The Del Mar Fairgrounds board voted 5-3 on Tuesday, Aug. 18, to terminate its affordable housing agreement with the City of Del Mar.

The vote by the 22nd District Agricultural Association (22nd DAA) board ended negotiations that had been underway since at least 2023. At the same meeting, a finance report showed 2026 San Diego County Fair revenue fell about $6 million below budget, according to the board's September meeting packet.

Chair Sam Nejabat and Directors Donna Deberry, Kathlyn Mead, Ted Miyahara and Elsa Morales-Roth voted to end the Affordable Housing Site Due Diligence and Development and Feasibility Analysis Agreement. Vice Chair Lisa Barkett and Directors Phil Blair and Frederick Schenk voted against. Director Mark Arabo recused himself and left the room for the housing discussion.

Before the termination vote, Blair moved to continue the agreement for Site 4, the Surf and Turf RV Park east of Jimmy Durante Boulevard, including possible affordable or senior housing. That motion failed 3-5, with only Barkett, Blair and Schenk in favor.

Del Mar Mayor Tracy Martinez spoke as a public commenter before the vote, urging the board to continue negotiations. "You have nothing to lose by letting us pursue this … It's a lot that you chose and my understanding was it's that or nothing," Martinez said.

Miyahara, who voted to terminate, raised concerns about whether the City of San Diego would give up Regional Housing Needs Allocation (RHNA) credit for units built on fairgrounds land within San Diego's jurisdiction.

District staff recommended Del Mar continue conversations with San Diego about housing options at the RV park site. Any plan would require relocating the park and replacing its utilities and amenities.

The San Diego Union-Tribune reported on Aug. 19 that the vote ended the agreement.

Voice of San Diego reported on Aug. 26 that the collapsed deal may make the controversial Seaside Ridge housing project unavoidable for Del Mar.

On the financial side, Finance Committee Chair Arabo presented data showing Fair concessions revenue and rent fell short. The committee is exploring higher rent at premium vendor locations and reviewing service contracts over $500,000 for potential savings. The packet did not disclose the budget target or total revenue.

CEO Becky Bartling told the board that year-round district employees dropped from about 170 before the pandemic to roughly 65. The board voted 8-1 to approve an additional $27,767 per month in labor costs for new positions and role adjustments. Mead cast the lone opposing vote.

The next 22nd DAA board meeting is scheduled for Tuesday, Sept. 15, at 9:30 a.m. in the boardroom at the Del Mar Fairgrounds, 2260 Jimmy Durante Boulevard.