Report to Carson Reclamation Authority
Monday, November 06, 2023
Discussion
SUBJECT:
Title
CONSIDER FIRST AMENDMENT TO EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT WITH DISTRICT ESSENTIAL HOUSING, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY FOR A PARCEL COMMONLY KNOWN AS CELL 1 OF THE FORMER CAL COMPACT LANDFILL, 20400 S. MAIN STREET.
Body
I. SUMMARY
In November 2022, the Carson Reclamation Authority ("CRA" / "Authority") Board approved an Exclusive Agreement to Negotiate ("ENA") with District Essential Housing, LLC ("Developer") to be able to develop a residential project on Cell 1 of the former Cal Compact Landfill. The proposed First Amendment to the ENA ("First Amendment"), would extend the term of the ENA for two years, until November 30, 2025. It also amends the Developer's obligation related to carrying costs, described below.
In August 2021, the CRA Board adopted a resolution declaring the Cell 1 portion of the former Cal Compact Landfill Site (the "Site") as "surplus" pursuant to the State Surplus Land Act ("Act"). Cell 1 is zoned for residential development above-grade (entitled for up to 1,250 units) and the CRA issued a Notice of Availability ("NOA") pursuant to the Surplus Land Act process with the California Department of Housing and Community Development ("HCD"). Only one offer was received following issuance of the NOA by the November 14, 2021 deadline; Standard Property Company, Inc. ("Standard"). Standard is affiliated with Developer, as discussed below, and the Developer was formed for the purpose of acquiring Cell 1 for a proposed residential development, and in 2022 the parties entered the ENA and a corresponding Reimbursement Agreement to facilitate the transaction, which will culminate in a future Purchase Agreement for Cell 1 between the parties, requiring future approval by the CRA Board.
II. RECOMMENDATION
Recommendation
1. APPROVE the First Amendment to the ENA with District Essential Housing, LLC.
2. AUTHORIZE the Chair to e...
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