Report to Carson Reclamation Authority
Tuesday, May 02, 2017
Discussion
SUBJECT:
Title
CONSIDER A MEMORANDUM OF UNDERSTANDING AND AN AMENDMENT TO AN EXCLUSIVE RIGHT TO NEGOTIATE WITH CAM-CARSON, LLC, A DELAWARE LIMITED LIABILITY CORPORATION AND AN AFFILIATED ENTITY OF MACERICH, FOR THE DEVELOPMENT OF A FASHION OUTLET RETAIL CENTER ON CELL 2 OF A 157-ACRE PARCEL OWNED BY THE CARSON RECLAMATION AUTHORITY, THE FORMER CAL-COMPACT LANDFILL
Body
I. SUMMARY
The Authority is being asked to consider entering into a Memorandum of Understanding (the "MOU") by and between the Carson Reclamation Authority ("Authority") and CAM-CARSON, LLC, a Delaware limited liability company ("Developer"), an affiliate of The Macerich Company of Santa Monica, California; and amending an Exclusive Right to Negotiate Agreement (the "ENA") by and between the Authority, the City of Carson and the Developer for the development of a high end fashion outlet mall on a portion of the property.
Outline of Business Terms
The terms of the MOU are, broadly:
? The goal of the parties is to realize a grand opening in September 2020.
? Upon execution of the Reimbursement Agreement and ENA in 2016, Developer deposited $1,000,000 for land use entitlement consultant costs. The Reimbursement Agreement remains in effect and also requires paying for 50% of the Authority's holding costs for Cell 2, approximately $63,000 per month.
? Upon execution of the MOU, Developer will advance to the City $4,000,000 as a deposit and a guarantee that Developer will perform under the MOU. Half of the Deposit is nonrefundable. Also, in the event of a failure to complete the project, the Developer shall pay an additional $11,000,000 as consideration for lost opportunity.
? Developer will indemnify the Authority against any loss of the Authority's $5.6 million CALReUSE grant to the extent such loss results from Developer's failure to diligently pursue the Project.
? Working on its own or through its Horizontal Master...
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