12 November 2023 , 20:19
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A utopian city costing a whopping $1billion and backed by Silicon Valley is facing a national security probe amid claims the scheme is linked to China.
The planned town in California has been steadily building since 2017 after an unknown firm called Flannery Associates bought up nearly $1billion in land next to Travis Air Force Base. The purchase raised alarm bells among politicians that a foreign entity could be funding the project for their gain. Last year, a Chinese firm also splashed money on 300 acres of land near an Air Force drone base in North Dokta.
However, in August, the company tried to reassure Capitol Hill that the backers of the purchases were LinkedIn co-founder Reid Hoffman and venture capitalist Marc Andreessen. The tycoons claimed the land's proximity to the Air Force Base was unintentional, as they outlined plans to develop a wholesome city that featured sustainable energy, pedestrian-friendly layouts, and well-paid jobs fit for the future.
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A chunk of land recently purchased by Flannery Associates for nearly $50 million (AFP via Getty Images)Despite releasing the plans, the US Treasury Department's Committee on Foreign Investment in the United States, a panel responsible for vetting business transactions for potential national security risks, is still unhappy with their answers.
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California Democrat John Garamendi believes the project is showing signs of a "patient" foreign investment scheme. “To say it’s ‘American money’ is not a complete explanation of who is the investor,” Garamendi said. “I’ve been around long enough to understand the way foreign money – legitimate and illegitimate – is invested in the United States. Usually in an LLC, in a real estate transaction.” Catherine Moy, the mayor of Fairfield, said the federation is “still investigating” the situation and was “not 100% that China is not behind funding on this.”
A road sign is posted near a parcel of land recently purchased by Flannery Associates near Rio Vista, California (AFP via Getty Images)“CFIUS, they’re still going forward with their investigation. You can trust but verify, especially with things like this,” Moy said. “A couple of the investors already are very connected with China, business-wise.”
US Democrat Mike Thompson had asked the panel and the FBI to investigate the matter as Travis is a critical military transport hub known as the “Gateway to the Pacific” that serves as a key conduit for shipments to Ukraine. “My concerns with the land acquisition in Solano County have always been on national security and food security,” Thompson said in a statement. “Their rapid acquisition of land around Travis Air Force Base caused concern about who was making the purchases and their ultimate goal.”
John Garamendi has expressed concerns over the land purchases (FilmMagic)A spokesperson for Travis Air Force base confirmed that “senior officials are actively supporting all involved federal and Solano County agencies regarding the land purchases. Meanwhile, Flannery Associates said the project has “no other foreign investors” beyond the ones stated.
“While most area electeds have taken an open-minded approach to the opportunity our project presents for local jobs, investments, homes for middle-class families, and clean power, a couple of local politicians are unfortunately and irresponsibly spreading rumors and misinformation to insinuate that California Forever is a not an American company,” the spokesperson said.
“We have complied with all government inquiries and provided documents (including all investment agreements and subscription agreements) that unquestionably prove that over 97% of our invested capital comes from U.S. investors and that the remaining less than 3% comes from UK and Irish investors (Patrick and John Collison, with smaller stakes held by Charles Songhurst and Thomas Mather),” the spokesperson added.