Palm Springs City Council still discussing possible Grit Development settlement
The Palm Springs City Council continued debate Wednesday on a proposed settlement with Grit Development that could clear the way for projects in downtown Palm Springs.
This is all a part of the fallout from the “Scandal at City Hall.” Developers John Wessman and Richard Meaney, along with former Palm Springs Mayor Steve Pougnet, face bribery and corruption charges stemming from the downtown project. Wessman is the founder of Wessman Development.
When Wessman was arrested, his son-in-law Michael Braun took over as president of the company and renamed it Grit Development.
If Pougnet, Wessman, and Meaney are found guilty Palm Springs could “clawback” some benefits obtained through ill-gotten contracts, as a part of Government code section 1090 claims.
City Manager David Ready said, “if they’re found not guilty, the city gets nothing.”
Read: Detailed look into the settlement
Council members have previously expressed their concerns that a failure to reach an agreement on the settlement could lead to the city losing the Kimpton Rowan Hotel and the downtown project.
City leaders said this deal could bring taxpayers the equivalent of $30 million in value and would also allow Grit Development to forward with additional phases of the downtown project.
The proposal includes reimbursing the city for the purchase of the downtown park, constructing a new city library at cost, and donating three parcels of land.
That land was the focus of people’s concerns today.
“As part of these negotiations, we believe the council must include the Town and Country Club in this settlement,” one resident said.
Some residents hoped to find new buyers for the historic and nationally recognized Town and Country Center.
“Buyers waiting in the wings to purchase the center and restore it,” another resident told the council.
However, not everyone agrees about including the center in the settlement.
“I do not believe that the Town and Country Center should be part of this settlement. Mr. Braun and Grit appear to be moving forward with that project,”
The city council says work is being done for that piece of land.
“We forced the developer in those early negotiations to protect, clean the site, and get it to a point where it’s no longer degrading and that’s occurring,” said Councilmember JR Roberts.
Councilmembers leaning towards settling with Grit Development.
“The lack of a settlement delays everything,” said Councilmember Lisa Middleton.
“This would be amazing if we could settle this as quickly and easily as it looks right now. I couldn’t be happier about this,” Roberts added.
The proposed settlement does not take into account transient occupancy tax rebates, worth tens of millions of dollars for the properties.
This is all still in the discussion phases. Councilmembers made it clear that a deal has not been decided on. The city is not expected to take firm action until possibly August.
Stay with News Channel 3 for updates.
