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Silicon Valley billionaires put plans for new California city on hold

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Silicon Valley billionaires put plans for new California city on hold

The tech billionaires backing a proposal to raise a brand-new city on the rolling prairie northeast of San Francisco Bay have agreed to pull their measure off the November ballot and will first fund a full environmental review of the project, officials announced Monday.

The pause — announced in a joint statement from a Solano County supervisor and the chief executive of California Forever, the group backing the development — marks a dramatic shift in what had been a relentless push to build a city from scratch in rural Solano County. Until recently, California Forever, whose roster includes tech giants such as LinkedIn co-founder Reid Hoffman and venture capitalist Marc Andreessen, appeared set on taking the proposal directly to local voters this fall.

In June, after the group spent millions of dollars on a signature-gathering campaign, the county registrar announced the measure had qualified for the November ballot, despite opposition from many local elected officials. At the time, Jan Sramek, the former Goldman Sachs trader who is leading the effort, said the measure was nothing less than “a referendum on what do we want the future of California to be.”

Then, on Monday morning, an about-face: California Forever announced it would withdraw the measure. Instead, the group will follow the normal county process for zoning changes for the nearly 18,000-acre swath of land proposed for development. That includes funding a full environmental impact review and reimbursing the county for staff time and consultants related to the venture, according to the joint statement issued by Sramek and Mitch Mashburn, chair of the Solano County Board of Supervisors.

While “the need for more affordable housing and good paying jobs has merit, the timing has been unrealistic,” Mashburn said in the statement. California Forever’s rush to the ballot without an environmental review and negotiated development agreement “was a mistake,” he added. “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.”

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In his portion of the statement, Sramek, CEO of California Forever, stressed that his investment group remains committed to the project and feels an urgency to get it done. “For every year we delay, thousands of Solano parents miss more mornings, recitals, and bedtime stories because they’re commuting two hours for work. They cannot get those magical moments back.”

“We want to show that it’s possible to move faster in California,” Sramek said. “But we recognize now that it’s possible to reorder these steps without impacting our ambitious timeline.”

He said his group would work with the county to complete an environmental review and development agreement over the next two years, then bring the package back to local voters for approval in 2026.

In an interview with The Times, Sramek said the decision to pull the ballot measure was made after it became clear that Solano County residents wanted a thorough environmental review process. He said he was confident the decision to “invert the order of the steps” — putting the environmental review and development agreement before taking the question to voters — would lead to a better outcome.

“It’s not going to affect the timeline,” he said. “In fact, it might accelerate it.”

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The shift also gives California Forever time to reset with local residents after the group’s rocky introduction to Solano County politics.

The effort, launched under a cloak of secrecy, became ensnared in controversy last year amid unfounded speculation that the land buyers were foreign agents intent on espionage.

That’s because for years before proponents revealed their plans, they used a limited liability company called Flannery Associates to buy up land from farmers in a vast swath of the county, stretching from Rio Vista west toward Travis Air Force Base, without telling anyone why. News of the mysterious land sales, in an area so close to a crucial military installation, led some people to speculate it might be part of an effort by foreign spies to gain military secrets.

Last year, it was revealed instead as a bold plan to build a model city from the ground up and reinvent how housing is built in California.

In January, Sramek unveiled blueprints of the new community that call for tens of thousands of homes surrounded by open space and trails. California Forever showcased the community’s proximity to the San Francisco Bay Area, vowing the project would convert unused farmland into “middle-class neighborhoods with homes we can afford.” The city would be walkable, socioeconomically integrated and fueled by clean energy.

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But the proposal garnered fierce early opposition from some local leaders, concerned the group was making an end run around the planning process, as well as environmental groups concerned about the loss of natural habitat.

Mashburn said his agreement with Sramek came after tough conversations about how the process had gone so far.

“We talked about Solano County, and we talked about the initiative, and we talked about the future, and the way things were going to look, and the processes that we would have to go through, and whether we wanted to do that amicably and have a county where neighbors weren’t fighting with neighbors,” Mashburn said.

