The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.

Appendix for Fairplex Startegic Plan 2018

Discover the best professional documents and content resources in AnyFlip Document Base.
Search
Published by terriquez, 2018-06-07 19:36:21

Fairplex Strategic Plan Appendix

Appendix for Fairplex Startegic Plan 2018

Keywords: fairplex,strategic,plan,2018

Strategic Plan Appendix

Index

01 | Fairplex Economic Impact Report
33 | Fairplex History
37 | 2017 Strategic Planning Process Overview
59 | Core Experience Overviews
60 | Fairplex Community Input Summary
83 | List of Strategic Plan Session Participants

Economic Impact Analysis of the Los
Angeles County Fair Association



Executive Summary


Since the reorganization of the Los Angeles County Organization in 1940, the Los
Angeles County Fair Association has administrated the annual fair, year-round
community events, and business operations on the 487-acre Fairplex site. These have
left a lasting imprint on the Southern California economy, extending beyond the fair into
agriculture, culture, education and community development. Millions of dollars are
spent each year to support the operations, generating a substantial economic effect
while increasing community engagement through events including National Hot Rod
Association racing and the Vans Warped Tour.

This analysis answers two questions:


• First, what is the economic contribution of the Fairplex to the local, regional,
state, and national economies?

• Second, how might the Fairplex use its unique resources to increase its
contribution and enhance growth in the regional economy.


Through this analysis, Beacon Economics will show how the Fairplex enriches local
communities and supports local businesses, to the extent that much of the economic
activity that is generated through the Fairplex would not occur if the Fairplex did not
exist. To gauge the economic impact, this analysis will focus on the economies of
Pomona, Los Angeles County, Southern California1, California and the United States.

In addition to quantifying the linkages and economic contributions of the Fairplex, the
results of the impact analysis can also serve as an input to the strategic planning and
economic development strategy process for the Fairplex. Impact analysis is not, by istelf,
a predictive tool, but it can be used as a benchmark against which future strategies
might be compared.

Executive Summary-Economic Impact

The combined spending by the Fairplex, its staff, promoters hosting events, concession
vendors, commercial vendors, supported retail sales, and out-of-town visitors
represents direct Fairplex-related spending. As this spending moves through the

1 Los Angeles, Orange, Riverside and San Bernardino counties.

1

economy, it creates ripple (or multiplier) effects that are much larger than the initial
direct spending. This impact has a variety of quantifiable forms:


• Economic output
• Jobs
• Earnings for workers
• Tax revenue

Estimates of economic impact were generated by the IMPLAN modeling system, an
input-output model that estimates the impact of changes in the economy through the
use of multiplier effects. With IMPLAN, expenditures made on various types of goods
and services can lead to different multipliers, and expenditures made in the same
industry but in different regions can lead to different multipliers, as well. As a result, not
only will the Fairplex’s total expenditures differ across Pomona, Los Angeles, County, or
Southern California, but the multiplier effect for each type of expenditure can also
differ.

This analysis uses spending data for 2016 to estimate the annual (“ongoing”) impact of
the Fairplex's operations, though the impacts should continue to grow over time, as
more dollars are spent in connection with the Fairplex each year. Beacon was careful to
avoid double-counting visitor, vendor, and Fairplex expenditures. For instance, visitor
and vendor expenditures on accommodations were deflated, because many visitors of
the Fairplex were staying at the Sheraton Fairplex Hotel, meanwhile Beacon already
used data for the Sheraton Fairplex Hotel. By addressing any potential areas of double-
counting, the estimated impact of the Fairplex’s operations is likely conservative.

Based on data for 2016, Fairplex-related spending:

• Generated economic output of $58.2 million in Pomona, $323.6 million in Los

Angeles County, $499.6 million in Southern California, $557.3 million in California
and $797.0 million in the United States.

• Supported an estimated 514 full-time-equivalent (FTE) jobs in Pomona, 2,674
FTE jobs in Los Angeles County, 3,969 FTE jobs in Southern California, 4,335 FTE
jobs in California and 5,912 FTE jobs in the United States.

• Generated earnings of $25.0 million for residents in Pomona, $135.4 million in
Los Angeles County, $202.4 million in Southern California, $225.4 million in
California and $295.2 million throughout the United States.

• Generated tax revenue of $5.3 million for Pomona, $20.4 million for local
governments in Los Angeles County, $25.3 million for local governments
throughout Southern California, $60.3 million for local governments and the

2

state government in California and $65.0 million for local and state governments
throughout the country.

Executive Summary-Economic Development Recommendations

Located in the San Gabriel Valley just west of San Bernardino County, the Fairplex is in
an advantageous position not just geographically but also economically. Recent trends
show that the San Gabriel Valley is growing steadily in many important industries,
including health care, manufacturing and logistics. These same industries are thriving in
western San Bernardino County, making them key to future regional economic
development. In addition to its traditional pursuits, the Fairplex can use its resources to
bolster this economic development in the years ahead, further serving as a model for
other fairgrounds as well as other regional economic organizations. Beacon Economics
offers the Fairplex a set of recommendations for how best to do this, keeping in mind its
assets, values and goals. These recommendations can be summarized as follows:

1. Develop residential real estate
2. Use Ontario International Airport
3. Leverage the Farm
4. Partner with anchor organizations
5. Partner with external, innovation-oriented industries


3

Introduction


The activities of the Los Angeles County Fair Association have left a lasting imprint on
the Southern California economy, extending far beyond the Los Angeles County Fair,
into agriculture, culture, education, and community development. Since its founding,
the Los Angeles County Fair Association has conducted the Los Angeles County Fair and
a number of year-round community events and business operations on the 487-acre
Fairplex site. Millions of dollars are spent each year to support those operations,
generating a substantial impact on the economy.

While the Fairplex’s best known activity is the Fair, it hosts throughout the year a
diverse variety of other events and activities, drawing event promoters, commercial
vendors, concession vendors, and visitors to the Southern California economy. The
purpose of this study is to analyze Fairplex-related spending to estimate the amount of
economic activity generated in Pomona, Los Angeles County, Southern California2,
California, and the United States economies due to the Fairplex and the events hosted
on its grounds for 2016, to demonstrate the impact that the Fairplex has on an ongoing
(annual) basis.

2016 spending related to the Fairplex included operational expenditures and wages for
the Los Angeles County Fair, the Child Development Center, Event Production Solutions,
the Sheraton Hotel and the Learning Centers. It also included spending made by
concession and commercial vendors selling goods on the Fairplex site. Beacon also
examined expenditures made by promotors hosting events on the Fairplex grounds,
such as the National Hot Rod Association Events and the Vans Warped Tour. Fairplex
also supports a significant amount of retail sales in the region, which were examined
based on the businesses primary base of operations in the region. The events hosted by
the Fairplex attract a significant number of visitors to the area, who spend money in
Pomona, Los Angeles County and elsewhere in Southern California.


• The analysis begins by detailing Direct Expenditures, which are an estimate of
total spending in connection with Fairplex operations.


Beacon used the IMPLAN input-output system to generate estimates of the economic
impact of these direct expenditures. With IMPLAN, expenditures made on various types
of goods and services or in different geographies generate different spending
multipliers, as those dollars move through the economy by businesses or by individuals.
In the case of the Fairplex, the economic effects of Fairplex-related expenditures in 2016
multiplied as they moved through the economy of Pomona, Los Angeles County,
Southern California, California and the United States, generating four primary areas of
impact:

2 Los Angeles, Orange, Riverside, and San Bernardino Counties.

4

• Impact of Fairplex-related spending on output
• Impact of Fairplex-related spending on employment
• Impact of Fairplex-related spending on earnings
• Fiscal (tax revenue) impact of Fairplex-related spending


These impacts will be detailed in the sections that follow.

Direct Expenditures


Spanning 487 acres, the Fairplex has an enormous footprint in the City of Pomona. The
Fairplex grounds provide the Fair Association with a platform to conduct year-round
business on its grounds. It operates a hotel, multiple RV parks, an RV storage facility, a
food and beverage company, two 501(c)3 organizations, a horse auction company and
an equipment rental business. In addition to these day-to-day operations, the Fairplex
hosts events throughout the year, the largest being the County Fair in September.

Geographically, Fairplex-related expenditures in 2016 generated direct spending as
follows:


• Pomona: $38.4 million
• Los Angeles County: $186.7 million
• Southern California: $263.8 million
• California: $286.8 million
• United States: $313.2 million

These expenditures include the Fair Association’s direct operational expenditures,
expenditures made by the staff of the Fair Association and related entities, expenditures
made by promoters hosting events on the Fairplex grounds, expenditures made by
concession and commercial vendors, and visitors spending money outside the Fairplex
grounds.

