Former Residents Of Section 14 Accept City’s $5.9 Million Final Offer; Council To Vote On Settlement Offer And Bold Economic Development Initiatives At Public Meeting Set For Nov. 14th

Thurs Nov. 14th 2024

The Palm Springs City Council is announcing today that the former residents of Section 14 have accepted the City’s final offer of $5.9 million — and will discuss the settlement offer at the City Council meeting on November 14th 2024, which also includes moving forward with substantial housing and economic development initiatives to benefit Palm Springs residents. The initiatives include a range of investments that will strengthen the city’s commitment to equitable growth, with a significant emphasis on housing accessibility and business support for marginalized communities.

In April, the City Council approved a comprehensive settlement package aimed at addressing historical injustices for the former residents of Section 14 and their descendants. As part of that settlement, the council approved an initial cash settlement of $4.3 million, which was then increased to $5.9 million last Thursday. This increase reflects updated information that an estimated 197 homes were involved in the original abatements, up from the previous 145 homes identified.

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.
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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.

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.

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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. 14th 2024, which will offer a detailed presentation and allow for community input.

“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,” said Mayor Jeffrey Bernstein. “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 we are 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.”

Thursday’s meeting on Nov 14th 2024 will be held at 5:30 p.m. in the Council Chamber at Palm Springs City Hall, 3200 E. Tahquitz Canyon Way. Residents and stakeholders are invited to attend and public comment is encouraged. In addition, the meeting will be available to watch live online at palmspringsca.gov, on You Tube, or on Palm Springs Community Television Channel 17.

On Friday, Nov. 8, 2024, the City of Palm Springs released key findings from the “Section 14 Historical Context Study,” a comprehensive report prepared by Southern California consultant Architectural Resources Group (ARG) at the request of the Palm Springs City Council. ARG was specifically selected by the City due to their extensive experience overseeing similar successful studies with other municipalities including Los Angeles, Pasadena, West Hollywood, and Culver City.

The study represents a significant step in addressing and understanding the historical impact of actions that led to the displacement of Section 14 residents during the mid-20th century.

To view the Historical Context Study and learn more about the history and facts surrounding Section 14, residents and stakeholders are invited to visit EngagePalmSprings.com.

A small Green Tree with dollar bills hanging off it, being held aloft in the palm of a human hand. Money Tree. Photo by Alpha Media USA Portland OR