California’s ambitious megacity, backed by billionaire investors, is facing the potential loss of a key tenant, but Governor Gavin Newsom is ramping up his support for the initiative, according to sources.
Even though Newsom has kept a low profile regarding the contentious megaproject, he had a private meeting with California Forever’s CEO earlier this spring. Following that, he has been making discreet efforts to garner support for the project as his term winds down. His team even mentioned to state lawmakers that this initiative could be linked to national security concerns.
Records show Newsom had a 35-minute meeting on April 1 with California Forever officials, including CEO Jen Sramek. Additionally, his chief of staff, Nathan Barankin, was involved in prior discussions and coordinated a meeting with Solano County officials to talk about the proposal.
The governor’s office has not commented on the meeting. However, a memo from the Newsom administration last week expressed optimism that the proposed Solano Shipyard and Foundry could draw in significant investments. It emphasized that this could be both a local and national issue.
This memo was likely aimed at state legislators, who are under pressure as the Legislature reconvenes after a recess. The California Forever project aims to develop America’s first walkable city, featuring 170,000 new homes over the span of 40 years.
Collectively, these developments indicate that Newsom’s team is making an intensified effort to align local and state backing for California Forever, particularly after defense company Salonic Corp. opted for Texas instead of Solano County for its shipyard plans.
The previously unpublicized meeting reveals Newsom’s increased personal involvement as the project shifts from a broad concept of a city housing 400,000 residents to a more focused plan involving shipbuilding and advanced manufacturing.
For Newsom, the significance and timing of the California Forever initiative seem vital. Throughout his political journey, he has championed ambitious goals, from legalizing same-sex marriage to suggesting underwater turbines on the Golden Gate Bridge. With an eye on a potential presidential run in 2028, he appears eager to secure a notable achievement before his term concludes.
Acquiring one of the largest advanced manufacturing sectors in the nation, alongside essential housing, could provide Newsom with a legacy project that resonates nationwide.
As he has less than six months left in office, he still has a long way to go to meet his objective of constructing 3.5 million homes by 2025, which he later adjusted to 2.5 million by 2030. The Solano initiative might contribute tens of thousands of housing units necessary for a growing workforce.
California Forever is backed by prominent figures from Silicon Valley, including LinkedIn co-founders Reid Hoffman and Laurene Powell Jobs, as well as notable investors like Michael Moritz and Patrick Collison. These supporters have been significant contributors to political campaigns and initiatives over the years.
As the focus turns toward the 2028 election cycle, advancing this flagship project could bolster Newsom’s support from powerful political allies in Silicon Valley.
California Forever has also engaged Axiom Advisors, a notable lobbying firm in Sacramento led by Jason Kinney, a known ally of Newsom. California Forever has compensated Axiom over $335,000 since bringing them on board last spring. However, sources indicate Kinney did not attend Newsom’s meeting with California Forever.
Evaluating Newsom’s Influence
Recently, former Sacramento Mayor Darrell Steinberg and ex-House Speaker Bob Hertzberg have been advising California Forever, and they believe this project aligns well with Newsom’s goals. Steinberg commented that the initiative could be a substantial win for both Newsom and California, reflecting his commitment to addressing job creation and housing challenges.
Meanwhile, Hertzberg emphasized the need for California to demonstrate its competitiveness in large-scale industrial projects. Following the recent loss to Texas for Salonic Corp., stakeholders have been calling for state action that could facilitate development and investment.
Steinberg referred to the loss as a “lesson” and expressed the intention to position Solano County and California advantageously for future opportunities.
Shifting from the original concept of a vast planned city, Steinberg and Hertzberg advocate for a model where job creation directly ties to housing growth, ensuring that existing cities are prioritized for new developments.
While expressing optimism, Dee Dee Myers, a key business adviser to Newsom, stated that California has a significant chance to capitalize on billions in investments through the Solano projects, which aim to revive regions that have faced industrial downturns.
Despite this, skepticism lingers among some, including political consultant Matt Rexrode, who questioned the motivations of prominent supporters like Steinberg. Rexrode felt that Steinberg’s advocacy could seem contradictory to his previous stances as a policymaker.
Resistance is still echoed by some Democratic lawmakers who assert that California Forever has mismanaged its chances. State Senator Christopher Cabaldon criticized the project’s strategy of linking the shipyard proposal with a housing plan that is less popular.
As the clock ticks down on Newsom’s term, doubts remain about whether he possesses the political capital to push through special legislation to support the initiative, and if local lawmakers could potentially halt the project altogether.