This study did not consider payments made by the Fair Association to vendors and
suppliers outside each local area (Pomona, Los Angeles County, Southern California,
California or United States) or staff that do not live in each local area. As such, the
estimate for Fairplex-related expenditures in this report is a conservative estimate of
the total expenditures the Fairplex generates in the economies of Pomona, Los Angeles
County, Southern California and California during a typical year, as some of these
expenditures in other areas would flow back into the local economy. In addition,
because the Fairplex is located in population-dense Southern California, much of the
goods and services the Fairplex requires for its daily operations can be found locally.



5

Los Angeles County Fair Association Operational Expenditures

Child Development Center

The Fairplex Child Development Center is a private, nonprofit center that has been
operated by the Fair Association since 1980, and in alliance with the University of La
Verne since 1991. The Child Development Center serves children and families from 12
weeks to kindergarten age with specially designed classrooms. The Child Development
Center also serves as a professional development school for students in the University of
La Verne’s early childhood education program. This partnership with the university
ensures that the center’s programs incorporate the highest standards to encourage
optimum child development opportunities. In 2016, expenditures for the Child
Development Center at Fairplex totaled:


• $6,500 in Pomona
• $394,000 in Los Angeles County
• $473,000 in Southern California
• $473,000 in California
• $562,000 in the United States

Event Production Solutions

Event Production Solutions specializes in large-scale event production and party rental
equipment. Its rental fleet offers a range of stock, including trams, trolleys, ticket booths
and turnstiles. Its inventory includes heavy equipment, lighting, truss and fencing. In
2016, expenditures by Event Production Solutions totaled:

• $50 in Pomona
• $152,800 in Los Angeles County
• $199,100 in Southern California
• $267,100 in California
• $502,600 in the United States

Los Angeles County Fair Association Operations

A significant portion of the Fair Association’s expenditures support day-to-day
operations. This includes the annual County Fair, the Farm, and maintaining and
improving the grounds of the Fairplex. Because of the wide range of events every year,
these expenditures touch many sectors, including wholesale trade, renting of
commercial and industrial equipment, and business support services. In 2016,
expenditures in connection with the Fair Association’s operations totaled:

• $2.1 million in Pomona

6

• $30.7 million in Los Angeles County
• $45.9 million in Southern California
• $52.7 million in California
• $64.7 million in the United States

Sheraton Fairplex Hotel and Conference Center

The Sheraton Fairplex Hotel and Conference Center is also under the Fair Association’s
umbrella. Although the 244-room hotel owes much of its business to the Fairplex, the
conference center allows the Fair Association to attract more events to the area than
would otherwise be possible.

In 2016, expenditures by the Sheraton Fairplex Hotel and Conference Center totaled:

• $950,000 in Pomona
• $6.6 million in Los Angeles County
• $7.0 million in Southern California
• $7.0 million in California
• $7.5 million in the United States

The Learning Centers

The Learning Centers provide educational experiences that prepare participants for
success and thereby deliver benefits to Pomona’s and Southern California’s diverse
community. More than 180,000 residents benefit from the Learning Centers’ programs
each year. The programs include early childhood education and career readiness. In
2016, expenditures for the Learning Centers at Fairplex totaled:

• $154,000 in Pomona
• $554,000 in Los Angeles County
• $1.2 million in Southern California
• $1.4 million in California
• $1.6 million in the United States


Fairplex Staff Expenditures

Fair Association staff and related entities play a sizable role in the economies of
Pomona, Los Angeles County, Southern California, California and the United States
through their expenditures on housing, transportation, food and retail items. In 2016,
expenditures by staff members of the Fair Association and related entities totaled:

• $4.2 million in Pomona

7

• $16.6 million in Los Angeles County
• $33.2 million in Southern California
• $33.4 million in California
• $34.1 million in the United States

The Fairplex directly employs nearly 2,000 people throughout the year. While many of
these are short-term positions centered around the County Fair, the overall footprint of
the Fairplex is similar to that of California State University Los Angeles, California State
Polytechnic University Pomona, or Blizzard Entertainment. Yet, Fairplex operations in
many cases have larger overall impacts, largely because the same amount of spending
for the Fairplex generates smaller spending effects in other industries, like schools,
which aren’t revenue generating organizations. In addition, the Fairplex attracts a
significant number of third-party vendors to the Fairplex, which are not captured by
Fairplex’s direct payrolls. As a result, the Fairplex acts as an economic engine of the
community, as it generates a larger economic impact compared to some other local
landmarks.


Promoter Expenditures

The Fairplex’s annual events include NHRA races, the Vans Warped Tour, RV Shows and
various expos and smaller-scale productions. Beacon considered three main event types
(concerts, races, and other events, which include expositions and car/RV shows) and
developed estimates for the expenditures of promoters made in hosting their events.
This includes expenditures on staff, security, retail items and production. In 2016,
expenditures by promoters hosting events at the Fairplex totaled:

• $1.1 million in Pomona
• $6.3 million in Los Angeles County
• $9.5 million in Southern California
• $11.3 million in California
• $12.6 million in the United States


Concession Vendor Expenditures

Although the Fairplex provides a significant amount of the food consumed at the
Fairplex, outside vendors often also serve attendees. In general, concession vendors buy
supplies locally and hire staff during the event. In 2016, County Fair expenditures by
concession vendors at the Fairplex totaled:

• $1.0 million in Pomona
• $4.2 million in Los Angeles County

8

• $8.4 million in Southern California
• $11.4 million in California
• $12.6 million in the United States

In 2016, expenditures by concession vendors at the Fairplex for other events totaled:

• $685,000 in Pomona
• $2.8 million in Los Angeles County
• $5.5 million in Southern California
• $7.5 million in California
• $8.4 million in the United States


Commercial Vendor Expenditures

Because of the wide range of events held at the Fairplex, commercial vendors sell a
variety of goods and services onsite. Vendors are both local and from outside Southern
California. The vendors buy materials and supplies, meals, transportation and staff
lodging.

In 2016, County Fair expenditures by vendors at the Fairplex totaled:

• $1.6 million in Pomona
• $3.1 million in Los Angeles County
• $4.7 million in Southern California
• $4.7 million in California
• $4.7 million in the United States


In 2016, expenditures by vendors at the Fairplex for other events totaled:


• $3.9 million in Pomona
• $7.8 million in Los Angeles County
• $11.6 million in Southern California
• $11.6 million in California
• $11.6 million in the United States


Visitor Expenditures

Because of the wide range of events held at the Fairplex, the Fairplex also draws in
visitors from outside of Southern California. Based on estimated attendance for the
County Fair and other Fairplex events throughout the year, Beacon estimated that the
Fairplex generated nearly 200,000 visitor nights in Pomona, Los Angeles County and

9

Southern California in 2016. They include expenditures for lodging, food, local
transportation and retail items. But to avoid double-counting, only a portion of visitor
lodging and food expenditures was considered, because part of these expenditures
would be going to the Sheraton Hotel or to vendors on the Fairplex grounds, which were
considered separately.

After adjustments, 2016 expenditures by out-of-town visitors to the Fairplex totaled:


• $7.6 million in Pomona
• $33.6 million in Los Angeles County
• $50.4 million in Southern California
• $50.4 million in California
• $50.4 million in the United States

The Fairplex brings in just over 2 million visitors annually for the County Fair and other
Fairplex events, which is similar to the number of visitors to the Los Angeles Convention
Center and the Long Beach Convention Center. In fact, those 2 million visitors are more
than the total attendance at Staples Center for Los Angeles Lakers and Los Angeles
Clippers games.


Retail Sales

The wide range of events held at the Fairplex also supports a significant amount of retail
sales. While many of these retailers come from outside the City of Pomona, the majority
have significant ties to the Southern California economy. Moreover, the Fairplex attracts
a wide range of retailers to its ground, including RV, Hot Tub, and Home and Garden
retailers. To avoid overstating the local impact on the City of Pomona these
expenditures are measured by the retailer’s place of primary business in the region.

In 2016, Retail Sales at the Fairplex totaled:

• $15.1 million in Pomona
• $74.0 million in Los Angeles County
• $85.8 million in Southern California
• $94.6 million in California
• $103.9 million in the United States




10

Economic Impact of Fairplex-Related Spending


Impact of Fairplex-Related Spending on Output

The direct spending of the Fairplex on its operations (the Child Development Center, the

Fair Association, Event Production Solutions, the Sheraton Hotel and Conference Center,
and the Learning Centers) and spending by its staff, promoters, concession vendors,
commercial vendors, retail sales, and visitors generate a multiplier effect through the
economy, leading to total economic output that is much larger than the initial spending.

Based on the estimated total Fairplex-related spending in 2016, the Fairplex generated
economic output of $58.2 million in Pomona, $323.6 million in Los Angeles County,
$499.6 million in Southern California, $557.3 million in California and $797.0 million in
the United States.


