Report to Mayor and City Council
Thursday, December 28, 2023
Special Orders of the Day
SUBJECT:
Title
ADOPTION OF ORDINANCE NO. 23-2311, AN ECONOMIC DEVELOPMENT BENEFIT AGREEMENT WITH THE CARSON RECLAMATION AUTHORITY, A CALIFORNIA JOINT POWERS AUTHORITY, AND CAM-CARSON, LLC, A LIMITED LIABILITY COMPANY, TO PROVIDE AN ECONOMIC DEVELOPMENT SUBSIDY FOR THE DEVELOPMENT OF A PORTION OF THE FORMER CAL-COMPACT LANDFILL, 20400 SOUTH MAIN STREET, CARSON
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I. SUMMARY
On December 19, 2023, under Item No. 11 of Council Agenda, the City Council voted 4-0 (with one absence) to introduce Ordinance No. 23-2311 (Exhibit No.1).
II. RECOMMENDATION
Recommendation
CONDUCT a Second Reading by title only and with further reading waived and ADOPT Ordinance No. 23-2311 “AN ECONOMIC DEVELOPMENT BENEFIT AGREEMENT WITH THE CARSON RECLAMATION AUTHORITY, A CALIFORNIA JOINT POWERS AUTHORITY, AND CAM-CARSON, LLC, A LIMITED LIABILITY COMPANY, TO PROVIDE AN ECONOMIC DEVELOPMENT SUBSIDY FOR THE DEVELOPMENT OF A PORTION OF THE FORMER CAL-COMPACT LANDFILL, 20400 SOUTH MAIN STREET, CARSON.”
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III. ALTERNATIVES
TAKE any action the City Council deems appropriate.
IV. BACKGROUND
On December 19, 2023, the City Council introduced Ordinance No. 23-2311 (Exhibit No. 1 attached), an Economic Development Benefit Agreement with the Carson Reclamation Authority, A California Joint Powers Authority, and CAM-Carson, LLC, a Limited Liability Company, to Provide an Economic Development Subsidy for the Development of a Portion of the former Cal-Compact Landfill, 20400 South Main Street, Carson.
The City Council opened the public hearing, heard public testimony, closed the public hearing, and voted 4-0 (with one absence) to introduce Ordinance No. 23-2311 for first reading.
At the introduction, the City Council requested that the Economic Development Benefit Agreement, the subject of the ordinance, contain a provision that grants the City annual audit rights over the use the funds disbursed under the agreement. Those provisions have been added.
V. FISCAL IMPACT
The total amount of the Economic Development Benefit Contribution is $26,000,000 and will be provided from the City’s General Fund Reserve Balance.
The City is projected to receive an average of approximately $5,000,000 in gross sales tax revenue per year, though a portion of the revenue has been pledged back to the project pursuant to a Cooperation Agreement between the City and the Carson Reclamation Authority.
VI. EXHIBITS
1. Ordinance No. 23-2311 (pgs. 3-8)
2. Economic Development Benefit Agreement (pgs. 9-19)
Prepared by: John Raymond, Assistant City Manager