Category Archives: Rep. John Garamendi

Tech-billionaire promises for a new city, from roads to water, are worth hundreds of millions of dollars — if they’re binding

[Note from BenIndy: This comprehensive post by CalMatters offers a detailed and exquisitely rendered analysis of the many promises and pledges California Forever has made in its campaign to build a new city in Solano County via a 100-page ballot initiative. Because CalMatters is a free publication (no paywall), and because some of the elements in this article are interactive, we highly recommend you start reading this post here but finish over at the CalMatters website. Links are available below. California Forever has made many, many promises about jobs, housing, transit and more to lure Solano County residents into signing the petition that could land this initiative on the ballot, but how much of what they are pledging is actually achievable, legally and practically speaking? This is a must-read.]

Land where California Forever plans on building its new city (foreground) in Solano County, Feb. 16, 2024. The contentious development would be located between Travis Air Force Base and Rio Vista. | Loren Elliott / CalMatters.

CalMatters, by Levi Sumagaysay and Ben Christopher, February 22, 2024

IN SUMMARY: California Forever CEO Jan Sramek says promises of new homes, jobs, investments are binding, but legal experts and elected officials are skeptical.

The city-from-scratch that tech billionaires want to build in Solano County is getting the hard sell, with the backers promising new housing, better jobs and more — promises that will cost in the hundreds of millions, if not billions, of dollars — plus a pledge that county taxpayers outside the new community won’t have to pay for any of it.

The backers call these pledges, contained in a proposed countywide ballot initiative, “guarantees.” They say they’ll be legally bound to honor them.

But skeptical legal experts and local officials dispute the idea that the project’s developers will be obligated by law to deliver on the so-called guarantees. Because the issues would put California in uncharted territory, odds are some potential disputes would have to be resolved in court.

The Silicon Valley tech billionaires aim to put a nearly 100-page ballot initiative before county voters in November. The group has formed a company called California Forever — whose subsidiary Flannery Associates has spent $900 million to buy 62,000 acres of farmland (about the size of Sacramento) in the area since 2017 — that proposes to build on 17,500 acres of that land (about the size of Vacaville).  They plan for the new community to attract an initial 50,000 residents, and eventually up to 400,000, which would double the population of the county.

The company is backed by  a group of  venture capitalists — including Michael Moritz, LinkedIn co-founder Reid Hoffman, Netscape co-founder Marc Andreessen and Emerson Collective founder Laurene Powell Jobs — to create this new town. They promise, through California Forever and its chief executive, Jan Sramek, to spend a lot more money to build and develop the community. They say it will alleviate the state’s housing crisis, create well-paying jobs and build a walkable community on the outskirts of the Bay Area.

Although the project’s promoters insist Solano County residents outside the proposed community won’t get stuck with any new taxes or fiscal responsibilities, they acknowledge the state of California will. And those state taxpayers, of course, also include all of Solano County’s taxpayers.

“The goal is to be the master developer of this and be a real steward of the land,” Sramek said in an interview with CalMatters last week. He added that the investors in the project are in it for the next few decades at least.

Despite taking part in some contentious town-halls and other public meetings, and suing  county farmers they accuse of price-fixing, Sramek and California Forever are courting voters with wide-ranging “guarantees.”

Those promises — whose dollar amounts will gradually increase with the community’s population, reaching the pledged totals at 50,000 residents — include:

  • Up to $400 million in down-payment assistance to help Solano County residents buy homes in the new community and new affordable housing
  • Up to $200 million invested into the county’s existing downtowns
  • Up to $70 million for college, training and educational programs for Solano County residents
  • Thousands of new jobs that will pay 125% of the average annual income in the county
  • An unknown sum for infrastructure for the new community, such as schools, a transportation system and more

Skeptics abound.

“They can promise they can do a thing,” said Mary-Beth Moylan, a University of the Pacific law professor and expert on California initiatives, who said the promises are not legally binding. “But when you get into things like commitment of taxpayer money, that’s not something they can guarantee.”

