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California Forever Envisions "Solano Foundry" Industrial Park
California Forever has reprioritized its plans for a new city in Solano County with an expanded vision that includes a 2,100-acre advanced manufacturing site known as the “Solano Foundry.” Unveiled at the Reindustrialize Summit, the Foundry is positioned as a response to the decline in domestic manufacturing capacity and is projected to generate approximately 40,000 jobs across sectors such as aerospace, robotics, logistics and energy, an increase from their original promise of 15,000 jobs. While company representatives emphasize the economic and strategic benefits of such a facility, critics contend that similar industrial uses could be accommodated within existing cities, questioning whether the initiative serves more as a promotional effort for their larger proposal. Local officials remain divided: some express support for the potential economic diversification and reduction in out-commuting, while others cite concerns about insufficient engagement with communities and the capacity of local governments to manage such large-scale development. The proposal arrives as the county considers broader planning updates, with annexation discussions paused and regulatory streamlining for manufacturing gaining traction at the state level. (See related CP&DR coverage.)
Protests Put IEFD at Sacramento Railyards on Hold
A planned expansion of Sacramento’s Railyards Enhanced Infrastructure Financing District (EIFD) has been halted after local stakeholders formally protested the proposal, triggering a one-year delay under a state law that calls for for a pause if more than 50% of local residents protest. The expansion, which was intended to fund infrastructure for a new soccer stadium and mixed-use development, drew criticism for offering only 6% affordable housing despite public subsidy involvement. The expanded EIFD would have raised up to $90 million for the project, which is led by the Wilton Rancheria Tribe. Unite Here Local 49, representing hospitality workers, filed a lawsuit alleging the city failed to count protest letters and argued the deal prioritized private developers over community needs. City officials, including Mayor Kevin McCarty, reaffirmed support for the project and said alternative funding mechanisms are being pursued that would not rely on the General Fund. Sacramento Republic FC and developers maintain they will move forward with the planned 12,000-seat stadium, while opponents continue to call for greater affordability, displacement protections, and community benefits.
Feds Cancel High Speed Rail Funding, State Sues
The Trump administration officially cancelled $4 billion in federal funding for Californias high-speed rail project, after a federal assessment that found "no viable path" for the project to meet the grant's 2033 deadline for limited passenger operations, and accused the High Speed Rail Authority of mismanaging the project. Long a target of public attacks by President Trump, the HSR network was originally scheduled for completion in 2020 and is around $100 billion over budget from its original cost of $33 billion. Construction is currently confined to the Central Valley, with the initial 119-mile stretch around 59% complete. The High Speed Rail Authority has filed a lawsuit against the Trump Administration, arguing that the federal assessment was based on outdated information and the decision to revoke funds reflects "personal animus" against the project. Gov. Newsom vowed to use every avenue possible to fight the federal government's decision, citing the importance of continued progress for America's only under-construction high-speed rail system.
Program Seeks to Increase Shade Coverage in Los Angeles
The USC Dornsife Public Exchange, in collaboration with the UCLA Luskin Center for Innovation, is launching the ShadeLA initiative. The effort aims to increase tree canopy and shade infrastructure to mitigate the dangers of climate change-driven extreme heat, while making LA safer for upcoming world sports events including the 2026 FIFA World Cup, the 2027 Super Bowl, and the 2028 Olympics. LA County currently sees 1,500 excess emergency room visits per extreme heat day, and the number of extreme heat days is projected to increase by 31% by 2050. Shade is one of the best ways to reduce heat risk, and urban shaded areas can feel up to 70 degrees Fahrenheit cooler than in direct sun. The ShadeLA initiative aims to add new shade through trees and built structures, and preserve existing shade with science-informed decisions.
CP&DR Coverage: Newport Beach Case Reaffirms Preeminence of State Law over Local Ballot Initiatives
An Orange County judge has reiterated this principle that state laws override local land-use ballot measures yet again in a ruling involving a case from Newport Beach. In 2000, voters approved the so-called “Greenlight” initiative, which requires voter approval for general plan amemdnet that would “significantly increase” the density or intensity of land uses in the city. Stop Polluting Our Newport, a longtime citizen activist group, then sued, claiming that the city had violated the Greenlight initiative by not taking the housing and land use element updates to a vote. the First District Court of Appeal laid out a two-part test to determine whether an ordinance of a charter city like Newport Beach is pre-empted by state law. SPON and NBSA argued that the city could have held a vote in advance of the state’s deadline for implementation of the housing element, and that such a measure might well have passed. But, Judge McCormick wrote, “The point is not the date by which the City was required to comply with section 65583.4, or that voters might approve the amendments; it is that the City was required to comply with the statute.”
