Solana Beach.