Council approves entitlements for 250‑MW battery storage project at 2150 Geneva; conditions include development agreement, community benefits and safety reviews

Daly City Council voted Feb. 24 to approve a package of planning entitlements needed for a proposed battery energy storage system (BESS) at 2150 Geneva Avenue, after an extended public hearing, presentations by city staff and the applicant, and comments from neighborhood and labor representatives.

Project and approvals The applicant (referred to in the staff report as Cormorant Energy/Rivon) sought a general plan amendment, zoning change from light commercial to heavy commercial, a use permit for an energy storage facility, design review, certification of a mitigated negative declaration (MND) under CEQA and a development agreement. Staff described the site as an approximately 11‑acre vacant lot currently used for vehicle and building materials storage. The facility as proposed would be built in phases with a total capacity up to about 250 megawatts and would connect via a new underground 115‑kilovolt transmission line to the PG&E Martin Substation. The project includes a substation transformer area, outdoor battery enclosures and perimeter screening and landscaping.

The planning commission recommended approval of the project in December 2024. Staff said the MND and mitigation monitoring and reporting program address potential environmental impacts and that an additional CEQA memo concluded a subsequent minor site plan change would not trigger recirculation.

Safety, technology and operations Applicant presenters emphasized that the project will use lithium iron phosphate (LFP) battery technology in Tesla MegaPack‑style outdoor, liquid‑cooled containerized systems; they and a fire protection consultant said the LFP chemistry and current pack design reduce the risk profile compared with earlier indoor installations and older chemistries. The project team said the site will include perimeter security, thermal and video monitoring, water hydrants and a hydrant loop and an emergency response plan and that the developer will provide training for first responders and reimburse departments’ training time. City staff indicated that North County Fire Authority conditions and the mitigation monitoring program will be applied to the project and that planning and fire reviews remain part of the entitlement process.

Public comment and labor Speakers included neighborhood representatives who said the applicant engaged in community outreach and organizations that supported the project’s community contributions. Labor representatives and apprentices from the International Brotherhood of Electrical Workers (IBEW Local 617) and operating engineers spoke in favor, highlighting expected union construction jobs and apprenticeships. Several community groups — including the Filipino American Arts Exposition and the Daly City Partnership — spoke in support and described prior civic sponsorships and local scholarships from the developer.

Community benefits and development agreement Staff required a development agreement to record negotiated public benefits. The presentation listed community contributions including a package of contributions collectively described by the applicant: a $800,000 solar carport for a nearby elementary school, $250,000 for a local playground project, $500,000 for parks/open space, $250,000 for discretionary community benefits and a $1,000,000 beautification fund for adjacent neighborhoods. The applicant also presented a fiscal analysis estimating multi‑million‑dollar annual sales‑tax equivalents and projected property tax revenue over the project life. During council discussion, staff and the developer agreed to add explicit language memorializing the project’s labor commitments and to include further clarifications on the community benefit disbursement process in the development agreement’s recitals and related attachments.

Council action and conditions Council members voted to: adopt required findings and approve the general plan amendment, use permit and design review; adopt the zone change on first reading; and introduce the development agreement ordinance for first reading with direction to include language reflecting the contractor‑level project labor agreement (portfolio PLA) commitments, to document reimbursement for first responder training time and to require additional outreach and a monthly coordination meeting between city staff and the developer/chamber when appropriate. Roll‑call votes recorded unanimous support for the entitlements as presented; the development agreement was introduced and council directed staff to refine agreement language prior to final adoption.

What happens next Because the development agreement and the zone change were introduced at first reading, a subsequent meeting will be required for final ordinance adoption and execution of the development agreement. Staff will continue CEQA compliance monitoring, finalize conditions of approval with fire and public works, execute required utility encroachment agreements for the subterranean 115‑kV connection, and document the community benefits schedule and monitoring program identified in the development agreement.

Council members said they will monitor the project’s safety plans and community benefit implementation and that the city will receive periodic project status reports.