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Carlsbad approves Seaside Agreement with SDG&E and Cabrillo Power; city gains bluff, lagoon parcels and trail funding
Summary
Council unanimously approved a negotiated settlement to relocate an SDG&E service center, receive multiple parcels (including Cannon Park, bluff and lagoon lands), secure $1 million toward a Hub Park trailhead, and start a due-diligence process that will require CPUC and Coastal Commission approvals.
The Carlsbad City Council on April 15 adopted the Seaside Agreement, a negotiated settlement among the city, San Diego Gas & Electric Company (SDG&E) and Cabrillo Power 1 LLC (Cab 1) that transfers multiple coastal parcels to the city and relocates the SDG&E service center inland.
Deputy City Manager Gary Barberio described the core elements: Cab 1 will convey roughly 6 gross acres (about 5 net acres) including Cannon Park to the city; SDG&E will acquire a roughly 9.2-acre parcel along the railroad tracks for its relocated service center; the city will receive approximately 5.75 acres on the Agua Hedionda Lagoon North Shore, and ownership rights to bluff land and the middle and inner lagoon basins. SDG&E will grant an easement across Lot 11 to enable a Hub Park trailhead and trail connections; the utility and Cab 1 will provide $1,000,000 toward development of the trail system.
Barberio told council the agreement replaces a 2014 settlement and begins a 180-day due-diligence period. Significant regulatory approvals remain: SDG&E must obtain a certified environmental document and a Section 851 authorization from the California Public Utilities Commission (PUC), and the city must pursue Coastal Commission approvals and local coastal program amendments for plan and zoning changes. Staff estimated the combined PUC and Coastal approvals and related steps will take 3.5 to 5 years, with full implementation and final land transfers potentially extending to 5 to 7 years. If the approvals cannot be obtained, the agreement preserves a $10,000,000 consolation payment and certain IODs (irrevocable offers of dedication) so the city can still take ownership of key parcels.
Representatives of SDG&E and Cab 1 addressed the council. Jennifer Jett, SDG&E's vice president of operations support, said, "This has been a long time coming" and expressed enthusiasm for the public-access and boulevard-realignment aspects of the plan. Mark Roerlik of NRG/Cabrillo Power told the council he supported the agreement and called it a major step toward the community benefits outlined in the deal.
Council discussed the length of the effort and the city's safeguards. City Attorney Cindy McMahon and staff said all transactional costs will be split by SDG&E and Cab 1 and that the city will not bear transactional expenses. Councilmembers praised staff and outside counsel for negotiating terms that the city said were superior to the 2014 consolation-only option.
Two related resolutions were adopted: a city resolution approving the Seaside Agreement and authorizing the city manager to implement the agreement, and a resolution by the Carlsbad Municipal Water District terminating the 2014 settlement and authorizing its executive manager to execute termination steps. Both votes were unanimous.
