Report 2016-106 Recommendation 1 Responses

Report 2016-106: Los Angeles County: Weak Oversight of Its Lease With the Los Angeles County Fair Association Has Likely Cost Millions of Dollars in Revenue (Release Date: November 2016)

Recommendation #1 To: Los Angeles County

By April 2017, the county should reach agreement with the association on the date by which the association must pay the county for the rent in arrears related to the hotel.

Annual Follow-Up Agency Response From November 2021

County and Fair Association have executed Amendment No. 6 to the Lease that addresses this issue. Will send a copy of the amendment to the e-mail address set forth below.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

The Amendment includes provisions for the association to pay $6.5 million in past due rent owed under the Lease for revenue generated at the hotel and conference center on the property combined.


Annual Follow-Up Agency Response From January 2020

County's proposal regarding a revised rent structure is being evaluated by the Los Angeles County Fair Association (Association). Amendment should be completed by the end of calendar year 2020.

California State Auditor's Assessment of Annual Follow-Up Status: Pending


Annual Follow-Up Agency Response From November 2018

County has been and is continuing to negotiate with the Los Angeles County Fair Association (LACFA) regarding the date when past rent must be paid.

California State Auditor's Assessment of Annual Follow-Up Status: Pending


1-Year Agency Response

The County continues to have dialogue with the Los

Angeles County Fair Association (LACFA) regarding the rent due to the County from the hotel.

ANTICIPATED COMPLETION DATE: TDB- the County's ability to successfully implement this recommendation is dependent on LACFA cooperation

California State Auditor's Assessment of 1-Year Status: Pending


6-Month Agency Response

The County of Los Angeles (County) has begun dialogue with the new leadership at the Los Angeles County Fair Association (LACFA) in an effort to reach agreement on the rent due to the County related to the hotel.

Anticipated Completion Date: TDB- the County's ability to successfully implement this recommendation is dependent on LACFA cooperation.

California State Auditor's Assessment of 6-Month Status: Pending


60-Day Agency Response

On November 30, 2016, the Los Angeles County Fair Association (LACFA) announced they hired a new CEO/President. The new CEO/President will begin employment with LACFA on January 17, 2017. The County looks forward to initiating dialogue with LACFA to address the State's recommendation.

California State Auditor's Assessment of 60-Day Status: Pending


All Recommendations in 2016-106

Agency responses received are posted verbatim.