Palm Springs to pay downtown restaurant $500,000 to settle dispute over Plaza Theatre

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The city of Palm Springs and a restaurant with a patio next to the entrance of the Plaza Theatre have agreed to settle a dispute that threatened to delay the renovated venue’s opening.

Kalura Trattoria, an Italian restaurant with an outdoor patio on a walkway leading into the theatre, will receive $500,000 from the city “for loss of goodwill” resulting from the necessary relocation of the patio. The city will also provide a new patio to the restaurant at the front of the property.

“I am very pleased the City has reached an agreement with Kalura and have long been confident that we would find a positive solution,” J.R. Roberts, president of the Palm Springs Plaza Theatre Foundation, said in a news release. “It has always been our goal that the theatre will continue to have a positive impact on the community and businesses that surround it.”

A 10-foot space in front of the Plaza Theatre is seen on December 4, 2024.

A 10-foot space in front of the Plaza Theatre is seen on December 4, 2024.

In November, the city revealed that the entrance to the Plaza Theatre did not contain enough space to comply with California law. The state building code requires the theatre to have 20 feet of space for entering and exiting in case of fire or another emergency like an earthquake. At the time, the city only had a 10-foot easement into the property.

The patio for the Kalura Trattoria stood within the additional 10 feet required by the state. The city then took steps to proceed with eminent domain, a legal process by which private property owners are forced to sell land to the government for public benefit.

The owners of Kalura, Ignazio Battaglia and Joseph Amodeo, had previously said moving the patio would harm their business. But on Thursday, they commended the city for the agreement they had reached.

“The new patio area, made possible through this agreement, will provide customers with a beautiful andinviting space to enjoy Kalura Trattoria’s signature Italian cuisine,” the owners said in a joint statement. “Furthermore, we are delighted to see the renovated Plaza Theatre take shape. This iconic landmark will undoubtedly become a vibrant hub of cultural and artistic activity, and we are honored to be a part of the downtown Palm Springs community.”

The new patio will have seating for 60 people, a slight reduction from the capacity of 70 at the current patio. The city will also improve the courtyard area in front of the Plaza Theatre. Kalura will not be charged by the city to use the area in front of the restaurant.

A rendering showing the widened easement promotes the ongoing restoration project outside the historic Plaza Theatre in Palm Springs, Calif., on December 4, 2024.

A rendering showing the widened easement promotes the ongoing restoration project outside the historic Plaza Theatre in Palm Springs, Calif., on December 4, 2024.

“The City of Palm Springs is incredibly excited to add yet another cultural venue that will create more jobs and economic growth in our downtown while bringing our community an array of new and exciting entertainment programs,” Mayor Ron deHarte said in the statement. “Our City continues to be a leader in promoting arts and culture in Palm Springs and the Coachella Valley. A big thank you to City Staff, the Palm Springs Plaza Theatre Foundation, and our community stakeholders for working together to find the best possible solution for all concerned.”

The Plaza Theatre first opened in 1936 and has been vacant since 2014, after the closure of the Fabulous Palm Springs Follies.

A $26.3 million restoration is underway for a planned revival of the theatre, which will be operated by the Plaza Theatre Foundation. Oak View Group, the company behind Acrisure Arena, will be responsible for booking shows. The company plans to offer tickets at discounted prices subsidized by the foundation.

A grand opening is planned for December of this year.

Sam Morgen covers the city of Palm Springs for The Desert Sun. Reach him at smorgen@gannett.com.

This article originally appeared on Palm Springs Desert Sun: Palm Springs pays restaurant $500,000 to settle Plaza Theatre dispute



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Alexandra Williams
Alexandra Williams
Alexandra Williams is a writer and editor. Angeles. She writes about politics, art, and culture for LinkDaddy News.

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