Feds investigate new California city planned by tech execs near San Francisco after massive land buy

According to The New York Post, the US Treasury Department's Committee on Foreign Investments in the United States (CFUIS) is still investigating the project for any national security risks.

Rep. John Garamendi (D-CA) told the outlet that the firm has only given "half the story" with its explanation and that it has the signs of a "patient" foreign investment scheme. He said, "To say it’s ‘American money’ is not a complete explanation of who is the investor."

"I’ve been around long enough to understand the way foreign money – legitimate and illegitimate – is invested in the United States. Usually in an LLC, in a real estate transaction," Garamendi noted.

Flannery Associates first raised eyebrows in July when it purchased the 300 parcels of land to build the city on. Around the same time, a Chinese-owned company began purchasing land around Grand Forks Air Force Base to build a wet corn mill plant.

It revealed some of its investors in August to ease speculation, naming billionaire venture capitalist Michael Mortiz and other tech moguls. They said they bought the 52,000 acres to turn it into a vibrant metropolis.

Mayor of Fairfield, Catherine Moy, told the Post that the feds are "not 100 percent that China is not behind funding on this." She added, "CFIUS, they’re still going forward with their investigation. You can trust but verify, especially with things like this."

"A couple of the investors already are very connected with China, business-wise," Moy said.

A Flannery Spokesperson said the organization has disclosed all of the foreign investors it has and claimed: "a couple of local politicians are unfortunately and irresponsibly spreading rumors and misinformation to insinuate that California Forever is not an American company."

California Forever is described as Flannery's parent company.

This report comes as California is set to host the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, where President Joe Biden will meet with Chinese President Xi Jinping. The city notably cleared out its homeless population to make a good impression on the 20,000 people who will be visiting the city.