Developers file lawsuit against City of Chico Effort underway to void referendum and move forward Valley's Edge

by Leslie Layton
posted April 2

The Valley’s Edge development group has filed a lawsuit in Butte County Superior Court against the City of Chico, arguing that the 2024 referendum that has blocked its project from going forward must be voided.

photo by Leslie Layton
The land east of city limits transitions into the foothills.

The Believe in Chico LLC says that the state’s Housing Crisis Act of 2019 is grounds for voiding the referendum and allowing the development of 2,700 housing units and 57 acres of commercial development on vacant land east of city limits.

In a March 5 election last year, more than 60 percent of Chico voters opposed two measures related to the planned development known as Valley’s Edge.

The lawsuit filed March 20 in Butte County Superior Court and received by the City of Chico today argues that “housing shortfalls have reached crisis levels,” and adds that this city is “no stranger to this emergency.” It states that the Housing Crisis Act legislation prohibits passage of any kind of policy that stops housing development in the jurisdiction of an “affected city.”

“The Act applies to the ‘electorate of an affected county or city exercising its local initiative or referendum power,’” states the lawsuit, quoting a statute.

Believe in Chico LLC is what was formerly known as Chico Land Investment. It says the project was approved by the City and in keeping with the 2030 General Plan. It also notes that the City planned to annex the property.

The lawsuit says a “controversy has arisen” with the City over the “lawfulness of the Referendums.” The lawsuit was filed by a Los Angeles firm on behalf of Douglas Guillon and Believe in Chico.

Valley’s Edge, as it was originally planned, could place almost 5,600 people in southeast Chico where the valley floor transitions into foothills.

Chico resident Eric Nilsson, who worked on the Stop Valley’s Edge campaign with the group Smart Growth Advocates, said last year that volunteers who canvassed met voters who were clear about their misgivings. “What we found out is that what Chicoans don’t want is sprawl development that’s going to put more pressure on the infrastructure of the City,” Nilsson told ChicoSol.

Earlier this year, Butte County Superior Court Judge Michael Candela predicted that Valley’s Edge would be back in one form or another, and he placed a stay on a lawsuit filed by environmental groups Sierra Club, the Center for Biological Diversity and AquAlliance.

“The court believes there is a high likelihood that a new project will take the place of the former Valley’s Edge project,” the judge said in denying the City’s motion to dismiss the suit. “… this court has been around this county for a very long time. The issues from this case are unlikely to go away. However, the case is stayed until further order of the court.”

Leslie Layton is editor of ChicoSol.

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