Fairplex Output Impacts (in dollars)

Type Pomona Los Angeles Southern California United
County California States

Child Development Center 10,154 669,407 887,395 903,561 1,428,067

Fair Association 3,128,927 53,698,602 88,341,070 104,252,528 167,816,506

Event Production Solutions 68,002 248,189 354,377 486,415 1,140,318

Hotel 1,514,226 11,345,285 13,169,222 13,448,622 18,364,106

The Learning Centers 244,326 1,028,274 2,344,620 2,872,748 4,387,398

Wages 6,458,894 29,117,301 63,576,077 65,445,823 85,854,021

Promoters 1,713,292 10,840,970 17,802,067 21,951,600 32,088,557

Concession Vendors - Fair 1,526,360 6,939,357 15,292,757 22,159,406 33,827,759

Concession Vendors - Other 1,010,391 4,593,584 10,123,208 14,668,662 22,392,656

Commercial Vendors - Fair 2,393,355 5,493,612 8,947,252 9,175,964 11,808,637

Commercial Vendors - Other 5,911,832 13,569,785 22,100,630 22,665,571 29,168,544

Visitor Spending 11,594,416 58,915,703 96,344,341 99,197,153 129,523,861

Retail Sales 22,666,957 127,102,544 160,312,554 180,024,744 259,161,074

Total 58,241,131 323,562,613 499,595,569 557,252,796 796,961,505

Direct Expenditures 38,386,452 186,737,591 263,817,151 286,783,582 313,220,047



• Of the $58.2 million in economic output generated in Pomona, $38.4 million
represented direct spending related to the Fairplex, and $19.9 million
represented secondary spending by Fairplex suppliers and firms that received
business from Fairplex staff, vendors and visitors, or by workers who received
income from the Fairplex directly or indirectly.


• Of the $323.6 million in economic output generated in Los Angeles County,
$186.7 million represented direct spending related to the Fairplex, and $136.8
million represented secondary spending by businesses and workers down the
Fairplex chain.

11

• Of the $499.6 million in economic output generated in Southern California,
$263.8 million represented direct spending related to the Fairplex, and $235.8
million represented secondary spending by businesses and workers receiving
additional business from Fairplex operations.


• Of the $557.3 million in economic output generated in California, $286.8 million
represented direct spending related to the Fairplex, and $270.5 million
represented secondary spending by businesses and workers across the State.


• Of the $797.0 million in economic output generated in the United States, $313.2
million represented direct spending related to the Fairplex, and $483.7 million
represented secondary spending by businesses and workers across the country.


As mentioned earlier, because the Fairplex is in population-dense Southern California,
many of the goods and services the Fairplex requires for its daily operations can be
found locally. As a result, the Fairplex has a substantial impact on Pomona, Los Angeles
County and Southern California.


12

Impact of Fairplex-Related Spending on Employment

In addition to the economic output driven by the Fairplex, Fairplex-related expenditures
helped support a significant number of jobs in Pomona, Los Angeles County, Southern
California, California and the United States. Note that because these jobs are driven by
Fairplex-related spending, they do not represent headcounts. Fairplex-related spending
in 2016 supported an estimated 514 full-time-equivalent (FTE) jobs in Pomona, 2,674
FTE jobs in Los Angeles County, 3,969 FTE jobs in Southern California, 4,335 FTE jobs in
California and 5,912 FTE jobs in the United States.


Fairplex Employment Impacts

Type Pomona Los Angeles Southern California United
County California States

Child Development Center 0 6 8 8 11

Fair Association 27 395 636 748 1,172

Event Production Solutions 0 1 2 3 8

Hotel 6 50 62 62 88

The Learning Centers 3 12 24 30 40

Wages 47 205 444 447 574

Promoters 11 65 108 132 186

Concession Vendors - Fair 8 33 72 99 155

Concession Vendors - Other 5 22 48 66 103

Commercial Vendors - Fair 18 40 64 64 78

Commercial Vendors - Other 45 99 158 158 193

Visitor Spending 116 553 862 863 1,031

Retail Sales 227 1,195 1,483 1,656 2,274

Total 514 2,674 3,969 4,335 5,912



• Of the 514 FTE jobs supported in Pomona, 399 were directly supported by
Fairplex-related expenditures, and 115 were supported through secondary
spending by Fairplex suppliers and firms that received business from Fairplex
staff, vendors and visitors, or by the workers who received income from the
Fairplex directly or indirectly.


• Of the 2,674 FTE jobs supported in Los Angeles County, 1,917 were directly
supported by Fairplex-related expenditures, and 756 were supported through
secondary spending by businesses and workers down the Fairplex chain.



• Of the 3,969 FTE jobs supported in Southern California, 2,674 were directly
supported by Fairplex-related expenditures, and 1,296 were supported through
secondary spending by businesses and workers receiving additional business
from Fairplex operations.



13

• Of the 4,335 FTE jobs supported in California, 2,907 were directly supported by
Fairplex related expenditures, and 1,428 were supported through secondary
spending by businesses and workers across the state.


• Of the 5,912 FTE jobs supported in the United States, 3,424 were directly
supported by Fairplex-related expenditures, and 2,488 were supported through
secondary spending by businesses and workers across the country.


The jobs supported by Fairplex-related spending span a range of industries. Industries
seeing the largest employment impacts are restaurants, other amusement and
recreational activities, and retail trade. In effect, Fairplex-related spending supports jobs
for workers at all income levels, across many sectors of the economy, large and small.
The activities of the Fairplex serve as a key source of employment in the region and
State.

For comparison, the 3,969 FTE jobs supported by the Fairplex in Southern California is
similar to that of Pomona Valley Regional Medical Center or Six Flags Magic Mountain.


14

Impact of Fairplex-Related Spending on Earnings

In addition to the economic output and employment supported by the Fairplex, Fairplex-related
expenditures help generate income for workers elsewhere. Fairplex-related expenditures
provide income for thousands of residents in Pomona, Los Angeles County, Southern California,
California and the United States. These earnings are then put back into the economy through
spending at restaurants, stores and entertainment venues.

In 2016, Fairplex-related spending generated $25.0 million in earnings for residents of Pomona,
$135.4 million for residents of Los Angeles County, $202.4 million for residents of Southern
California, $225.4 million for residents of California and $295.2 million for residents of the
United States.


Fairplex Earnings Impacts (in dollars)

Type Pomona Los Angeles Southern California United
Child Development Center County California 382,737 States

4,962 288,698 375,822 532,109

Fair Association 1,328,677 20,703,506 35,209,146 41,840,970 62,485,460

Event Production Solutions 23,908 91,081 129,346 181,619 429,279

Hotel 614,261 3,963,688 4,622,569 4,797,354 6,137,122

The Learning Centers 123,540 476,877 1,032,128 1,270,468 1,742,970
Wages 24,825,248 25,746,851 30,627,926
2,642,814 11,824,321

Promoters 733,308 4,409,280 7,001,365 8,640,907 11,516,506
Concession Vendors - Fair 528,524 2,257,803 4,859,648 7,117,123 10,105,963

Concession Vendors - Other 349,862 1,494,577 3,216,897 4,711,257 6,689,753
Commercial Vendors - Fair 944,482 2,163,808 3,452,086 3,562,207 4,182,611

Commercial Vendors - Other 2,332,967 5,344,828 8,527,008 8,799,017 10,331,477
Visitor Spending 4,633,930 23,360,109 37,591,627 38,781,748 45,297,865

Retail Sales 10,786,604 59,056,023 71,553,138 79,580,385 105,071,258

Total 25,047,840 135,434,600 202,396,028 225,412,642 295,150,300



• Of the $25.0 million in earnings generated in Pomona, $18.2 million was earnings
supported directly by Fairplex-related expenditures, along with $6.9 million in earnings
supported through secondary spending by Fairplex’s suppliers and by firms that
received business from Fairplex staff, vendors and visitors, or by the workers who
received income from the Fairplex directly or indirectly.


• Of the $135.4 million in earnings generated in Los Angeles County, $86.9 million was
wages supported directly by Fairplex-related expenditures, along with $48.6 million in
earnings supported through secondary spending by businesses and workers down the
Fairplex supply chain.



15

• Of the $202.4 million in earnings generated in Southern California, $121.1 million was
earnings supported directly by Fairplex-related expenditures, along with $81.3 million in
earnings supported through secondary spending by businesses and workers receiving
additional business from Fairplex operations.


• Of the $225.4 million in earnings generated in California, $131.3 million was earnings
supported directly by Fairplex-related expenditures, along with $94.1 million in earnings
supported through secondary spending by businesses and workers across the state.


• Of the $295.2 billion in earnings generated across the United States, $142.9 million was
earnings supported directly by Fairplex-related expenditures, along with $152.3 million
in earnings supported through secondary spending by businesses and workers across
the country.




