Report to Carson Reclamation Authority
Tuesday, October 06, 2020
Discussion
SUBJECT:
Title
CONSIDER OPTION AGREEMENT AND JOINT ESCROW INSTRUCTIONS WITH FBD CARSON, LLC FOR CELLS 3, 4 AND 5 OF THE 157 ACRE SITE
Body
I. SUMMARY
In September 2019 the Carson Reclamation Authority ("Authority") issued an Invitation to Propose ("RFQ") seeking a developer to undertake a project on Cells 3, 4, and 5 ("Remainder Cells") of the former Cal-Compact Landfill property ("157 Acre Site"). The RFQ required the developers to bear the responsibility for all the project costs - vertical, horizontal, and remediation -- based on the Authority's experience on the Cell 2 Project. Most of the proposals the Authority received were largely industrial/warehouse uses, given the strong real estate economics of such uses, as opposed to retail, residential and other uses, which have weakened over the past several years.
Following the RFQ, in March 2020, the Authority Board selected Faring Capital, LLC ("Faring") to proceed with negotiations for its proposed project on the Remainder Cells, to include a signature community park with food and beverage facilities, playground space, exhibition and/or museum space, and entertainment uses along with an industrial/fulfillment/logistics center along the back of the Remainder Cells ("Project"). On June 10, 2020, the Board approved a Memorandum of Understanding ("MOU") and a Reimbursement Agreement with FBD Carson, LLC ("FBD"), a partnership between Faring and Bridge Acquisition, LLC ("Bridge"). The MOU outlined the basic terms that would governing the development of FBD's proposed Project that would be more fully detailed in an Option Agreement between the parties.
The parties have negotiated the terms of the Option Agreement and seek approval from the Board. Under the Option Agreement, the purchase price for the Remainder Cells would be made in the form of two advances, totaling $45,000,000, and FBD would be required to bear the entire co...
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