Report to Mayor and City Council
Tuesday, November 15, 2022
Consent
SUBJECT:
Title
CONSIDER A REIMBURSEMENT AGREEMENT WITH DISTRICT ESSENTIAL HOUSING, LLC FOR CELL 1 OF THE FORMER CAL-COMPACT LANDFILL, 20400 S. MAIN STREET ASSOCIATED WITH AN EXCLUSIVE NEGOTIATING AGREEMENT WITH THE CARSON RECLAMATION AUTHORITY FOR THE PURPOSE OF DEVELOPING APPROXIMATELY 1,250 UNITS OF RESIDENTIAL UNITS, PURSUANT TO THE PROVISIONS OF THE SURPLUS LAND ACT
Body
I. SUMMARY
In August 2021 the Carson Reclamation Authority ("CRA" or "Authority") adopted a resolution declaring Cell 1 of the former Cal Compact Landfill Site (the "Site") as "surplus" pursuant to the State's Surplus Land Act. Cell 1 is zoned for residential development above-grade (approved for up to 1,250 units) and the CRA issued a Notice of Availability ("NOA") pursuant to the Surplus Land Act process with the California Department of Housing and Community Development ("HCD"). Only one offer was received following issuance of the NOA by an affordable housing developer by the November 14, 2021 deadline, Standard Property Company, Inc. ("Standard"). Standard is affiliated with District Essential Housing, LLC ("Developer"), as discussed below, and the Developer was formed for the purpose of acquiring Cell 1 for a proposed residential development on Cell 1, and the parties have negotiated an Exclusive Negotiating Agreement ("ENA") and a Deposit and Reimbursement Agreement ("Reimbursement Agreement") to facilitate the transaction, which will culminate in a future Purchase Agreement for Cell 1 between the parties, which will require future approval by the CRA Board.
The ENA sets forth the basic deal points, which will be refined during the period of negotiations and finalized under a future Purchase Agreement. It was approved by the CRA Board on November 7, 2022. The Deposit and Reimbursement Agreement is approved by both the CRA and the City.
II. RECOMMENDATION
Recommendation
1. APPROVE the Deposit and Reimburse...
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