The state has rejected all seven bids it received for the Orange County Fairgrounds because they were too low.
In a letter to Gov. Arnold Schwarzenegger on Wednesday, State Department of General Services Acting Director Ronald Diedrich said he was rejecting all the bids because the offers were “not in the best interest of the citizens of California because they do not contain the highest and most certain return for the state.”
In January, the state auctioned off the 150-acre piece of prime property in Costa Mesa to try to chip away at the budget deficit.
The high bid of $56.5 million came from an outlet mall developer, Newport Beach-based Craig Realty and partner Dwight Manley, a former sports agent. Even the winner, however, came in woefully short of the state’s expected $96-million to $180-million price tag.
Eric Lamoureux, a spokesman for the general services department, which is charged with selling the fairgrounds and other state assets, said officials are looking at other options, but did not specify if another auction would be held.
“Obviously, what we’re seeking here is maximum revenue possible to try to shore up the state’s budget,” he said.
[For the record: An earlier version of this post incorrectly said the state expected to receive $9.6 million to $180 million for the property.]
— Tony Barboza in Orange County
Photo: A Ferris wheel at the Orange County Fairgrounds. Credit: Christine Cotter / Los Angeles Times