“Much to his credit and to their credit, they agreed with that. That’s not an easy thing to do, for a leader to admit that you may have been wrong about something.”

The decision to pull the ballot measure came a day before the Board of Supervisors was scheduled to discuss a consultant’s report, commissioned by the county, on the potential fiscal impacts of the development and to vote on whether to put the initiative before voters in November.

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The report, prepared by Stantec Consulting Services in Walnut Creek, questioned the financial viability of the proposed new city and predicted construction challenges that could lead to hefty deficits for the county. It estimated the price tag for constructing schools, roads, sewer systems and other infrastructure to support the new community at tens of billions of dollars.

In announcing the new timeline, Mashburn issued a challenge to the California Forever investors, calling on them to show how they would provide water, solve transportation challenges and navigate the “financial engineering that makes it possible to pay for billions of dollars of infrastructure” without increasing taxes.

Asked if he believed Sramek and his backers would eventually build their dream city in his county, Mashburn said he was skeptical it would turn out exactly as the tech titans envisioned.

“We’re starting over from scratch,” he said. “There are some incredible obstacles that have to be overcome.”

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Confirmation Hearings Open in a Test of Trump’s Hold on Senate G.O.P.

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Confirmation Hearings Open in a Test of Trump’s Hold on Senate G.O.P.

The battle over President-elect Donald J. Trump’s cabinet choices will escalate this week with Senate confirmation hearings set for more than a dozen prospective nominees, who will face a barrage of questions from Democrats hoping to enlist Republicans in knocking at least a few out of contention.

The most high-profile and potentially contentious hearing is scheduled for Tuesday, when the Senate Armed Services Committee is scheduled to consider the expected nomination of Pete Hegseth, the former Fox News personality and combat veteran, for secretary of defense. Senate committees have also set public reviews for the choice for attorney general and those tapped to run the State, Treasury, Homeland Security, Energy, Interior, Transportation and Veterans Affairs Departments and the C.I.A., among others.

Despite criticism of the backgrounds and experience of some of his picks, Mr. Trump has urged Senate Republicans to stay united and quickly deliver the team he has selected in the opening days of the administration. How the G.O.P. responds will provide an early test in the relationship.

Mr. Trump and his Republican allies in the Senate would like to be have at least some officials in place within hours of his swearing-in next Monday, but while top Republicans say they are committed to rapidly advancing his picks, the chances of more than a few being ready for votes on Inauguration Day are low.

“The president ought to have his team in place early, especially his national security team,” Senator John Barrasso of Wyoming, the No. 2 Senate Republican, said on Sunday. “If Democrats try to drag out the process, the Republican Conference is ready to work around the clock, including weekends and nights, to get them in place.”

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Mr. Hegseth has faced intense scrutiny because of accusations of sexual misconduct and excessive drinking, as well as his acknowledgment of reaching a financial settlement with a woman who accused him of sexual assault at a conservative convention in 2017. He has also faced criticism for comments about limiting the role of women in the military and will be pressed about his handling of two veterans advocacy groups that ran into financial trouble.

“Your past behavior and rhetoric indicates your inability to effectively lead this organization and properly support our service members,” Senator Elizabeth Warren, a Massachusetts Democrat who sits on the committee, wrote to Mr. Hegseth last week in a 33-page letter with more than 70 questions for Mr. Hegseth.

After some initial unease, Senate Republicans have become more confident about Mr. Hegseth’s chances for confirmation as he has made personal visits to Senate offices to address Republican concerns.

“As people hear him, I think they will gain more confidence in his abilities,” said Senator Mike Rounds, Republican of South Dakota.

But Democrats on the panel are already raising alarm that they have not been able to view an F.B.I. background check on Mr. Hegseth — information that so far has been shared only with the panel’s chairman and senior Democrat — and may not receive complete information about his past.

