HomeMy WebLinkAbout2021-04-20; City Council; Resolution 2021-090RESOLUTION NO. 2021-090
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING STAFF TO WORK WITH BROOKFIELD
PROPERTIES (BROOKFIELD), NRG ENERGY (NRG), AND SAN DIEGO GAS &
ELECTRIC (SDG&E) TO RELOCATE THE SDG&E NORTH COAST SERVICE
CENTER (NCSC) FROM ITS CURRENT LOCATION NEAR THE NORTHEAST
CORNER OF CARLSBAD BOULEVARD AND CANNON ROAD, TO A PORTION OF
THE CITY OWNED PARKING LOT PROPERTIES AT THE SHOPPES AT CARLSBAD
(SHOPPES), AND APPROPRIATE FUNDS IN AN AMOUNT NOT TO EXCEED
$100,000 TO RETAIN THE PROFESSIONAL SERVICES OF KOSMONT
COMPANIES
WHEREAS, on Jan. 14, 2014, the City Council of the City of Carlsbad adopted Resolution 2014-
010 approving a Settlement Agreement between and among the City of Carlsbad (City), the Carlsbad
Municipal Water District (CMWD), Cabrillo Power I LLC and Carlsbad Energy Center LLC (collectively,
NRG), and San Diego Gas & Electric (SDG&E), related to the decommissioning and demolition of the
existing power plant known as Encina Power Station (EPS) and construction of a new plant known as
Carlsbad Energy Center (Settlement Agreement); and
WHEREAS, among other things, the Settlement Agreement anticipated the relocation of
SDG&E's North Coast Service Center (NCSC), which is currently located near the northeast corner of
Carlsbad Boulevard and Cannon Road [5.1]; and
WHEREAS, if relocated in accordance with the terms of the Settlement Agreement, NRG would
contribute $22.5 million to SDG&E for the relocation and reconstruction of a new service center [5.4],
City would take title to certain properties totaling approximately 24.5 acres [5.7], and City and NRG
would work in good faith to consider a joint development strategy for the Encina Redevelopment Site
and the NCSC site [6.2(b)]; and
WHEREAS, despite considerable, good-faith efforts, City and SDG&E have not been able to
identify a mutually acceptable relocation site; and
WHEREAS, the demolition of EPS is proceeding according to the commitments contained in the
Settlement Agreement, however, NRG's ability to move forward with redevelopment plans for the site
would be greatly enhanced if the NCSC relocation issue is resolved; and
WHEREAS, the Settlement Agreement requires relocation of NCSC to be revenue neutral for
SDG&E ratepayers; and
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WHEREAS, City has identified approximately 67 acres of City owned properties surrounding the
Shoppes, a regional shopping center currently owned by Brookfield, that could meet the NCSC
relocation criteria; and
WHEREAS, City has engaged in preliminary discussions with SDG&E, NRG and Brookfield
regarding possibilities for relocating NCSC to a portion of the City owned properties surrounding the
Shoppes, and all parties have been receptive to the idea of engaging in negotiations; and
WHEREAS, these potential relocation negotiations would involve a complex, multi-party
transaction that could help the parties to fulfill the terms of the Settlement Agreement in a manner
which will provide significant public benefit; and
WHEREAS, an Indemnification and Hold Harmless Agreement between Brookfield and the City,
indemnifying the City against any potential claims arising out of the City's participation in such
negotiations, including any alleged violations of the existing Deed Restrictions will be executed; and
WHEREAS, Kosmont Companies specializes in public-private partnerships, redevelopment and
creative use of city tools to create value and revenue streams; and
WHEREAS, the specialized expertise and experience of Kosmont Companies will be beneficial to
the City in the negotiation process and will help optimize the potential public benefits associated with
the relocation.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the City Council authorizes city staff to work with Brookfield, NRG and SDG&E on a
plan to relocate NCSC from its current location near the northeast corner of Carlsbad
Boulevard and Cannon Road, to a portion of the city owned parking lot properties at the
Shoppes in order to facilitate the transfer of the current NCSC site, as well other
properties, to the City of Carlsbad as anticipated in the Settlement Agreement.
3.That the Deputy City Manager, Administrative Services is authorized to appropriate
funds in an amount not to exceed $100,000 from the City Council Contingency fund to
the Community Services Branch Administration operating budget to retain the
professional services of Kosmont Companies.
April 20, 2021 Item #6 Page 6 of 7
4.That staff will return to the City Council in closed session as necessary for direction on
price and terms of the real estate transaction and to open session for direction on non-
privileged matters as the negotiations proceed.
5.That this resolution does not commit the City to transact or rezone or generate a project
under the California Environmental Quality Act.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 20th day of April, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
rtsv
BARBARA ENGLESON, City Clerk
(SEAL)
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