DEL MAR — The 22nd District Agricultural Association board overseeing the Fairgrounds voted Tuesday to terminate affordable housing negotiations with the city of Del Mar, following months of a progressively souring relationship between the two entities.
Del Mar has been negotiating for the past two years with the 22nd DAA to identify a site on its property to build affordable housing to meet its state-mandated quotas for affordable housing production.
Several hiccups have come up in their ongoing negotiations, starting with the 22nd DAA board pausing negotiations in early 2025 and discussing several times since then whether to pause the agreement again.
Earlier this month, the Del Mar City Council also asked local and federal authorities to investigate connections between 22nd DAA board member Mark Arabo, a representative of the Seaside Ridge housing development, and State Attorney General Rob Bonta, and potential impacts on affordable housing negotiations.
The city and Fairgrounds did complete several studies of potential housing sites on the Fairgrounds property, some of which fell within Del Mar city boundaries and others within the city of San Diego.
In June, the board said they would be willing to continue studying the Surf and Turf RV Park site, which sits across Jimmy Durante Boulevard from the main Fairgrounds property within the city of San Diego. Board members said they were worried the other potential sites within Del Mar would negatively impact Fairgrounds operations.
Any units built on the RV park site would not count toward Del Mar’s housing unit obligations unless San Diego were to annex the land to Del Mar. Before the board’s decision to terminate the agreement, Del Mar officials discussed the possibility of annexation with the city of San Diego.
Another schism in the negotiations came a few months ago, when 22nd DAA leaders opposed a proposed state Assembly bill that would have facilitated affordable housing on state Fairgrounds properties.
Assembly Bill 2264, proposed by 34th District Assemblymember Tom Lackey, would have increased the maximum allowable lease timeframe for affordable housing on state Fairgrounds land from 55 years to 99 years. 
Many financing tools for affordable housing projects, such as tax credits, require extended affordability periods or lease commitments in order to be viable. The bill was intended to make it more viable for affordable housing developers to build on state property by increasing the maximum lease period.
Del Mar officials worked with Lackey on the bill for several months, along with district agricultural associations statewide.
AB 2264 reportedly sailed through various committees in the spring without issue and then proceeded to the state Appropriations Committee on May 4. However, on that day, a lobbyist hired by the 22nd District Agricultural Association board hand-delivered a letter of opposition to Lackey, according to the city.
AB 2264 did not advance past the appropriations committee and effectively died.
In the 22nd DAA’s letter, Board President Sam Nejabat said AB 2264 was premature, and claimed the Fairgrounds had not been involved in the process nor had they been given a chance to give their input.
“The 22nd DAA was not afforded an opportunity to be part of the discussion, weigh in on the terms of the lease, nor were we even aware of the bill prior to its introduction. The 22nd DAA believes it is imperative to be consulted on any bill that affects the future use of the property,” Nejabat’s letter said.
This outcome surprised officials in Del Mar, as the city and Fairgrounds had agreed to jointly pursue legislation to extend lease terms on Fairgrounds property under an exclusive negotiating rights agreement (ENRA) adopted in 2024.
This agreement also mentioned extending lease terms to a 99-year-period.
“We did not anticipate the District’s opposition to AB 2264 since the bill sought to accomplish what was identified in the ENRA: to provide clear statutory authority for district agricultural associations, with approval from the Department of General Services, to enter leases for developments such as affordable housing on DAA property for a period of up to 99 years,” said Kaitlyn Elliott-Norgrove, Del Mar’s special projects and program manager.
Nejabat said in the Fairgrounds’ letter that the exact lease term was still under discussion and had not yet been decided.
Sources with the city of Del Mar also refuted Nejabat’s claim that the Fairgrounds had not been involved in the planning of AB 2264, stating that they informed former CEO Carlene Moore back in March that they had been working with Lackey and also sent a draft of the bill for them to provide feedback, but they never did.
The 22nd DAA board did not discuss AB 2264 at any of its public meetings before the letter was sent, nor did the board discuss the hiring of the lobbyist, Resilient Advocacy. The 22nd DAA also has not paid Resilient Advocacy any fees, according to California Secretary of State records.
According to Fairgrounds CEO Becky Bartling, Nejabat and former CEO Carlene Moore had previously arranged for the lobbying contract for Resilient Advocacy. The Fairgrounds board then agreed to terminate Moore on April 14, and appointed Bartling as the new CEO on April 24.
The Coast News reached out to Nejabat, who referred all questions to Bartling. Staff in Assemblymember Lackey’s office did not respond to requests for comment.