16

Fiscal Impact of Fairplex-Related Spending


The Fairplex contributed substantially to the tax bases of Pomona, Los Angeles County and
Southern California, and to tax revenue in California and the United States. Levies include
property taxes, as investments in real estate and construction in response to Fairplex-related
spending help increase property values; sales taxes via spending on retail and other goods; and
income taxes, as workers are either employed by Fairplex or see an increase in earnings in
response to Fairplex activities. In total, these Fairplex-related activities in 2016 generated an
estimated:


• $5.3 million in tax revenue for Pomona


• $20.4 million for local governments in Los Angeles County


• $25.3 million for local governments across Southern California


• $60.3 million for local governments and the state government


• $65.0 million for local and state governments throughout the country


Fairplex Impact on Tax Revenue (in dollars)

Type Pomona Los Southern California United
Child Development Center 406 Angeles California 79,415 States
County
35,397 90,404
30,599

Fair Association 46,045 1,355,027 1,988,180 5,720,401 8,203,745

Event Production Solutions 1,153 5,442 7,950 26,860 54,198

Hotel 1,924 539,586 557,082 1,199,496 1,166,285

The Learning Centers 4,019 27,808 58,408 190,876 232,928

Wages 143,727 845,563 1,767,946 4,301,174 4,664,831
Promoters 24,041 202,105 325,871 1,064,750 1,406,842

Concession Vendors - Fair 26,908 151,853 320,818 1,111,349 1,442,264

Concession Vendors - Other 17,812 100,521 212,369 735,670 954,723

Commercial Vendors - Fair 85,918 245,178 366,635 809,203 840,208

Commercial Vendors - Other 212,226 605,614 905,625 1,998,815 2,075,401

Visitor Spending 308,176 1,995,001 3,070,257 7,178,716 8,271,320

Retail Sales 1,208,204 8,306,274 9,669,988 22,831,595 22,482,517

Fairplex Direct Tax Payments 3,213,644 5,979,612 5,979,612 13,085,045 13,085,045

Total 5,294,205 20,390,180 25,266,139 60,333,365 64,970,710


Overall, the Fairplex plays a major role in supporting public services, through the tax revenue
generated by its day-to-day operations, the purchase of goods and services in the local area,
the spending by its staff and the spending by visitors the Fairplex draws to the area. Many of
these purchases would not be made, nor the taxes paid, if not for the presence of the Fairplex.

17

Economic Development Recommendations


Introduction, Context and Methodology

This section examines economic development activities and programmatic interventions that
Fairplex is well-positioned to consider as it explores greater engagement in regional economic
development. In alignment with the mission and values of Fairplex, that potential expanded
activity would benefit Fairplex visitors and be an asset to the regional economy. Beacon
Economics’ recommendations incorporate three general goals that reflect Fairplex’s core values
and leadership directives:


• Create value and opportunity for Fairplex community
• Act as a hub for education and enrichment
• Continue to be a financially self-sustaining organization

The methodological approach used to arrive at the recommendations was two-pronged. First,
Beacon examined the competitive landscape to determine how current Fairplex programs and
activities relate to those of similar organizations and serve as an exemplar for other fairgrounds
as well as other regional economic organizations. Second, an analysis of data on the regional
economy revealed economic advantages or challenges that might present a strategic
opportunity for the Fairplex. From that basis, Beacon examined trends in economic
development that promise either new opportunities or low-risk enhancement of current
activities.

Section Framework

In recognition of both the Fairplex’s current activities and core values, Beacon placed the
recommendations in a framework that promotes economic development, workforce
development and community development. Although there may be overlap among these types
of economic development, their respective goals differ. Long-term economic growth, a strong,
well-adapted local labor supply and cultivated community involvement in the identification of
needs and solutions are important components of holistic economic development.3 The vision,
mission and values of the Fairplex allowed for the recommendations to incorporate all three of
those components.

Internal Versus External Industries


3 Liu, A. (2016, February 29). Remaking Economic Development (Publication). Retrieved
https://www.brookings.edu/wp-
content/uploads/2016/02/BMPP_RemakingEconomicDevelopment_Feb25LoRes-1.pdf.



18

It is worth noting the tradeoff the Fairplex may face when investing in internal versus external
industries. Internal industries primarily exist to serve local residents and are excellent sources
of jobs. These jobs are typically found in health care, social assistance, regional financial
institutions and other similar services. On the other hand, external industries primarily serve
economies beyond the local one, domestically and/or internationally. Investment in external
industries can significantly increase the economic output of the local economy. External
industries’ jobs are typically found in logistics, manufacturing, tourism and universities.

In general, internal industries create more jobs than external industries do. They often require
lower skill levels and generally are safer from elimination by automation (at least for the near
future). But external industries often increase the overall output of a region, as advanced
processes and technologies create efficiencies and take on new markets. Many jobs in external
industries pay higher wages but require more advanced skills and education. Nevertheless,
external industries have also been more significantly affected by job loss through increased
automation; for example, manufacturing output is higher than ever, but jobs in this industry
have been declining for decades because of automation.

Overall, the Fairplex may help spur more short-term job creation by focusing on internal
industries, but potentially at the expense of long-term economic growth. Or, by focusing on
external industries, it may help the region increase its economic footprint but at the expense of
maximum job creation.

The Fairplex’s Current Activities

The Fairplex’s current array of programs and activities reflects its goals of educating the
community and delivering value in the process. In fact, the Fairplex is a model for other similar
organizations throughout the country, leveraging local and site-specific assets to support
community engagement. The Fairplex’s commitment to education and health is perhaps best
exemplified in its popular onsite farm. The Farm, as it is known, uses sustainable agricultural
practices and serves as both an educational and business institution for the Fairplex. Although
the Farm is used for many educational and commercial activities, its most important role is as a
direct link to the region’s agricultural past. The Fairplex remains passionate about its roots and
strives to remind new generations of the importance of healthful food and educate them on
how farming is modernizing. In the context of the Farm’s relevance to both external and
internal industries, Beacon identified it as a leveragable asset for the Fairplex.

Current Fairplex activities reflect a commitment to workforce development. Most directly
through its hosting of the Learning Centers, the Fairplex affects the regional labor supply by
serving educational needs. The Career and Technical Education Center uses hands-on lessons in
real worksites, focusing on in-demand skills for labor-ready residents. The Child Development
Center partners with the local University of La Verne to foster the intellectual, physical and

19

emotional education of children4. Moreover, this program partners with La Verne’s early
childhood education program, equipping college students with real-world experience in their
chosen career paths.

Beyond its programs and activities, the Fairplex has brought novel programs to the region. For
example, it was the first fairgrounds in the nation to host Our Body: The Universe Within in
20105. Making use of human bodies and organs, Our Body gives visitors insights into human
biology and the benefits of making healthful lifestyle choices. Cultural and educational exhibits
or installations like this capture the value the Fairplex is able to offer the community through
experience.

Insight

Beacon Economics identified a small sample of organizations comparable to the Fairplex in
basic structure and function and examined their activities in terms of community, workforce
and economic development. Research indicated that many of the programs and partnerships of
other fair associations are already reflected in ongoing activities at the Fairplex. These include
scholarships and hands-on exhibits as well as strategies like corporate sponsorships.
Representing the goals particularly of workforce and community development, these types of
programs often provide educational opportunities for the local community and enriching
experiences for visitors. However, little is being done by fair associations to either harness the
economic potential of their surrounding regions or address their strategic local challenges. If
the Fairplex were to tailor its efforts to the dynamics of the regional economy, it could play a
significant role in holistic economic development. It would also set the standard for what
similar organizations can do in their respective regions.

Regional Economic Outlook — San Gabriel Valley and West San Bernardino County

The Fairplex is in an advantageous geographic location. The fairgrounds are closer to the Inland
Empire than downtown Los Angeles. Therefore, Beacon Economics considers the Fairplex’s
scope of influence to be the eastern portion of Los Angeles County (the San Gabriel Valley), and
the western part of San Bernardino County. These regions are currently in an exciting period of
change and have significant potential for economic development.



