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Gateway developers push a corner‑first buildout as economic headwinds slow larger plan
Summary
Development team for the Oroville Gateway project told the City Council the group is shifting to a ‘corner-first’ strategy — building flex space and visible storefronts first — after larger anchor users failed to commit amid post‑pandemic economic and supply‑chain pressures.
Frank Ross, the marketing lead for the Gateway project, told the Oroville City Council on March 18 that national and regional economic forces have slowed recruitment of major anchor tenants and that the development team is shifting strategy to build visible, leasable corner buildings to “show that there’s something going on there.”
Ross said his firm spends roughly $4,000 a month marketing properties across Northern California and is still seeking larger users. He said PG&E has purchased a building on Larkin Road for tree maintenance, Battery manufacturers have filled some airport warehouses, and the team has engaged a Sacramento group exploring options that could include a grocery-anchored center. Ross also cited continued interest from Amazon-related distribution users, saying earlier conversations had advanced but COVID and other economic factors delayed decisions.
Vice Mayor Smith and Council members asked about opportunities to use Oroville to attract reshoring and manufacturing that are returning to the U.S. Ross said he and the team have declined “small players” that would not support a larger complex and reiterated they need an anchor tenant but will begin construction on corner buildings and flex space designed so tenants can occupy one or more “bays” for office, medical or retail use.
Councilmember Goodson pressed for details about a hotel and fine‑dining components; Ross replied that the economics “are not a reality right now” for a full master plan and that the corner-first approach is meant to create visible, higher‑caliber buildings to attract future users. He described plans that include a water feature, outdoor patios and a layout that faces Montgomery and Feather River Boulevard.
The presentation identified ongoing marketing outreach to brokers in 70 cities and local contacts in Chico, Orland, Gridley and Corning. Ross said the project team intends to submit engineered plans and proceed through architectural review, but will not build a speculative hotel and hope a hotel operator later leases it. He said the corner buildings could be started this year if approvals and market conditions align.
Council members did not take a formal vote on the Gateway presentation; staff said the team will return with formal applications and submittals as projects move forward.
