City of Carson, CRA Stand Firm Against Corporate Intimidation in Mall Development Dispute

CARSON— The City of Carson and the Carson Reclamation Authority or CRA have negotiated with Simon Property Group, LP for the past 20 months to finalize a deal that would bring the Los Angeles Premium Outlets to the community. 

According to the City of Carson, despite its efforts and commitment to this project, actions by Simon Property Group have undermined the city’s progress. The city claims Simon has failed to acknowledge and respect the culture and needs of the Carson community and has approached the negotiations with an uncompromising stance.

The planned outlet mall is to be located on 42 acres of a 157-acre former Cal-Compact site. Since 2017, the CRA has worked and committed resources to complete extensive remediation systems and prepare the site for development. In the last 20 months in an effort to make the outlet mall project a reality, the City of Carson also committed funds and resources towards developing public infrastructure and ancillary needs on the site. Collectively, the city and CRA committed more than $65 million in resources to facilitate the development of the outlet mall project, provided Simon would drop its lawsuit and proceed with developing the outlet mall. All these commitments were made through public hearings and documented in public documents available for review.

Despite extensions to Simon for the company to decide if the market now warrants this development 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.

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 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 Place, 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 CRA’s capacity for successful redevelopment.

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.”