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Palm Springs City Council members discuss the Section 14 lawsuit settlement Thursday. | Photo courtesy of the city of Palm Springs
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The Palm Springs City Council on Thursday voted 5-0 to approve a lawsuit settlement offer aimed at addressing historical injustices for former Section 14 residents, which includes a $5.91 million cash payment.
Other housing and economic development initiatives are detailed in the settlement package, which the “Section 14 Survivors” group has accepted, according to a prepared statement from the city released Wednesday.
“The City Council is deeply gratified that that the former residents of Section 14 have agreed to accept what we believe is a fair and just settlement offer,” Mayor Jeffrey Bernstein said. “The City Council has always respected the historical significance of Section 14 and with this resolution of the claim which includes $20 million in housing programs and $1 million in business support.”
The city is “taking bold and important action that will create lasting benefits for our entire community while providing programs that prioritize support for the former residents of Section 14,” Bernstein added.
In April the council OK’d a previous version of the settlement agreement that had an initial cash payment of $4.3 million. That amount increased Nov. 7, which accounts for a 36% increase in the “estimated 197 homes … involved in the original abatements, up from the previous 145 homes identified,” officials said.
The council brought in locally based consultant Architectural Resources Group to conduct a historical context study, the final report of which was released Friday. ARG has also done similar studies in Los Angeles, Pasadena, West Hollywood and Culver City.
The report analyzed actions by the city government that contributed to the displacement of residents in the area circa the mid-20th century.
Palm Springs officials’ statement provided these highlights of the agreement:
- A $5.91 million cash settlement — “compensation based on current valuations of personal property losses, to be distributed to verified former residents of Section 14 and descendants”;
- $20 million in housing programs, paid out “over 10 years, from funds already set aside for housing opportunities … to provide affordable homeownership for first-time buyers and establish a Community Land Trust for low-income residents, with priority access for the former residents of Section 14 and descendants”;
- $1 million in small business assistance via a partnership with the Caravanserai Project that will provide grant funding and low-interest loans to encourage “economic empowerment for disadvantaged groups, with dedicated outreach to the former residents of Section 14 and descendants”;
- Two cultural initiatives — plans for a monument memorializing the displaced residents and naming rights for future public parks.
More information about the aforementioned study and other information surrounding Section 14 can be found at engagepalmsprings.com.
