Carlsbad Moves Closer to SDG Coastal Property Agreement

After almost 10 years of negotiating, Carlsbad is nearing a deal with SDG&E that would give the city a chunk of the utility’s power plant property overlooking the beach at the corner of Carlsbad Boulevard and Cannon Road.

The latest proposal includes less land than the city had hoped, only about 6 acres instead of the earlier estimates of 10 acres or more. However, the so-called “seaside option” also includes undeveloped property along the northern shore of Agua Hedionda Lagoon, access to a proposed trail along the lagoon, and other benefits for the city.

Carlsbad City Council members said Tuesday that the beach option is larger than the $10 million the city would get if it didn’t get any land. They voted unanimously to set a new deadline of March 31, 2024, to finalize the final agreement.

“I’ve heard loudly and transparently that the network package is worth more than $10 million to the city,” said Councilmember Teresa Acosta.

Mayor Keith Blackburn said he felt a bit like he’d been presented with a Mercedes and now received a Kia, but he would accept the proposal.

“I’m not exactly thrilled about this outcome, but I was confident that our negotiators would be as productive as possible,” Blackburn said. “If our negotiators say it’s the most productive thing we’re going to get, then I’ll have to take the Kia. “

Negotiations underway with San Diego Gas

Carlsbad opposed the new plant, saying it would be built further inland so that coastal assets could be used for more suitable purposes. As part of the agreement, SDG

Also as part of the agreement, the city agreed to work with utilities to relocate SDG’s 16-acre service center.

However, after searching more than a dozen places imaginable, SDG

Among the sites considered as a parcel known as Lot 11, SDGs

The cost of any movement is now higher than the SDGs

City officials have met to negotiate with utilities representatives at least 18 times since March 2023, he said. The original settlement required NRG to pay up to $22.5 million to cover the costs of moving the SDG&E operations center or, if no deal is reached, pay the $10 million to Carlsbad.

Starting with the beach option, the ODS administrative building

The city also would get 5.76 acres along the north shore of the lagoon’s outer basin. Most of the property is a steep bluff with a trail along the water. About one acre at the top is level and often used as a public overlook.

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