HomeMy Public PortalAbout21-142 - Setting a Timelime for Compliance on the Part of South Bay Carson, LLCRESOLUTION 21-142
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, SETTING A
TIMELINE FOR COMPLIANCE ON THE PART OF SOUTH BAY CARSON, LLC & SYWEST
DEVELOPMENT, LLC, WITH THE TERMS AND CONDITIONS OF CONDITIONAL USE PERMIT
NO. 940-13, RELOCATION REVIEW NO. 3047-13 & RESOLUTION NO. 13-099 REGARDING
VEHICLE STORAGE FACILITIES LOCATED ON THAT CERTAIN REAL PROPERTY WHOSE
COMMON STREET ADDRESS IS 20151 SOUTH MAIN STREET, CITY OF CARSON
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, 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 environmental
regulatory agency (“Environmental Regulatory Agency” or “ERA”) to commence steps necessary to
support the cleanup and reuse of the Property for new development; and
WHEREAS, staff had 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 Plan (the “ERA 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, and SyWest and the City
desired to confirm how this ERA 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
ERA 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
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WHEREAS, in connection with the parties’ attempt to fully and finally resolve the ERA 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, and May 5, 2020, the
City Council adopted Resolutions 17-120 and 20-081, respectively, (“Compliance Resolutions”) which
served as an attempt to effectuate the foregoing, and which also extended the compliance period under
the Original CUP until October 31, 2021 (“Compliance Period”); and
WHEREAS, Sywest has 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 City has determined the maintenance
and appearance of the landscaping is acceptable; and
WHEREAS, on or about July 20, 2020, Sywest submitted an application (“Application”) for
development of the Property which Application includes a request for a General Plan Amendment, Specific
Plan and related entitlements (e.g. Development Agreement, tentative parcel map, site plan and design
review) (collectively “Proposed Entitlements”); and
WHEREAS, the City has received a completed application and has placed ERA discussions
regarding development on hold with DTSC while the City processes the Application;
WHEREAS, Sywest has asked the City for the right to continue to utilize the Property consistent
with the Original CUP while the Application is processed; and
WHEREAS, pursuant to the Compliance Resolutions, SyWest deposited with City in October 2017,
to be held in a separate City interest bearing account, a bond or other irrevocable instruction having a
penal value of Three Hundred Fifty Thousand Dollars ($350,000) as a “Holdover Deposit” from which City
may deduct any and all amount(s) as expressly provided for under the Compliance Resolution, with such
deduction(s) timely and reasonably documented by City and made available for SyWest’s review; and
WHEREAS, pursuant to the Compliance Resolutions, SyWest further paid to City several
installments of a “Heavy Vehicle Transit Fee”, of which portions of said payments included an increase of
the Holdover Deposit, and cumulatively equate to an additional One Hundred Twenty Five Thousand
Dollars, ($125,000) added to the Holdover Deposit to bring the total Holdover Deposit to Four Hundred
Seventy-five Thousand Dollars ($475,000.00) as of April 30, 2021; and
WHEREAS, on April 30, 2021, Enterprise ceased operations at the Property and properly vacated
the Property in compliance with the Resolution, and the Property has remained vacant since such time
pending the processing of the Proposed Entitlements;
WHEREAS, on September 13, 2021, having determined that Enterprise met the obligations of the
Compliance Resolutions, the City terminated the $350,000 Holdover Deposit by issuing a letter of release
to Bank of America, copied to Sywest and Enterprise, stating that the bond representing the Holdover
Deposit for the benefit of the City may be cancelled. The remaining portion of the Holdover Deposit in
the amount of One Hundred Twenty-five Thousand Dollars, ($125,000), is still held by the City on behalf
of SyWest pursuant to terms set forth in the Compliance Resolution;
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WHEREAS, to accommodate Sywest’s request and in furtherance of possible development of the
Property, the City Council has been asked to approve this Resolution (“Extended Compliance Resolution”
or “Resolution” ), which, like the Compliance Resolutions, would be adopted to finally resolve any Disputes
and document the resolution of the same as well as to extend the compliance date of the Original CUP by
one (1) additional year to October 31, 2022 (“Extended Compliance Period”), to provide Sywest adequate
time to secure the Proposed Entitlements from the City and obtain building permits by going through the
plan check process and allow for beneficial use of the Property during that period;
WHEREAS, by this Extended Compliance Resolution, Sywest seeks to use the Property for the
following uses: (i) no more than twelve (12) acres for the overnight parking of delivery cargo vans, known
as sprinter vans and employee vehicles (“Sprinter Van Operations”), during the Extended Compliance
Period, entering and exiting the Property between 9:00 a.m. and 5:00 p.m. five (5) days per week,
including occasional weekends if demand for services warrant, with the Sprinter Vans remaining parked
overnight at the Property; and (ii) the entire site can be used for parking of cars (collectively, “Car
Operations”), which “Sprinter Van and Car Operations shall collectively be referred to herein as
“Temporary Parking Use”;
WHEREAS, SyWest shall provide a site plan to the Planning Division to designate the areas of the
site that will be occupied. If the designated areas to be used are modified, a revised site plan shall be filed
with the Planning Division.