4 Fairplex Child Development Center. (n.d.). Retrieved February 15, 2018, from
https://laverne.edu/education/partnerships-and-outreach/fairplex-child-development-center/
5 Our Body The Universe Within. (n.d.). Retrieved February 15, 2018, from
https://www.ourbodytheuniversewithin.net/



20

Annual Employment by Sector — San Gabriel Valley (000s)

Industry 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD
21.6 21.3 20.7 21.0
Education 20.4 20.8 20.9 21.6 21.2 36.6 36.3 36.5 38.2
64.5 65.4 67.3 70.4
Financial Svcs. and Real Estate 43.7 39.7 37.0 36.5 37.4 117.7 121.5 124.6
10.4 10.6 10.4 125.5
Government 72.5 70.2 68.6 66.8 65.1 68.4 71.9 74.8 9.8
60.3 60.2 59.9
Health Care 80.6 83.7 87.4 88.7 90.0 23.9 24.7 26.2 77.7
23.6 24.7 24.4 59.7
Information 12.3 10.7 9.9 9.9 10.0 86.4 89.8 85.4 27.2
76.2 77.6 79.7 24.6
Leisure and Hospitality 65.4 62.3 60.7 62.0 64.9 22.1 22.7 23.6 84.4
44.3 44.3 44.9 78.0
Manufacturing 72.6 64.3 60.2 60.2 59.4 658.8 674.3 683.8 25.1
46.6
NR/Construction 32.1 25.9 23.6 23.7 23.3 2013 2014 2015 693.1
2.0 2.7 2.7
Other Svcs. 41.8 43.0 40.7 40.3 44.3 2016YTD
10.4 11.3 11.4 2.9
Professional and Business Svcs. 91.6 82.7 83.2 82.6 84.7 18.5 19.0 22.2
23.3 24.6 26.4 11.4
Retail Trade 82.6 76.5 75.2 74.3 76.0 23.7
2.6 2.4 2.6 27.2
Transport/Warehouse/Util. 24.1 23.5 21.4 22.1 22.3 25.4 26.7 28.4
27.5 29.2 30.9 2.8
Wholesale Trade 45.8 40.3 40.6 41.5 42.8 14.4 16.9 18.1 29.4
32.2
Total 688.9 646.0 631.4 633.6 645.0 7.1 7.6 8.2 18.4
42.2 41.8 43.4
35.5 35.9 35.7 8.3
21.3 23.1 24.5 41.4
Annual Employment by Sector — West San Bernardino County (000s) 18.8 20.0 21.9 35.8
249.6 262.0 277.9 25.1
Industry 2008 2009 2010 2011 2012 22.4
282.2
Education 2.0 2.4 2.2 2.3 2.3

Financial Svcs. and Real Estate 12.2 10.9 10.2 10.1 9.9

Government 20.7 20.9 19.4 18.7 18.4

Health Care 16.5 16.8 17.2 18.7 20.3

Information 3.4 3.1 3.0 2.6 2.6

Leisure and Hospitality 23.9 22.8 22.4 22.9 24.0

Manufacturing 35.2 30.0 27.3 26.8 27.3

NR/Construction 17.6 14.4 12.7 13.1 13.7

Other Svcs. 8.5 8.4 8.0 8.0 8.8

Professional and Business Svcs. 41.8 39.9 40.6 42.0 41.2

Retail Trade 36.2 32.8 33.1 34.5 34.9

Transport/Warehouse/Util. 19.9 19.2 19.6 19.9 20.5

Wholesale Trade 19.1 17.1 16.9 16.9 17.2

Total 257.8 239.2 233.1 237.3 242.0

Health Care

By far, the largest industry in the San Gabriel Valley is health care, which made up 18% of total
employment in the first half of 2016 (the latest available data). In West San Bernardino, health
care represented a smaller share of regional jobs but was still sizable, around 10% of total
employment. Health care is a reliable source of jobs, remaining largely impervious to the effects
of economic downturns. Moreover, these jobs will become more important over time as the
region’s population ages and life expectancies increase. Despite any current turmoil in
Washington, more workers should continue to enter the health care market, as a complete

21

overhaul appears unlikely. In short, health care will remain a crucial industry to the region
surrounding the Fairplex in the years ahead.

Higher Education

Another core industry of the San Gabriel Valley and West San Bernardino is higher education.
Many colleges around the Fairplex focus on science, technology, engineering and mathematics
(STEM) fields, which provide essential skills for jobs of the 21st century. For instance, the
California Institute of Technology (Caltech) in Pasadena, California State Polytechnic University
in Pomona (Cal Poly Pomona), and Harvey Mudd College in Claremont are renowned STEM
institutions. Although West San Bernardino lacks the Valley’s caliber of research institutions, it
is home to excellent community colleges, such as Chaffey in Rancho Cucamonga. Good-quality
community colleges are key to helping people gain skills, retrain and acquire the credentials for
well-paying jobs6. In recent years, wages and employment have grown in the regional higher
education industry. Beacon expects this trend to continue, especially in West San Bernardino,
where population increases will drive demand for more educational institutions.

Manufacturing

As in California and the nation in general, manufacturing in the region has generally sustained
declining employment. Contrary to perception, however, real output in the manufacturing
sector is up. Part of this has to do with technology replacing labor and enabling manufacturers
to maintain their competitive edge. In the San Gabriel Valley, for example, manufacturing
employment represented 8.7% of total employment in the second half of 2016, which is about
2% below its prerecession peak. On the other hand, manufacturing employment and wages in
western San Bernardino County have grown at a much faster pace. In general, manufacturing
will remain strong in both regions but with less employment than historical averages. With
more education and skills, residents will increasingly be able to find manufacturing employment
that pays well.

Logistics/Goods Movement

Perhaps the most promising industry in the years ahead is logistics. Many factors have come
together to establish the region as a hub for goods movement and associated activities, one
being its proximity to the ports of Los Angeles and Long Beach. These are the two largest ports
in the nation and together handle 30% to 40% of inbound containers to the United States, many
of which make their way past or are stored in facilities around the Fairplex. West San
Bernardino’s logistics industry in particular has grown, a result of its cheap warehouse space
and excellent highway system. Although the Trump administration is well known for its cynical

6 Kolesnikova, N. A. (2009, Fall). The Changing Role of Community Colleges. Retrieved February
15, 2018, from https://www.stlouisfed.org/publications/bridges/fall-2009/the-changing-role-
of-community-colleges.



22

outlook on trade, it has yet to deliver on any seriously damaging policies in this sector. Indeed,
the region surrounding the Fairplex would be especially affected by any major disruption to
trading patterns. Assuming policies remain relatively unchanged, the logistics industry should
remain a bright spot for the region.

Housing

Housing is another key input to the region’s local economy that should play a role in the
Fairplex’s evolution. California faces a severe housing shortage, and this is especially true in the
Los Angeles area7. For a variety of reasons, permitting activity has failed to recover since the
trough of the Great Recession, and this will continue to have significant implications for the
region. Without enough units to house new residents, the region’s economy could plateau in
terms of job creation. This is more likely to occur in the San Gabriel Valley as opposed to West
San Bernardino, which has a major affordability advantage. Beacon Economics estimates that in
the coming years, population and employment there will grow much faster than in the San
Gabriel Valley.

With these factors considered, Beacon offers the recommendation framework below, with
activities or programmatic interventions the Fairplex may consider in maximizing its strategic
role in regional economic development. These recommendations are broken down into
regional advantages, organizational assets and anchor partnerships. A final note is included on
brand leverage, and with it an example for how the Fairplex might brand a multifaceted, cross-
sectoral initiative like the one detailed in the framework below.

San Gabriel Valley Forecast

Year Population Employment (000s) Wages Taxable Sales Residential Permits
(000s) 702 ($ Millions) ($ Millions) 2,038
2,111
2016 1,531.5 34,496 22,118 2,156
22,782
2017 1,539.6 713 36,676 23,236 -7.9
3.6
2018 1,546.6 719 37,742 13.0 2.1
3.0
Year-Over-Year Growth (%) 2.0 Residential Permits
2,073
2016 0.7 26.0 5.2 Taxable Sales 2,187
($ Millions) 2,230
2017 0.5 1.7 6.3
15,619
2018 0.5 0.8 2.9 16,493
Wages 17,005
($ Millions)

West San Bernardino County Forecast

Year Population Employment (000s)
(000s)

2016 624.4 289 12,303

2017 631.5 299 13,135

2018 638.7 308 13,990

7 Taylor, M. (2015). California’s High Housing Costs: Causes and Consequences (Rep.).
Sacramento, California: Legislative Analyst’s Office.



23

2016 1.0 Year-Over-Year Growth (%) 8.0 9.3
2017 1.1 3.9 4.4 5.6 5.5
2018 1.1 3.4 6.8 3.1 2.0
3.3 6.5

Recommendations: Regional Advantages

Regional advantages are economic strengths, challenges or developments that are unique to
Fairplex’s geographic location and represent potential economic development opportunity.

Recommendation 1: Develop Residential Real Estate

Amid insufficient residential construction regionally and statewide, the Fairplex could develop
residential units on fairgrounds property. Insufficient construction covering the spectrum of
affordability will constrain the region’s economy and limit its growth potential. By addressing
the local shortage, the Fairplex could position the regional economy for faster and bigger
growth.

