Palm Springs City Council unanimously approves settlement with Grit Development
The Palm Springs City Council meeting unanimously approved a settlement with Grit Development stemming from the fallout of the “Scandal at City Hall.”
As part of the settlement, Grit Development will donate five parcels of land to the city, an increase from three parcels discussed in previous meetings. This includes 40 acres of open space “Rimrock” property, as well as, over five acres of undeveloped land in the “Gene Autry Trail” property, which could be used to develop affordable housing, according to city documents.
“This is truly a win-win,” councilmember J.R. Roberts said at Wednesday’s meeting.
The total value of the settlement is approximately $36,890,243, which according to the city, is based on appraisals and a broker’s opinion. Previous settlement offers were valued at a little over $33,000,000.
Read: Detailed look into the settlement
One of the big topics for residents at the last settlement discussion was the future of the historic Town and Country Center.
Councilmember Lisa Middleton mentioned at the meeting that the owner of the property “is committed to the competition of the town and country.” Middleton said it will be important for the city to make sure that this commitment is complied with over the next couple of years.
The settlement comes years after “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.
Before this settlement had been reached, if Pougnet, Wessman, and Meaney were 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 commented on the risk of ‘clawback’ saying, “If they’re found not guilty, the city gets nothing.”
Grit was also having trouble securing financing for the next phases of its downtown project, while the 1090 issues are unresolved. With this settlement, the company can move forward with the plan.
“We have removed the financial barrier from Grit Development being able to complete the downtown,” Middleton said.
Stay with News Channel 3 for continuing coverage.
