Important Update: Warren Settlement

On August 14, 2025, the City of Chico filed a new Rule 60 Motion in Federal Court, asking Judge Dale Drozd to grant relief from, or modify, the Warren Settlement Agreement. This filing raises issues entirely different from earlier motions, focusing on two fundamental legal questions:

1. Whether the Warren Settlement improperly extended relief to all "Homeless Persons" even though no class was certified.

2. Whether the agreement unlawfully restricted the City's police powers, limiting its ability to enforce ordinances necessary for public health and safety.

At the same time, the City has been working with Magistrate Judge Carolyn Delaney to address urgent wildfire risks in areas such as Lindo Channel, Big Chico Creek, and Little Chico Creek. Despite months of negotiations, LSNC has repeatedly refused to agree to expedited procedures or accept the City's fire danger maps, leaving high-risk areas vulnerable. After the July 16 hearing, LSNC promised to confer with their clients (the seven remaining plaintiffs) but ultimately rejected the City's narrowed proposal without offering any meaningful counterproposal.

Because of this stalemate, two tracks are now underway:

• Rule 60 Motion before Judge Drozd (filed 8/14/25): Seeks relief from or modification of the settlement on constitutional and jurisdictional grounds.

• Additional motion before Judge Delaney (expected 8/27/25): Will address unresolved wildfire-related issues and other disputed enforcement provisions.

The City maintains that the Warren Settlement continues to block reasonable and necessary steps to protect residents, businesses, and even encampments themselves from fire danger and other public safety threats.

Related filings:

2025-07-14 Warren v. City of Chico Dispute Resolution (PDF)

2025-08-14 City of Chico – Motion for Relief (Rule 60) (PDF)

What This Means for Downtown Chico Property Owners

Here's why the Warren Settlement and the City's current legal motions matter directly to your property and investment in Downtown:

• Safety & Fire Risk – City efforts to clear high-fire danger encampments remain blocked, leaving businesses exposed to increased fire and liability risks.

• Costs to Owners – Property owners continue to face higher expenses for cleanup, private security, and insurance because the City's enforcement tools are restricted.

• Impact on Customers – Unchecked encampments reduce foot traffic and discourage shoppers, diners, and visitors from coming Downtown.

• City Resources Diverted – Millions have been shifted away from core services and Downtown investment into settlement-driven shelter and compliance costs.

• Property Values at Risk – Legal paralysis undermines confidence in Downtown, making reinvestment and long-term growth harder.

• Path Forward – A favorable ruling on the City's Rule 60 motion could restore Chico's ability to manage public spaces and improve Downtown safety and vitality