#24-021
City of Carson and CRA Stand Firm Against Corporate Intimidation in Mall Development Dispute
Contact:
Shawna Charles, MBA, Ph.D.
Chief Executive Officer
Charles Communication Group
Phone: (310) 689-4310
Email: comms@charlescg.com
(Carson, CA - June 6, 2024) - The City of Carson and the Carson Reclamation Authority (CRA) have diligently negotiated with Simon Property Group, LP (Simon) in good faith for the past 20 months to finalize a deal that would bring the Los Angeles Premium Outlets to the community. Despite sincere efforts and a commitment to this project, actions by Simon Property Group have undermined our progress.
The planned outlet mall is to be located on 42 acres of a 157-acre former Cal-Compact site. Since 2017, the CRA has diligently worked and committed substantial resources to complete extensive remediation systems and prepare the site for development. In the last 20 months in a good faith effort to make the outlet mall project a reality, the City of Carson committed substantial funds and resources towards developing public infrastructure and ancillary needs on the site, provided Simon would drop the lawsuit and proceed with developing the outlet mall. Collectively, the city and CRA have invested $65 million in resources to facilitate the development of the outlet mall project. All these commitments were made through public hearings and documented in public documents available for review, underscoring the importance of transparency and accountability in such large-scale public-private partnership projects.
Despite various extensions and significant financial commitments from the City and CRA, Simon has failed to meet its obligations, including an outstanding debt of over $12.5 million owed to the CRA and paying its contractual carry-cost obligations.
Mayor Lula Davis-Holmes emphasized the city’s resilience against corporate intimidation, stating, “We remain dedicated to the revitalization of our city and will continue to work towards solutions that benefit our residents and the community at large. As public officials, we have a responsibility not to allow private developers or anyone else to take advantage of our community.“
The loss of the outlet mall would be disappointing, but it does not deter the CRA and the City from pursuing development goals. The CRA is actively working with other developers, such as Carson Goose Owner LLC, which is successfully developing on the same landfill site.
Carson Goose Owner LLC is developing the Carson Country Mart, an 11.12-acre community amenity and commercial area featuring retail, restaurants, a performance stage, and other community-serving uses. This project is proceeding as planned and demonstrates the city’s capacity for successful redevelopment, showcasing Carson’s ability to foster positive and productive partnerships.
In a written statement, Brendan Kotler, Faring’s Chief Investment Officer, stated on behalf of Carson Goose Owner, LLC, “For many years, the City of Carson and the Carson Reclamation Authority have been thoughtful, committed, and diligent partners. As good stewards of the land, the CRA has always put the interests of the residents first. We look forward to breaking ground on our project, a 96-acre lifestyle and industrial park called Carson Place, by the end of the year, and continuing our relationship with the CRA and the City of Carson. We eagerly anticipate unveiling our 12-acre community park featuring exceptional indoor and outdoor restaurant spaces, as well as lifestyle shopping, to the Carson community, whom we deeply value. Additionally, we’re excited to commence construction on 1100 new townhomes and luxury apartments this fall.“
Mayor Davis-Holmes added, “The City of Carson values transparent partnerships and remains hopeful that a path forward can be found with CAM-Carson LLC, which represents Simon Property Group. However, we stand firm against intimidation tactics and remain dedicated to making decisions which are in the best interest of our taxpayers and residents.“
The City of Carson is also proud to be a venue city for the 2028 Olympic Games and continues to work towards revitalizing and improving the local environment and economy, further solidifying its commitment to growth and community engagement.
About the City of Carson
The City of Carson is committed to enhancing the quality of life for its residents by promoting economic development, providing quality services, and fostering a safe and sustainable community. Through the efforts of the Carson Reclamation Authority, the city continues to work towards revitalizing and improving the local environment and economy. Carson is also excited to be a host city for the 2028 Olympic Games, further solidifying its commitment to growth and community engagement.
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