City advances major development plans while Reclamation Authority continues work on remediation, infrastructure and financing
Carson, CA — After years of planning, environmental remediation and complicated financing discussions, one of Carson’s most significant redevelopment projects is taking another step forward.
The Carson City Council on Sept. 1 approved development actions related to The District at South Bay, clearing the way for more than 1.5 million square feet of light-industrial development on portions of the former Cal Compact Landfill.
The development is part of a much larger effort to transform the former landfill property into a productive commercial and employment center while completing the extensive environmental and infrastructure work necessary before buildings can rise on the site.
The 157-acre District at South Bay property sits on land that was used for waste disposal before Carson became an incorporated city. Because of that history, redevelopment requires specialized remediation systems and infrastructure improvements before vertical construction can proceed.
The City Council’s Sept. 1 action followed another significant development just weeks earlier.
On Aug. 18, the Carson Reclamation Authority approved an EB-5 loan agreement of up to $180 million intended to help finance installation of remediation systems on Cells 4 and 5 and a portion of Cell 3 of the former landfill.
Under the financing structure presented to the Authority, the Carson Reclamation Authority would serve as the borrower because the remediation improvements will ultimately become publicly owned infrastructure. Private development entities connected to the project are expected to carry responsibility for repayment under the financing structure presented to the board.
The financing is being pursued through the federal EB-5 immigrant investor program, which allows qualifying foreign investors to invest in U.S. job-creating projects.
The redevelopment remained a major focus of the Carson Reclamation Authority’s Sept. 8 meeting agenda.
Among the items listed for consideration were ongoing real estate negotiations involving Cells 3, 4 and 5 at 20400 S. Main Street, infrastructure work associated with Lenardo Drive, utility access for domestic water improvements and continued operation and maintenance of the former Cal Compact Landfill.
The Authority was also scheduled to meet in closed session regarding real property negotiations involving Carson Goose Owner, LLC and Cells 3, 4 and 5.
Because final meeting minutes were not available at the time of publication, the Carson Compass is not reporting those Sept. 8 items as completed actions unless independently confirmed.
Another agenda item involved a proposed agreement with the Los Angeles County Flood Control District that would provide temporary construction access beneath the Torrance Lateral Bridge for installation of domestic water lines.
The Sept. 8 agenda also included an update on the Lenardo Drive construction project, a central infrastructure component of the larger redevelopment.
Lenardo Drive and related utility work are important pieces of preparing the former landfill property for future development and improving access to portions of the site.
Earlier discussions before the Reclamation Authority identified multiple funding sources associated with the Lenardo Drive project, including Measure R funds, lease revenue bond proceeds, traffic mitigation funds and Metro funding.
The Authority is also adjusting its internal management structure as redevelopment activity increases.
On Aug. 18, the board approved creation of a Chief Operating Officer position and moved forward with Dr. Robert Lennox serving in that role.
The Sept. 8 agenda included consideration of an update to the Authority’s conflict-of-interest code reflecting the chief operating officer position.
The changes come as the Authority oversees a complex mix of environmental remediation, infrastructure construction, financing, real estate negotiations and coordination with private developers and public agencies.
The Sept. 8 agenda also listed more than $548,000 in claims and demands for consideration.
The District at South Bay has been discussed in Carson for years, with plans changing considerably over time.
Earlier concepts envisioned a broader mix of retail, entertainment and residential development. More recent plans have shifted portions of the property toward industrial and employment-generating uses while the city and its development partners continue addressing environmental requirements associated with the former landfill.
The Sept. 1 approvals represent another major step in that long-running redevelopment process.
Labor representatives speaking during the City Council meeting voiced support for the project and its commitments involving union labor and local hiring.
For Carson residents, those commitments could become one of the most closely watched parts of the project as development progresses: how many construction and permanent jobs are created, how many are filled by Carson residents and what economic benefit the city ultimately receives from the redevelopment.
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Editor’s Note:
The Carson Compass reached out to Carson Reclamation Authority Chief Operating Officer Dr. Robert Lennox seeking additional clarification regarding the Sept. 8 meeting, current infrastructure work and upcoming project milestones. A response had not been received by press time.
The Carson Compass will continue following The District at South Bay and the work of the Carson Reclamation Authority as additional information becomes available.
