Report to Mayor and City Council
Tuesday, September 06, 2016
Discussion
SUBJECT:
Title
CONSIDERATION OF APPROVAL OF A SETTLEMENT AGREEMENT WITH CARDINAL CAVALRY LLC; CARSON HOLDINGS LLC; CARSON RECLAMATION AUTHORITY; SUCCESSOR AGENCY TO THE CARSON REDEVELOPMENT AGENCY; AND CARSON PUBLIC FINANCING AUTHORITY
Body
I. SUMMARY
The City Council is asked to consider a Proposed Settlement Agreement with Cardinal Cavalry, LLC ("Cardinal"), Carson Holdings, LLC ("Carson Holdings"), the Carson Reclamation Authority ("Authority"), the Successor Agency to the Carson Redevelopment Agency ("Successor Agency"), and the Carson Public Financing Authority ("PFA").
The settlement brings to a close the consideration of the NFL stadium in Carson and guarantees that the Chargers and Raiders paid for all City, Authority and Successor Agency costs associated with their project. A payment of $1,823,953 will result in no costs to the City, the Successor Agency and the Authority and fully reimburses the City for all staff, City Attorney and other costs related to the project.
* The settlement results in $250,000 of excess funds to be devoted to future planning of the site.
* The settlement also pays $5,179,504 to the Authority which covers all of the costs incurred by the Authority during the stadium application period, including six months after the NFL decision was made to locate in Inglewood.
* The City, Authority, and Successor Agency agree to allow Carson Holdings to sell its interest in the 11-Acre Property to a prospective buyer.
The City, Authority, and Successor Agency also agree to cooperate with the prospective buyer and Carson Holdings in the successful development of the site. The Authority agrees to deliver to Carson Holdings a full and unconditional reconveyance of the Deed of Trust to Carson Holdings that the Authority was holding as security. The Authority will retain the 157-acre Property.
Carson Holdings has been a very generous partner with the City. Throughout...
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