WHEREAS, the Temporary Parking Use shall not include any of the following: (i) vehicle service or
maintenance of any type on the Property or (ii) loading/unloading, transfer shipping or removal of any
contents of the Sprinter Vans; (iii) overnight parking of employee vehicles; (iv) sleeping of any kind within
the Property, whether inside or outside any vehicle parked thereon; (v) parking of recreational vehicles
or trailers designed for human accommodation, such as motorhomes, campervans, coaches, caravans
fifth-wheel trailers, and popup campers, (vi) boats, (vii) large trucks and containers or (viii) any other
activity not specifically enumerated above within the description of the Temporary Parking Use
(collectively, “Prohibited Activities”);
WHEREAS, City staff has evaluated the scope of the Temporary Parking Use and confirmed that
such activities would be less intensive from the standpoint of traffic, circulation, and air quality impacts
than those previously analyzed and approved for the Enterprise activities under the Compliance
Resolutions and, as such, no further review is required under the California Environmental Quality Act,
Public Resources Code sections 21000 et seq. and its implementing guidelines (Cal. Code Regs. Title 14,
§§ 15000 et seq. (collectively, “CEQA”) pertaining to the Temporary Parking Use;
WHEREAS, the City Council hereby adopts this Resolution to authorize the Temporary Parking Use
for the Extended Compliance Period, as may be duly extended pursuant to Section 3.A below, and outline
the requirements and limitations applicable to such Temporary Parking Use.
NOW THEREFORE, the CITY COUNCIL of the CITY OF CARSON, CALIFORNIA, does hereby FIND,
DETERMINE and ORDER AS FOLLOWS:
Section 1. Recitals.
The foregoing recitals are true and correct and incorporated herein by this reference.
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Section 2. Approval of Extended Compliance Period Directed to South Bay Carson, LLC &
SyWest Development, LLC, Jointly and Severally.
Subject to SyWest’s agreement to comply with its obligations set forth in Section 3 below, City
hereby approves one extended compliance period under the Original CUP from October 31, 2021 until
and through October 31, 2022 (“Extended Compliance Period”); provided that the City Council may extend
such time in its sole discretion by approval of an amendment to this Resolution if the Proposed
Entitlements are not completed during the Extended Compliance Period.
Section 3. Conditions of Extended Compliance Period.
In resolution of the Disputes, the City Council issues the following compliance order:
A. SyWest shall terminate, and cease and desist in, the operation of any Temporary Parking
Use on or at the Property; such compliance shall occur on or before the close of normal business hours
on October 31, 2022 (the “Extended Compliance Deadline”); provided that City’s Community
Development Director, in consultation with the City Attorney, may, in their sole discretion, grant one more
extension to the Extended Compliance Deadline, not to exceed six (6) months, if the record reflects a good
faith attempt by SyWest to work with the City in good faith to process the Proposed Entitlements. If
SyWest requires such an extension, it shall notify staff in writing by 5:00 p.m. on September 1, 2022.
Failure to meet the Extended Compliance Deadline, as may be extended per the terms herein, shall subject
SyWest to enforcement actions as well as such other legal remedies as may be afforded City by law.
B. SyWest shall, during the term of this Extended Compliance Resolution, comply with all
remaining conditions of approval in the Original CUP, including, but not limited to, the landscape and
operations provisions of the same, to the reasonable satisfaction of City.
C, In consideration of the Extended Compliance Period and resolution of the Disputes, by no
later than February 1, 2022, May 1, 2022, August 1, 2022 and November 1, 2022, (the “Remittance Date”),
SyWest shall pay to City as follows for the Temporary Parking Use:
1. For the Sprinter Van Operations and Car Operations, SyWest will remit an annual
Heavy Vehicle Transit Fee of Ten Thousand Four Hundred-sixteen Dollars ($10,416.00) for every
acre of the Property used for such purposes during the term of the Extended Compliance Period,
reflecting compensation to the City for the Temporary Parking Use attributable to the Sprinter
Van Operations and Car Operations. The amount of any payment remitted by SyWest is based
upon the portion of Property shown on the site plan as being used for the Sprinter Van Operations
and Car Operations such that the amount of any such installment and total payment of the 2021
and 2022 Heavy Vehicle Transit Fee shall be accessed and paid on a prorata basis. By way of
example only, should only 9 of the total 24 acres of the Property be used on the Remittance Date
for Sprinter Van Operations and Car Operations, the quarterly payment by SyWest on the
Remittance Date shall be ($10,416 / 4) x 9 acres, (or $23,437.50 for such period). SyWest shall
provide a site plan to the Planning Division to designate the areas of the site that will be occupied.
If the designated areas to be used are modified, a revised site plan shall be filed with the Planning
Division. SyWest’s quarterly payment will include any increase or decrease in the Heavy Vehicle
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Fee due to the City for increase or decreased use of the Property since the last quarterly payment
made to the City.
