Simmer sun-dried tomatoes in stock to reconstitute. Purée in a food processor.
Heat a saucepot or Dutch oven over medium heat with EVOO, 4 turns of the pan. Melt butter into oil, add onions, garlic, bay and salt, and cook to very soft and translucent—do not brown. Add sugar or honey, chili flakes, tomatoes and basil, and simmer 20-30 minutes to break down tomatoes.