A lawsuit that nearly stopped construction of a $100 million theater in Redwood City is being settled out of court, but terms of the tentative agreement are yet to be disclosed.
James Celotti, the property owner who filed and won the lawsuit earlier last month, said he's reached a preliminary understanding with city representatives over the past few weeks. Pending a final agreement, however, Celotti declined to disclose the details of the settlement. He hopes a formal announcement will be made Monday.
City officials involved in the negotiations did not return calls made to their offices yesterday.
In previous interviews with the Daily Journal, Celotti said he wanted several million dollars to settle the lawsuit. Such a figure would be a drop in the bucket when compared to halting the $100 million project.
"A lawsuit would just be devastating," Celotti said.
Herman Fitzgerald, attorney for the city, said city representatives have met with Celotti at least twice since the ruling was made.
A judge ruled May 20 that the city unlawfully razed the building in its ambitious plans to renovate downtown with a 20-screen cineplex.
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Superior Court Judge Quentin Kopp ruled that the city improperly seized the land to build a theater on the chunk of land bounded by Broadway, Jefferson Avenue and Middlefield Road. Celotti's building was taken on the grounds that a public parking lot would be built on the land, but Kopp ruled that the land is in fact being used to benefit a private developer.
Before proceeding with the project, the city had to gain ownership of the property where it planned to lay out the theater. That was done by declaring the block a "blighted area" and claiming eminent domain - a clause cities can invoke to take possession of land for public good.
Celotti, now 75, bought the building in 1976 in preparation for his retirement. The old two-story building in downtown Redwood City housed a shoe repair shop and a vacuum store. Upstairs was a small apartment and an unrented office space.
Celotti was offered $623,000 for his Spanish-style building at 860 Jefferson Ave. That money was deposited in a state account, but Celotti has yet to touch it - doing so would negate his rights, he has said.
The idea for the theater was born in 1996, when city officials decided to inject some life into its depressed downtown. If built, the theater will have 20 auditoriums and 4,200 seats.
The city hopes to unveil the theater by August 2005.
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