New Solano city’s travails spotlight state’s maddening approval process

by Steven Greenhut | September 10, 2026

California Gov. Gavin Newsom and the state Legislature deserve credit for trying to reduce some impediments to building housing and other projects in our red-tape-laden state. But the latest development fracas in Solano County shows why the state’s politically driven, piecemeal approach of granting exemptions to specific projects — rather than creating an overall better regulatory and business climate for all projects — is destined to fail.

The specific project involves the plan by San Francisco-area tech moguls to build an entirely new city on vacant grazing and farmland. The suburban and rural county is located in the northeastern corner of the nine-county Bay Area, with the project slated for 100 square miles bordering Vacaville to the north, Fairfield and Suisun City to the west, and Rio Vista to the east.

The goal is laudable: Create a new city from scratch to help meet the region’s housing shortage and likewise create a manufacturing hub that offers local jobs. The target population for the new city is 400,000 at full build-out. With median home prices in the entire Bay Area hitting an astounding $1.45 million, it’s sensible to open up large tracts of land to home development. The project is designed to conform to the latest walkable New Urbanist principles — and isn’t just “sprawl” development, as critics allege.

The company, California Forever, used a subsidiary, Flannery Associates, to quietly buy at least 60,000 acres of vacant land before The New York Times exposed the gambit in 2023. It reminded people of the Walt Disney Co.’s clandestine efforts in the 1960s to buy central Florida swampland to construct Disney World. Despite investors’ deep pockets and savvy, California’s land-use restrictions, environmental laws and citizen initiative process may prove too much even for them.

Read Steven Greenhut’s Free Cities Center booklet, “Building Cities from Scratch.”

Watch this Free Cities Center video about the East Solano Plan.

Supporters’ initial plan was to qualify a county ballot measure for the November 2024 election, which was necessary to circumvent an existing slow-growth law, the Orderly Growth Initiative. Voters had approved that measure in 2008. The East Solano Plan initiative, as it was dubbed, would have rezoned agricultural land for urban uses, but in 2024 its backers pulled it from the ballot after its public-information and lobbying campaign faltered. Instead, California Forever said it would work with county officials to get approval in the usual way.

That effort remains tangled up in disputes, as the company runs into expected roadblocks from local officials. Last year, it sought last-minute state legislation to streamline approvals for a manufacturing hub and shipyard. The company was trying to lure Texas-based Saronic Technologies to build a $3.2-billion shipbuilding operation at the mouth of the Sacramento River across from Antioch on the western edge of the Sacramento-San Joaquin Delta. The defense startup, which builds autonomous naval vehicles, had narrowed its search to the California site and one in Brownsville, Texas.

That legislative effort failed and in July Saronic announced it had selected the Port of Brownsville site near the Gulf of Mexico. Nevertheless, California Forever tried again at the end of this year’s  legislative session to pass legislation that would have allowed the company to use an 18-year-old environmental impact report to build a shipyard. It failed last month after supervisors voted 3-2 against it, in what CalMatters called a surprise vote. The bill’s author, Lori Wilson, D-Suisun City, said she would respect the board’s decision and pulled the bill, per the news report.

Interestingly, the bill had the support of Gov. Gavin Newsom. And the company enlisted two big-time Democratic former legislative leaders, Darrell Steinberg of Sacramento and Bob Hertzberg of Los Angeles, to advocate on its behalf. The project also has union support, which is a major political plus in the state Capitol — but to no avail.

The company is also trying a different tack to streamline approvals. As CalMatters added, the company tried to “bypass county restrictions on building by being absorbed into Suisun City boundaries.” That underdeveloped city, surrounded by wetlands near Fairfield, sees incorporation as a solution to its ongoing budget difficulties. Last year, the proposal passed its first municipal hurdle as city staff approved the company’s initial filing.

The city seems excited about the process and boasts: “Expansion of Suisun’s borders would allow growth, economic development and enhanced services for Suisun City residents for years to come.” This appears to be the most promising approach for the project at this point. The city recently sold California Forever some downtown properties, as a means to redevelop the area and build relationships with the company — although it’s not directly connected to the annexation effort.

The new city project still faces enormous hurdles from other Solano County cities such as Rio Vista, and local residents, with opinion polls showing strong opposition to the proposal. There’s plenty to criticize in how California Forever’s backers have handled themselves — including their secretive land acquisitions, lawsuits against local farmers over alleged price fixing, and reportedly high-pressure legislative efforts. Some critics see it as a cram down from Bay Area elites — and billionaires aren’t too popular these days. But the fundamental issues go far beyond any one project.

If California is going to build the housing that its population needs and create high-paying private-sector jobs, it needs to efficiently build large-scale projects that it used to routinely build. California Forever had envisioned an “urban blank slate where everything from design to construction methods and new forms of governance could be rethought.” That’s up the Free Cities Center’s alley, as we seek out innovative ideas for urban life. But California’s political and bureaucratic systems are forcing major compromises, delays and uncertainties. It’s iffy whether this project will come to fruition.

By having to rely on exemptions, California Forever and other companies by definition have to rely on politics and need to spend years and millions of dollars focusing on initiative campaigns, lobbying efforts, public relations and legal maneuvers. Even business-friendly states such as Texas impose hurdles, but they are lower and the political culture is more supportive of economic growth and development. Is it any wonder Saronic Technologies chose an existing port over a proposed one that might require years of state approvals?

The California Chamber of Commerce is sponsoring a November initiative (Proposition 45) that would provide broader exemptions to the California Environmental Quality Act (CEQA) rather than just piecemeal ones. That, however, is just the first step in creating a development climate that would allow such a useful project to proceed — as well other projects the state will need in the future.


Steven Greenhut is director of the Pacific Research Institute’s Free Cities Center.
 

banner photo Travis Air Force Base and Surrounding Areas © DickLyon

 

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