Report to Successor Agency
Tuesday, August 15, 2017
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF THE SALE OF THE NISSAN AUTO DEALERSHIP LOCATED AT 1505 E. 223RD STREET TO LITHIA MOTORS, INC. (SUCCESSOR AGENCY)
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I. SUMMARY
On July 6, 2010 the former Carson Redevelopment Agency, which was succeeded by the Carson Successor Agency (Agency), entered into a Disposition and Development Agreement (DDA) with Hilland Real Estate, LLC (Hilland). Pursuant to the terms of the DDA, the Agency provided a $3 million forgivable loan to assist Hilland with the purchase of the 4.5 acre property and Nissan dealership located at 1505 E. 223rd Street (Property) (Exhibit No. 1). The $3 million forgivable loan was backed by a performance promissory note, secured by a deed of trust (Note). The Note was executed on July 26, 2010 and is for a 15 year term.
Hilland now wishes to sell the Property and dealership to a new buyer. Because the Note is still in effect, the sale of the Property requires approval by the Agency.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE sale of the Property to Buyer by approving the Assignment and Assumption Agreement of the Disposition and Development Agreement and approving the Assumption Agreement and Beneficiary's Consent.
2. AUTHORIZE the Chairman to execute the Assignment and Assumption Agreement of the Disposition and Development Agreement and the Assumption Agreement and Beneficiary's Consent upon approval as to form by Agency Counsel.
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III. ALTERNATIVES
TAKE another action the Agency Board deems appropriate.
IV. BACKGROUND
In 2010, Hilland took over the operation of a Carson Nissan dealership by purchasing the Property with assistance from the Agency. Pursuant to the terms of the DDA, the Agency and the Hilland entered a double escrow transaction, whereby the Agency simultaneously and within escrow:
(a) Purchased the Site from the Owner for $12 million (by tendering $3 million of Agency fun...
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