Report to Mayor and City Council
Tuesday, November 05, 2019
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF A LICENSE AGREEMENT BY AND BETWEEN THE CITY OF CARSON AND WIN CHEVROLET, INC. FOR TEMPORARY USE OF A PORTION OF 2403 E. 223RD STREET FOR AUTOMOBILE STORAGE (CITY COUNCIL)
Body
I. SUMMARY
The proposed License Agreement would allow WIN Chevrolet, Inc. (WIN) to store its automobile inventory for 120-days in a portion of City-owned property located at 2403 E. 223rd Street (Property), (Exhibit No. 1). The City Manager would also be authorized to grant additional extensions from time to time. Pursuant to the Agreement, WIN would have to vacate the property with a 30-day notice from the City. Failure to surrender the property in a timely manner will result in Default of the Agreement, which includes a penalty of $5,000 per day. WIN previously occupied the Property between October 2015 and July 2018 under a separate lease agreement with the City. However, the City required WIN to move in anticipation of entering into a Purchase and Sales Agreement (PSA) with a buyer. The PSA did not include provisions for WIN to keep its cars on the property. Since then, the former buyer has defaulted on the terms of the PSA with litigation pending on this case.
Currently, WIN is storing its automobile inventory on a nearby parcel to the south, at 2254 E. 223rd Street (Former Agency Property), currently owned by Panattoni Development Company (Panattoni). In June 2019, the Carson Successor Agency sold the former Agency Property to Panattoni. In September, 2019, Panattoni provided a 30-day notice to WIN to vacate the site to initiate the development of the site as a parking lot. However, since then, Panattoni has provided one last extension to WIN's lease until November 5th. Pursuant to a Settlement Agreement, Panattoni is required to start the construction of the site as a parking lot as soon as possible to meet its obligations under the Settlement Agreement.
With the Prop...
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