Gov. Gavin Newsom has been quietly whipping help for California’s billionaire-backed megacity because it faces the lack of a key tenant, The Put up has discovered.
Whereas staying publicly mum on the controversial megaproject, Newsom privately met with California Perpetually’s CEO this spring earlier than launching a behind the scenes push to win help for the undertaking throughout his remaining months in workplace — along with his workers even telling lawmakers the undertaking could also be a matter of nationwide safety.
Newly obtained information present Newsom met privately with California Perpetually officers, together with CEO Jen Sramek, for 35 minutes on April 1. The Put up has additionally discovered that Newsom’s chief of workers Nathan Barankin, who briefed the governor on the undertaking forward of April’s assembly, has summoned Solano County officers for a gathering Thursday to debate the undertaking.
The governor’s workplace declined to touch upon the conferences and California Perpetually’s proposal, however Newsom’s administration declared in a bullish memo final week that the proposed Solano Shipyard and Solano Foundry tasks has the very best potential of any undertaking within the state to lure billions of {dollars} in funding, including that it’s not solely a neighborhood and state situation however may change into a matter of “nationwide safety.”
The memo appears to be clearly directed at state legislators, who’re being pushed to go particular laws once they return to session subsequent week after the July recess.
California Perpetually’s proposal additionally consists of the nation’s first walkable metropolis with 170,000 new properties over 40 years.
Altogether, the strikes sign an escalating push by Newsom’s workplace to coordinate native and state help for California Perpetually after Saronic — a protection startup with plans to construct an enormous shipyard — selected Texas over Solano County’s bid.
The beforehand undisclosed conferences provide the clearest glimpse but into Newsom’s private involvement in a undertaking that has advanced from a controversial proposal to construct a metropolis of 400,000 residents into an formidable plan centered on shipbuilding, superior manufacturing and workforce housing.
For Newsom, the California Perpetually undertaking and its timing are important.
Newsom has steadily talked about chasing “huge, furry, audacious” targets all through his political profession, from legalizing same-sex marriage to proposing to place generators within the water beneath the Golden Gate Bridge whereas San Francisco’s mayor. He now seems to be trying to find a defining accomplishment to cap practically eight years in workplace amid expectations he’ll run for president in 2028.
Touchdown one of many nation’s largest superior manufacturing hubs whereas pairing it with desperately wanted housing would hand Newsom a legacy undertaking with nationwide enchantment.
With fewer than six months remaining in workplace, the governor remains to be nicely wanting his lofty purpose of constructing 3.5 million new properties by 2025, a quantity that was later revised to 2.5 million properties by 2030. The proposal in Solano County has the potential so as to add tens of 1000’s of latest housing models to help a burgeoning workforce.
California Perpetually is financed by a who’s who of Silicon Valley billionaires, from LinkedIn co-founder Reid Hoffman and Laurene Powell Jobs to famed investor Michael Moritz and Stripe co-founder Patrick Collison — all prolific Democratic donors who’ve spent tens of millions backing candidates and political committees in latest election cycles.
Ushering by one in all their signature tasks may strengthen Newsom’s standing with a few of Silicon Valley’s strongest political benefactors as consideration shifts towards 2028.
California Perpetually has additionally employed heavyweight Sacramento lobbying agency Axiom Advisors, based by Jason Kinney — Newsom’s longtime political ally who grew to become synonymous with the governor’s notorious French Laundry dinner. Lobbying disclosures present California Perpetually has paid Axiom a minimum of $335,000 since retaining the agency in April 2025.
A supply with information of Newsom’s assembly with California Perpetually stated Kinney was not current.
Does Newsom have the ‘juice’?
In latest months, former Sacramento Mayor Darrell Steinberg, who additionally served as Senate president professional tempore, has been advising the trouble alongside former Meeting Speaker and Senate Majority Chief Bob Hertzberg. The 2 males — nicknamed “The Bergs” by insiders — stated the proposal suits squarely inside Newsom’s priorities.
“He’s been keen about each job creation and the California housing disaster, and a win right here can be a serious win — not just for the governor however for California,” Steinberg instructed The Put up.
Hertzberg stated California should show it could actually nonetheless compete for main industrial tasks.
“We need to ship a message, damnit! That California is open for enterprise,” he stated.
The renewed push follows a setback this month when Saronic chosen Texas over Solano County for its deliberate multibillion-dollar autonomous shipyard. Supporters of the proposal blamed California legislators for failing to go particular laws to expedite approvals for improvement and manufacturing investments.
Steinberg referred to as the loss “a cautionary story.”
“What we’re doing is presenting a possibility,” he stated. “We’re attempting to place Solano County and California in a extra aggressive place to have the ability to win the following competitors.”
Quite than revive California Perpetually’s unique imaginative and prescient of a sprawling master-planned metropolis, Steinberg and Hertzberg stated the brand new imaginative and prescient is to tie housing on to job creation, with employers driving residential progress and current cities getting the primary alternative to construct extra housing.
“It’s about getting began,” Steinberg stated. “It’s about guaranteeing that there’s sufficient housing to satisfy the precise wants of the employer — each the variety of models, the affordability of the models and the proximity of the models to the office.”
Hertzberg added, “This isn’t Disneyland.”
In a memo final week, Newsom’s high enterprise and financial improvement adviser, Dee Dee Myers, argued California has a once-in-a-generation likelihood to capitalize on billions in federal shipbuilding and superior manufacturing investments whereas serving to revive Solano County after years of main industrial closures.
“GO-Biz believes this can be a second for California to double down on the financial system of the long run — and to point out the nation and the world that we stay open for enterprise,” Myers wrote.
She later concluded that the Solano Shipyard and Solano Foundry are “tasks of statewide significance and the type of transformational alternative California ought to battle for and win.”
However not everyone seems to be shopping for the pitch.
Matt Rexroad, a political advisor and former Yolo County supervisor, instructed The Put up that he has no sturdy opinion about California Perpetually. However he questioned why Steinberg and different former elected officers have tried to “money in” as its most seen advocates.
“It simply looks like full hypocrisy for Darrell Steinberg to be advocating for this undertaking,” Rexroad stated.
“It appears to go in opposition to every little thing that he was attempting to do as a policymaker on the Capitol.”
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The proposal additionally faces resistance from Democrats whose help can be essential for any particular laws.
Earlier this month, state Sen. Christopher Cabaldon (D-West Sacramento) rejected California Perpetually’s argument that state forms price Solano County the Saronic undertaking.
As an alternative, Cabaldon accused the corporate of sinking its personal possibilities.
“They held the shipyard proposal hostage by tying it to their unpopular housing improvement proposal,” he stated in a press release.
“When push got here to shove, California Perpetually selected their billionaire undertaking over bringing this chance to Solano County.”
Rexroad questioned whether or not Newsom has sufficient political affect throughout his remaining months in workplace to beat that opposition.
“I’m unsure he has the flexibility to show the screws to go particular laws,” Rexroad stated. “The governor has quite a bit much less juice than he did 5 years in the past for one thing like this.”
“If the native legislators there need to cease this, they in all probability can.”