The Fairplex can look to many examples of innovative residential development led by an
economic development organization or agent. Many include housing that either directly targets
a workforce development goal or serves vulnerable populations, for example, the formerly
incarcerated or homeless. Others provide a community resource that is lacking in the region.
Crotona Park Development by the Doe Fund in New York is a great example of creative
residential development that sits within a workforce development framework.8 Similarly, in
Chicago’s Woodlawn neighborhood, developments by the nonprofit Preservation of Affordable
Housing include an in-house community resource center for job and skills training. Other recent
projects have connected residents to much-needed community services. At San Francisco’s
Mercy House, for example, two family daycare centers support working parents while providing
jobs for residents. And in Atlanta, the East Lake community was rebuilt around the Charles R.
Drew Charter School system, connecting local children to some of the district’s best schools.

Alternatively, market-rate residential construction would also help alleviate the regional need
for housing, better positioning the region for continued growth, while providing substantial
revenue for the Fairplex.

Recommendation 2: Utilize the Ontario International Airport


8 Affordable Supportive Housing. (2018, February 15). Retrieved from
https://www.doe.org/programs/affordable-supportive-housing.


24

Another regional advantage of Fairplex is its proximity to Ontario International Airport (ONT).
Recently, the City of Ontario achieved ownership of the airport from the City of Los Angeles.
Part of Ontario’s plan involves increasing airport cargo traffic from more international locations,
especially fast-growing Asian countries. Although freight volumes have been growing in recent
years, there is still much room to expand.

Near a warehouse and distribution cluster, ONT has all the infrastructure in place to become a
logistical economic engine. Achieving this goal requires an increase in awareness of the airport.
By encouraging out-of-state vendors and visitors to use ONT, the Fairplex can play a major role
in building out the airport’s regional influence. The Fairplex could create various incentives for
its visitors to use ONT, such as offering discounts or free event tickets. If promoted, ONT offers
a great opportunity for the Fairplex to spur economic development in the region. Importantly,
there may also be opportunities to directly partner with ONT in exploring collaborative
entrepreneurship or corporate innovation activity.

Recommendations: Fairplex Assets

Fairplex assets are those resources unique to the association that hold major economic
development potential.

Recommendation 3: Leverage the Farm

A cornerstone of ongoing Fairplex activities and already a resource for the community, the
Farm could be further leveraged to provide more strategic workforce and economic
development. From a workforce development perspective, the Fairplex can expand its activities
around job training in the culinary arts and consider establishing a culinary incubator with
commercial kitchen access for food entrepreneurs. Hot Bread Kitchen in New York City, Union
Kitchen in Washington D.C. and La Cocina in San Francisco are good examples of culinary
incubators or pre-incubation programs with clear workforce and economic development goals.9
10 11 Food entrepreneurship has also proved to be a more accessible inroad to entrepreneurship
as a career pathway for low- and medium-income populations12. Additionally, food truck
commissaries are a significant form of economic development that combines workforce
development goals with the growth of food trucks nationwide13.

The urban farming activity at the Fairplex could also serve as a springboard for public-private
partnerships. The right set of partners, such as a research university, a local government or a

9 Hot Bread Kitchen. (n.d.) Retrieved from https://hotbreadkitchen.org.
10 Union Kitchen. (n.d.) Retrieved from https://unionkitchendc.com.
11 La Cocina. (n.d.) Retrieved from https://www.lacocinasf.org/.
12 Robbins, E. (n.d.). Municipal Action Guide: Food-Based Business Incubator Programs(Rep.).
Retrieved http://www.nlc.org/sites/default/files/2017-02/Food-
Based_Business_Incubator_Programs.pdf.
13 Drive Change. (n.d.) Retrieved from http://drivechangenyc.org.

25

private-sector urban farm operator, could use the Fairplex as a testing ground for scalable
urban farming in Los Angeles.

From a more macro-economic development angle, the Fairplex could explore extension
activities at the Farm that connect with industries related to food systems, like food
distribution, co-packing and food manufacturing. This approach could link innovative elements
of the farming industry like urban farming with locally relevant industries like manufacturing.
The Hunts Point food distribution center and the food manufacturing hub at Brooklyn Army
Terminal are good examples of sites that integrate more than one economic development goal.



Recommendations: Anchor Partnerships

Anchor partnerships are strategic collaborations among industry leaders in the region that
would link Fairplex activities to larger regional and national trends and establish the Fairplex as
a hub for public-private partnerships.

Recommendation 4: Partner with Anchor Institutions

As already discussed, health care will continue to be a major industry in the Fairplex region.
Part of growing this industry will involve streamlining new talent, and this is an area in which
the Fairplex could be an agent for growth. There are many high-quality medical institutions in
the San Gabriel Valley and West San Bernardino with which the Fairplex could partner. For
example, City of Hope in Duarte is a renowned cancer treatment and research institution with
programs designed to connect with the community14. Partnering with organizations like City of
Hope would complement the Fairplex’s message of healthful living while creating links between
a crucial, research-driven industry and the local talent pipeline.

As noted, the region surrounding the Fairplex has some of the best colleges and universities in
the nation. By forming partnerships with these anchor institutions, the Fairplex could help the
next generation of students and workers build relevant skills. The logistics industry, for
example, is certain to grow in the years ahead. As more aspects of the sector become
automated, however, higher-level skills will be necessary for employment. Private-public
partnerships can address this issue, uniting education leaders and corporate decision-makers to
connect private-sector needs with the region’s talent.

The Fairplex could look to the Houston Livestock Show and Rodeo as an example of establishing
partnerships with anchor institutions. For years, the Rodeo has partnered with NASA’s Johnson

14 Community Outreach. (n.d.). Retrieved from
https://www.cityofhope.org/research/comprehensive-cancer-center/comprehensive-cancer-
center-community-outreach.

26

Space Center and its Aerospace Scholars Program15. This program encourages high school
juniors to enter STEM fields by giving them a yearlong online internship that culminates in an
onsite learning project. The Fairplex could establish similar programs geared toward regional
economic needs, thus fostering faster, more fluid growth.

In exploring partnerships like these, it is important to consider the implications of automation.
Research by the White House in 2016 found that up to half of all jobs will be threatened by
automation over the next couple of decades16. Moreover, the report found that those with low
wages, low skills and low educational attainment are the most threatened. Logistics, for
example, offers many low-skilled warehouse jobs that could be replaced by robotics and better
technological processes in the near term. But jobs will be created in that industry that will
increasingly require more advanced and technical skills. These dynamics underline the need for
intermediary organizations like the Fairplex to connect the dots between industry and local
education, creating forums at which communities can chart their futures together.

Recommendation 5: Partner with External, Innovation-Oriented Industries

In navigating the world of public-private partnerships, the Fairplex could consider finding
partners in external industries of the private sector that are heavily invested in research and
development. Local firms investing heavily in innovation can be key partners in considering job
growth not only from a numbers perspective but also as it pertains to the entire economic pie.
Many private firms have corporate innovation offices seeking forums to connect with
entrepreneurs, research universities and public-sector decision-makers. The Fairplex could
serve as a hub for these groups.

The local energy industry and cleantech, the water industry, the design and landscape
architecture industry, and the automobile industry are all examples of industries that are locally
relevant and focused on innovation17. From a workforce development angle, the Fairplex could
serve as a training ground and workshop for businesses in these industries, both in terms of
engagement with startups and in terms of cultivating local talent. Incubators are perhaps the
most notable example of this type of sponsorship18. Partnerships with some of these industries
could create a publicly enjoyed community asset, like a clean-energy installation exhibit, a
sustainable design expo, open-air maker studios or a real estate tech demonstration park.

15 Johnson Space Center, Rodeo Houston celebrate partnership. (n.d.). Retrieved from
https://jscfeatures.jsc.nasa.gov/pages.ashx/501/Johnson%20Space%20Center%20Rodeo%20Ho
uston%20celebrate%20partnership.
16 Furman, J., Holdren, J., Munoz, C., Smith, M., & Zients, J. (2016, December 20). Artificial
Intelligence, Automation, and the Economy (Executive Office of the President). Retrieved from
https://obamawhitehouse.archives.gov/sites/whitehouse.gov/files/documents/Artificial-
Intelligence-Automation-Economy.PDF.
17 Resnick Institute. (n.d.). Retrieved from http://resnick.caltech.edu/corporate-
partnerships.php.
18 Rise New York. (n.d.) Retrieved from https://thinkrise.com/newyork.

27

These exhibits would not only act as a community resource and promote awareness of
innovative technology, but would help grow the region as a hub for collaborative innovation.
NYC Real Estate Tech Week and the ACT Expo in Long Beach are two notable examples.

Brand Leverage

If the Fairplex were to explore more than one of these recommendations, articulating its
various goals through branding could prove useful for public relations and funding. A brand like
“Sustainable Innovation,” for example, touches industries like energy, design, culinary arts,
manufacturing, logistics, transportation and automobiles while reflecting the Fairplex’s
overarching goals. An example of a cross-industry brand designed to help make business more
sustainable is Best for NYC, a derivative of B Corp’s Best for the World competition.19 Because
sustainability takes the form of environmental, social and governance innovation, it has
become a key type of holistic economic development. By branding itself as a promoter of
sustainable innovation, the Fairplex could continue to build its role as a leader in regional
economic development.



