LANCASTER SEEKING FAIR DEAL; LAND SWAP WOULD ENABLE NEW FESTIVAL GROUNDS.

Byline: Jim Skeen Daily News Staff Writer

Construction of a new $12 million fairgrounds could begin in the spring and be completed by October 2000 if a deal is approved that would allow the local fair board and the city to swap assets.

The city and local fair board have asked California fair officials for permission for the city to pay for the construction of the new fairgrounds on 100 acres of city-owned land near Avenue H and the Antelope Valley Freeway, then deed it to the fair board.

In turn, the city would acquire title to the existing 75-acre fairgrounds, demolish the facilities and eventually use the site for homes.

``We're trying to work it as a trade,'' said fair manager Dan Jacobs. ``We are going to trade this fairgrounds for the new fairgrounds.''

The original plan called for the city to buy the existing fairgrounds from the fair board, then the fair board would use the proceeds to develop a new fairgrounds. However, money from the sale would actually go into the state's general fund, and legislation would be needed to direct the money back to the new fairgrounds project.

Lancaster wants to begin grading the site and laying out water, sewer and electrical lines in the spring. The project would cost more than $3 million and would be partially funded through a $1.5 million grant from the U.S. Commerce Department Economic Development Administration.

The utility work would aid both the new fairgrounds and the neighboring Rite Aid distribution center that is now under construction. The addition of the water and sewer lines would make the area more attractive to other companies that Lancaster is seeking to bring to the area.

The federal government has allocated an additional $250,000 in fiscal 1999 to the fairgrounds project, but officials haven't yet determined how that money will be spent.

The relocation of the fairgrounds is expected to be done in phases, beginning with construction of a watch-and-wager building. The last facilities to be built will be things like livestock pens and food booths, which would be used during the Antelope Valley Fair and Alfalfa Festival.