Report to Carson Reclamation Authority
Wednesday, December 16, 2020
Discussion
SUBJECT:
Title
CONSIDER OPTION AGREEMENT AND JOINT ESCROW INSTRUCTIONS WITH FARING CAPITAL, LLC, A DELAWARE LIMITED LIABILITY COMPANY AND FIDELITY NATIONAL TITLE INSURANCE COMPANY, A CALIFORNIA CORPORATION, ACTING AS THE ESCROW HOLDER AND TITLE COMPANY; AGREEMENT TO GRANT DEVELOPMENT IMPACT FEE CREDIT AND FOR CONSTRUCTION OF PUBLIC INFRASTRUCTURE WITH FARING CAPITAL, LLC; AGREEMENT TO GRANT DEVELOPMENT IMPACT FEE CREDIT WITH FARING CAPITAL, LLC; AND, A DEPOSIT AND REIMBURSEMENT AGREEMENT WITH FARING CAPITAL, 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 basi...
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