Report to Mayor and City Council
Tuesday, August 03, 2021
Consent
SUBJECT:
Title
CONSIDER APPROVAL AND EXECUTION OF SETTLEMENT AGREEMENT IN THE MATTER OF RAND RESOURCES, LLC, ET AL V CITY OF CARSON, ET AL, LOS ANGELES SUPERIOR COURT CASE NO. BC564093 (CITY COUNCIL)
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I. SUMMARY
This report concerns settlement of the litigation in the matter of Rand Resources, LLC, et al v. City of Carson, et al (LASC Case Number BC564093). The lawsuit arises out of an exclusive agency agreement, under which Rand Resources, LLC ("Rand") was to act as the exclusive agent of the City in the negotiation and development of a football stadium with the National Football League ("NFL") on a parcel of property partially owned by Carson El Camino, LLC, an affiliated company of Rand. When the term of the exclusive agency agreement was not extended by the City, Rand filed suit against the City and former-Mayor Dear for breach of contract and fraud, primarily arising out of former-Mayor Dear's negotiations with Leonard Bloom of U.S. Capital, LLC. The City Attorney's Office has since obtained the dismissal of former-Mayor Dear from the case.
The City Council approved a settlement agreement in closed session on April 6, 2021. The City Attorney's Office and counsel for Rand have worked diligently for several months towards a settlement, and staff is now reporting back to the City Council with a final written settlement agreement for City Council approval to resolve the litigation (Exhibit 1). The settlement includes the following settlement terms:
* A payment to Rand of $250,000, as follows: $200,000 within 30 days of execution of the settlement agreement, and $50,000 in reimbursements to Rand for approved upgrades to the property made within 4 years;
* Rand agrees to develop the property it owns and will provide a project description/scope by October 1, 2021;
* If Rand develops 50% of the project as residential-only development within 4 years, it will receive a $250,000 develo...
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