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Chico council backs downtown revitalization work: opportunity-zone application and entertainment-business zone effort approved

Chico City Council · March 17, 2026
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Summary

Council directed staff to pursue an Opportunity Zone application and explore an Entertainment Business Zone framework and referred broader downtown revitalization work to the Internal Affairs committee; the opportunity/entertainment authorizations passed 6-0 with one recusal.

Councilmember Ryan introduced a request for focused, short-term action to revitalize Chico's downtown, highlighting parking and public-safety measures and asking for immediate, actionable steps. Multiple downtown business owners and organizations urged quick, practical fixes: Leanne Powell, who owns a Main Street business, asked the council to consider limited free parking and stricter controls on event street closures that she said compete with brick-and-mortar stores. "Free parking would be great every day," Powell said, adding that street-closure policies can harm Saturday brick-and-mortar sales.

PBID coordinator Audrey Taylor described an initiative package the downtown Property-Based Improvement District has developed: ambassadors who clean and monitor downtown, a Block-by-Block reporting program, a Safe Streets program coordinated with police and university partners, a "Park and Go" parking-pilot concept, Open Doors to fill vacant storefronts, and FreshCoat, a $25,000 PBID paint-grant that has been matched with additional private funds. "The PBID has put up $25,000 to paint buildings downtown," Taylor said, noting a match of $30,000 and support from Sherwin-Williams.

The council voted to authorize staff to complete an application for federal Opportunity Zone consideration (to be submitted to the governor's office) and to pursue an Entertainment Business Zone framework under recent state law that can allow regulated moving of purchased alcoholic beverages within a designated business footprint. Molly Copta of the Chico Chamber summarized the statewide policy background and local economic aims, saying the concept is a recent innovation other North State cities have piloted.

Councilmembers favored proceeding while ensuring public-safety oversight. Councilmember O'Brien said he expected close coordination with the police department given downtown's prior alcohol-related issues. The council voted 6-0 with one recusal to move forward on both the Opportunity Zone application and exploration of the entertainment business zone, and it referred broader downtown revitalization to the Internal Affairs committee for a situational report and recommended next steps.

Next steps: staff will work with PBID, the chamber and police to develop proposals, pursue the Opportunity Zone application to the governor's office, and return to council with implementation details and public outreach plans.