Palm Springs reaches $500K settlement with restaurant owners over patio for Plaza Theatre

The City of Palm Springs reached a settlement agreement with the owners of a downtown restaurant over patio space needed to get the multi-million dollar Plaza Theatre renovation project up to code.

In November, the Palm Springs City Council approved a resolution of necessity of Kalura Trattoria's patio, the first step in acquiring the property through eminent domain. The restaurant is located next to the theater.

The city said it needs to widen an existing 10-foot easement to 20 feet in order to meet California building code requirements for the theater renovation. Officials said the space is required by Building and Fire Codes for people to safely enter and exit the theater.

The restaurant owners strongly opposed the move, telling News Channel 3's Luis Avila in November that the process has been unfair and will impact their business.

The fight was over on Thursday as the city announced a settlement agreement. The agreement includes:

• Payment in the amount of $500,000 to Kalura Trattoria for loss of goodwill resulting from the relocation of Kalura’s existing outdoor patio
• The City will provide a relocated outdoor dining patio with seating for 60 people within a portion of the right of way in front of Kalura. In addition, the City will improve the courtyard area in front of the Plaza Theatre, including where Kalura’s existing patio now sits.
• The City has agreed not to charge Kalura for the use of the right-of-way area within the
  relocated patio for as long as Kalura occupies the restaurant property

“We are thrilled to have collaborated with the City to reach this agreement. The City's commitment to supporting local businesses and enhancing the downtown area is truly commendable,” said Ignazio Battaglia and Joseph Amodeo, owners of Kalura Trattoria. “The new patio area, made possible through this agreement, will provide customers with a beautiful and inviting space to enjoy Kalura Trattoria's signature Italian cuisine. Furthermore, we are delighted to see the renovated Plaza Theatre take shape. This iconic landmark will undoubtedly become a vibrant hub of cultural and artistic activity, and we are honored to be a part of the downtown Palm Springs community.”

“I am very pleased the City has reached an agreement with Kalura and have long been confident that we would find a positive solution. It has always been our goal that the theatre will continue to have a positive impact on the community and businesses that surround it,” said J.R. Roberts, President of the Palm Springs Plaza Theatre Foundation. “We are beyond excited about the future of this new cultural venue, which will be managed and programmed by Oak View Group, industry leaders in venue management and entertainment programming.”

The city-owned theatre, located near the corner of Tahquitz Canyon Way and Palm Canyon Drive, first opened in 1936 with the world premiere of the legendary Greta Garbo film “Camille” – and has been vacant since the closure of the Fabulous Palm Springs Follies in 2014.

A grand opening for the newly restored theatre, which will be operated by the Palm Springs Plaza Theatre Foundation, is planned for December of this year.

Check Out: In-Depth: Restoration of the Plaza Theatre in Palm Springs

“The City of Palm Springs is incredibly excited to add yet another cultural venue that will create more jobs and economic growth in our downtown while bringing our community an array of new and exciting entertainment programs,” said Mayor Ron deHarte. “Our City continues to be a leader in promoting arts and culture in Palm Springs and the Coachella Valley. A big thank you to City Staff, the Palm Springs Plaza Theatre Foundation, and our community stakeholders for working together to find the best possible solution for all concerned.”