California Forever: A Bold Vision for a New City in Northern California

A Mysterious Company's Ambitious Plan

Speculation ran wild when news broke about Flannery Associates LLC, a secretive company purchasing vast amounts of land near Travis Air Force Base in Northern California. Some suspected a nefarious plot involving the Chinese government. However, the truth turned out to be even more intriguing. Flannery was actually a consortium of Silicon Valley venture capitalist billionaires, led by a former Goldman Sachs trader. Their plan? To build a brand-new city called "California Forever" in the windswept farmlands of Solano County, approximately 50 miles northeast of San Francisco. The project promised idyllic tree-lined streets, plazas, and a "walkable" community powered by alternative energy.

Challenges and Skepticism

There are significant challenges facing the California Forever project. The county's long-standing General Plan and Orderly Growth Initiative restricts new development to existing cities and reserves most of Flannery's 60,000 acres for agriculture and open space. Changing this designation requires voter approval, which the company hopes to secure on the November ballot. However, public reaction has been harsh during the company's public hearings. People are skeptical about whether California Forever can secure enough water, contribute to expensive highway upgrades, and deliver on its promise of affordable housing. While many in Solano County recognize the need for more housing, they remain suspicious of the entire enterprise.

Three Missteps

1. A Secretive Land-Buying Spree

Flannery's secretive acquisition of farmland at above-market prices in Solano County has become the project's original sin. The company, operating under the name Flannery LLC, spent over $800 million on 140 properties, totaling more than 60,000 acres. This has made Flannery the largest landowner in the county and caused significant friction with local landowners. Flannery is accused of using high-pressure tactics, offering inflated prices to long-time property owners who were reluctant to sell. In response, the company filed a federal lawsuit seeking $170 million, which it claims to have overpaid due to a conspiracy to raise prices by the property owners.

The secretive nature of Flannery's activities even prompted an investigation into whether a foreign entity was attempting to acquire land near the strategically important Travis Air Force Base. Only after this investigation did Flannery and its backers reveal themselves, but suspicion and skepticism still linger among the public.

2. Being Associated with Silicon Valley

Silicon Valley and its inhabitants are not universally beloved. Many blame the tech sector's high salaries for driving up home prices and causing a lack of affordable housing in the Bay Area. This sentiment fuels some opposition to California Forever. Critics question whether the project aims to populate the city with high-earning tech professionals, further exacerbating the affordability crisis.

CEO Jan Sramek, however, has attempted to counter this narrative. Born and raised in the Czech Republic, Sramek emphasizes his blue-collar roots as the son of a teacher and a mechanic. He left Goldman Sachs to found online and social media companies before embarking on the California Forever project. Sramek has since settled in Fairfield, a city in Solano County, with his family.

3. The Challenges of Building in California

California has a well-known reputation for the difficulties involved in new construction projects. From lengthy environmental reviews to complex permitting processes, building in the state can be an arduous and time-consuming endeavor. According to a UCLA report, individual housing projects in Southern California can take 5-7 years to complete. More complex projects require even more time and effort.

Despite these challenges, Sramek remains optimistic. He believes that, in a best-case scenario, California Forever could break ground in a few years. However, the project will require new infrastructure, including roads and water systems, as well as permits from various local, state, and federal authorities. Flannery's land also contains an active wind farm and habitats for protected species, further complicating the development process. Additionally, the proximity of Travis Air Force Base, the county's largest employer, presents additional considerations.

Historical precedent is not on California Forever's side. Mountain House, a similar project approved in 1994, fell well short of its goals to create a walkable community. The challenges faced by Mountain House highlight the difficulties of launching a new city in the Bay Area.

Three Things California Forever Got Right

1. Addressing the Housing Crisis

California Forever aims to tackle the state's severe housing shortage. The project recognizes that California consistently ranks among the states with the lowest housing supply per capita. Over the past decade, the state has added 3.2 people for every new housing unit, driving up demand and prices. The COVID-19 pandemic and the rise of remote work have only worsened the situation, as wealthy coastal residents seek more affordable housing options inland. Solano County, where California Forever plans to build, has experienced a more than 90% increase in home prices between 2010 and 2020.

While one new city cannot solve California's housing crisis entirely, California Forever's focus on housing resonates politically. Californians across the state, particularly in the Bay Area, recognize the urgent need for affordable housing.

2. Leveraging Local Expertise

California Forever understands the importance of engaging with local government and residents to gain support for the project. To this end, the company has assembled a team of experienced California consultants and strategists. Notably, several members of this team have connections to Governor Gavin Newsom's administration, such as Ana Matosantos, his former cabinet secretary, and Angie Wei, his former legislative affairs secretary. The project has also enlisted the help of Mike Murphy, a well-respected national Republican consultant based in Los Angeles.

These seasoned professionals bring a wealth of experience and connections to the table, which could help bridge the gap between the project's billionaire backers and local voters. Winning the election and securing the necessary rezoning for development are crucial steps for California Forever's success.

3. Financial Resources and Determination

California Forever has substantial financial backing from its billionaire investors. Despite already spending nearly $1 billion on land acquisition, the project's proponents have the determination and funds to see it through. This financial firepower, coupled with the investors' track record of successfully managing major projects, sets California Forever apart.

While skepticism towards Silicon Valley may exist, the project's investors possess the resources necessary to navigate the challenges ahead. Former Solano County supervisor Duane Kromm aptly described the situation, saying, "It's not David versus Goliath, it's David versus an aircraft carrier."

In conclusion, California Forever faces significant obstacles as it seeks to build a new city in Solano County. The project's secretive land acquisitions, association with Silicon Valley, and the inherent challenges of building in California have generated skepticism and opposition. However, the project also addresses California's housing crisis, benefits from the expertise of local consultants, and possesses the financial resources needed to overcome these hurdles. Whether California Forever will realize its ambitious vision remains to be seen, but it is undoubtedly a venture worth watching in the ever-evolving landscape of California's

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By: Ben Fox and Lara Korte
Title: California Forever: A Bold Vision for a New City in Northern California
Sourced From: www.politico.com/news/2023/12/28/california-forever-launch-plans-maybe-00133145
Published Date: Thu, 28 Dec 2023 05:00:00 EST