Mystery Company Acquired $800M of Land to Build New City in California

An unknown firm, supported by Silicon Valley tycoons, has been quietly amassing land in a northern California county with apparent intentions to construct an entirely new city in the state.

The New York Times reported that these investors include some of the most prominent figures in Silicon Valley, from Marc Andreessen to Laurene Powell Jobs, businesswoman, executive, and Steve Jobs’s widow.

Where and how much: The enigmatic entity, known as Flannery Associates, has allocated a staggering $800 million to procure extensive parcels of farmland in Solano County, situated to the northeast of San Francisco, according to court documents obtained by Insider.

The Wall Street Journal has disclosed that since 2018, Flannery has acquired approximately 52,000 acres of farmland encircling Travis Air Force Base. Government officials initiated investigations into these acquisitions, suspecting potential foreign interests may be linked to the company.

Concerns raised: Catherine Moy, Mayor of Fairfield, shared her concerns with ABC 7 News, stating, "So the entire base is encircled now; there's no part that isn't touched by Flannery."

Flannery Associates and its specific city development plans remain shrouded in secrecy, with little information available.

Who’s behind Flannery: The New York Times revealed that Jan Sramek, a 36-year-old former Goldman Sachs trader, leads the company.

Notable backers of Flannery include Marc Andreessen, Laurene Powell Jobs, Michael Moritz of Sequoia Capital, LinkedIn co-founder Reid Hoffman, among others, as outlined in the report. However, the individual investment amounts remain undisclosed.

When it began:  In 2017, Flannery Associates presented a proposal to transform Solano County land into a sustainable city, powered by clean energy, capable of accommodating tens of thousands of residents, as reported by The Times. Real estate data indicates that the current median housing price in the county stands at $585,000.

The New York Times also obtained an email in which Michael Moritz stated that Flannery had initially purchased about 1,400 acres of land for less than $5,000 per acre.

However, spending costs have surged since then, with Flannery now allocating up to $15,000 per acre, as indicated in court documents filed by lawyers representing Flannery Associates.

A theory: Silicon Valley has a long-standing aspiration to construct cities from scratch, often envisioning a utopian "smart city."

In 2016, Y Combinator, a Silicon Valley startup accelerator, began exploring the possibility of developing a city that could address California's affordable housing crisis, with a focus on creating inclusive spaces for both tech and non-tech individuals.