Report to Mayor and City Council
Tuesday, June 06, 2017
Consent
SUBJECT:
Title
SETTLEMENT AGREEMENT & GENERAL RELEASE OF ALL CLAIMS IN CARSON V. THE COMMUNITY DEVELOPMENT CENTER, LOS ANGELES SUPERIOR COURT CASE NO. BC 565404 (CITY COUNCIL)
Body
I. SUMMARY
In December 2014, the City of Carson filed a quiet title action to confirm its title to a 1.6 acre parcel near the entrance to the Dominguez Hills Village development. In the Dominguez Hills Village Specific Plan, the property was identified as a site for a child care center. In 2007, K. Hovnanian, the developer of Dominguez Hills Village, conveyed the property to The Community Development Center ("CDC") for construction of the child care center, but the child care center has not been built. A condition in K. Hovnanian's deed to CDC provides title to the property would transfer to the City if the child care center were not developed. When the child care center had not been built and begun operating in time to meet the deadline, the City demanded a quitclaim deed from CDC. CDC would not provide the quitclaim deed, leading to the City's filing of the lawsuit.
Court proceedings led the City and CDC to engage in settlement negotiations which resulted in the attached settlement agreement. The settlement provides for the City and CDC to jointly list the property for sale at a price to be determined by an appraisal, but with the City otherwise controlling the sale process. Upon close of escrow, the City will be reimbursed all of its costs incurred in connection with the sale of the property, and the remaining sale proceeds will be shared equally by the City and CDC. The lawsuit will not be dismissed until the sale of the property has been consummated to ensure compliance with the settlement agreement. The City and CDC will each bear their own costs in connection with the litigation.
II. RECOMMENDATION
Recommendation
APPROVE the Settlement Agreement & General Release of All Claims.
Body
III. A...
Click here for full text