Report to Mayor and City Council
Tuesday, November 21, 2023
Consent
SUBJECT:
Title
CONSIDER APPROVING AMENDMENT NO. 1 TO SETTLEMENT AGREEMENT BETWEEN THE CITY OF CARSON AND SHIPPERS TRANSPORT EXPRESS, INC. ("SHIPPERS") TO ALLOW SHIPPERS TO OPERATE ITS CURRENT USE AT THE 40 ACRES LOCATION SITE ON THE SOUTH SIDE OF SEPULVEDA BOULEVARD JUST EAST OF WILMINGTON AVENUE, OWNED BY MARATHON PETROLEUM (CITY COUNCIL)
Body
I. SUMMARY
City and Shippers entered into a Settlement Agreement dated December 28, 2021 ("Agreement") whereby Shippers was authorized to conduct or engage in use of the site as truck parking, container parking, and chassis storage ("Use") until the Compliance Deadline of January 1, 2024. The Agreement provides that in the event Shippers is unable to meet the Compliance Deadline, the City Council may, in its sole and unfettered discretion, extend the Compliance Deadline by up to two calendar years, in exchange for the compensation and other additional reasonable conditions. Shippers' position is that due to industry conditions, it is unable to meet the Compliance Deadline and has made a timely written request to extend the Compliance Deadline.
Staff is proposing an amendment to the Agreement granting a two-year extension of the Compliance Deadline, to January 1, 2026, provided Shippers:
* Files a complete application with the City for entitlements (i.e. a Conditional Use Permit) for Shippers' Use within one (1) year (i.e., by January 1, 2025);
* Limits the Use to 40 acres of the Property, rather than the 60 acres originally authorized under the Agreement;
* Continues to pay the City at the rate of $1,000,000 per annum (payable in quarterly installments of $250,000, with each installment payment due within thirty (30) days following conclusion of the applicable calendar quarter) for the two-year extension period, unless the entitlements are approved prior to the conclusion of the two-year extension period, in which event the Agreement shall automa...
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