HomeMy Public PortalAboutC-17-030 - Sywest Development, LLC and South Bay Carson, LLC Amendment No. 1, Reimbursement Agreement 20151 S. Main St.AMENDMENT NO. I
TO REIMBURSEMENT AGREEMENT
THIS AMENDMENT NO. 1 TO REEABURSEMENT AGREEMENT
("Amendment") is executed this 1st day of May, 2020 ("Effective Date), by and between the
CITY OF CARSON, a charter city and municipal corporation ("City"), and SYWEST
DEVELOPMENT, LLC, a California limited liability company and SOUTH BAY CARSON,
LLC, a California limited liability company (collectively "SyWest"). City and SyWest may be
referred to, individually or collectively, as "Party" or "Parties"
RECITALS
WHEREAS, in 2013, South Bay Carson, LLC as owner of that certain real property
hereinafter described and SyWest Development, LLC (collectively "SyWest"), acting on behalf
of Enterprise Rent-A-Car Company of Los Angeles, LLC ("Enterprise"), applied for and was
granted Conditional Use Permit No. 940-13, Relocation Review No. 3047-13 and Resolution No.
13-099 (collectively the "Original CUP") which permitted, for an initial term of four (4) calendar
years. the use of an approximately 24.65 acre site previously used as an organic refuse landfill,
drive-in theater and auto -auction, whose common street address is 20151 South Main Street,
Carson, California (the "Property"), as and for the storage of rental cars, including as a regional
rental car storage hub, and the relocation of certain modular office buildings on that portion of
the Property zoned ML-ORL-D; and
WHEREAS, the Original CUP was duly approved and adopted by the Carson City
Council on October 21, 2013; and
WHEREAS, Interim Urgency Ordinance Nos. 15-1575U and 16-1578U (collectively,
the "Stadium Moratorium") enacted a moratorium on the establishment, expansion,
modification or new development within the six (6) planning study areas within the City of
Carson; and
WHEREAS, in or about 2017, SyWest requested an extension of the Original CUP
beyond October 21, 2017 and further requested that such extension of the Original CUP be
deemed subject to the "exemption" provision(s) of the Stadium Moratorium (the "CUP
Extension Request"); and
WHEREAS, the Original CUP required, among other conditions of approval, that
SyWest would, within three (3) years of approval of the CUP, enter into an agreement with the
appropriate regulatory agency (e.g., Department of Toxic Substance Control) (the #"DTSC") to
commence steps necessary to support the cleanup and reuse of the Property for new
development; and
WHEREAS, staff has contended that SyWest failed or refused to comply with this
condition of the Original CUP and SyWest requested additional time to complete this task
concurrently with City's update to its General PIan (the "DTSC Dispute"); and
WHEREAS, SyWest has contended and advised staff that in order to fulfill this
remediation condition of the Original CUP a proposed plan for redevelopment and long term
use of the Property is required to first be processed, considered and approved by the City.
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and SyWest and the City desired to confirm how this DTSC Dispute would be addressed
moving forward; and
WHEREAS, the Original CUP required, among other conditions of approval, that
SyWest would develop, implement, and maintain a landscaping plan to assure an aesthetically
appropriate appearance surrounding the Property; and
WHEREAS, staff contended that certain areas of the existing landscaping around the
Property were in disrepair and needed to be replaced and SyWest requested additional time
to complete this task ("Landscape Dispute"); and
WHEREAS, City and SyWest desired to fully and finally resolve the Landscape
Dispute and the DTSC Dispute in order to avoid litigation between them arising out of such
disputes, and without acknowledging fault or responsibility in connection with the positions
of any party in such disputes; and
WHEREAS, City has initiated a General Plan update process that has the potential to
ultimately change and/or affect the land use(s) and land use designation(s) on properties
within the City of Carson, including the Property and other properties in the surrounding
trade area; and
WHEREAS, in connection with the Parties' attempt to fully and finally resolve the
DTSC Dispute, the Landscape Dispute, and the CUP Extension Request (collectively the
"Disputes"), to avoid litigation between them arising out of such Disputes, and without
acknowledging fault or responsibility in connection with the positions of any party in such
Disputes, on September 5, 2017, the City Council adopted Resolution 17-120 ("Compliance
Resolution") which served as an attempt to effectuate the foregoing, and which also extended the
compliance period under the Original CUP until October 31, 2020; and
WHEREAS, the Parties entered into that certain Reimbursement Agreement dated
August 30, 2017 ("Agreement") for Sywest to reimburse City the full and reasonable costs
incurred in resolving the Disputes and in documenting resolutions of the same, including,
without limitation, City costs and fees associated with negotiating and preparing the Compliance
Resolution; and
WHEREAS, in connection with Enterprise's proposed use of the Property, Sywest has
been seeking to develop the Property with two large scale industrial buildings; and
WHEREAS, Sywest has hired consultants to assist in the design, environmental, and
cost related issues typical of former landfill sites, and further has been prepared to enter into
discussions with the appropriate regulatory agency to resolve the DTSC Dispute; and
WHEREAS, Sywest has also addressed the Landscape Dispute by continuing to
maintain the landscaping by a professional landscape company and replacing the landscaping if
they are deemed unhealthy by the landscape maintenance company; generally the appearance of
the landscaping is acceptable; and
WHEREAS, Sywest was in the process of finalizing plans for the two industrial
buildings in order to submit a package to the City's Planning Division for processing. And
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