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What Carson’s settlement with Tesoro pays: $120M for litigation, annual payments and held funds
Summary
City attorney told the council the agreement includes a $120 million payment to resolve litigation, about $70 million in previously held tax-deficiency funds to be released, and annual business payments of $16,666,666.67 over 15 years; combined receipts with Measure C could total $20–25 million per year.
City attorney (speaker 8) walked council members through the financial mechanics of the settlement, describing multiple components that together produce the headline number presented at the meeting.
On paper the agreement was described as $370,000,000 in total. The city attorney said $120,000,000 of that is designated to settle the tax dispute litigation. The city is holding approximately $70,000,000 in tax-deficiency money that Tesoro paid earlier; that amount will be released to the city, and the city will retain the interest earned while the funds were held in internal escrow. The remaining roughly $50,000,000, the attorney said, should arrive within about 45 days.
Separately, the agreement includes an annual business payment calculated as $16,666,666.67 over the next 15 years starting in January. The city attorney noted that, when combined with Measure C receipts as currently calculated, the total annual inflow would be “between $20 and $25,000,000 a year.”
Council member Hilton (speaker 6) framed the settlement differently in colloquial terms, saying the package is "well over $425,000,000" if additional in-kind or continuing contributions are tallied; the transcript does not reconcile that aggregate to the city attorney’s line-item accounting.
