TITLE
Recommendation to receive and file settlement reached between City of Long Beach and AC Catalina Landing LLC.
DISCUSSION
The settlement arises out of a lawsuit and cross claim between the City of Long Beach and AC Catalina Landing LLC concerning the dredging responsibilities at the Catalina Landing basin and channel, as well as the collection of parking revenues by the City.
The settlement requires AC Catalina to remit all parking fees payable to the City for the years 2004 and 2005 in the amount of $1,047,897.00. The City will, thereafter, establish an emergency dredging fund using $1,000,000.00 of the parking fees. It is further agreed that the fund will only be used to dredge the channel in case of an emergency occurring before December 2007, or upon the completion of the maintenance dredging of the channel by the Army Corps of Engineers, whichever comes first. Any remaining funds at that time will revert back to the City. The City will provide AC Catalina with a lease credit of $600,000.00 against the parking revenue due the City for 2006.
The parties have also agreed to jointly lobby the federal government through 2007 for maintenance dredging of the channel.
The settlement has been reviewed and approved by the City Council on November 14, 2006.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ROBERT E. SHANNON, City Attorney