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Though confirmation hearings can produce drama, it is rare for nominees to be defeated on the floor. Just one has been rejected in the last 36 years, when John Tower, a former Republican senator from Texas, fell short of the votes for secretary of defense in the administration of President George H.W. Bush. Senators traditionally tend to give presidents deference in their top administration choices, and those who run into trouble typically withdraw before a vote.

Democrats intend to use the hearings to press the nominees on how they will follow through on G.O.P. campaign pledges to help the working class while showcasing serious issues with the candidates in hopes of chipping away at Republican support.

“We want to show who they really are,” Senator Chuck Schumer, Democrat of New York and the minority leader, said in an interview. “Some of them carry a lot of baggage.”

While past presidents were able to get at least some cabinet members on board on Day 1, Democratic resistance and the Senate’s byzantine rules will make winning immediate confirmation of members of Mr. Trump’s team very difficult. Changes in confirmation procedures and intensifying partisanship over nominees have significantly diminished chances for first-day approval even of those in the national security realm.

For instance, President Barack Obama saw six cabinet nominees confirmed on Jan. 20, 2009, while Robert M. Gates was carried over as secretary of defense. A handful of others, including Hillary Clinton as secretary of state, were confirmed within a few days. At that time, nominees were theoretically subject to a 60-vote threshold, forcing Mr. Obama and his predecessors to make selections more able to clear that hurdle.

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In 2013, Democrats changed Senate rules so that nominees for administration slots and judicial seats could be confirmed on a straight majority vote with no threat of a 60-vote requirement, allowing presidents to name candidates who could prevail on party-line votes but increasing the chances for partisan division.

In 2021, Mr. Trump was able to win two cabinet confirmations on Jan. 20, filling the top defense and homeland security posts, as Democrats cooperated in filling key national security slots for the new administration with military generals boasting significant experience.

President Biden was able to win the confirmation of just one top official on Jan. 20, 2021, when Avril D. Haines was approved as director of national intelligence. Secretary of Defense Lloyd J Austin III was confirmed two days later and Secretary of State Antony J. Blinken on Jan. 26. Democrats say the nominee they are most inclined to clear the way for this year is Senator Marco Rubio, their Republican colleague from Florida, for secretary of state.

Part of the issue is that nominations cannot become official until the president takes office, meaning Mr. Trump can submit formal paperwork only after he is sworn in. The Senate is allowed to hold hearings, but clearing prospective nominees for the floor requires some Democratic cooperation.

Democrats would be highly unlikely to provide much help for nominees such as Mr. Hegseth. Republicans would then have to hold committee votes and follow floor procedures that will consume time, as well. Hearings for other contentious nominees such as Robert F. Kennedy Jr. for health secretary and Tulsi Gabbard for intelligence director are pending.

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In the run-up to the hearings, Democrats and some Republicans have objected to proceeding because not all the traditional ethics and financial paperwork has been available. They have also pressed for access to F.B.I. background reports. Republicans have said that they expect most of the requirements to be met before any votes and that they intend to fulfill their duty of providing advice and consent.

“I think there is a real desire to move these through as quickly as possible,” Mr. Rounds said. “But we are going to do our job, too.”

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Trudeau says 51st state is distraction from Trump tariff threat, acknowledges facing 'successful negotiator'

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Trudeau says 51st state is distraction from Trump tariff threat, acknowledges facing 'successful negotiator'

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Canada’s outgoing Prime Minister Justin Trudeau suggested that President-elect Trump’s suggestion that Canada become America’s “51st state” was a distraction from the tariff threat. 

“I know that as a successful negotiator, he likes to keep people a little off balance. The 51st state, that’s not going to happen,” Trudeau told MSNBC’s “Inside with Jen Psaki” on Sunday. “It’s just a non-starter. Canadians are incredibly proud of being Canadian. But people are now talking about that, as opposed to talking about what impact 25% tariffs [has] on steel and aluminum coming into the United States, on energy, whether it’s oil and gas or electricity.”

