In 2017, billionaire venture capitalist Michael Moritz presented a unique opportunity to a potential investor: the chance to invest in the creation of a new California city. The proposed site was a corner of the San Francisco Bay Area where land was affordable. Moritz envisioned transforming tens of thousands of acres into a vibrant metropolis that would generate thousands of jobs and offer a pedestrian-friendly environment reminiscent of Paris or New York’s West Village. The idea was to reimagine every aspect of urban planning, from design to construction methods to governance, all while remaining in close proximity to San Francisco and Silicon Valley. Moritz’s pitch, which was reviewed by The New York Times, prompted intrigue and curiosity.
Since then, a company called Flannery Associates has been quietly purchasing large plots of land in a primarily agricultural area located 60 miles northeast of San Francisco. Court documents reveal that the company, which largely keeps its operations under wraps, has committed over $800 million to secure thousands of acres of farmland. Flannery has been making offers to landowners, paying well above market rates, regardless of whether the land was listed for sale or not. The mysterious nature of the purchases has sparked speculation and news stories, causing concern among landowners, local supervisors, the nearby Air Force base, and even members of Congress. Rumors have circulated about potential buyers, ranging from Disney seeking a new theme park to China’s involvement or the establishment of a deepwater port.
Jan Sramek, a former Goldman Sachs trader, is the mastermind behind Flannery. Sramek, who has discreetly courted influential names in the tech industry, envisions going beyond the 2017 pitch. His goal is to transform a dry, undeveloped region, intersected by a two-lane highway and surrounded by suburbs and rural land, into a thriving community with tens of thousands of residents. Flannery’s vision includes clean energy, extensive public transportation, and a dense urban lifestyle. The company’s investors, who have not been previously disclosed, consist of prominent figures in Silicon Valley. Among them are Moritz, Reid Hoffman (LinkedIn co-founder and venture capitalist), Andréessen Horowitz investors Marc Andreessen and Chris Dixon, Patrick and John Collison (siblings and co-founders of Stripe), Laurene Powell Jobs (founder of the Emerson Collective), and entrepreneurs-turned-investors Nat Friedman and Daniel Gross. The exact amount of each investor’s contribution remains unknown.
Brian Brokaw, a representative for the investor group, expressed the belief that Solano County and California have flourishing futures. The group plans to engage with Solano County residents, elected officials, and Travis Air Force Base in the coming weeks. Housing has long been a challenging issue in California, with Silicon Valley’s moguls particularly frustrated by the Bay Area’s real estate shortage and the difficulties of construction in the state. Companies like Google have faced obstacles when expanding their headquarters, resulting in clashes with local cities. Executives from these companies have supported pro-development politicians and activists advocating for looser development and zoning laws. These frustrations have given rise to grand visions of constructing entire cities from scratch. Yet, these ideas have mostly remained hypothetical, generating attention but little action.
Flannery’s rapid acquisition of vast amounts of land has caught the attention of local residents, who were initially unaware of the buyer’s identity and intentions. Catherine Moy, the mayor of Fairfield, California, began discussing the project on Facebook when local farmers reported mysterious offers throughout the county. Her investigation at the county assessor’s office revealed that Flannery had purchased tens of thousands of acres. Members of Congress, such as Democrats John Garamendi and Mike Thompson, have been attempting to discover the identity of the company for years without success. However, that changed this week when representatives from Flannery reached out to elected officials, arranging meetings to discuss their plans.
The land purchased by Flannery is currently not zoned for residential usage, and rezoning will be a significant challenge, as acknowledged by Moritz in the 2017 pitch. Therefore, the company will likely have to utilize California’s initiative system to approach Solano County residents for a vote. Flannery hopes that the promise of local job opportunities, increased tax revenue, and investments in infrastructure, such as parks, a performing arts center, shopping areas, dining establishments, and a trade school, will entice voters. Moritz estimated that the return on investment could be substantial, especially if the project progresses according to plan.
The Bay Area has long been one of the most expensive regions in the United States, and despite a downturn in rent and home prices during the pandemic, economists and housing experts attribute this to a persistent housing shortage and California’s inability to meet the demand for housing. Moritz mentioned these issues in his email to potential investors, stating that the project could alleviate the pressures of rising home prices, homelessness, and congestion that Silicon Valley residents currently face. Moritz also highlighted that his group had acquired 1,400 acres for less than $5,000 per acre. However, the prices have since increased, with Flannery’s most recent purchases reaching nearly $20,000 per acre, according to court documents and inside sources.
The public became aware of Flannery’s land purchases when the company filed a lawsuit in U.S. District Court, accusing landowners of colluding to drive up prices. The lawsuit focused on Jepson Prairie and Montezuma Hills, located in an agricultural area of eastern Solano County between Fairfield and Rio Vista. This sparsely populated region is characterized by ranches, windmills, and power lines. In 2018, Flannery made offers to most landowners in the area, presenting incentives such as allowing sellers to retain income from wind turbines and lease-back agreements for long-term, rent-free stays. Over five years, the company acquired approximately 140 properties from 400 owners. Recently, some landowners reached potential settlements with Flannery, while other responses remain unknown.
News of Flannery’s purchases and the premium prices it offered spread throughout Solano County, leaving landowners astounded. Their deals far exceeded market rates, making them irresistible. Ms. Moy remarked that Flannery’s offers were four to five times higher than the prevailing prices at the time. The company’s intentions behind the land acquisitions are still largely unknown.
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