The City of Carson has reached a landmark $370 million settlement with Tesoro/Marathon Petroleum, securing significant immediate and long-term funding for the community while strengthening the City’s financial position without imposing a new tax on Carson residents.
Under the agreement, Carson will receive $120 million upfront and $250 million over 15 years, providing both immediate funding and a predictable long-term revenue stream of approximately $16.67 million annually beginning in January 2027. This settlement not only bolsters the City’s coffers but also ensures a stable financial future, allowing for strategic planning and investment in community priorities.
Critically, the agreement strengthens Carson’s finances without a new tax on residents. Following the settlement, Carson withdrew its proposed oil refinery tax measure from the November 2026 ballot. Tesoro/Marathon will also continue paying the City’s existing Measure C Oil Industry Business License Tax, with no credit against the settlement payments. This means the City receives the full benefit of the settlement while maintaining existing revenue streams.
The settlement ends years of litigation and creates opportunities to invest in community priorities. Tesoro/Marathon will seek dismissal of the tax litigation and will not pursue attorney fees or litigation costs from the City. This removes a significant legal burden and allows both parties to move forward constructively. Settlement proceeds will go through Carson’s public budgeting process, with infrastructure and deferred maintenance already identified as potential priorities. This ensures that the funds are allocated transparently and in alignment with community needs.
The financial impact is substantial. The upfront payment of $120 million provides an immediate infusion of capital that can be used for urgent projects or to bolster reserves. The annual payments of $16.67 million over 15 years offer a steady, predictable income stream that enhances the City’s creditworthiness and budgeting accuracy. This long-term perspective is vital for sustainable growth and development.
Mayor and City Council members have expressed optimism about the settlement’s potential to transform Carson into a thriving, diverse destination city. The funds could address long-standing infrastructure issues, improve public services, and enhance the quality of life for residents and businesses. The settlement also demonstrates the City’s commitment to fiscal responsibility and strategic negotiation, avoiding the need for new taxes that could burden the community.
The withdrawal of the proposed oil refinery tax measure from the November 2026 ballot is a significant concession that underscores the mutual benefit of the settlement. Residents will not face an additional tax burden, and the City still secures substantial revenue. This outcome reflects a collaborative approach to resolving disputes and fostering a positive relationship between the City and Tesoro/Marathon.
Moreover, the settlement eliminates years of costly litigation. By agreeing to dismiss the tax litigation and forgoing attorney fees, Tesoro/Marathon demonstrates a commitment to moving beyond legal battles. This allows both parties to focus on productive endeavors, such as economic development and community enrichment.
The settlement proceeds will be subject to Carson’s public budgeting process, ensuring transparency and community input. Infrastructure and deferred maintenance have been highlighted as potential priorities, which is crucial for a city looking to enhance its appeal and functionality. Investments in roads, parks, and public facilities can have lasting positive impacts on residents’ daily lives.
In summary, the $370 million settlement with Tesoro/Marathon is a transformative achievement for the City of Carson. It provides immediate and long-term financial stability, avoids new taxes, ends litigation, and opens doors for community investment. This agreement positions Carson for a prosperous future, aligning with its vision of being a great place to live, work, and play.
