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Fremont agrees to buy 20.9-acre parcel near substation for future generation and system needs; purchase approved 7–1
Summary
Council approved purchase of roughly 20.9 acres adjacent to the Fremont substation for $50,000 per acre to site future generation, water storage and pressure-control infrastructure; staff said the site offers direct access to transmission, gas, and water mains which reduces build costs, while some council members expressed concern about the per‑acre price.
The Fremont City Council voted 7–1 to authorize purchase of approximately 20.9 acres (PID 270139527) adjacent to the city substation for future electric generation, water storage and related infrastructure.
Jeff Shanahan, utility general manager, told council the site meets key technical needs: direct access to a 69 kV transmission line at the substation, an existing natural gas line crossing the parcel, and a nearby 12-inch water main useful for emission controls and plant operation. Shanahan said locating generation adjacent to the substation and gas supply reduces the need for new long transmission or gas piping and could be more cost-efficient than acquiring a cheaper parcel that would require new infrastructure.
Shanahan described the city's plan to issue an RFP for generation options if the property is acquired; staff is considering reciprocating internal combustion engine (RICE) units in the 9–12 MW range and aeroderivative turbines, with a long-term build target near 35 MW (multiple units). The RFP and any subsequent engineering and major contracts would be brought back to council for approval.
Some council members questioned the $50,000-per-acre price and asked whether cheaper sites plus added infrastructure costs might be preferable. Shanahan said the owner appeared willing to sell at a discount to other market options and that the combined infrastructure availability made this parcel attractive; council approved the purchase with one dissenting vote.
The motion authorizing the mayor to sign purchase and closing documents passed 7–1. Staff will proceed with closing steps and later return to council with RFP materials and project specifications for any generation procurement.
