California Forever CEO Explains Plans to Build a New Community

Pivot with Kara Swisher and Scott Galloway
1 May 202427:11

TLDRYan Shamak, CEO and founder of California Forever, discusses his ambitious plan to create a new community in Solano County, California. With the support of Silicon Valley billionaires, the company has acquired 62,000 acres of land with the goal of addressing California's housing crisis by building a complete community with homes, apartments, schools, shops, jobs, and churches. Shamak emphasizes the project's focus on affordability and walkability, aiming to build a dense, sustainable community that offers opportunities for working families. He also addresses concerns about the influence of tech investors and the potential for creating a separate governance structure, clarifying that the project is rooted in traditional democratic processes and is motivated by a desire to improve the built environment and economic mobility for all residents.

Takeaways

  • πŸ™οΈ Yan Shamak, CEO of California Forever, aims to build a new community on 62,000 acres in Solano County, California, to address the housing crisis and revitalize California's building industry.
  • 🌐 The project has been shrouded in secrecy initially to avoid driving up property prices and to strategically acquire land necessary for the community's comprehensive planning.
  • 🀝 Support from Silicon Valley billionaires has been crucial in acquiring the land and envisioning a community that could become an economic engine for Solano County.
  • 🏑 The new community will not be a simple subdivision but a complete community with homes, apartments, schools, shops, jobs, and churches, similar to historical neighborhoods like Noe Valley or the Marina.
  • πŸ“ˆ Shamak believes that the key to success is to let the city emerge organically from a well-planned foundation, avoiding overly rigid master plans that have led to failures in the past.
  • πŸ‘₯ The plan focuses on inclusivity, aiming to provide opportunities for young people and working families, who are increasingly priced out of the housing market in areas like San Francisco.
  • πŸ’° The project is a for-profit investment with a long-term perspective, seeking to offer a good return while also addressing social issues related to housing and economic mobility.
  • πŸ›οΈ Concerns about the influence of tech investors and the potential for creating a separate, tech-driven society are acknowledged, but Shamak emphasizes the goal is to build an inclusive community, not a separate governance structure.
  • 🌳 About a third of the land will be used for the community, with the rest dedicated to solar farms and green belts, which will also provide a habitat for local fauna like sheep.
  • πŸ“‰ Solano County has seen a widening income gap with the rest of the Bay Area, and the project intends to bring economic opportunities to the county, which has been left out of regional prosperity.
  • βš–οΈ The project has faced legal challenges, including accusations of price-fixing by local farmers, but most lawsuits have been settled, and the focus is on gaining community support and moving forward.

Q & A

  • What is the primary goal of California Forever's project?

    -The primary goal of California Forever's project is to build a new community in Solano County, California, which is about an hour north of San Francisco, to address the housing shortage and create a complete community with homes, apartments, schools, shops, jobs, and churches.

  • Why was there a need for secrecy at the beginning of the project?

    -The secrecy was partly to prevent land prices from skyrocketing once it was known that a major development was underway, and also to allow for the strategic acquisition of a large amount of land to properly plan and design the community.

  • How does Yan Shamak envision the community to be different from a typical subdivision?

    -Yan Shamak envisions the community not as a typical subdivision but as a complete community that includes all the elements of a traditional neighborhood, with a focus on creating a walkable, dense place that fosters a sense of community, creativity, and human health.

  • What is the expected price range for the homes in the new community?

    -The homes or apartments in the new community are expected to start at around $400,000, which is considered very affordable by Solano County standards.

  • How does Yan Shamak respond to concerns about the project being a form of 'Tech Neo-libertarianism'?

    -Yan Shamak clarifies that they are not trying to create a separate governance or secede from the nation. The focus is on building more housing to increase opportunities and create a walkable community. He emphasizes that the project is about building affordable housing and not about establishing a different type of society.

  • What is the role of the investors in the project?

    -The investors in the project are primarily interested in a for-profit investment that also serves a social good. They are motivated by a desire to address the housing crisis in California and to contribute to the economic opportunity and sustainability of the region.

