Report to Mayor and City Council
Tuesday, May 02, 2017
Discussion
SUBJECT:
Title
RECEIVE AND FILE A MEMORANDUM OF UNDERSTANDING AND CONSIDER 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 (CITY COUNCIL)
Body
I. SUMMARY
The City Council is being asked to consider amending an Exclusive Right to Negotiate Agreement (the "ENA") by and between the Carson Reclamation Authority ("Authority"), the City of Carson, CAM-CARSON, LLC, a Delaware limited liability company ("Developer"), an affiliate of The Macerich Company of Santa Monica, California and receive and file a Memorandum of Understanding (the "MOU") by and between the Authority 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 amended ENA are to reflect additional time in the project schedule for the Project to receive CEQA approval and to make other modifications to the agreement. The terms of the MOU, approved by the Carson Reclamation Authority 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.
...
Click here for full text