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File #: 2020-630    Version: 1 Name:
Type: Consent Status: Agenda Ready
File created: 9/2/2020 In control: City Council
On agenda: 9/15/2020 Final action:
Title: CONSIDER APPROVAL OF SETTLEMENT AGREEMENT IN THE MATTER OF CITY OF CARSON V. CARCOM CENTER, LLC, ET AL, LOS ANGELES SUPERIOR COURT CASE NO. 19STCV20812 (CITY COUNCIL)
Attachments: 1. Ex. 1 - CarCom Settlement Agreement
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Report to Mayor and City Council
Tuesday, September 15, 2020
Consent


SUBJECT:
Title
CONSIDER APPROVAL OF SETTLEMENT AGREEMENT IN THE MATTER OF CITY OF CARSON V. CARCOM CENTER, LLC, ET AL, LOS ANGELES SUPERIOR COURT CASE NO. 19STCV20812 (CITY COUNCIL)

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I. SUMMARY

This report concerns settlement of the litigation in the matter of City of Carson v. CarCom Center, LLC, et al (LASC Case Number 19STCV20812). The lawsuit arises out of a real estate transaction under which CarCom Center, LLC was to purchase a parcel of real property owned by the City, for which California Processing Company, LLC had been awarded a development agreement. CarCom Center, LLC failed to effectuate the transaction, however, making the development agreement ineffective.
The Council initially authorized the settlement in closed session on September 1, 2020, and staff is now reporting back to the Council with the written settlement agreement for final Council approval to resolve the litigation (Exhibit 1). The settlement includes the release of a $100,000 deposit made by CarCom Center, LLC currently being held in escrow to CarCom Center, LLC, the return of a $125,000 deposit made by California Processing Company, LLC pursuant to a Reimbursement Agreement, and $75,000 for the removal of the development agreement and lis pendens from title to the property. The settlement agreement provides for each party to bear its own costs of litigation.


II. RECOMMENDATION
Recommendation

TAKE the following actions:
1. Approve the Settlement Agreement, General Release of All Claims, and Escrow Instructions (Exhibit 1).

2. Authorize the City Manager to execute the settlement agreement, and any related documents, to resolve the litigation.



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III. ALTERNATIVES

TAKE another action the City Council deems appropriate.

IV. BACKGROUND

The City and CarCom Center, LLC ("CarCom") entered into an Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions, dated August 27, ...

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