More neighbors. More energy.​

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Activate Upper-Story Housing in Alignment with the City's Adopted Vision

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The City of Chico’s adopted Downtown Element envisions a multi-story, mixed-use hub with residential units above active ground-floor uses. Policy DT-2.1 prioritizes residential projects that create activity throughout the day and evening . Action DT-2.4.1 specifically calls for the reuse of existing upper-floor suites (“Reuse Upstairs”).* The Downtown Opportunity Sites inventory, included in city documents, further identifies underutilized parcels and redevelopment potential suitable for urban multi-family housing.

 

The vision is clear. Implementation has been limited. While there is demand for downtown living, activating second stories has historically been difficult. Rehabilitation costs, life-safety upgrades, egress requirements, building code compliance, parking considerations, and financing constraints often prevent projects from financially penciling — even when property owners are willing.

 

PBID would like to request that together City-PBID and others focus on moving from adopted vision to practical activation to reposition downtown as the vibrant district we all once knew and cherished.

 

Purpose

Work in partnership with the City to identify and reduce barriers to upper-story residential and mixed-use activation downtown — in alignment with existing adopted policy. The goal is not to create new policy — but to activate the policy already adopted by the City.

 

Why This Matters

Downtown vitality depends not only on storefront activation, but also on the floors above them. Increasing downtown living supports:

• 24-hour activity and “eyes on the street”

• Greater demand for local businesses

• Improved perception of safety

• Stronger long-term economic stability

Working on this as an initiative ensures the City’s adopted vision for downtown living becomes actionable, measurable, and implementable.

 

Request for City Partnership

PBID would like to propose a focused working session 3rd or 4th quarter 2026 with City staff and Council representatives to:

1. Identify the primary regulatory, financial, and structural barriers to upper-story residential activation.

2. Review existing code flexibility under adaptive reuse provisions.

3. Explore potential permitting streamlining or clarity tools.

4. Assess parking, egress, and life-safety constraints specific to older downtown buildings.

5. Discuss possible financing, incentives, fee adjustments, or pilot tools that could support projects.

6. Determine whether a targeted “Downtown Adaptive Reuse Guide” would be helpful for property owners.

 

* Chapter 6, Downtown Element, General Plan; Appendix B Opportunity Sites