Countywide : Swap-Meet Operator Awarded New Lease

The Orange County Fair board has reaffirmed its decision to award Tel-Phil Enterprises Inc., longtime swap-meet operator at the Orange County Fairgrounds in Costa Mesa, a new five-year lease after an appeal by other applicants was denied.

Tel-Phil, which last year reported gross income of $14.4 million, with the Orange County Fair receiving $3.7 million from the operation, has been doing business at the fairgrounds since 1969.

The operator will pay to the Fair District 38.375% of gross revenues from seller space, 51% from food and beverage sales, 51% from beer and wine sales and 10% from cigarette and tobacco sales under terms of the new lease, which takes effect April 20. All of the percentages are higher than those in the current lease, Fair District spokeswoman Jill Lloyd said. The lease includes a five-year option extension.

Fair board directors chose Tel-Phil over seven competitors based on a selection process that considered years in the swap-meet business, swap-meet income and capital resources.

Three rival companies--Orange County Flea Market Inc., KBH Outdoor Markets, and Marketplace Management Inc.--protested when the award was proposed to go to Tel-Phil in February, claiming that the bidding process was flawed and that there were irregularities in the selection formula.

However, Emil Relat, a hearing officer appointed by the state, held that the board acted properly and denied the three protests in a report dated March 25.

The swap meet operates on weekends throughout the year except during fair season. It’s also open a week at Christmas.