2. Should this Resolution be extended pursuant to Section 3.A above, SyWest shall
pay a prorated amount of the 2021 and 2022 Heavy Vehicle Transit Fee based on the acres used
for such extended time and months by which the extension is authorized. Such installment shall
be paid on the first day of the month following each three (3) month period following the
extension of the Extended Compliance Period (e.g. February 1, 2023, May 1, 2023, etc.).
D. In the event that SyWest or Enterprise were to cease the Temporary Parking Use at the
Property prior to the Extended Compliance Deadline, the payments required herein above will abate
effective as of the date of cessation of the Temporary Parking Use, but only if there is a complete cessation
of any and all use of the Property for Temporary Parking Use. Otherwise, cessation of use of the Property
for either the Sprinter Van and/or Car Operations shall not abate the SyWest payment obligations set
forth hereinabove.
Section 4. City’s Right to Enforcement; Miscellaneous Provisions.
A. Subject to the City’s election, in its sole and unfettered discretion, to extend the
Extended Compliance Deadline, should SyWest fail to meet the Extended Compliance Deadline, SyWest
shall pay a delinquent departure penalty in the amount of Five Thousand Dollars ($5,000.00) per day
for each day of delayed departure beyond the Extended Compliance Deadline which departure
penalty City may unilaterally withdraw from the Holdover Deposit.
B. In the event that any provision of this Resolution is declared invalid, illegal or otherwise
unenforceable by a court of competent jurisdiction, the entire Resolution shall be null and void and shall
subject SyWest to such enforcement action(s) as well as such other legal remedies as may be afforded the
City by law.
C. In the event the City is required to take action to enforce this Resolution, or in the event
this Resolution is declared invalid, illegal or otherwise unenforceable by the court of competent
jurisdiction and the City is required to commence an enforcement proceeding(s) against SyWest, the City
shall be reimbursed by SyWest for all costs and reasonable attorneys’ fees incurred in such action or
enforcement proceeding(s).
D. In the event that any claim or litigation is filed to challenge any provision of this Resolution
(“Litigation Challenge”), the payment obligations of SyWest under this Resolution shall be tolled and
delayed for a period of time equal to the time any such “Litigation Challenge” is pending. If a “Litigation
Challenge” is pending on the date that any payment is due and payable under this Resolution, SyWest
shall deposit the entire amount due and payable into a separate interest bearing account (“Escrow
Account”) with the City. Within thirty (30) days following the final resolution of any “Litigation Challenge,”
SyWest shall authorize, in writing, City to withdraw all funds in the Escrow Account and credit the same
to the annual 2021 or 2022 Heavy Vehicle Transit Fee.
E. During the term of this Resolution and Extended Compliance Period, SyWest shall pay to
the City all normal and customary fees and charges applicable to all permits necessary for the use, and
any taxes, fees, and charges imposed by City in connection with the use which are standard and uniformly-
applied to similar entities in the City.
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Section 6. Resolution Exempt from CEQA.
A. The City Council finds and determines that this Resolution is exempt from the
requirements of the California Environmental Quality Act as a Class 1 Categorical Exemption, Existing
Facilities, pursuant to Section 15301 of the CEQA Guidelines.
B. The City Council further finds and determines that this Resolution is exempt from the
requirements of the California Environmental Quality Act as a Class 21 Categorical Exemption,
Enforcement Actions by Regulatory Agencies, pursuant to Section 15321 of the CEQA Guidelines.
Section 7. SyWest Indemnification.
SyWest shall indemnify, protect, defend, and hold harmless City, and its respective officials,
officers, employees, agents, elected boards, commissions, departments, agencies, and instrumentalities
thereof, from any and all actions, suits, claims, demands, writs of mandamus, liabilities, losses, damages,
penalties, obligations, expenses, and any other actions or proceedings (whether legal, equitable,
declaratory, administrative, or adjudicatory in nature), and alternative dispute resolution procedures
(including, but not limited to, arbitrations, mediations, and other such procedures) asserted by third
parties against City that may arise from or relate to adoption of this Resolution (herein the “Claims and
Liabilities”), whether such Claims and Liabilities arise out of or under planning and zoning laws, the
Subdivision Map Act, Code of Civil Procedure §§ 1085 or 1094.5, or any other federal, state, or local
Statute, law, ordinance, rule, regulation, or any decision of a competent jurisdiction.
Section 8. Effectiveness; Certification.
This Resolution shall take effect immediately upon its adoption. The City Clerk shall certify to the
passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED, AND ADOPTED this 3rd day of November, 2021.
APPROVED AS TO FORM: CITY OF CARSON:
ie Ba Ss. bn —
Sunny K. Soltani, City Attorney Pile Davis-Holmes, Mayor
ATTEST:
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Joy Simarago, Deputy City Clerk
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF CARSON )
|, Joy Simarago, Deputy City Clerk of the City of Carson, California, hereby attest to and certify that the
foregoing resolution, being Resolution No. 21-142 adopted by the City of Carson City Council at its
meeting held on November 3, 2021, by the following vote:
AYES: COUNCIL MEMBERS: Davis-Holmes, Dear, Hilton, Hicks
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMEBES: None
ABSENT: COUNCIL MEMBERS: None
Dry Qrvaartid<
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Joy Simarago, Deputy City Clerk
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