To: Board of Supervisors
Department or Agency Name(s): County Executive’s Office
Staff Name and Phone Number: David Guhin, CEO and Andrew Sturmfels, Assistant CEO; 707-565-2431
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
One-Year Agreement to Conduct the Sonoma County Fair and Manage the Fairgrounds
End
Recommended Action:
Recommended action
A) Authorize the Chair to execute a one-year agreement with the Sonoma County Fair and Exposition, Inc., ending on September 30, 2027, to conduct the annual County Fair and manage the County fairgrounds.
B) Direct staff to negotiate a new long-term agreement with the Fair.
end
Executive Summary:
This item requests the Board of Supervisors’ approval and execution of a one-year agreement with the Sonoma County Fair and Exposition, Inc. to conduct the annual County Fair and act as an agent of the County to manage, use, possess, and operate the Fair and Fairgrounds. This item also requests direction from the Board for staff to negotiate a new long-term agreement with the Fair. The Board has contracted with the Sonoma County Fair and Exposition, Inc. under similar terms since 1955.
Discussion:
Background: In 2021, the Board of Supervisors approved a five-year agreement with Sonoma County Fair and Exposition, Inc. (SCF) to continue conducting the annual County Fair and operating the Sonoma County Fairgrounds, with a term ending on September 30, 2026. Under this agreement, SCF acts as the County's agent to conduct the annual County Fair and manage, use, possess, and operate the County fairgrounds. In this role, SCF is responsible for organizing and operating the annual Fair; managing year-round operations of the fairgrounds; entering into agreements for events, concessions, and facility use; maximizing fairgrounds utilization and revenue generation; preparing and administering the annual operating budget; coordinating capital improvements; maintaining financial and operational records; and carrying out these responsibilities in accordance with applicable laws and the terms of the agreement. The recommended agreement would not alter the current scope of work.
Due to operational and financial challenges currently being addressed, the County Executive’s Office does not recommend a multi-year agreement under the existing scope of work. Recent challenges, including the loss of horse racing and its impacts on Fair attendance and revenues, highlight a need to reevaluate a long-term approach to operating and developing the Fairgrounds. The recommended one-year agreement will provide the County and SCF time to address these challenges, develop a future agreement that is responsive to the changing landscape, and complete additional planning efforts to support the long-term sustainability of the Fair and Fairgrounds.
Horse Racing: After nearly 90 years of horse racing at the fairgrounds, the event was officially cancelled after the 2024 season due to a steep decline in Northern California's horse population, driven by the permanent closure of Golden Gate Fields and the elimination of stabling at the Alameda County Fairgrounds. Without a local racing circuit, most horse owners, trainers, and support workers relocated out of state or to Southern California, making horse racing financially and operationally infeasible at the fairgrounds. Horse racing historically served as a major attraction that supported Fair attendance and generated related revenues, including admissions, parking, concessions, food and beverage sales, and sponsorships. The loss of horse racing has impacted Fair operations and contributed to reduced revenues, requiring SCF to evaluate new revenue opportunities, operational efficiencies, and programming strategies to support the long-term sustainability of the Fair.
Multiple Agreements: During the recommended one-year agreement, the County and SCF will continue evaluating opportunities to strengthen Fair operations while developing a long-term framework for the Fairgrounds. This work will include developing a new agreement between the County and SCF that consolidates multiple existing agreements, clarifies the roles and responsibilities of each party, and updates agreement terms to reflect current operational needs. Currently, the County and SCF have one agreement governing the Fair and Fairgrounds, along with separate agreements related to the Veterans Memorial Building, Veterans Memorial Building parking, and a telecommunications lease with Verizon for operating a communications facility at the Fairgrounds.
Long-Term Site Planning: County and Fair staff are currently evaluating long-term opportunities for the Fairgrounds to better position the site for future fair and community use, economic activity, and financial sustainability. The County, Fair, and City of Santa Rosa are engaged in discussions with the United Soccer League (USL) under a Letter of Intent to explore the potential development of a multi-purpose stadium in the horse racing area. The current Letter of Intent expires on September 17, 2026. Any future agreements or proposed development resulting from these discussions would be subject to Board of Supervisors review.
The County has also received interest from the Pioneer Baseball League to explore construction of a baseball facility utilizing the area adjacent to the Jockey Club at the Fairgrounds. As with the USL proposal, any future agreements or proposed development would be subject to Board review.
These opportunities highlight the need for a comprehensive planning effort to evaluate the Fairgrounds as a whole, including future land uses, capital improvements, and long-term operational strategies. Should negotiations with the USL not proceed following expiration of the current Letter of Intent, the County may consider additional opportunities for the horse track area through a request for proposals. The Economic Development Collaborative would lead this effort in coordination with SCF, the City of Santa Rosa, and the County Executive's Office.
Conclusion: The recommended one-year agreement will support continuity of Fair and Fairgrounds operations while providing sufficient time to complete these planning efforts and appropriately support long-term fair operations. Staff will return to the Board in 2027 with a recommended successor agreement that modernizes and consolidates the existing agreements between the County and SCF, along with recommendations resulting from the Fairgrounds long-term site planning process. These efforts will help establish a long-term operational and financial framework for the Fairgrounds that better reflects current conditions and future opportunities.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
September 28, 2021: Board approved a five-year agreement with the Sonoma County Fair and Exposition, Inc.
September 22, 2020: Board approved an Interim Agreement with the Sonoma County Fair and Exposition, Inc. with the term ending September 30, 2021.
December 8, 2015: Board approved a five-year agreement with the Sonoma County Fair and Exposition, Inc.
Fiscal Summary
Narrative Explanation of Fiscal Impacts:
Fiscal impacts to the County associated with this agreement are primarily related to potential costs resulting from the County’s use of the Fairgrounds. Under the Agreement, the County may use the Fairgrounds, or portions thereof, for emergency response activities. If the County exercises this right, the County may be responsible for reimbursing SCF for certain costs associated with the County’s use of the property, including operational expenses and staff costs incurred by SCF. Eligible emergency-related costs may be reimbursed through Cal-OES or FEMA.
The one-year agreement will allow the County to develop a consolidated agreement with SCF, perform additional long-term site planning, and evaluate potential site development. Any future fiscal impacts associated with these efforts, including potential capital investments or changes to County obligations, will be brought for Board review.
Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Agreement between County and SCF
Related Items “On File” with the Clerk of the Board:
None