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Tech billionaires postpone their plan for a new California city

An aerial view of a rural landscape
(Godofredo A. Vásquez / Associated Press)
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Good morning. It’s Thursday, July 25. Here’s what you need to know to start your day.

Plans for a new California city are halted. Can trust be rebuilt?

A billionaires-backed plan to build a city from scratch in rural Solano County had been slated to go before the region’s voters in November.

But on Monday, county leaders and the initiative’s architect announced an agreement to pull it from the ballot.

The group, called California Forever, says it will now go through the usual multiyear process for would-be developments, which involves applying for necessary rezoning, conducting an environmental impact report and reaching a development agreement with the county.

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Buildings in a neighborhood.
An artist’s rendering of a neighborhood. Backers who want to build a green city from scratch began with secretive land purchases in Solano County.
(Sitelab Urban Studio / CMG)

The county and aspiring developers framed the decision as a chance to pause and reset after years of secrecy and mistrust. But critics say the tech billionaires’ vision is an ill-conceived plan that would do more harm than good.

First, a refresher

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We first brought you the mysterious story of California Forever in August when a secretive limited liability company that spent about $800 million to purchase more than 52,000 acres in Solano County was revealed to be an ambitious project by Silicon Valley elites.

A rural landscape.
Proponents of the project used a limited liability company to buy up land from farmers in a vast swath of the county, stretching from Rio Vista, pictured, to the west, without telling anyone why.
(Godofredo A. Vásquez / Associated Press)

Their pitch: Build a new California city fueled by clean energy and filled with affordable housing and good-paying jobs. The plan is the brainchild of Jan Sramek, a former Goldman Sachs trader, who framed it as vital to boost California’s dismal housing supply and keep the state competitive as jobs and renewable energy move elsewhere.

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Investors in the project include billionaire investor Michael Moritz, Emerson Collective founder Laurene Powell Jobs, LinkedIn co-founder Reid Hoffman and venture capitalist Marc Andreessen.

Once they were outed, the group changed its approach, initially dubbing its plan California Forever (with renderings that appeared to have been hastily created with artificial intelligence) before rebranding to the East Solano Plan. The group began gathering signatures to get a ballot measure before local voters in November that would change zoning rules, bypassing the typical process.

Streetcars run on a road between two lines of buildings.
An artist’s rendering of a neighborhood in a proposed city in Solano County.
(Sitelab Urban Studio)

Going that route “was a mistake,” Mitch Mashburn, chair of the Solano County Board of Supervisors, wrote in the joint statement. “This politicized the entire project, made it difficult for us and our staff to work with them, and forced everyone in our community to take sides.”

The group’s lack of transparency and accusations of heavy-handed tactics rubbed many politicians and residents the wrong way. They also sued farmers in federal court, which further incensed residents and elected leaders.

Speaking during a Tuesday meeting, Solano County Supervisor Monica Brown said that California Forever “operated in bad faith” and that she “will never trust anything that they bring forward.”

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“Go somewhere else,” Brown said. “There’s 57 other counties. They might want you and your money.”

Critics say the plan is the wrong approach

Local opposition to the project has been swift and vocal, with some noting it breaks the prime rule of real estate: location, location, location. Critics point to the lack of road infrastructure, access to water and public transit.

“It is a huge waste of private and public resources to develop a new city in this location,” said Sadie Wilson, director of planning and research at Greenbelt Alliance. The nonprofit advocates for climate resiliency in Bay Area counties and is part of the Solano Together Coalition.

Waterways and farmlands.
An aerial rendering of where the planned community by California Forever would fit into Solano County.
(California Forever)

Members have been focused on getting accurate information to voters about the East Solano Plan, Wilson told me, but are also cultivating an “alternative vision” for prosperity in the region that doesn’t rely on billionaires.

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Wilson said the plan “flies in the face” of both climate resiliency and housing goals, which would be better served by strategically expanding housing in existing cities. Building the schools, roads, sewer systems and other infrastructure to accommodate the more than 500,000 people California Forever hopes would live in its new city would cost a lot — both in dollars and emissions.

The county commissioned a consultant’s report for the project, which found that creating the necessary infrastructure would cost tens of billions and generate well over 2 billion new vehicle miles traveled (the state meanwhile is working to reduce how much Californians drive).

What’s next?

In that joint statement, Sramek said his group will work with the county “to build a shared vision” and plans to “bring the full package back for approval in 2026.”

“We want to show that it’s possible to move faster in California,” he wrote in a statement.

“But we recognize now that it’s possible to reorder these steps without impacting our ambitious timeline.”

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Mashburn acknowledged Sramek for his understanding and optimism, but also issued him a challenge:

“Use the Environmental Impact Report and Development Agreement process to prove to us how you’ll strengthen Travis AFB, how you’ll provide water, and how you will solve the transportation challenges. And show us the financial engineering that makes it possible to pay for billions of dollars of infrastructure, without increasing our taxes, and while delivering a net tax surplus to our county.”

California Forever’s decision to pull the ballot measure was “a major win” for the coalition, Wilson told me.

“They just backed out of this initiative because they knew they weren’t going to win,” she said, adding that she hopes the group will be more transparent about their endgame if they’re serious about mending things with county leaders and residents.

“It’s hard to come back from that lack of trust and that deception,” she said. But “this is certainly not over.”

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