Solano County Supervisor Erin Hannigan represents Vallejo, and while she’s not necessarily against the project, she agreed with Moylan.  “I think (the promises promoters call guarantees) will falsely entice people to think this is a good thing” when she said there is not enough information for voters to make an informed decision. “Who’s going to enforce it? You can’t put a directive on a municipality.”

Sramek pointed to initiative language that says the community would not be able to begin development without an environmental impact report, and without reaching a development agreement with the county that would incorporate enforcement of the so-called guarantees.

California law does not allow for statutory development agreements to be passed by initiative, per a 2018 appellate court ruling. This proposed initiative refers to a development agreement that is supposed to include many of California Forever’s promises, but the company will still have to iron out details with the county.

California Forever’s backers have up to 180 days to collect 13,062 signatures after they publish the final initiative title and summary in the legals section of print newspapers in the area, said John Gardner, assistant country registrar. The company can’t do that until it gets the initiative title and summary back from the registrar after submitting a revised version of the initiative Feb. 14; the registrar is waiting on county counsel to rewrite the initiative title and summary before passing that back to California Forever. For the initiative to qualify for the November ballot, all other subsequent steps, including validation of the signatures by the registrar and a final approval by the Board of Supervisors, must be completed by Aug. 8, Gardner said.

Ahead of signature-gathering for the East Solano Homes, Jobs, and Clean Energy Initiative — which asks voters to rezone farmland and amend the county’s urban-growth-restricting General Plan — here’s a breakdown of the “guarantees” and a look at a key sticking point:  the effect of a new community on Travis Air Force Base.

Taxpayer and smart-growth promises

The initiative says California Forever won’t impose any new taxes or fiscal obligations on  Solano County residents outside the new community.

Any costs to the county, including current and future administrative costs, already are being reimbursed by the company, Sramek said.

Bill Emlen, Solano County Administrator, confirmed through a county spokesperson that the company has a reimbursement agreement with Solano County.

But Emlen added that because the project is being pursued through the initiative process, “we are evaluating what additional costs may be recoverable from the project proponents based on county staff time that will be required. Given the scope and scale of the proposal we believe the costs will be significant and there are already costs incurred that have not been reimbursed.”

Other potential future expenses include the cost of law enforcement. Because the new community would be unincorporated, the county sheriff’s office would be responsible — but Sramek said California Forever would pay for those costs.

“We would set up a community facilities district which could also provide services, controlled by the county,” Sramek said, adding that it would be similar to Rio Vista’s arrangement with the sheriffs. Rio Vista Mayor Ron Kott said his city pays the county for 12 full-time sheriff’s deputies.

But some of the planned infrastructure will involve or eventually involve costs to the state — and therefore Solano County residents.

Finish reading at CalMatters.org…


Read more about California Forever on BenIndy!

Solano Together Sends Strong Message Against California Forever At Community Rally

[Note from BenIndy: Now that  Solano Together has officially launched, sign up to support or learn more about the organization and is mission HERE. Some images shown below are not original to the Solano Together news release and were added by BenIndy.]

From left to right: Fairfield resident Mario Cisneros, Rio Vista resident Aiden Mayhood, Suisun City Mayor Pro-Tem and Sierra Club of Solano County Chair Princess Washington, Representative John Garamendi, Solano Farm Bureau President William Brazelton, Vallejo Councilmember Charles Palmares, Representative Mike Thompson, and Solano County Supervisor Mitch Mashburn. | Solano Together.

Solano Together, February 5, 2024

SUISUN CITY – A diverse group of organizations, residents, and local leaders came together to celebrate the launch of the Solano Together coalition, rally for a community-driven vision for the future of Solano County,  and speak against Flannery Associates’ planned sprawl development California Forever, on Sunday, February 4.

Not even the storm deterred over 200 people from packing the room at the Nelson Center in Suisun City, greeting old friends and meeting new ones. And those who could not join in person were able to participate via the livestream. Watch the full recording for complete speeches.

A powerful line-up of speakers—representing diverse voices throughout the County—and local residents denounced the vague and deceptive language of California Forever’s ballot initiative, the drain that the development will cause on much needed public resources for existing cities, the crushing threat to the livelihood of farmers, and the importance of an alternative community-driven and inclusive vision for the County’s future.