Quick Hits & Updates
Governor Newsom and the California Department of Housing and Development are releasing $101 million for the rapid rebuilding of multifamily rental housing following the January 2025 fires. The funding is intended to meet the immediate housing needs of communities impacted by the fires, and will prioritize projects that are ready for construction, close to burn areas, and with a resident preference for displaced households. The money will be available through HDC's Multifamily Finance Super NOFA (Notice of Funding Availability), allowing afforable housing developers to apply for a range of funding awards through a single application. The NOFA requires all projects to be affordable for 55 years.
The Port of San Diego approved a negotiating agreement with the McGary Group, a developer planning a sports and entertainment complex for the 124-acre Otay District of Chula Vista. The proposal includes three hotels with up to 700 rooms, a multi-use stadium, a 300,000 square foot retail area, two golf courses, and more.
A report from Stanford's Institute for Economic Policy Research finds that California's homelessness crisis remains one of the worst in the country, citing insufficient shelter capacity, a shortage of housing, and weak incentives for drug treatment as key drivers of the state's high rate of homelessness, particularly unsheltered homelessness. The report emphasized that data collection and transparency has not kept up with massive new government investments, and need to be overhauled to understand the effectiveness of policies and investments.
In June LA Metro ridership fell to its lowest level of the year following large-scale immigration raids throughout LA County. Overall ridership fell 13.7% from May. Following the detention without warrants of three Pasadena residents by masked immigration agents at a Metro bus stop, as well as reports of federal agents questioning riders at a Metro station, Mayor Bass and other city officials have raised concerns about federal policy making people fearful of taking public transit.
The San Diego Foundation and the San Diego Association of Governments announced $14 million in funding for 10 affordable housing projects across San Diego County, which will bring 966 affordable housing units to market between December 2026 and 2030. Since 2020 home prices in San Diego County have risen by 42%, and over a third of residents spend over 30% of their income on housing.
A judge has upheld Newport Beach’s housing plan, rejecting lawsuits from two local groups that challenged the city’s compliance with state housing mandates. The ruling supports the city's 2022 Housing Element update and its 2024 zoning and general plan amendments, which aim to accommodate 4,845 new housing units as required by the state. Mayor Joe Stapleton emphasized that the city acted within legal bounds and avoided severe penalties, including large fines and potential loss of local land-use control.
Irvine City Council members are considering a plan to replace the Oak Creek Golf Club, a site protected as permanent open space by a 1988 voter-approved initiative, with 3,100 housing units, a school and parks, sparking debate over whether the preservation designation can be removed without another public vote. While the city attorney argues the council has legal authority to amend the designation without voter approval, several council members and former officials insist that changing the status should require a vote.
A new report from the Public Policy Institute of California finds that while California lost 789 company headquarters between 2011 and 2021 (about 1.9% of its total) the overall impact on jobs and the state’s economy is modest, as most companies retain other operations in the state and many new firms launch or close each year. Researchers suggest that the slight increase in headquarters relocating to states with lower tax and regulatory burdens points to the need for California policymakers to critically evaluate regulations for their costs and effectiveness to improve the business climate.
Two UC Berkeley teams won first and second place in a national affordable housing competition with proposals to redesign a neglected housing complex in Florida, balancing cost, resilience and community needs. Team Blue’s winning design, “Mango Commons,” proposed a climate-resilient, high-density development featuring green infrastructure, family-centered amenities and a path to homeownership.
An engineering proposal was submitted for a plan to restore part of Tulare Lake, once the largest body of fresh water west of the Mississippi river. The plan calls for the purchase of 24,000 acres of land from multiple private owners and the state. The reservoir and wetlands created would help prevent floods, provide wildlife habitat, and be of cultural and spiritual significance to the Tachi Yokut Tribe, who lived around the lake before it was drained for agriculture.
Via executive order, President Trump is creating the Make America Beautiful Again Commission with the goal of expanding access and promoting economic growth on public land. This is the latest in a series of moves by the Trump administration to open protected land to activities including drilling, mining, and development.
In June LA Metro ridership fell to its lowest level of the year following large-scale immigration raids throughout LA County. Overall ridership fell 13.7% from May. Following the detention without warrants of three Pasadena residents by masked immigration agents at a Metro bus stop, as well as reports of federal agents questioning riders at a Metro station, Mayor Bass and other city officials have raised concerns about federal policy making people fearful of taking public transit.