Future Research Possibilities

Each recommendation above introduces questions about feasibility, local demand and return
on investment, among other considerations. However, these are the recommendations that
Beacon Economics believes best introduce new ideas for the Fairplex while also leveraging its
existing work and unique regional assets. They will promote the core values of the Fairplex
regarding community enrichment while at the same time creating unique economic
opportunities in growing industries moving forward.

19 2015 B Corp Best for the World Honorees. (n.d.). Retrieved from
http://bestfortheworld.bcorporation.net/.

28

Conclusion


The results of this study show the amount of economic activity generated in Pomona, Los
Angeles County, Southern California, California and the United States through Fairplex-related
spending in 2016. The Fairplex generates substantial and lasting benefits not only for Pomona
and Los Angeles but throughout the state and country.

As Fairplex-related spending moves through the economy, it creates ripple effects, resulting in a
total impact that is much larger than the initial direct spending. As a result, Fairplex-related
spending generates a substantial amount of revenue for businesses, wages for workers and jobs
for residents. Because the Fairplex is in a highly populated region that is able to support its
demand, much of the economic impact occurs specifically within Southern California.

In addition to its economic and fiscal impacts, the Fairplex is already an exemplar for other
fairgrounds and regional economic organizations and can enhance its positive impact the region
in a variety of ways. One strategy entails using regional assets and forming partnerships with
key institutions. Additionally, the Fairplex can better leverage its existing assets to serve the
regional economy. By choosing to pursue these recommendations, the Fairplex can foster
regional economic growth now and into the future.















29

Economic Impact Methodology


The economic impact of the Fairplex was measured in terms of the additional output, jobs,
worker wages and tax revenue generated by 2016 expenditures. The economic impact of
Fairplex was measured for five geographies (Pomona, Los Angeles County, Southern California,
California and the United States) where total spending in each area was considered.

Estimates of economic impact were generated by the IMPLAN modeling system, an input-
output model that estimates the impact of changes in the economy through the use of
multiplier effects. With IMPLAN, expenditures made on various types of goods and services can
lead to different multipliers. Similarly, expenditures made within the same industry in different
regions can generate different economic impacts. As a result, not only can total expenditures
differ between each of the three areas in this study, but the multiplier effect for each type of
expenditure can also differ.

This study considered only the ongoing (annual) impacts of the Fairplex. The Fairplex’s
cumulative impact on the economies of Pomona, Los Angeles County, Southern California,
California and the United States would be substantially higher.

For this study, Beacon Economics considered six main expenditure categories:

• The Fair Association and related entities
• The wages of Fairplex’s staff
• Promoters
• Concession vendors
• Commercial vendors
• Visitors

To obtain information on expenditures for the Fair Association and related entities, Beacon
obtained detailed information about the vendors at the Fairplex from the Fair Association,
including the vendors’ geographic locations and the amount of spending made by each vendor.

To model worker earnings, Beacon used the Bureau of Labor Statistics’ consumer expenditures
survey to determine the types of businesses at which a typical consumer spends wages.
Workers’ wages and locations were obtained from the Fair Association.

The Fairplex had limited information relating to promoter spending. As such, promoter
expenditures were estimated using data for similar events throughout the State. Beacon
analyzed per-attendee spending levels at Fairplex concerts, races and other events, including
expositions and car shows. This gave reasonable estimates for the expenditures promoters
made in hosting their events per attendee. Beacon also received estimated attendance for each
event from the Fair Association based on forecasts from promoters, as well as car counts for
each event. From these figures, we obtained an accurate measure of attendance for each event

30

held at the Fairplex. With estimates for attendance and per-attendee spending by promoters,
Beacon got an accurate estimate of how much each promoter spent in Pomona, Los Angeles
County, Southern California, California and the United States hosting their events.

Concession vendor expenditures were estimated using the revenue that was taken in by each
concession vendor on the Fairplex’s grounds; this data was provided by the Fair Association.
After netting out rent payments made to the Fairplex, these revenues were then modeled as
expenditures based on the indirect spending levels of a typical concession vendor in the
California economy. Using these indirect spending levels, Beacon obtained reasonable
assumptions of the types of industries used in the supply chain of a typical concession vendor.

Commercial vendor expenditures were estimated based on the vendor purchasing materials
and supplies to promote their business, as well as meals, transportation and lodging for their
staff while they were in town. The items and services the vendors sell were not considered in
this analysis. Although a portion of these goods and services would come from the local
economy, the production of the goods and services cannot be directly attributed to the
Fairplex. In addition, part of these sales would be attributable to out-of-town visitors, which
were considered separately.

Visitor expenditures were estimated using a typical spending profile for visitors to the Los
Angeles area.20 Per-day expenditures were then calculated using estimates for the average daily
rate for hotels in Pomona and the surrounding area.21 Because a significant portion of visitor
expenditures would be going to entities related to the Fairplex (for example, the Sheraton Hotel
and the concession vendors), a portion of visitor spending was discounted to avoid double-
counting. Beacon estimates the average out-of-town visitor spent roughly $184 per day in the
Southern California economy because of his or her visit to the Fairplex, after accounting for the
visitor’s Fairplex-related spending.

20 Visit California/Dean Runyan Associates.
21 PKF Consulting.

31

Appendix

Fairplex Output — Total Impact Summary (in dollars)

Impact Type Pomona Los Angeles Southern California United States
County California

Direct Effect 38,386,452 186,737,591 263,817,151 286,783,582 313,220,047
100,312,751 114,782,943 178,819,068
Indirect Effect 8,613,324 61,419,829 135,465,667 155,686,271 304,922,390

Induced Effect 11,241,355 75,405,192 499,595,569 557,252,796 796,961,505

Total 58,241,131 323,562,613

Fairplex Employment — Total Impact Summary

Impact Type Pomona Los Angeles Southern California United States
County California

Direct Effect 399 1,917 2,674 2,907 3,424
510 565 848
Indirect Effect 48 309 786 863
1,641
Induced Effect 67 448 3,969 4,335
5,912
Total Effect 514 2,674

Fairplex Earnings — Total Impact Summary (in dollars)

Impact Type Pomona Los Angeles Southern California United
County California States
121,059,755 131,277,108 142,857,457
Direct Effect 18,150,880 86,858,183 35,342,520 41,180,817 57,047,032
Indirect Effect 3,123,033 22,075,375 45,993,753 52,954,718 95,245,811

Induced Effect 3,773,927 26,501,042 202,396,028 225,412,642 295,150,300

Total 25,047,840 135,434,600

32

History

The Beginning
Pomona, early 20th Century
The tent doors flapped with each rush of a locomotive whirring by on the Southern Pacific
Railway. But the rhythmic rattling didn’t slow the residents as they perused the rows and rows
of products at this one-off merchants’ exposition in downtown Pomona circa 1921. As the
adults traversed the tent, their children thrilled to a carnival outside, many of the rides fueled
by mule power.

The spark created by this roadshow didn’t escape notice by CB Afflerbaugh. An apothecary by
trade and a city councilman in his off time, Afflerbaugh set up the exposition with the help of a
traveling show. But he caught the glint in residents’ eyes as they moved from exhibit to exhibit,
learning new tricks to make their citrus smudge pots more efficient. He noted the smiles of the
shoppers as they bent the ears of salesmen with tales of rickety wash machines.

This, Afflerbaugh thought, is exactly what the region needs on an annual basis. Pomona was a
bustling city in the early 1920s, on par with Los Angeles and Pasadena to the west, and San
Bernardino and Palm Springs to the east. It was equal parts large town and home on the range,
boasting one of the highest per-capita levels of income in the United States but with a
homespun attitude. The city’s prominence in the orange grove industry brought with it the title
“Queen of the Citrus Belt” -- a designation Pomona wore proudly.

Backed by the local chamber of commerce and the City of Pomona, Afflerbaugh and a cohort of
business owners formed the Los Angeles County Fair Corporation in April 1922 -- funded by
$23,000 in stock sales, $15,000 in loans obtained by shareholders and $10,000 from the Los
Angeles County Board of Supervisors -- the start of a public/private partnership. Pomona
purchased a 43-acre beet and barley field and leased it to the corporation for the LA County
Fair.

How We Got Here
The first LA County Fair in 1922 was a smashing success. It drew nearly 50,000 guests during its
five-day run, setting the foundation for what would eventually become the largest county fair in
the country, an iconic Southern California destination and a Pomona mainstay -- and a unique
experience for guests.

