California Forever will purchase $1.5 million worth of downtown properties from Suisun City as a direct means of balancing the city’s finances for this fiscal year without staff layoffs or service interruptions, pending a vote of the city council to accept the sale later this year.
According to a letter to the city signed by California Forever CEO Jan Sramek obtained by The Reporter, the company will purchase the Lawler House/Theater block and city-owned parcels on the adjacent 701 Main St. block, which have already been listed for sale.
The firm notes the city’s ongoing fiscal struggles early in the letter and expresses concern for the future of the community. California Forever, Suisun City, and Rio Vista continue to jointly discuss the annexation of land owned by the developer into the two cities.
“Following the May 13th meeting of the Suisun City Council, we are aware of the serious financial challenges facing the city, and the hard choices that may lie ahead, including the risk of layoffs and impacts to vital community services,” he said. “We recognize how difficult these circumstances are for the city and its staff, and the long-term implications for the well-being of Suisun City residents.”
In addition to the letter, City Manager Bret Prebula told The Reporterthat the city council will discuss a completed reimbursement agreement with the firm at a special meeting on Tuesday, June 10. That document will become available with the meeting agenda on Thursday, June 5.
Also, separate of the potential property purchase, California Forever pledged $55,000 to save Suisun City events under imminent threat of cancellation due to a lack of funds, including Music on the Waterfront, the Sunday Jazz concert series, Movies in the Park, the city’s Kwanzaa celebration, National Night Out, the Menorah lighting, Suisun Pride and the 4th of July firework display.
Prebula expressed excitement about the opportunity, describing it as “exactly what I think we wanted California Forever to do as a region.” He said critics of the developer, including Fairfield Mayor Cat Moy, have long called for California Forever to invest in existing downtowns in the community. The company first expressed a willingness for investments like these in its 2023 community town halls and has already partnered with NorthBay Health to bring clinics to Rio Vista and Winters.
The letter does not outline a specific purpose for the properties, but does express a willingness to seek community input and work with the city to find a good use for them.
“Our goal would be to not just buy the properties, but to immediately begin the process of working with you, city staff, and the Suisun community to design something wonderful,” the letter reads. “In such a process, we would seek to evaluate whether any of the existing buildings can be incorporated into the new project, or if we would need to do all new development. In either case, the goal would be to enhance the vibrancy of the downtown.”
Prebula said city staff and the company are still negotiating which exact properties will be exchanged, and he hopes to bring an item back for a city council vote in late summer or early fall, ensuring that the profits will be incorporated into the city’s general fund before the end of the fiscal year. The city’s general fund reserve currently sits at $5.5 million, and Prebula said deficit spending is projected for the next four years, barring cuts to services and staff layoffs.
“We are going to have so much dozer activity popping up in Suisun City,” Prebula said, expecting the most construction in the community since former Mayor Jim Spering navigated the redevelopment process.
The letter notes that if the city is ultimately not interested in the sale, California Forever would still be interested in creating a development agreement with the city. It also notes the company’s willingness to create a public benefit in that agreement, and a willingness to pledge that no construction will commence on the larger project until “the necessary funds” have been invested in Suisun City’s Downtown.
“We are excited about working with the community to find an exciting project that both the city and the community can stand behind and that meets the marketplace demand so it can be developed in a timely fashion,” the letter reads.
Prebula clarified that the purchase of the properties would not create a commitment on the part of Suisun City to continue the development process if negotiations ceased to be beneficial to the city. He stressed that the investment was a show of good faith from the developer and in no way binding for the city.
All Suisun councilmembers have been resolute that the city needed to see up-front investment to maintain interest in discussions with California Forever, Prebula said, even Councilmember Princess Washington. Washington has consistently voted against items related to the company and has been one of their most vocal public critics.
“The plan is coming together, and I applaud the council so strongly for holding strong to this plan,” he said.
Prebula once again expressed frustration with online misinformation about the project, particularly a comment by Moy on a Facebook post that erroneously alleged that funds from the sale could not be put toward the general fund. Prebula made clear that this is not the case, and said he wishes that Moy and other critics would call him and discuss the matter rather than posting false information online.
“Mayor Moy can get my phone number from her staff,” Prebula said.
The letter is “upfront and clear” that the developer does not promise to create a property in the downtown area on a “standalone basis.”
“As you know, many of the cities in Solano County have been looking to redevelop lands in their downtowns, but generally, it has been challenging for any such projects to be commercially viable,” the letter reads.
The letter signs off by expressing a 50-year commitment from the developer.
“California Forever is committed to being a strong partner for Suisun City for the next half a century,” it concludes. “We look forward to hearing from you.”