Former mayor sues over downtown revitalization voting

The former mayor of Chico, Ann Schwab, has filed a lawsuit against Mayor Kasey Reynolds, alleging that Reynolds should have recused herself from voting on the downtown revitalization project, according to filings in Butte County Superior Court.

The lawsuit alleges that Reynolds has a financial interest involved with the subject matter of the vote. Reynolds co-owns a business downtown, Shubert’s Ice Cream & Candy, according to her Form 700, a document filed with the state’s Fair Political Practices Commission (FPPC) to show financial interests. 

“The mayor has a clear conflict of interest,” said Schwab’s attorney, Peter Washington. “She shouldn’t have voted on downtown revitalization. I don’t know why this wasn’t raised sooner, and now the project has stalled and it’s almost too late.”

A statement from Washington’s office alleges that Reynolds violated the Political Reform Act.

That act “prohibits a public official from using his or her official position to influence a governmental decision in which he or she has a financial interest,” according to the FPPC’s website.

Without a preliminary injunction, the City might miss out on the Active Transportation Grant, says the press statement from Washington’s office. The grant application, due June 22, would help fund much of the project.

This comes as the FPPC, the commission tasked with enforcing political accountability, opened an investigation into Reynolds’ voting participation on the revitalization project. The investigation was prompted by allegations similar to those made in Schwab’s lawsuit.

The lawsuit states that plaintiffs believe that more than 50 complaints have been made about the recusal issue to the FPPC. That agency provided ChicoSol a list of more than 41 that had been made as of May 1.

In an April 29 email sent to Reynolds, the FPPC states that it has “… commenced an investigation regarding your potential violation of the conflict of interest provisions of the Political Reform Act.

“At this time, we have not made any determination about the possible violations …”, the email continues.

A second email was sent May 1, according to FPPC documentation.

Reynolds learned about Schwab’s lawsuit late May 6, but in a phone conversation with ChicoSol, declined comment at that moment. Reynolds also said she wasn’t aware of the FPPC investigation, but had received notifications of many complaints.

The downtown revitalization project has remained contentious, as the Chico City Council has stalemated both times that it was brought to a vote. Councilmember Tom van Overbeek recused himself from voting on the project because he owns multiple buildings downtown.

Alternative 1 — the recommended plan — would remove a lane on Broadway and Main streets and installed protected, one-way bike lanes.

Shubert’s on East 7th Street is near Main Street.

Schwab explains her legal action

“It’s important to me to be able to trust my representatives to make decisions that adhere to the rules of the FPPC,” Schwab said. “I want the court or FPPC to give guidance and rule on this.”

Schwab was on Chico City Council for 16 years. She also co-owned a business downtown, Campus Bicycles, and said she recused herself on many important issues downtown because of that.

Schwab said the revitalization project was a “wonderful opportunity that was supported by so many people, and it should be voted on by councilmembers without conflicts of interest.” 

Several other people have signed onto the lawsuit, and among them are Eric Nilsson, Kate Sheehy, Jocelyn Stringer, Julia Cruse, Kelsey Simmen, Theodore Ketai and Celeste Bailey Pace. 

Washington told ChicoSol the plaintiffs want a court order that would force Reynolds to recuse herself from the revitalization voting and that would require the Council direct staff to move forward with the project. 

The lawsuit names City Clerk Debbie Presson as a defendant because “she is the City officer with the duties and powers to carry out the actions necessary to remedy the harms complained of herein.”

The press release says Washington “has been in communication with City Attorney Ryan Jones over the past week, making efforts to resolve the matter without having to file in court.”

ChicoSol reached out to Jones by phone and text for comment, but hadn’t received a reply by time of publication.

At the City Council meeting earlier this week, about 14 people spoke at the podium to ask that downtown revitalization be brought back to the panel.

Chris Hutton is a contributor to ChicoSol.