A secret plan backed by tech billionaires to create a new city northeast of San Francisco is running into resistance — an indication of the long road ahead in a state where it is hard to build almost anything.
Catherine Moy, the mayor of Fairfield, California, has been lining up opposition to the group of Silicon Valley moguls after learning last week that they were behind the purchase of at least 21,000 hectares of farmland in Solano County, a buying spree done extremely discreetly over several years.
The purchases — with backing from former Sequoia Capital chairman Mike Moritz, LinkedIn cofounder Reid Hoffman and venture capitalist Marc Andreessen, among others — were part of a plan to build a city that is self-sufficient and sustainable. They aim to address the Bay Area’s dire housing shortage, while bringing jobs and economic growth to the lowest-income county in the region.
However, California laws make it challenging for the developers to move forward, especially without strong support from the local community.
“This is no way to go about any kind of development,” said Moy, whose city is the administrative seat of Solano County. “We’re going to do everything we can to stop this.”
Over the past five years, Delaware-registered Flannery Associates, spearheaded by Jan Sramek, a former Goldman Sachs Group trader, mysteriously snapped up US$800 million worth of land in an unincorporated part of the county, becoming the area’s largest landowner. The investors often paid well above market rates — up to five times more — and kept their plans hidden from local officials.
It was not until late last month that the community became aware that the group of prominent Silicon Valley investors were involved, following coverage by the New York Times and other media outlets.
California Representative Mike Thompson, who represents a part of Solano County, wrote on social media that he met with the founder of Flannery on Wednesday evening, without identifying the person.
“The secrecy under which they operated caused consternation and concern from residents, local elected officials and federal agencies,” he said. “Honesty is the best policy and they need to begin to work with our community and local leaders if they want to advance their ideas.”
On Thursday, California Forever, the parent company of Flannery, unveiled a splashy Web site featuring the first renderings of the planned development.
It showcased a walkable community with a focus on energy, transportation and water infrastructure, as well as wildfire protection. Some of the images depicted a city reminiscent of Italy’s Tuscan countryside, albeit with wind turbines in the background.
The group said that it had operated in “stealth mode” for so long to avoid “reckless” short-term land speculation while it acquired the properties. They are starting to engage with public officials and plan to establish a community advisory board, the Web site says.
“To date, our company has been quiet about our activities. This has, understandably, created interest, concern and speculation. Now that we’re no longer limited by our confidentiality, we are eager to begin a conversation about the future of Solano County,” the Web site says. “Like much of our state, Solano County faces many challenges — but also presents countless opportunities.”
Flannery faces an uphill battle on many fronts. Rezoning agricultural land for residential and commercial use would be no easy task and could take years. Local residents and leaders also say the project poses a national security risk because of its proximity to Travis Air Force Base and that it threatens the livelihoods of farmers.
The land mass borders three sides of the Travis facility, the busiest transit base in the US and a major economic driver. It is the single largest employer in Solano County, with more than 26,000 people living or working there, generating US$1.6 billion in economic activity for the region.
John Carli, mayor of Vacaville, which is also in Solano County, said that preserving the base is crucial to the region.
Travis is known as the military’s “Gateway to the Pacific,” as its airplanes carry the largest share of US cargo of any military air terminal.
Encircling the base with new residences could put it in jeopardy of closing, Carli said.
“I’m not opposed to development, but I also am looking out for the best interest of our city and for the residents of our county,” he said.
California has long been a battleground for housing development and faces a chronic shortage of homes.
While the state needs to consider bold solutions to addressing this crisis, Flannery’s proposal is not the right option, Carli said.
“The answer isn’t necessarily to just build a brand new city without consideration for all the impacts that you’re creating,” he said.
The California Forever Web site says the development, which requires voter approval, would create thousands of jobs, and feature homes, shops, restaurants and schools, all within walking distance.
The project might also include a new large solar farm, major upgrades to an aqueduct that would deliver cleaner water to more than 400,000 people and safeguards to respect the boundaries of the air base, it says.
California Senator Melissa Hurtado, who represents the Central Valley, singled out Flannery’s land purchases as an example of the threats facing California’s nearly US$50 billion agriculture industry and about 70,000 farms and ranches.
“You can’t just buy up large amounts of land for some new city or energy production,” Hurtado said in an interview. “You have to think about the food system as a whole.”
“We’ve got a long way to go with this yet,” said Ken Rosen, chairman of the Berkeley Haas Fisher Center for Real Estate and Urban Economics. “The worst case is they own some farmland at a nice price.”
Many locals believe the lack of existing infrastructure will make it too difficult to build the development.
“It’s a terrible place to put a new city,” said Arvin Chaudhary, 58, a Solano County resident who has lived northeast of the air base for 12 years. “People are going to spend a lot of time and money, and it’s probably never going to happen.”
Whether or not the development succeeds, locals worry it would distract from the investment that is needed to support current residents.
“Many residents have been waiting decades for infrastructure improvements,” said Nora Dizon, who lives in Fairfield. “It would be an insult to leapfrog the residents who have patiently waited for promised changes.”
Ron Kott, mayor of Solano County’s Rio Vista, has raised concerns about traffic congestion on Highway 12 — a two-way road that cuts through the region that is so dangerous it is dubbed “blood alley” by locals.
“Whatever this project is, it will influence the future of our city,” he said.
Then there are the environmental concerns. The Greenbelt Alliance, a Bay Area nonprofit focused on climate-change resiliency, opposes the development because it is in a high-risk location for wildfires, extreme heat and flooding.
Laying a non-permeable surface atop the virgin land further increases those risks, alliance executive director Amanda Brown-Stevens said.
“This doesn’t make sense from an open space or a climate perspective,” she said.
Some residents are eager for a new development and say the proposed project could boost economic activity to the county.
“I personally think this will be amazing for the community,” said Drew Townsend, a 44-year-old Fairfield resident. “I’m sure there will be a ton of ‘not in my backyard’ people, but I don’t think they understand the economic and social impact this could have for generations.”
Flannery has leveled its own accusations about unfair dealings. The firm filed a lawsuit in May alleging that landowners colluded to fix real estate prices, a charge they deny.
US Representative John Garamendi descends from a long line of California ranchers and represents the Fairfield area, including the air base. At a California Senate committee hearing on Tuesday, he said that Flannery was “using secrecy, bullying and mobster tactics to force generational farm families to sell.”
“If these investors plan to convince Solano residents and their elected representatives that building a new city on productive agricultural land is a wise scheme, they are off to a terrible start at earning the community’s trust,” Garamendi said.
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