The following years were characterized by a fruitful partnership between the corporation and
community. It became regular practice for the corporation to use revenues to expand the

33

fairgrounds, deed the new land to its civic partners and construct new and better facilities. In
the early years, Pomona was the Fair’s most committed partner.
In 1929, the Fair formalized its relationship with the City of Pomona and entered a 40-year
lease to secure rights of the original 40-acre fairgrounds. The lease paved the way for
continued operations of the Fair and the County provided the funding for the construction of a
new 10,000 seat concrete and steel grandstand. Following the completion of the grandstand in
1932, the City deeded its portion of the fairgrounds to the County in 1933. The exponential
growth of the Fair even during the Depression fueled continued purchasing of land and
buildings by the corporation.
The mid-1930s ushered in a period of new building in partnership with local, state and federal
agencies such as SERA and WPA, putting many to work and creating some of the fairgrounds’
most iconic buildings.
It was also in the mid-1930s that the corporation considered joining the state’s Sixth
Agricultural District after meeting with Governor James Rolph. State-supported fairs fall under
the state Department of Food and Agriculture’s District Agricultural Associations. The Los
Angeles County Fair Corporation decided to remain private -- meaning it did not join a DAA; the
LA County Fair has never been subsidized by the state like fellow California county fairs. No tax
dollars were provided for the operations of the Fair, a finance structure that remains today.
In 1941, the Fair Corporation was asked by the federal government to reorganize as a non-
profit enterprise and begin deeding its land to the County as a solution to concerns regarding
the WPA projects. The Los Angeles County Fair Association was formed, all assets and buildings
were transferred to the new corporation, and officers were elected from members of a new,
community-based Association. The Association was charged with supporting the Fair and
choosing the Board of Directors. This new governance structure laid the groundwork for an
even closer relationship with community supporters.
World War II brought a halt to the Fair for six years. The grounds were leased to and occupied
by the U.S. Army, playing a part in the war effort. During 1942, Fairplex housed a community of
5,428 Japanese-Americans in 420 prefabricated temporary buildings from May 5 to August 24
before they were relocated to other parts of the country. From 1945 to 1946, the grounds were
used as a German and Italian prisoner-of-war camp.
In 1948, following wartime use of the fairgrounds, the U.S. Army transferred land it had
acquired to the County and the Association simultaneously transferred its land to the County
and signed a 49-year lease with the Board of Supervisors with conditions to conduct the annual

34

Fair on the County’s behalf. This completed the requirements of the federal government and
launched a period of renewed prosperity.
Jump to 1988, when the County recommitted to the long-term and fruitful relationship, signing
a new lease running through 2043 with a provision for two, five-year extensions. The
agreement allowed the Association to expand use of the fairgrounds for off-season events as a
way of supporting its nonprofit, community programs and to increase revenue to support the
annual Fair. The County also introduced for the first time a rent component for the land.
The exhibition complex was completely renovated and exterior landscapes around the buildings
were greatly enhanced in 1989. The Barretts Equine Sales Pavilion and Barns were built and
opened in 1990. The 247-suite Sheraton Fairplex Hotel was opened in 1992, owned by Fairplex
and managed by the Sheraton’s parent company. This is an example of the partnered
investments Fairplex, the City of Pomona and Los Angeles County have historically engaged in
as a measure of generating revenue for the City and the County.
In 2008, the County supported one of the Association’s most ambitious plans -- construction of
a trade and conference center. According to the County, the center would enable the
Association to “continue to conduct the Fair in a manner that preserves the long tradition of
the Fair and reflects positively on the County, its citizens, its agriculture, and its industry.” The
effort was also deemed to be in keeping with the County’s strategic plan for fiscal
responsibility. Los Angeles County support for the Center included crediting the Association for
rent owed in exchange for annual use of the center by the County.
Today, Fairplex’s work goes beyond hosting a Fair, building a hotel or creating jobs. Supported
by the development of Fairplex, several affiliated nonprofit organizations and community
programs operate on the campus.
The philanthropic 501(c)3 arm of Fairplex operates numerous programs within The Learning
Centers at Fairplex including the Career and Technical Education Center, Millard Sheets Art
Center and The Farm at Fairplex. These programs provide vocational training in auto mechanics,
arts, landscaping and other areas of real-world career-based skills. The five-acre educational
Farm at Fairplex welcomes students, teachers and chaperones annually to learn about
agriculture, horticulture and forestry. Lastly, there is the Child Development Center, which
offers early education for 250 children ages 12 weeks to 6 years, approximately half of whom
are from low-income families. The CDC and TLC both retain governing boards. CTEC and the Art
Center have advisory boards. Funds raised for the 501(c)3s are used for TLC’s educational
programming; no TLC money is used for the operation of Fair enterprises. However, Fairplex is
the largest donor to TLC, contributing more than $1 million annually to support administrative
and programming costs.

35

From its humble beginnings as a beet and barley field, Fairplex has become one of the most
valuable properties in the County’s real estate portfolio. Fairplex financed most of the
development on the current campus. Current valuation of the campus facilities portfolio is
approximately $1 billion. Should a lease agreement with the County cease to exist, the property
and all assets would revert to County ownership.
Over the last seven decades, the County and Fairplex have shared a mission to promote
agriculture, horticulture, forestry and viniculture in the region. Through the years, the County
has experienced demographic change, economic change and political change, yet the
relationship between Los Angeles County and Fairplex has endured -- and in fact, thrived.

36

DRAFT

2017 STRATEGIC PLANNING PROCESS OVERVIEW
Presented to Steering Committee
March 14, 2017
Miguel A. Santana, President and CEO

37

Fairplex @ 100
Overview

Founded in 1922 with a mission
centered on the region’s agriculture
and commerce, Fairplex is richly
ingrained in the history of Southern
California. As we approach the 100-
year anniversary of the LA County
Fair, it is important to ensure our
strategies are relevant and beneficial
to Southern Californians.

38

Collaboration

During this process, we will honor and
respect the mission, purpose and
history of Fairplex while collaborating
with stakeholders, government
officials and neighbors to further build
community and strengthen our
economy for those who live, work,
play and learn at Fairplex.

39

Strategic Planning Process

Together, with input from stakeholders, community
members, and government oversight bodies
Fairplex will:

1) Revise and refresh Fairplex VISION
2) Develop GOALS to guide the updated VISION

STRATEGIC PLANNING PROCESS

revise and update design effective
VISION GOALS

40

Vision

A strategic vision provides answers to the following
questions. A vision is both aspirational and respectful to
limitations of the possible. It strives to provide clarity of
purpose and defines broadly what success looks like in the
future.
A vision answers the general questions of “Who?, Why? and
What?”.
A vision does not answer the question of “How?”

41

Vision Questions

Sample Questions: In 2025…
• Who does Fairplex serve and why?
• What impact does Fairplex desire to have?
• What change does Fairplex want to

affect?
• What kind of organization does Fairplex

aspire to be?
• How will Fairplex adapt to emerging

trends while honoring its history,
community and partners?
• What goals describe or showcase a
Fairplex future?

42

Goals

Vision answers: “Who we will be & what impact we will
have.”
Goals provide direction and guidance that will be used to
shape strategies to achieve particular outcomes.
An excellent goal and complementary strategy provides a
clear framework for people to utilize when making decisions
on priorities, action plans and the allocation of resources.
Multiple goals and strategies are required to achieve a vision.

43

Strategic Guiding Principles

Mission Statement: We enrich lives by
entertaining and educating our
diverse community while creating
unique and memorable experiences.

44

Strategic Guiding Principles

Purpose/Approach
• Align with mission
• Fill a community need
• Provide a community benefit
• Strengthen neighborhood
• Maintain financial strength and sustainability

– Provide local and regional economic development
– Promote commerce and entrepreneurship
– Build reserves for capital and community

reinvestment
– Create good paying jobs

45

Strategy Plan Timeline

• January: Design process
• February: Board authorization of process
• March:
• April-June: Launch Process
• July-Aug: Strategic vision ideation and activities
• Sep: Development of vision and goals
• Sep-Oct:
• Nov-Dec: First draft of strategic vision
Revise and update strategic vision
Finalize document and process

46

Strategy Topic Timeline

• April 13, 2017
–Education and Craft Skill Development
–Agriculture and Food

• May 11, 2017
–Entertainment and Lifestyle Interest
–Healthy Living and Sports

• June 15, 2017
–Neighborhood, Housing and
Transportation
–Governance and Transparency

•September 14, 2017
–Fair

47

Strategy Topic Timeline

Core Experience Session 1 - April 13, 2017
• Education and Craft Skill Development

Lead: Thomas Canavan and Joel Marchese
–Focus on programs of The Learning
Centers at Fairplex and educational
opportunities throughout campus that
support a continuum of lifelong learning

• Agriculture and Food
Lead: David Teig and Tammy Roush
–Focus on agricultural education and
programs, food and hospitality business
on campus, and community initiatives
that support healthy living and healthy
eating

48


Click to View FlipBook Version