Report 2016-106 Recommendation 2 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 #2 To: Los Angeles County
By April 2017, the county should reach agreement with the association on how much rent the association owes the county from the hotel's operations since 1992.
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.
- Completion Date: September 2021
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
The Amendment includes provisions for the Fair 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 Association. Amendment should be completed by the end of calendar year 2020.
- Estimated Completion Date: 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 actively negotiating with LACFA regarding the amount of rent due from the hotel and other operations.
- Estimated Completion Date: TBD
California State Auditor's Assessment of Annual Follow-Up Status: Pending
1-Year Agency Response
The County continues to have dialogue with LACFA regarding the rent due to the County from the hotel operations since 1992.
ANTICIPATED COMPLETION DATE: TDB- the County's ability to successfully implement this recommendation is dependent on LACFA cooperation
- Estimated Completion Date: TBD
- Response Date: November 2017
California State Auditor's Assessment of 1-Year Status: Pending
6-Month Agency Response
The County has begun a dialogue with the new leadership at the LACFA in an effort to reach agreement on the rent due to the County related to the hotel's operations since 1992.
Anticipated Completion Date: TDB- the County's ability to successfully implement this recommendation is dependent on LACFA cooperation.
- Estimated Completion Date: TBD
- Response Date: May 2017
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
As indicated in our response to Recommendation #1, the County looks forward to initiating dialogue with LACFA and its newly appointed CEO/President to address the State's recommendation.
Internally, the County will determine amounts due to the County, based on the information obtained in the review of LACFA (audit), as well as use the federal forms 990 to see reported revenues.
- Estimated Completion Date: April 2017
- Response Date: January 2017
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2016-106
Agency responses received are posted verbatim.