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“No American wants to pay 25% more for electricity or oil and gas coming in from Canada,” Trudeau said in the interview with Psaki, President Biden’s former White House press secretary. “That’s something I think people need to pay a little more attention to. And perhaps the idea of a 51st state is distracting a little bit from a very real question that will increase the cost of living for Americans and harm a trading relationship that works extremely well.”

Trump has threatened to impose 25% tariffs on all Canadian imports. The president-elect also said that if Canada merged with the U.S., taxes would decrease and there would be no tariffs. 

The president-elect has also taken shots at Trudeau, referring to him as the “governor” of Canada. Last Monday, Trudeau announced that he would resign as Canada’s prime minister once his Liberal Party chooses a new leader on March 9. 

GROWING CONSERVATIVE MOVEMENT IN CANADA IS FIGHTING BACK AGAINST ‘CALIFORNIA ON STEROIDS,’ SAYS STRATEGIST

Canada Prime Minister Justin Trudeau announced his upcoming resignation to the media outside Rideau Cottage on Monday, Jan. 6, 2025, in Ottawa. (AP/Adrian Wyld/The Canadian Press)

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“From my very first conversations with him back in 2016, he told me how much he admires Canada, how much he appreciates and likes us, so there is a certain amount of flattery in this that he thinks that we are as great as we are,” Trudeau said of Trump on Sunday. “He’s right, we are great. We’re also very, very proud of being Canadian. If you talk to any Canadian, you ask them to define what it is to be Canadian, they’ll talk about all sorts of different things, but one of the things we will point out is, ‘and we’re not Americans.’” 

On Trudeau’s trip to Mar-a-Lago in November, the Canadian prime minister said the topic of the U.S. annexing Canada did come up, but Trudeau said once he joked that Canada could annex Vermont or California as a sort of trade, Trump “immediately decided it was not that funny anymore, and we moved on to a different conversation.” 

“This isn’t out of the blue that he’s doing this, but my focus has to be not on something that he’s talking about that will not ever happen, but more on something that might well happen, that if he does choose to go forward with tariffs that raise the costs of just about everything for American citizens, that on top of that, we’re going to have a robust response to that,” Trudeau said. 

“We are ready to respond with tariffs as necessary,” Trudeau said. 

Canadian officials say that if Trump follows through with his threat of punishing tariffs, Canada would consider slapping retaliatory tariffs on American orange juice, toilets and some steel products. 

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Trudeau leaves Florida hotel to head to Mar-a-Lago

Canadian Prime Minister Justin Trudeau leaves his hotel as he heads to meet President-elect Donald Trump, in West Palm Beach, Florida, on Nov. 29, 2024.  (CHANDAN KHANNA/AFP via Getty Images)

MAGAFEST DESTINY? TRUMP FLEXES HIS MUSCLES WITH REPEATED TALK OF AMERICAN EXPANSIONISM

Trudeau recalled that Trump previously put tariffs on imports of steel and aluminum during his first term, and Canada responded by putting tariffs on bourbon, Harley Davidson motorcycles, orange juice, playing cards and other such items that Trudeau argued Canadians could easily find replacements for. 

“It ended up causing a lot of loss in American businesses for whom Canada is their number one export partner. We are the number one export partner for about 35 different U.S. states, and anything that thickens the border between us ends up costing American citizens and American jobs. That’s not what President Trump got elected to do,” Trudeau said. “I know he got elected to try and make life easier for all Americans, to support American workers. These are things that are going to hurt them.” 

Trudeau at Jimmy Carter funeral

Justin Trudeau during the funeral service of late former President Jimmy Carter at the Washington National Cathedral in Washington, DC, on Thursday, Jan. 9, 2025.  (Al Drago/Bloomberg via Getty Images)

Trump said last week that the U.S. does not need oil – or anything else – from Canada, but almost a quarter of the oil that the U.S. consumes each day comes from Canada. The energy-rich western province of Alberta exports 4.3 million barrels of oil a day to the U.S., according to the Associated Press. Data from the United States Energy Information Administration shows that the U.S. consumes 20 million barrels a day, and produces about 13.2 million barrels a day.

