Indio, Developer Settle Lawsuit Over Transportation Hub

The city of Indio has finalized the amount of a settlement agreement to end a lawsuit with KEB Enterprises, the City Council announced today.

The amount of the settlement is $2.58 million, according to sources News Channel 3 spoke with Wednesday evening. KEB Enterprises was seeking $13 million when it filed a lawsuit.

The City Council approved the agreement during a closed session today. Complete terms are expected to be made public Thursday once it is signed, according to City Manager Dan Martinez.

KEB Enterprises filed a lawsuit against the city two years ago alleging that officials breached a contract and stole designs for a planned transportation center.

Talks headed in the direction of a settlement April 25 as attorneys met behind closed doors with Superior Court Judge Randall D. White on the day a trial was supposed to begin.

Outside of saying a settlement was expected, attorneys for both parties held off on divulging details until the agreement was approved by the City Council.

Palm Desert-based KEB Enterprises filed the lawsuit in 2009, accusing the city of improper conduct during planning for an Indio Transportation Center, which has yet to be built, on Indio Blvd.

The suit alleged the city broke a 2007 contract under which 6.5 acres of land was to be leased to KEB Enterprises for $1 a year if the company developed and operated the transportation hub.

The planned 17,000-square-foot transportation center would offer bus and train service as well as shuttle service to local casinos and include a restaurant and several other businesses.