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File #: 2020-884    Version: 1 Name:
Type: Consent Status: Agenda Ready
File created: 12/21/2020 In control: City Council
On agenda: 1/12/2021 Final action:
Title: CONSIDER AGREEMENT TO GRANT DEVELOPMENT IMPACT FEE CREDIT AND FOR CONSTRUCTION OF PUBLIC INFRASTRUCTURE WITH THE CARSON RECLAMATION AUTHORITY AND FARING CAPITAL, LLC; AND, A DEPOSIT AND REIMBURSEMENT AGREEMENT WITH THE CARSON RECLAMATION AUTHORITY AND FARING CAPITAL, LLC FOR CELLS 3, 4 AND 5 OF THE 157 ACRE SITE (CITY COUNCIL)
Attachments: 1. EXHIBIT 1:Signed CRA - Development Impact Fee Credit Agreement (Remainder Cells) - FINAL, 2. EXHIBIT 2:Signed - Carson Faring Reimbursement Agreement
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Report to Mayor and City Council
Tuesday, January 12, 2021
Consent


SUBJECT:
Title
CONSIDER AGREEMENT TO GRANT DEVELOPMENT IMPACT FEE CREDIT AND FOR CONSTRUCTION OF PUBLIC INFRASTRUCTURE WITH THE CARSON RECLAMATION AUTHORITY AND FARING CAPITAL, LLC; AND, A DEPOSIT AND REIMBURSEMENT AGREEMENT WITH THE CARSON RECLAMATION AUTHORITY AND FARING CAPITAL, LLC FOR CELLS 3, 4 AND 5 OF THE 157 ACRE SITE (CITY COUNCIL)

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 ("Developer") to negotiate 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").
An Option Agreement with Developer was approved by the Authority Board on December 16, 2020, along with an Agreement to Grant Development Fee Credit for Construction of Public Infrastructure ("DIF Securing Advance) and a Deposit and Reimbursement Agreement. Under the Option Agreement, the purchase price for the Remainder Cells will be made in the form of two advances, totaling $45,000,000, and Developer would be required to bear the entire cost of the remediation and dev...

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