In a move that takes the long-awaited Carlsbad Desalination Project one step closer to construction, the Carlsbad City Council last month approved an agreement that will allow the Poseidon Resources Corp. to enter into negotiations with the San Diego County Water Authority, the region's wholesale water agency.
Previously, Poseidon planned to sell water directly to individual water agencies, including Carlsbad's.
The agreement also outlines the role that the City of Carlsbad will play in the plant's future.
Under the agreement, Carlsbad will have the right to purchase up to 10,000 acre-feet annually of the project's desalinated water from the Water Authority. The agreement guarantees Carlsbad will receive the same property tax from the project, even if the Water Authority takes over ownership of the project in the first 10 years of operation. Normally, public agencies, such as the Water Authority, don't pay property taxes.
If Poseidon defaults on its agreement with the Water Authority, the Water Authority will not have to pay these property taxes.
"This agreement protects Carlsbad taxpayers while providing the region with a drought-proof water supply," said City of Carlsbad Mayor Matt Hall. "We support the Water Authority in taking a greater role in this project and look forward to our continued partnership with the Water Authority and Poseidon Resources."
In a statement after the vote, Poseidon Resources said it was grateful to the City for the decisive action.
"The City of Carlsbad and County Water Authority staff worked diligently for many months to come to an agreement that was beneficial to all parties. Their willingness to work together and put the needs of the region first demonstrates true leadership," the statement said.
The company also stated that the project is the largest shovel-ready water infrastructure project in the state of California, one that will create more than 2,000 skilled jobs and generate more than $350 million in economic activity during the 36-month construction phase. Once operations begin, the project will support 400 permanent jobs and contribute more than $50 million annually to the regional economy.
"We look forward to working with the County Water Authority to finalize a water purchase agreement so that we can start construction on this new locally-controlled, drought-proof water supply for San Diego County."
The Carlsbad Desalination Project, which has been in development since 1998 and has obtained all required permits and environmental clearances, will be the first large-scale seawater desalination plant in California. When completed, it will produce 56,000 acre-feet of water annually, enough to meet the needs of more than 110,000 average single-family households. Water from the plant would account for about 8 percent of the regional future water supply.
Once construction begins, the plant would be ready to deliver water in about three years. The timing of construction starting depends on when Poseidon and the Water Authority complete their agreements.
In a letter to the editor published before the vote in the North County Times, Carlsbad Chamber of Commerce President and CEO Ted Owen urged the council to move forward with the agreement, noting that the Poseidon project will lead to more jobs in Carlsbad.
"As citizens and taxpayers, it is reasonable to expect that local officials would spur the economy by incentivizing private-sector investment in infrastructure that generate new jobs and tax revenue," Owen wrote. "The Carlsbad desalination facility represents all of these expectations plus the promise of a new drought-proof drinking water supply sufficient to meet the annual demand of 300,000 San Diego County residents."
Previously, Poseidon planned to sell water directly to individual water agencies, including Carlsbad's.
The agreement also outlines the role that the City of Carlsbad will play in the plant's future.
Under the agreement, Carlsbad will have the right to purchase up to 10,000 acre-feet annually of the project's desalinated water from the Water Authority. The agreement guarantees Carlsbad will receive the same property tax from the project, even if the Water Authority takes over ownership of the project in the first 10 years of operation. Normally, public agencies, such as the Water Authority, don't pay property taxes.
If Poseidon defaults on its agreement with the Water Authority, the Water Authority will not have to pay these property taxes.
"This agreement protects Carlsbad taxpayers while providing the region with a drought-proof water supply," said City of Carlsbad Mayor Matt Hall. "We support the Water Authority in taking a greater role in this project and look forward to our continued partnership with the Water Authority and Poseidon Resources."
In a statement after the vote, Poseidon Resources said it was grateful to the City for the decisive action.
"The City of Carlsbad and County Water Authority staff worked diligently for many months to come to an agreement that was beneficial to all parties. Their willingness to work together and put the needs of the region first demonstrates true leadership," the statement said.
The company also stated that the project is the largest shovel-ready water infrastructure project in the state of California, one that will create more than 2,000 skilled jobs and generate more than $350 million in economic activity during the 36-month construction phase. Once operations begin, the project will support 400 permanent jobs and contribute more than $50 million annually to the regional economy.
"We look forward to working with the County Water Authority to finalize a water purchase agreement so that we can start construction on this new locally-controlled, drought-proof water supply for San Diego County."
The Carlsbad Desalination Project, which has been in development since 1998 and has obtained all required permits and environmental clearances, will be the first large-scale seawater desalination plant in California. When completed, it will produce 56,000 acre-feet of water annually, enough to meet the needs of more than 110,000 average single-family households. Water from the plant would account for about 8 percent of the regional future water supply.
Once construction begins, the plant would be ready to deliver water in about three years. The timing of construction starting depends on when Poseidon and the Water Authority complete their agreements.
In a letter to the editor published before the vote in the North County Times, Carlsbad Chamber of Commerce President and CEO Ted Owen urged the council to move forward with the agreement, noting that the Poseidon project will lead to more jobs in Carlsbad.
"As citizens and taxpayers, it is reasonable to expect that local officials would spur the economy by incentivizing private-sector investment in infrastructure that generate new jobs and tax revenue," Owen wrote. "The Carlsbad desalination facility represents all of these expectations plus the promise of a new drought-proof drinking water supply sufficient to meet the annual demand of 300,000 San Diego County residents."