Press Releases

Clarification of Final Settlement Agreement with former residents of Section 14; Legal settlement is $5.9 million -- and NOT valued at $27 million

Post Date:11/13/2024 3:38 PM

 ADVISORY: Clarification of Final Settlement Agreement with former residents of Section 14; Legal settlement is $5.9 million -- and NOT valued at $27 million

Contact: Amy Blaisdell
Chief Communications Officer
City of Palm Springs
(760) 323-8250

The City of Palm Springs wishes to clarify the terms of its final settlement agreement with former residents of Section 14 and their descendants, following an initial release by Section 14 attorney Areva Martin, which INCORRECTLY stated the total value of the agreement as $27 million. The City Council's agreement with the claimants includes a direct financial settlement of $5.9 million, designated specifically for compensation of verified former residents of Section 14 and their descendants. The remainder of the funding initiatives for housing and economic development—valued at $21 million—are broader community programs and are not legally tied to the settlement agreement 

As part of the City’s broader commitment to restorative justice, these housing and economic development initiatives are intended to serve the entire Palm Springs community, with designated outreach efforts to ensure that the former residents of Section 14 and their descendants have access to these programs. These programs, including housing support and small business grants, are independently funded by the City not through the general fund and structured to address longstanding economic disparities but are not legally bound within the settlement terms.

Settlement Agreement Details:

  • $5.91 Million Cash Settlement: Direct financial compensation for verified survivors and descendants of Section 14 in exchange for written waivers/releases from over 1,200 former Section 14 residents and descendants.

Cultural and Memorial Initiatives:

  • The City has committed to exploring the renaming of a community park when new parks come online and establishing a public monument to honor the legacy of Section 14 residents. The City would support a racial healing center driven by the former residents of Section 14 by letters of support, but no land or location has been agreed upon.  Additionally, the City has not agreed to convey any land for such purposes.

Housing and Economic Development Initiatives (Not part of the legal settlement)

  • $20 Million in Housing Programs (Not Part of the Legal Settlement): These citywide programs include $10 million for a First-Time Homebuyer Assistance Program and $10 million for the establishment of a Community Land Trust, with prioritized outreach for Section 14 families. This is to be paid from funds that have previously been designated to be set aside by the City Council, from transient occupancy tax sources, for housing programs.
  • $1 Million Small Business Support (Not Part of the Legal Settlement): Through partnership with Caravanserai Project, this program aims to empower local business initiatives for marginalized communities, with a targeted outreach effort for the former residents of Section 14 and their descendants.

The City Council will address and vote on the final settlement offer and the outlined housing and economic development programs at the upcoming City Council meeting on Thursday, Nov. 14, 2024, where additional details will be provided for public clarity.

The City of Palm Springs appreciates the public's continued engagement and encourages attendance at the council meeting on Nov. 14, which will offer a detailed presentation and allow for community input.

 



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