Canada, a founding partner of NATO and home to more than 40 million people, is also the top export destination for 36 U.S. states. Nearly $2.7 billion worth of goods and services cross the border each day.

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Trump has said that he would reconsider his tariff threat if Canada made improvements in managing security at the Canada-U.S. border, which he and his advisers see as a potential entry point for illegal immigrants.

Trudeau has said that less than 1% of illegal immigrants and fentanyl cross into the U.S. from Canada.

Nevertheless, after his meeting with Trump at Mar-a-Lago, Trudeau announced an increase in spending on border security, expressing willingness to address Trump’s concerns in hopes that he would reconsider his tariff threat.

The Associated Press contributed to this report.

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Column: U.S. Atty. E. Martin Estrada steps down, looks back at his 'labor of love'

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Column: U.S. Atty. E. Martin Estrada steps down, looks back at his 'labor of love'

The granite steps leading up to the old federal courthouse in downtown L.A. are sturdy and regal. But something disturbing dotted them Friday that I never would have expected:

Ash.

The Eaton fire 15 miles to the northeast was still raging. Downtown was eerily empty. The lunchtime sun was bright, tinting everything in a sickly golden tone.

I was there to interview U.S. Atty. E. Martin Estrada, who is expected to announce Monday that he will step down Friday as head of the Central District of California, which prosecutes federal crimes in coastal counties from San Luis Obispo to Orange.

He was supposed to make his plans public early last week. But he delayed as the most destructive wildfires in L.A. history put a sad coda on his 2½ years as Southern California’s top federal prosecutor.

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Members of his team have lost homes in Pacific Palisades and Altadena. More had to evacuate. Drones messing with firefighting efforts — a federal crime — meant his prosecutors were ready to press charges if necessary. Scammers were already preying on victims — crimes that Estrada’s office prosecuted in the wake of the 2023 Monterey Park mass shooting and other local tragedies.

“If I had my druthers, I wouldn’t be leaving, especially at a time of crisis,” Estrada said from a large table at his 12th-story office. Two computer screens at a stand-up desk behind him glowed. “I don’t like leaving things undone. But I don’t really have my choice here, so I got to go.”

Even if he doesn’t resign from a job he described as a “labor of love,” his days are numbered, with Donald Trump soon assuming the presidency.

It’s customary for U.S. attorneys to tender their resignations when a new president enters office. They know the incoming commander in chief usually wants a fresh start and prefers to appoint people from his own crew. That’s why Estrada wanted to talk to me.

A Democrat and the first U.S. attorney of Guatemalan heritage, he has emphasized diversity in his office and profession and made it a point to speak in both English and Spanish during news conferences. He was the type of U.S. attorney who invited civil rights icon Dolores Huerta to speak to his team — she led them in cries of “¡Sí se puede!” — and regularly spoke to inner-city kids about the importance of people like them in positions such as his.

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That mentality is anathema to the incoming Trump administration, and Estrada acknowledged that politics in Washington are more “partisan” that ever.

“There’s so much fear in the community, concern about this next administration — what may happen, what may not happen,” said the son of Guatemalan immigrants. “But it’s important for people to know that this good work will continue.”

U.S. Atty. E. Martin Estrada at his office in the old federal courthouse in downtown Los Angeles in 2024.

(Michael Blackshire / Los Angeles Times)

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Estrada sounded earnest, even mawkish, befitting his trim frame and boyish looks. I also know to not underestimate his insight. This is the person, after all, whose record against criminals of all stripes speaks for itself. His prosecutors won a conviction against L.A. political powerhouse Mark Ridley-Thomas on corruption charges (Ridley-Thomas is appealing) and got guilty pleas from former L.A. Councilmember Jose Huizar and former Orange County Supervisor Andrew Do. Estrada praised his team for going after white supremacist gangs, fentanyl dealers, environmental polluters and other miscreants while favoring no party and no ideology.

