Report to Carson Reclamation Authority
Wednesday, June 10, 2020
Discussion
SUBJECT:
Title
RATIFY CLOSED SESSION APPROVAL MADE ON JUNE 5, 2020 FOR A MEMORANDUM OF UNDERSTANDING OUTLINING MAJOR DEAL TERMS FOR OPTION AGREEMENT: CELLS 3, 4 AND 5 OF 157 ACRE SITE IN CARSON WITH FBD CARSON, LLC ("FBD"), AND A CORRESPONDING DEPOSIT AND REIMBURSEMENT AGREEMENT MADE BY FBD IN FAVOR OF THE CITY AND THE CARSON RECLAMATION AUTHORITY
Body
I. SUMMARY
As part of the ongoing effort to secure a development partner for Cells 3, 4, and 5 ("Remainder Cells") of the former Cal-Compact Landfill, in September 2019 the Carson Reclamation Authority ("Authority" / "CRA") issued an Invitation to Propose ("RFQ") to the general development community seeking a developer to undertake a project on the Remainder Cells. Given the Authority's experience working on the Cell 2 Project, the RFQ required the developers to acknowledge that they must bear the responsibility for all the project costs - vertical, horizontal, and remediation - and that their project pro forma should reflect that. Most of the proposals the Authority received were largely industrial/warehouse/fulfillment centers, given the strong financials of such uses, as opposed to retail, residential and other uses, which have been struggling.
In November, 2019, the Authority received seven (7) responses. Through a series of interviews by the Authority Board along with technical analysis by staff and consultants, the field was reduced first to four (4) firms, then two (2), which were Faring Capital, LLC ("Faring") and Panattoni Development. Faring was selected by the Authority Board to negotiate an agreement for Faring's acquisition of the Remainder Cells and future development thereon. The recommendation made to the Authority Board at its June 5, 2020 meeting was to approve a Memorandum of Understanding with FBD Carson, LLC, a partnership between Faring and Bridge Development ("Bridge") (Faring's joint venture partner). Th...
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