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Coastal land agreement

On Tuesday, the City Council approved a new agreement that will give the city six acres of coastal land including Cannon Park and the land next door, plus a lease and funding from SDG&E to help create the long-proposed Hub Park Trail system along the south shore of Agua Hedionda Lagoon.
Post Date:04/16/2025 10:00 PM

On Tuesday, the City Council approved a new agreement with SDG&E and Cabrillo Power I LLC (the owners of the former power plant site) that will give the city six acres of coastal land including Cannon Park and the land next door, plus a lease and funding from SDG&E to help create the long-proposed Hub Park Trail system along the south shore of Agua Hedionda Lagoon.

Background

  • The city has been negotiating with SDG&E and Cabrillo Power I LLC (a subsidiary of NRG Energy) since a 2014 agreement was established when NRG was seeking to build a new power plant in Carlsbad. The agreement included the removal of the old Encina Power Plant once it stopped operating.
  • As part of the 2014 deal, the city agreed to work with SDG&E to relocate its service yard currently on the property next to Cannon Park, freeing up that land for transfer to the city.
  • The new agreement approved on Tuesday will replace the original 2014 agreement and includes relocating the existing SDG&E service yard and administration building to the eastern portion of the existing SDG&E Service Center site, closer to the railroad tracks and away from the coastline.

Below is a look at how the land at the corner of Carlsbad Boulevard and Cannon Road would be split once the agreement is complete.

Map showing property city would obtain through agreement with SDG&E

As part of the new agreement the city will also get:

  • 5.76 acres along the north shore of the Agua Hedionda Lagoon’s outer lagoon.
  • Ownership of the middle and inner Agua Hedionda Lagoon basins. The city currently has a lease agreement for the inner basin and previously had a lease agreement for the middle basin.
  • 10.2 acres of bluff land along the west side of Carlsbad Boulevard.
  • Ownership of the Carlsbad Boulevard and Cannon Road land in front of the SDG&E service center site and Cabrillo Power's property.

SDG&E will also partner with the city to develop the Hub Park Trail system on the south shore of the Agua Hedionda Lagoon, including allowing parking and access to the trail system via the SDG&E's Lot 11 property on the north side of Cannon Road near Legoland Drive and two existing pedestrian tunnels underneath Cannon Road. 

The areas in orange on the map below show the land the city would obtain, in addition to the middle and inner lagoon basins. 

Map showing land city would obtain through agreement with SDG&E and NRG

If you’d like to learn more, you can watch a recording of the presentation.

Community benefits

How the land near Cannon Park will be used will be determined later, but some options could include a permanent location for Fire Station #7, ownership and possible expansion of Cannon Park and an area to provide parking for Cannon Park and beach visitors.

Next steps

This is a complex settlement agreement, which will require extensive review and approval from both the California Public Utilities Commission and California Coastal Commission. We expect the process will take between 3.5 and 7 years until the transfer of properties is completed.

More information
April 15, 2025 City Council staff report
April 15, 2025 City Council presentation recording

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