Palm Springs officials announced a settlement agreement with Grit Development on Friday that resolves a legal dispute over property access rights needed for the restoration of the historic Plaza Theatre, with the city agreeing to pay nearly $1 million and construct a new outdoor dining patio.
The agreement, which includes a $986,500 payment to Grit, secures a permanent easement on land adjacent to the theater that city officials say is crucial for the long-planned restoration project.
“As dedicated investors in Palm Springs, GRIT is grateful to have reached a positive resolution with the City regarding our downtown property,” said Michael Braun, president of Grit, in a statement sent late Friday evening. “While the process brought its challenges, we respect the city’s vision — and the leadership of (Plaza Theatre Foundation President) J.R. Roberts — in restoring the iconic Plaza Theater, a future landmark for the entire community.”
As part of the settlement, the city will build a new outdoor dining patio for Kalura Trattoria, a restaurant located on Grit property next to the project site. The patio will be constructed on public sidewalk space and include seating for 60 people, lighting, misting and music systems, a network connection, and permanent shade structures.
The city will grant Grit a rent-free easement to use the space as long as the restaurant remains in operation, according to settlement documents.
“The City of Palm Springs is pleased to have reached a positive resolution with Grit Development regarding access rights to the historic Plaza Theatre,” said Amy Blaisdell, the city’s communications director. “From the beginning, the city’s focus has been on ensuring public safety while preserving one of Palm Springs’ most iconic cultural landmarks.”
The settlement resolves an eminent domain action filed by the city last December, and a subsequent cross-complaint from Grit that claimed inverse condemnation related to the easement and adjacent properties.
City officials said the resolution clears the way for the Plaza Theatre to reopen this fall, when it will “once again host world-class performers and contribute significantly to the vitality of our downtown.”
In addition to the financial compensation and patio construction, the city agreed to reimburse up to $15,000 of Grit’s legal fees related to the settlement.
The settlement also includes provisions for the city to make improvements to the courtyard area in front of the theater, creating what officials described as a “cohesive, pedestrian-friendly public space” in coordination with nearby businesses.
According to Blaisdell, the restored theater will serve as a “cornerstone to the city’s downtown revitalization, delivering millions of dollars in economic impact and enriching Palm Springs’ vibrant arts and culture scene.”
The agreement includes a provision for future restroom access for Plaza Theatre guests through Grit’s nearby Plaza Las Flores property if the city or its theater operators lease space there, though this would be governed by a separate agreement.
Both parties agreed to indemnify each other from liability arising from the project, and the court is expected to enter a final judgment allowing the city to formally acquire the easement.