They shared a clear message: Solano stands together for these values—open spaces, agricultural lands, and investing in existing cities. With the anticipated ballot initiative proposed by California Forever for the upcoming November elections, the Solano Together coalition will continue to inform the public about potential impacts of the project.

Highlights from the speakers:

Suisun City Mayor Pro-Tem Robinson at a November 2023 event. |  Robinson Kuntz / Daily Republic.

“Picture, if you will, Solano County stripped of its open spaces, devoid of its precious agricultural lands. What would remain of our beloved County without its marshlands and delicate delta ecosystems? Our very identity is intertwined with these natural landscapes, and their preservation is non-negotiable.” — Princess Washington, Mayor Pro-Tem of Suisun City & Chair of the Sierra Club of Solano County.

“Farmland is not just a commodity. It is a finite resource that sustains our local economy, provides jobs, and ensures food security. There is something fundamentally wrong with our society if our farmers have to fight for the land they steward.”— William Brazelton, Solano Farm Bureau.

“You build communities where the people are. You build cities where the economy is. California Forever has neither. I’ll say this to the developers and investors who are paying attention. Build in Solano County cities. Build in Suisun City. Build in Rio Vista. Build in Fairfield and build in Vallejo.” — Charles Palmares, Vallejo Councilmember.

Aiden Mayhood at a November 2023 town hall. | Chris Riley / The Reporter

“It’s telling when one of the most vocal opponents of California Forever is a young person, a member of a generation set to reap the supposed benefits of the project. (…) Young people like me will watch as the cost of living skyrockets if California Forever is approved. Ultimately, young people like me will bear the true costs and burdens of the project.” — Aiden Mayhood, Rio Vista resident.

“Why did they choose Solano County? Is it because they saw a low income community of Black and Brown residents? Because they think we’re the path of least resistance? That’s a colonialist mentality.” — Maria Cisneros, Fairfield resident.

 “This initiative is shockingly light on real details. Should the initiative qualify for a November Ballot, our community will be asked to provide an up or a down on the project. We’d be asked to make this choice without the basic facts needed to make an informed decision. That should make everyone concerned.” — Mitch Mashburn, Chair of the Solano County Supervisors.

Representative John Garamendi (file photo).  | Rich Pedroncelli / Associated Press.

“The citizens of Solano County will not stand for what is proposed. Flannery Associates have set about putting a dagger in the heart of Travis Air Force Base. We cannot let that happen. This plan is a disaster for this entire region.” — John Garamendi, Congressman (D-CA 8th District)

“No one who got on this stage has anything to gain from this. But we all believe in the planning process and the need for orderly and safe growth. And all of us have been misled by (Flannery Associates) who want to take over our County. Trust is something you can’t buy, with money or false promises.”— Mike Thompson, Congressman (D-CA 4th District)

About Solano Together:

A group of concerned residents, leaders, and organizations who came together to form a coalition that envisions a better future for Solano County, focuses development into existing cities, and strengthens our agricultural industry. Our work is driven by an alternative vision for Solano in the face of Flannery Associates’ claims about California Forever’s benefits—our vision is guided by local voices and perspectives. Learn more at solanotogether.org

Local Leaders React to Tech Billionaires’ Bid to Build ‘Utopic City of the Future’ in Solano

Local stakeholders react to Flannery Associates 52,000 acre purchases

Public records show ‘Flannery Associates’ has invested $1B on land surrounding the Travis Air Force Base. | Graphic from FYI.

The secrecy and scale of the project have local leaders skeptical

The Reporter, by Nick McConnell, August 30, 2023

The Silicon Valley Elite Who Want to Build a City From Scratch

A mysterious company has spent $800 million in an effort to buy thousands of acres of San Francisco Bay Area land. The people behind the deals are said to be a who’s who of the tech industry.

From left, Michael Moritz, Reid Hoffman, Marc Andreessen and Chris Dixon, four prominent Silicon Valley investors, have backed Flannery Associates.Credit…Bloomberg; The New York Times; Clara Mokri for The New York Times; Getty Images; Reuters

The New York Times, by Conor Dougherty and Erin Griffith, August 25, 2023

In 2017, Michael Moritz, the billionaire venture capitalist, sent a note to a potential investor about what he described as an unusual opportunity: a chance to invest in the creation of a new California city.