  • How does the project plan to address the issue of affordable housing?

    -The project plans to address affordable housing by building a variety of housing types, including starter homes, which have become increasingly scarce. They aim to create a walkable community with a compact footprint, using the land more wisely and efficiently to keep housing costs down.

  • What is the timeframe for the completion of the project?

    -The project has a long-term perspective, with a timeframe of around 20-30 years to fully develop the community.

  • How does Yan Shamak view the role of technology in the development of the community?

    -Yan Shamak expresses that he has zero interest in the 'smart city' component often associated with tech investments. The focus is on creating a community that is reminiscent of traditional neighborhoods, with an emphasis on quality design and walkability rather than technological innovation.

  • What has been the response from the local community and elected officials?

    -The response has been mixed. While some people serving at the nearby Air Force Base have expressed support, there has also been skepticism and resistance from some elected officials and community members who have rushed to conclusions without fully understanding the project's details.

  • What are the environmental considerations in the project?

    -The project plans to build on only a third of the acquired land, using the rest for solar farms and green belts. The design takes into account the local climate, with the street grid oriented to utilize natural wind for cooling during the hot summer months.

  • How does California Forever plan to avoid some of the pitfalls of past planned cities?

    -California Forever plans to avoid past mistakes by not imposing a rigid master plan on the city. Instead, they will do the minimum correct planning initially, then allow the city to emerge organically with input from various builders, architects, companies, and residents.

Outlines

00:00

🏒 Yan Shamak's Vision for California Forever

Yan Shamak, CEO and founder of California Forever, discusses the ambitious project to create a new community in Solano County, California. With the support of Silicon Valley billionaires, they've acquired 62,000 acres with the aim of addressing the housing crisis and revitalizing the area. The plan is to construct a complete community with homes, apartments, schools, shops, jobs, and churches, potentially becoming an economic engine for the region that has missed out on recent prosperity. Shamak emphasizes the importance of building not just houses, but a sense of community and belonging.

05:01

πŸ€” Addressing Concerns of a Tech-Driven Society

The conversation delves into concerns about the project's potential implications on society. There are fears that the new community might represent a tech-driven, libertarian approach to governance, possibly leading to a separate society for the tech elite. Shamak clarifies that the primary focus is on creating walkable, dense places that foster community and creativity. He distances the project from ideas of creating a separate government or 'Tech Zionism', and stresses the importance of democracy and traditional city-building practices.

10:01

🏘️ Building a Community with a Focus on Affordability

Shamak outlines the strategy for making the new community affordable, emphasizing the need for a variety of housing types, including starter homes. He criticizes the current real estate trend of ceasing to build smaller, affordable homes, which has led to a lack of housing options for working families. The goal is to create a community with homes starting around $400,000, made possible by smart land use and design. Shamak also discusses the importance of building a community that addresses the needs of the local Air Force Base workers and their families.

15:01

πŸ“ˆ For-Profit Investment with a Social Conscience

The discussion highlights the dual nature of the investment as both a for-profit endeavor and a social good. Shamak explains that the investors are interested in a 'profit plus' model, where the investment is not only about financial returns but also about contributing positively to society. He mentions the investors' various philanthropic causes and their alignment with the project's goals of economic opportunity, sustainability, and community building. The investors are described as being passionate about California and committed to addressing the housing crisis.

20:04

🌱 Sustainable Living and Community Design

Shamak talks about the importance of sustainability in the community's design. He mentions the incorporation of solar farms and the creation of green spaces for the local fauna, like cows in the area. The design considerations also include the orientation of the street grid to take advantage of natural cooling from summer winds. The focus is on building a place that is not only economically viable but also environmentally responsible and aesthetically pleasing.

25:05

πŸš€ Support and Challenges from Government Entities

The final paragraph addresses the level of support from state and federal governments. Shamak expresses optimism about the potential for assistance from these entities, given the current focus on housing as a priority. He mentions the historical lack of investment in Solano County and the opportunity to bring state and federal funds to the area. The goal is to improve the region for its current residents and make it an attractive place for others to live and work.

