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Receive a presentation providing further background on the City of Suisun City’s recent action to enter into a Reimbursement Agreement with California Forever LP related to the proposed annexation of approximately 22,873 acres of unincorporated land into the City of Suisun City including a large part of what is now being referred to as the Suisun Expansion Specific Plan; Affirm the Board’s previous direction regarding the letter to the City of Suisun City requesting action on the Reimbursement Agreement and the plan moving forward be deferred; Establish the County’s position and direct staff to proceed accordingly that any expansion plans by the City should be brought forward through the County’s General Plan Update process based on the scale and scope of the plan referenced in the Reimbursement Agreement and the amount of unincorporated area under consideration
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Published Notice Required? Yes ___ No X _
Public Hearing Required? Yes ___ No X _
RECOMMENDATION:
It is recommended that the Board of Supervisors:
1. Receive a presentation providing further background on the City of Suisun City’s recent action to enter into a Reimbursement Agreement with California Forever LP related to the proposed annexation of approximately 22,873 acres of unincorporated land into the City of Suisun City including a large part of what is now being referred to as the Suisun Expansion Specific Plan;
2. Affirm the Board’s previous direction regarding the letter to the City of Suisun City requesting action on the Reimbursement Agreement and the plan moving forward be deferred; and
3. Establish the County’s position and direct staff to proceed accordingly that any expansion plans by the City should be brought forward through the County’s General Plan Update process based on the scale and scope of the plan referenced in the Reimbursement Agreement and the amount of unincorporated area under consideration.
SUMMARY:
At the Board’s June 10, 2025 meeting, County staff requested and received the Board’s concurrence to send a letter to the City of Suisun City requesting that the City Council delay approval of a Reimbursement Agreement (Attachment A - Summary of the Agreement) with California Forever LP for services related to the proposed Suisun Expansion Specific Plan and annexation concept. The Board considered the urgency of the matter (the agreement was scheduled for action on the City Council agenda that evening) and provided direction to staff to draft and send a letter (Attachment B). Due to the urgency, full details of the proposed project were not presented to the Board at that time. Staff was directed to return with a status update and any further details on the City’s action. The attached letter was drafted and sent to the City and entered into the record at the City Council meeting requesting a delay on taking action on the Reimbursement Agreement so that the area in question could be considered in the broader context of the County’s General Plan update process given the amount of unincorporated area under consideration. After hearing extensive public testimony, the City Council approved the Reimbursement Agreement.
The Reimbursement Agreement approved by the City is an early step in the exploration of annexation of the subject area, but its significance should not be understated. There are clearly commitments and agreements embedded in the agreement including fiscal incentives and timelines that could impact County planning processes including the General Plan update. Staff’s presentation will touch on some key aspects of the Reimbursement Agreement and provide some background on the areas being considered for annexation. Staff will also be seeking direction from the Board on coordination of the County’s General Plan effort relative to any public outreach the City may initiate for the area in question. Normally, the overlap of processes in such circumstances would be minor as most annexation proposals are in the hundreds or perhaps low thousands of acres. In this case, the City is contemplating an annexation of tens of thousands of acres in an area that lacks urban services, containing significant environmental resources, and is in active agricultural use. Given the magnitude of what is being proposed and the nature of the area, staff believes the County’s General plan update process should lead and be in advance of any City led effort.
FINANCIAL IMPACT:
There is no direct fiscal impact associated with this item at this time. Any future coordination efforts or technical work will be included as part of the General Plan Update work program and associated budget.
DISCUSSION:
On June 10, 2025, the Suisun City Council approved a Reimbursement Agreement with California Forever LP for services related to the proposed Suisun Expansion Specific Plan and related areas, which could involve the annexation of approximately 22,873 acres currently within unincorporated Solano County. The proposed planning area overlaps with lands designated in the County’s General Plan as agricultural or open space and raises questions about long-term policy consistency with the County’s Orderly Growth Ordinance (Measure T) and broader regional land use planning objectives. The expansion plan also includes annexation of the Lambie Industrial Park, currently the largest area designated for industrial uses in the unincorporated area. The Agreement pushes forward a stated desire by the City for expansion and growth. Should the annexation and related entitlement be ultimately approved, the proposed Plan would not be subject to the citizen vote requirement of Measure T.
The Reimbursement Agreement includes provisions for funding City staff time and consultant costs to initiate CEQA review and specific plan development. The Reimbursement Agreement also contains significant fiscal incentives to the City of $3.5 million payable in cash at the certification of the EIR, $6.5 million payable upon LAFCO approval of the annexation. While the Reimbursement Agreement asserts the City retains discretion and independence over ultimate land use decisions and the CEQA process, its approval should be viewed as an initial administrative step toward annexation and urban development on currently protected lands with strong fiscal incentives to take actions even if significant issues are identified by studies or the public.
The Reimbursement Agreement contains provisions that may allow the City of Rio Vista to annex some of the California Forever land but otherwise, there are exclusivity provisions that limit California Forever to only work with the City of Suisun City. Further, there is a financial disincentive for the City if California Forever were to work with the County on substantially the same plan despite the fact that the subject area is fully under County jurisdiction. Specifically, the City would receive a termination fee of only $1 million if the County were to approve California Forever’s plan after the plan had been presented to the City and the City chose not to approve it, instead of the $10 million payment if the City were to approve it.
Little information about the proposed Plan is contained in the Agreement. An exhibit is provided showing the planned Suisun expansion concept, including the land use plan for the California Forever project. The new community plan appears to be very similar to what was proposed in the original Initiative submittal, although the exhibit is conceptual and hard to read. A phasing concept is also provided which shows a projected population of the new community of 15,000 residents by 2034, 150,000 residents by 2048 and a reference to full build out not being achieved until 2071 with no population projection, although given plan similarity on the exhibit to what was in the Initiative it can be inferred that the original 400,000 population estimate by the applicant is still applicable. Land area in the current City of Suisun City is approximately 4.1 square miles. The proposed expansion is approximately 35.7 square miles and would result in roughly a tenfold increase in city area if the annexation were to be approved.
The exhibit articulates further the proposed boundary configuration that would connect the existing boundaries of Suisun City to the proposed expansion area via multiple parcels just north of Highway 12 and south of Travis Air Force Base, owned largely by Flannery Associates. These parcels are zoned for Agriculture and under the Travis Reserve Overlay Zone. The narrow strip of land that encompasses these parcels is roughly 5 miles long. Overall, the new community at its closest point would be 7 miles from the existing Suisun City boundary with the furthest point east approximately 15 miles. The City’s existing Sphere of Influence does not cover the vast majority of the area proposed for expansion, as shown in the Reimbursement Agreement exhibit (Attachment C). The City also does not have an updated Municipal Services Review (MSR) for existing or expanded areas of development. It is not clear how the City would provide services to the expansion area or if an entirely new service system would be necessary.
Overall, the plan and annexation concept have significant ramifications for countywide planning. While the Reimbursement Agreement is only a small step towards a much larger project, the intent and provisions in the agreement have ramifications that set a momentum, and its parameters are concerning. Staff believes any process for expansion for such a large portion of the County should be imbedded in the County’s General Plan update process and not be City driven It is unclear to staff how Suisun City should be in a position to make decisions for the County on properties that will be many miles from the City’s current core urbanized area. Staff is recommending that the Board provide direction for the County to remain focused on this area as part of the General Plan update and request that any City proposals for expansion be brought forward as part of the County’s process.
ALTERNATIVES:
The Board could choose not to receive this presentation; however, that is not recommended since the Board directed staff to return for further discussion about the impacts of the proposed project.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION