A conservative think-tank, the Mackinac Center for Public Policy based in Midland, MI, recently released a report critical of the state's budget for the Michigan Department of Agriculture. The department owns and oversees the fairgrounds.

Report author Michael LaFaive said the state could likely sell the Michigan State Fairgrounds in Detroit for around $57 million, and the Upper Peninsula State Fairgrounds in Escanaba, MI, for $2.6 million. The study is titled "Proposed Budget Reductions for the Michigan Department of Agriculture," and is the first in a series of budget cut recommendations by the center on the state's 20 departments.

When asked by reporters, new Michigan Gov. Jennifer Granholm said she wouldn't rule out selling the property, which hosts the state's largest fair for two weeks every August. "I think it's safe to say the fairgrounds are on the table," Granholm said. "I'm not personally in favor of getting rid of the state fair."

Both programs promise to leak a few million each from the budget each year. For example, while the Detroit fair did earn a paltry $28,000 profit, the maintenance and upkeep are going to be about $900,000 more expensive in 2003, LaFaive said. State Sen. Buzz Thomas said he wouldn't be opposed to selling the fairgrounds, as long as it's done legitimately.

Developer Joseph Nederlander agreed to buy 36 acres of the state fairgrounds for $6.1 million, but before the deal was approved, he arranged to turn around and sell the property for $10.5 million to an acquaintance. The state balked at Nederlander's actions. Thomas said the whole deal stank of illegality. "The sale violated state practices," Thomas said. "There was no public input, they didn't go out for proposals. It smells of a private back-room deal that had a number of deficiencies."

The next time around, a sale should be conducted in the public eye, Thomas says. "If we're going to sell the fairgrounds, we're going to have to do it quickly," Thomas told GlobeSt.com. "There should be proposals brought forward, and the best proposal would win. The state must maximize the return on its asset." He lives near the fairgrounds, and said any new development should keep the residential neighborhoods in mind. Nederlander's plan to build a racetrack on the site was vigorously protested by the residents, and was eventually defeated.

"There hasn't been a direct master plan for the area, but it is part of the Detroit community reinvestment strategy," Thomas said.