Palm Springs to pay nearly $1M in Plaza Theatre patio use settlement
PALM SPRINGS, Calif. (KESQ) - Palm Springs reached a settlement with Grit Development that includes a $1 million payment related to a patio issue delaying the multi-million-dollar Plaza Theatre renovation project.
The settlement stems from patio space at the restaurant Kalura Trattoria, located next to the theater. The city was set to acquire the property through eminent domain as was required to get the Plaza Theatre renovation project up to state code for people to safely enter and exit the theater.

The owners of the restaurant strongly opposed the move, telling News Channel 3's Luis Avila in November that the process has been unfair and will impact their business. In February, Palm Springs reached a $500,000 settlement agreement with the owners of Kalura.
Grit Development, the owners of the property, filed a lawsuit over the issue in December, as well as a cross-complaint against the city in November. On Friday, Palm Springs announced a settlement agreement with Grit Development, where the city will pay $986,500 as well as work on a new replacement patio within the portion of a public sidewalk in front of Kalura.
Statement from City of Palm Springs:
"The City of Palm Springs is pleased to have reached a positive resolution with Grit Development regarding access rights to the historic Plaza Theatre. From the beginning, the City's focus has been on ensuring public safety while preserving one of Palm Springs' most iconic cultural landmarks. With the resolution of issues surrounding the patio and easement, the City is looking forward to finishing the project and restoring the Theatre to its original glory.
When the Plaza Theatre reopens this fall, it will once again host world-class performers and contribute significantly to the vitality of our downtown. The restored Theatre 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.
We thank Grit Development for their collaboration and ongoing investment in our community. Together, we look forward to a revitalized Plaza Theatre that will benefit residents, visitors, and future generations."
The Plaza Theatre is one of Palm Springs' oldest and most iconic venues, and it is currently being restored in a multi-million-dollar project. It is set to open in December.
For more on the Plaza Theatre, visit: palmspringsplazatheatre.com and savetheplazatheatreps.com