The site was in a corner of the San Francisco Bay Area where land was cheap. Mr. Moritz and others had dreams of transforming tens of thousands of acres into a bustling metropolis that, according to the pitch, could generate thousands of jobs and be as walkable as Paris or the West Village in New York.

He painted a kind of urban blank slate where everything from design to construction methods and new forms of governance could be rethought. And it would all be a short distance from San Francisco and Silicon Valley. “Let me know if this tickles your fancy,” he said in the note, a copy of which was reviewed by The New York Times.

Michael Moritz, a well-known investor, wrote in a 2017 pitch, “If the plans materialize anywhere close to what is being contemplated, this should be a spectacular investment. | Alex Flynn / Bloomberg.

Since then, a company called Flannery Associates has been buying large plots of land in a largely agricultural region 60 miles northeast of San Francisco. The company, which has little information public about its operations, has committed more than $800 million to secure thousands of acres of farmland, court documents show. One parcel after another, Flannery made offers to every landowner for miles, paying several times the market rate, whether the land had been listed for sale or not.

The purchases by a company that no one in the area had heard of and whose business was a mystery have become the subject of heavy speculation and developing news stories, rattling landowners, local supervisors, the nearby Air Force base and members of Congress. Was Disney buying it for a new theme park? Could the purchases be linked to China? A deepwater port?

Flannery is the brainchild of Jan Sramek, 36, a former Goldman Sachs trader who has quietly courted some of the tech industry’s biggest names as investors, according to the pitch and people familiar with the matter. The company’s ambitions expand on the 2017 pitch: Take an arid patch of brown hills cut by a two-lane highway between suburbs and rural land, and convert into it into a community with tens of thousands of residents, clean energy, public transportation and dense urban life.

The company’s investors, whose identities have not been previously reported, are a who’s who of Silicon Valley, according to three people who were not authorized to speak publicly about the plans.

They include Mr. Moritz; Reid Hoffman, the LinkedIn co-founder, venture capitalist and Democratic donor; Marc Andreessen and Chris Dixon, investors at the Andreessen Horowitz venture capital firm; Patrick and John Collison, the sibling co-founders of the payments company Stripe; Laurene Powell Jobs, founder of the Emerson Collective; and Nat Friedman and Daniel Gross, entrepreneurs turned investors. Andreessen Horowitz is also a backer. It was unclear how much each had invested.

It is unclear how much the investors, who include Patrick and John Collison, the sibling co-founders of the payments company Stripe, have each invested in Flannery. | David Paul Morris / Bloomberg.

Brian Brokaw, a representative for the investor group, said in a statement that the group was made up of “Californians who believe that Solano County’s and California’s best days are ahead.” He said the group planned to start working with Solano County residents and elected officials, as well as with Travis Air Force Base, next week.

In California, housing has long been an intractable problem, and Silicon Valley’s moguls have long been frustrated with the Bay Area’s real estate shortage, and the difficulty of building in California generally, as their work forces have exploded. Companies like Google have clashed with cities like Palo Alto and Mountain View over expanding their headquarters, while their executives have funded pro-development politicians and the “Yes in my backyard” activists who have pushed for looser development and zoning laws in hopes of making it easier to build faster and taller.

The practical need for more space has at times morphed into lofty visions of building entire cities from scratch. Several years ago, Y Combinator, the start-up incubator, announced an initiative with dreams of turning empty land into a new economy and society. Years before that, Peter Thiel, the PayPal co-founder and billionaire Facebook investor, invested in the Seasteading Institute, an attempt to build a new society on lily pad-like structures in the law-and-tax-free open ocean.

But while these ideas have garnered lots of attention and curiosity — lauded in some corners for vision and derided in others for hubris — they have been little more than talk.

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As Flannery began seeking property, it bought so much land, so fast, that it spooked locals who had no idea who the buyer was or the plans it had in mind. Catherine Moy, the mayor of Fairfield, Calif., started posting about the project on Facebook several years ago after she got a call from a farmer about some mystery buyer making offers throughout the county. In an interview, Ms. Moy said she had gone to the county assessor’s office and found that Flannery had purchased tens of thousands of acres.

