Report to Carson Reclamation Authority
Tuesday, September 04, 2018
Consent
SUBJECT:
Title
FIRST AMENDMENT TO CONVEYANCING AGREEMENT BY AND BETWEEN THE CARSON RECLAMATION AUTHORITY AND CAM-CARSON LLC; AND, AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE A RIGHT OF FIRST NEGOTIATION WITH CAM-CARSON, LLC FOR CELLS 1, 3, 4 AND 5 AT THE CONCLUSION OF THE CURRENT DEVELOPER RFQ PROCESS
Body
I. SUMMARY
This First Amendment to the Conveyancing Agreement provides CAM-Carson, LLC ("Developer") the mechanism to provide a letter of credit in the amount of Eleven Million Dollars ($11,000,000) as security to guarantee the performance of Developer's obligations under the Conveyancing Agreement, which is intended to be used as the "additional payment" in the event of a Default by Developer as provided for by Sections 17.5.2 and 17.5.3 of the Conveyancing Agreement (such letter of credit, together with any replacements, substitutes, or renewals thereof, the "Letter of Credit"). The Amendment also establishes the terms and conditions under which the Authority may draw under the Letter of Credit.
All other provisions of the Agreement remain in effect.
The Board is also asked to consider a Right of First Negotiation letter with the Developer where at the conclusion of the Invitation to Propose process, the Authority does not select a developer for all or any portion of the Remaining Property, the letter agreement would grant to the Developer a Right of First Negotiation to initiate a conceptual planning process and enter into an Exclusive Negotiating Agreement to be the master vertical developer of the Remaining Property (or any part thereof for which a Developer has not been selected).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE a First Amendment to a Conveyancing Agreement by and between the Carson Reclamation Authority and CAM-CARSON, LLC, a Delaware limited liability company, in a form acceptable to Authority Counsel; and
2. AUTHORI...
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