Mindmap

Keywords

California Forever

California Forever is the name of the company founded by Yan Shamak, which aims to build a new community in Solano County, California. It is a for-profit investment focused on addressing the housing crisis in the region by creating a walkable, dense community that is both economically and environmentally sustainable.

Solano County

Solano County is located north of San Francisco and is the area where California Forever plans to build a new community. It has been identified as a region that has been left out of the Bay Area's prosperity and is in need of economic revitalization and housing development.

Housing Crisis

The housing crisis refers to the shortage of affordable housing in California, particularly in the Bay Area. It is a central issue that California Forever aims to address by developing a new community with a focus on affordability and accessibility for working families.

Silicon Valley Billionaires

Silicon Valley billionaires are wealthy investors from the Silicon Valley area who have financially supported the California Forever project. Their involvement signifies a belief in the potential of the project to create a positive impact on the region's housing situation.

Economic Engine

An economic engine is a region or industry that drives economic growth and prosperity. In the context of the video, California is described as an economic engine for the country, and the new community in Solano County is intended to become a unique economic engine for the county itself.

Complete Community

A complete community refers to a planned living environment that includes not just housing but also essential services and facilities such as schools, shops, jobs, and recreational areas. California Forever's goal is to build such a community that fosters a sense of neighborhood and supports a diverse population.

Affordability by Design

Affordability by Design is a concept where the design of a community incorporates elements that make housing more affordable. This includes building smaller homes, apartments, and dense urban environments that reduce costs without compromising on quality of life.

Walkable Cities

Walkable cities are urban areas designed to promote walking as a primary mode of transportation. They typically feature a high concentration of residential, commercial, and recreational amenities within a short walking distance. Yan Shamak emphasizes the importance of walkable cities for community, health, and the environment.

Environmental Impact Report

An environmental impact report is a document that assesses the potential environmental effects of a proposed development. California Forever plans to conduct such a report for the entire community to ensure that the development is environmentally sustainable.

Governance Innovation

Governance innovation refers to new approaches or methods in how a community or region is governed. In the context of California Forever, it involves streamlining the building permit process to make construction more efficient and responsive to housing needs.

Smart City

A smart city is an urban area that uses different types of electronic data collection sensors to supply information which is used to manage assets and resources efficiently. While the concept is mentioned, Yan Shamak clarifies that California Forever is not focused on creating a 'smart city' but rather a community with a traditional neighborhood feel.

Highlights

California Forever, led by Yan Shamak, aims to build a new community in Solano County, California.

The project involves the acquisition of 62,000 acres of land, creating a complete community with homes, apartments, schools, shops, jobs, and churches.

The initiative seeks to address California's housing crisis by creating a new economic engine for Solano County.

The community will be designed to be walkable and dense, promoting a sense of community, creativity, and human health.

The project has faced scrutiny and concerns about potentially creating a separate society for the tech elite.

Yan Shamak emphasizes that the project is focused on building affordable housing and not on experimenting with new governance models.

The community will be built with a street grid, allowing the city to emerge organically from the initial planning.

Investors in the project are interested in both the social good and the economic opportunity it presents.

The project aims to provide housing opportunities for working families, including teachers and nurses, who currently struggle to afford homes in the Bay Area.

California Forever has proposed a ballot measure to streamline the building permit process for the community.

The project has faced legal challenges, including lawsuits from local farmers, but most have been settled.

The community's design will prioritize affordability, with homes and apartments starting at around $400,000.

The project has received interest from both the state and federal government, who are supportive of innovative housing solutions.

Yan Shamak believes that the project can help reverse the trend of Solano County lagging behind the rest of the Bay Area in economic growth.

The project will include a green belt and solar farms, with considerations for the local environment and agriculture.

California Forever's approach is to build a community that can be recognized and appreciated 50 years from now, similar to classic neighborhoods in San Francisco or New York.

The project is designed to be a long-term investment, with a 20-year time horizon for development.