John Garamendi, a Democrat who along with Mike Thompson, another Democrat, represents the surrounding region in Congress, said he had been trying to figure out the company’s identity for four years.

“I couldn’t find out anything,” he said.

Representative John Garamendi, Democrat of California, said he had been trying to figure out Flannery’s identity for four years. | Rich Pedroncelli / Associated Press.

On Friday, he said that had suddenly changed. This week representatives for Flannery reached out to him and other elected officials requesting meetings about their plans. That meeting is now being scheduled, he said.

“This is their first effort, ever, to talk to any of the local representatives, myself included,” he said.

The land that Flannery has been purchasing is not zoned for residential use, and even in his 2017 pitch, Mr. Moritz acknowledged that rezoning could “clearly be challenging” — a nod to California’s notoriously difficult and litigious development process.

To pull off the project, the company will almost certainly have to use the state’s initiative system to get Solano County residents to vote on it. The hope is that voters will be enticed by promises of thousands of local jobs, increased tax revenue and investments in infrastructure like parks, a performing arts center, shopping, dining and a trade school.

The financial gains could be huge, Mr. Moritz said in the 2017 pitch. He estimated the return could be many times the initial investment just from the rezoning, and far more if and when they started building.

“If the plans materialize anywhere close to what is being contemplated, this should be a spectacular investment,” Mr. Moritz wrote.

The Bay Area is among the country’s most expensive regions, even after rent and home prices fell after the pandemic. Economists and housing experts have for decades blamed a longstanding housing shortage and California’s inability to build enough to meet demand.

Mr. Moritz nodded to this in the email to the investor, arguing that “this effort should relieve some of the Silicon Valley pressures we all feel — rising home prices, homelessness, congestion etc.” He added that his group had secured some 1,400 acres for less than $5,000 per acre. The price per acre has since escalated, and the company’s most recent purchases have neared $20,000 per acre, according to court documents and people familiar with the matter.

The purchases burst into public view this spring when lawyers for Flannery filed a lawsuit in U.S. District Court, accusing landowners of colluding to inflate prices.

The group focused on Jepson Prairie and Montezuma Hills, an agricultural patch of eastern Solano County between the cities of Fairfield and Rio Vista, according to the lawsuit. This area is mostly unpopulated and covered with ranches, windmills and power lines.

ravis Air Force Base’s proximity to the land deals prompted speculation about the motives of the people behind Flannery. | Jim Wilson / The New York Times.

In November 2018, the company sent offers to “most landowners in this area,” the lawsuit said, and included incentives such as allowing sellers to retain income from wind turbines, as well as stay on the properties rent-free under long-term lease-back agreements. Over the five years, the company purchased some 140 properties from 400 owners, the lawsuit said.

This month, a lawyer representing landowners jointly filed a motion to dismiss the case. In July, three landowners said they had reached a potential settlement with Flannery. Other owners could not be reached for comment this week, or had declined to do so.

As the offers continued and prices escalated, landowners in Solano County started buzzing about who was buying so much land for so much money.

“They would come with an offer of four and five times over the market at the time,” Ms. Moy said. “They were deals that they couldn’t pass up.”

Flannery’s offers were creating multimillionaires across the county, but no one seemed to know what the mysterious company intended to do with land that now amounted to a large chunk of the entire county.

That changed last week, when residents started receiving texts and emails with a poll gauging their opinions on a number of questions. One asked them to rate the favorability of several names including “Joe Biden,” “Donald Trump” and “Flannery Associates.” Another question began with a description of a possible ballot initiative for a project that “would include a new city with tens of thousands of new homes, a large solar energy farm, orchards with over a million new trees, and over 10,000 acres of new parks and open space.”

Ms. Moy cited poor infrastructure, including the two-lane highway bisecting the region that she said was already clogged by super-commuters driving to the edges of the Bay Area and beyond. The area is also prone to regular droughts and is at high risk for wildfires.

“It seems very pie in the sky,” she said.