City, restaurant reach settlement in Plaza Theatre renovation dispute

The City of Palm Springs has reached a $500,000 settlement with Kalura Trattoria, ending a contentious eminent domain dispute over courtyard space needed for the historic Plaza Theatre restoration.

The agreement comes after the City Council voted unanimously in November to approve the use of eminent domain to acquire part of the restaurant’s patio, a move that drew strong opposition from the business owners and community members.

At the time of the vote, City Attorney Jeff Ballinger said the acquisition was necessary to widen an existing 10-foot easement to 20 feet to meet California building code requirements for the theater renovation.

The settlement provides compensation to the Italian restaurant for relocating its outdoor patio and includes a new dining area in the city’s right of way in front of the restaurant with seating for 60 people.

Prior to the settlement, restaurant co-owner Ignazio Battaglia had strongly opposed the city’s actions. “This action is unnecessary, unjust and violates the right to our family owned business,” Battaglia said during public comments at a Nov. 21 meeting. “Most importantly, it will put at risk our employees’ families and kids.”

More than 600 citizens signed a petition opposing the use of eminent domain for the 22-year-old family-owned business’s patio acquisition.

Following the settlement, Battaglia and co-owner Joseph Amodeo expressed a more positive outlook.

“The city’s commitment to supporting local businesses and enhancing the downtown area is truly commendable,” they said in a statement released by the city.

J.R. Roberts, president of the Palm Springs Plaza Theatre Foundation, said, “I am very pleased the City has reached an agreement with Kalura and have long been confident that we would find a positive solution.”

The Plaza Theatre, which opened in 1936 with the premiere of Greta Garbo’s “Camille,” has been vacant since 2014 when the Fabulous Palm Springs Follies closed. The theater will be managed by Oak View Group once renovations are complete.

Mayor Ron deHarte said the restored theater will create jobs and economic growth.

“Our City continues to be a leader in promoting arts and culture in Palm Springs and the Coachella Valley,” he said.

The theater renovation project is expected to conclude with a grand opening in December of this year.

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