“So I really think the work will continue, because we’ve done it and shot right down the middle,” he said.

Would the 47-year-old stay in his role if Trump asked him to?

“Yes, I would,” he responded without hesitation. “But it’s clear, based on where the politics are in D.C., that it’s not in the cards.”

Does that upset him?

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“I went through different administrations, Republican and Democrat,” Estrada said. “I see what people go through. So I truly believe that the culture here is one of doing the right thing for the right reasons. My hope is that the new administration looks at what’s been going on, sees the work that’s been done and says, ‘I agree, we got to support this.’”

Any advice for his successor?

“See the work that’s been done, listen to the community and see the needs this community has. And I think that will lead you to a similar path to what I have done.”

After a few weeks off to indulge in his passions of running and cycling, Estrada plans to return to private practice, where he worked for eight years before President Biden appointed him in 2022. Before that, he was a prosecutor in the office he now leads. Going forward, he wants to focus on civil rights cases because “it’s in my blood — like, I can’t not do that.”

For now, there’s one last week of work. He teased a “big announcement” on a case that he declined to elaborate on, save for a smile.

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“My philosophy has always been like running,” Estrada said. “I’ve always been a racer. Finish to the tape.”

He glanced at public affairs officer Ciaran McEvoy, who had silently looked on throughout our half-hour conversation.

“They’re going to be happy to see me go,” he said of his staff. “I was like the Energizer Bunny.”

He and McEvoy have known each other since the fourth grade at St. John the Baptist Catholic School in Costa Mesa.

“No one would ever accuse Martin of laziness,” McEvoy deadpanned, drawing a chuckle from his boss.

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“We accomplished a lot,” Estrada replied. “I’d like to be there to help continue to develop some of the more junior lawyers and make sure they get on the right path. But I’m confident they’ll get there.”

A man with dark hair, in a dark suit and red tie, walks past a camera crew and people seated at a desk

U.S. Atty. E. Martin Estrada prepares to announce criminal charges against Ippei Mizuhara, a former interpreter for Dodgers star Shohei Ohtani, at the federal courthouse in downtown Los Angeles in 2024.

(Genaro Molina / Los Angeles Times)

I looked at all the mementos that hadn’t been put in boxes yet and asked which would best exemplify his time as U.S. attorney. He pointed to a trio of photos of him with Huerta, Homeland Security Secretary Alejandro N. Mayorkas and Biden.

Estrada eventually focused on a framed letter from students at Utah Street Span School in Boyle Heights, which he’s visited for years. It featured their signatures, a smiling flower and a note of thanks and congratulations.

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“That’s what matters to me — not just my personal legacy, not just what people write about me, but having a real impact in people’s lives,” he said. “I truly believe the work in this office has an impact on people’s lives.”

He brought up the Conception case. In 2019, a dive boat caught fire off Santa Cruz Island, killing 34 people in the deadliest maritime disaster in modern California history. In 2023, federal prosecutors won a conviction from a federal jury, which found boat captain Jerry Boylan guilty of gross negligence. A judge sentenced Boylan to four years in prison (he remains free on appeal).

Estrada met with the family members of the victims “over half a dozen times” and particularly remembers a mother who spoke only Spanish.

“I talked to her about the loss of her daughter so many times,” he said. “I looked to hire people who reflect the diversity of this area. And that is the kind of impact that I hope will last for many years.”

We shook hands. The sky outside seemed even smokier than before. Estrada brought up the wildfires again and how they’re coloring his last weeks in a way that makes him proud of the people he’s worked with and will leave behind.

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“They’ve have really come together. They’ve told their affected colleagues, ‘Come stay with me’ or ‘What do you need?’ It’s a reminder: Our folks are not moguls,” he said. “They’re community members, like the people they serve. It’s a beautiful thing.”

Southern California’s U.S. attorney for the next five days excused himself and went back to work at his stand-up desk.

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