Not everything goes according to plan. At least, this is what billionaire Jan Sramek realized when his plans to build a utopian new city in a project called “California Forever” fell through.
The measure to create the city was meant to be put on a ballot for Solano County voters to vote on in November. However, the idea has now been scrapped after a damning report was released on what will happen if the project goes ahead.
California Is an Expensive Place to Live
California is currently the most expensive state in which to live in the U.S. Some might argue that building a city in this climate isn’t the best idea as no one can afford to live there and are choosing to leave the Golden State in favor of somewhere cheaper.
San Francisco is the most expensive Californian city, costing over $15,000 a month for a family of four. With prices this high, it’s no wonder people are choosing to leave.
‘California Forever’ Is Put on Hold
The “California Forever“ project plans have been put on hold. Despite having all the signatures needed to put the measure to a vote in November, Sramek and the other investors have pulled the project entirely.
After deciding not to put the measure to a ballot, everyone involved with the project has now chosen to apply to Solano County to attempt to get the project off the ground that way.
Plans Delayed for Two Years
If there is any chance of this project returning to a vote, it won’t happen for at least another two years. This further delays the project, which those involved hoped wouldn’t happen.
The new city was meant to be able to hold 400,000 residents, and while this is likely still going to be the case, those plans could quickly change.
$510 Million Lawsuit Against Farmers
This isn’t the first time something has gone wrong with the project. Part of building the city involves using land currently owned by farmers, which led to a lengthy lawsuit between investors of “California Forever“ and the farmers.
There have been many land disputes regarding the project, which resulted in the lawsuit. The tech billionaires involved in the project won and were paid $510 million in damages.
Inflating Land Prices
The dispute started when the investors’ attorneys accused Solano County landowners of conspiring to inflate their land prices.
The lawsuit alleged that the billionaires overpaid the owners by approximately $170 million.
Land Prices Have Soared
California Forever’s billionaire backers have paid more and more for land throughout the project’s development.
In an email obtained by The Times, one of the investors said investors purchased 1,400 acres of land in 2017 for less than $5,000 per acre. However, prices have since skyrocketed, with investors paying up to $15,000 per acre.
The Solano County Report
Those involved with the project have only decided to pull the ballot since the Solano County report was released. The report details all of the issues with “California Forever.”
These issues include substantial financial deficits, a lack of agricultural production and threats to local water supplies. The report also states that the project might not be feasible financially.
How the Planning Process Works
Before pulling the ballot, the initial plan was for Solano County supervisors to look at the report and vote on whether to approve the plans to use 17,500 acres of farmland for the city or whether voters should be allowed to decide.
However, the project’s CEO, Jan Sramek, decided to withdraw from the ballot measure and is now seeking approval to make a few small changes via typical county processes.
Disagreements Over Planning
Tensions have risen between billionaire backers of the California Forever project and Solano County stakeholders.
Stakeholders have questioned the project backers’ anonymous approach to buying thousands of acres of land. Another issue has been investors’ wishes to carry out the plan as quickly as possible. Sramek has repeatedly pushed for an expedited approvals process, arguing that the need for housing is too urgent to delay the project.
A Mystery Company
The company Flannery Associates has bought about 52,000 acres of land around Travis Air Force Base since 2018.
The New York Times reports that some of the biggest names in Silicon Valley have backed Flannery associates, such as Laurene Powell Jobs and Marc Andreessen. However, government officials began investigating these purchases due to anxieties that foreign interests might be propping up the company.
Plans to Build a Green City
The plans to build the new city as part of “California Forever” are to create a new green city. However, as farmland is planned on being used to make the city, some would argue that this defeats the object of being green.
The project has been controversial ever since it was announced, so voters not being able to vote on the matter will likely anger them even more.
A Quick Fix to a Crisis
Silicon Valley has planned to build a city from scratch for years.
In 2016, startup accelerator Y Combinator started looking into how building a new city could solve California’s housing crisis. The accelerator said: “We want to build cities for all humans — for tech and non-tech people. We’re not interested in building crazy libertarian utopias for techies.”
A Tempting Pitch
At first, the prospect of a brand new city in California looked appealing.
The backers of California Forever promised up to 87,000 new jobs, crystalline lagoons, a sports complex and at least 50,000 residents by 2040. Despite the dazzling pitch, the project never gained strong local support.
Ridiculed at Town Meeting
While California Forever made multimillionaires of some of Solano’s farmers, Sramek did not receive a warm reception at a town meeting.
The New York Times reported that farmers accused him of pushing small farmers out of business and tearing families apart. “I’d like to welcome you as our neighbor, but it’s kind of difficult,” said Christine Mahoney to Sramek, who was in the middle of suing her for refusing to sell her farmlands.
Unrealistic Timing
As part of the project, Sramek intends to build affordable houses and give those who choose to live or work there good-paying jobs. However, according to the chair of the board of supervisors in Solano County, Mitch Mashburn, the timing hasn’t been realistic.
While both are definitely needed, the anger surrounding this project might not work exactly as Sramek and others involved would have hoped.
Not Able to Move Fast
The initial reason for pushing for the November 2024 ballot was so that the project could be done quicker and to prove to people that things in California can move fast.
However, the project’s delay only shows that not everything goes according to plan, and it’s important to have backup ideas prepared.
How the Last Few Years Have Gone
Time is important when it comes to any project, and those involved with “California Forever” have been working over the last few years to make the project happen within a certain timeframe.
In that time, they have raised $800 million to put toward the project and have already purchased some farmland to use for it. The plan is for a walkable urban community, but there is no telling what the finalized project will look like.
Changing Attitudes
Sramek based California Forever on the hope that the state’s attitude to growth is changing.
Sramek said Californians are sick of high housing prices, homelessness and the inability to finish projects, like the high-speed rail that was supposed to connect the Bay Area and Los Angeles. “There’s a cultural moment where we realize the pendulum has gone too far. We can’t say we are about economic opportunity, and working-class Californians are leaving the state every year,” Sramek said.
Disagreements Between ‘California Forever’ and Solano County
As they want to build the new city within Solano County, one of the major issues is that those directly involved with the project and those on the board at Solano County have had some significant disagreements.
This could have a great impact on this project’s outcome and on whether it goes ahead in the first place. So far, based on the reports and opinions, things aren’t looking good.
Residents Are Pushing Back
Many Solano residents are in stark opposition to the California Forever Project.
There is a Facebook group called California ForNever, which has amassed over 2,000 members. The group posts vital parts of the county such as open green spaces and job creators that would not exist if the project went ahead.
Stifling Job Creation
Members of the Facebook group showcase what is at stake if California Forever happens.
One user shared a newspaper article that said Travis Air Force Base was the largest employer in Solano County. The user posted: “Workforce is about 13,414! Do I want to chance losing it??”
Silicon Valley Hubris
Critics have slated the failed California Forever project as a mark of Silicon Valley’s arrogance.
Christopher Cabaldon, a candidate for state senate to represent Solano County, said there is little left the investors can do to garner support from residents. “Ultimately, they ran into their own hubris,” Cabaldon said.
New Projects on the Way
Despite the failure of California Forever, its investors seem to have their own plans.
Billionaire Marc Andreessen plans to build a housing project in Solano County. Andreessen has pushed his motto, “It’s time to build,” in response to increasingly scarce and expensive housing in California.
