PID settles with victim trust for $189.5 million
PARADISE » The Paradise Irrigation District has finally reached a settlement with the Fire Victim Trust with a payout just short of $189.5 million.
A press conference was held Monday at the district’s office in Paradise where Manager Tom Lando provided additional information on the settlement and what it will mean for the town going forward.
PID is currently functioning on a $2-3 million deficit as a result of the Camp Fire in 2018.
“The board will have a fiscal planning session where we’ll try to plan out the next 15 to 20 years’ expenditures,” Lando said. “Because obviously, this is challenging and we want to make sure that this is a long-term investment and not a short-term expenditure.”
Lando went on to say he believes that PID has a good rapport with the town of Paradise.
“I will say that the district feels like we have a very good relationship with the town and the other public entities and the whole purpose of this settlement is to rebuild the community and help the community evolve. We hope that all those claimants get 100 percent of their money.”
Though a large sum of money, Lando said the settlement is still only a portion of the claim made by PID.
The Fire Victim Trust was established July 2020 after PG&E declared bankruptcy as a result of being found legally responsible for multiple wildfires such as the Camp Fire. It is considered a capped fund and therefore may not always meet full claims when allocating funds to those affected by the fires.
“While PID calculates its damages from the Camp Fire at significantly more than this settlement with the Fire Victim Trust, PID is pleased to announce the resolution of this matter because it removes significant uncertainty, a distraction from ongoing recovery and rebuild efforts, and legal costs,” said Shelby Boston, President of PID’s Board of Directors.
According to a press release issued Monday by PID, the district will continue looking for grants as well as other outside funding sources to go along with revenue and the newly secured settlement money.
Attending the press conference
was Paradise Mayor Steve Crowder, who reacted positively to the settlement.
“It’s great,” Crowder said. “I mean it’s another phase in the total recovery of the town and showing that we are a vibrant town, a recovering town. We’re all working together for the same thing. So I think this just puts another piece of the puzzle in and is giving us a little more certainty and direction moving forward.”
Based on the claims data report up to April 29, 2022, there have been a total of 69,057 claimants associated with claims questionnaires with 241,231 distinct claims made.
A total of $860.9 million
has been paid out in the preliminary data. Additionally, $2.63 billion has been provided in prorata payments, with the total paid to claimants coming out at $3.5 million. The total awarded
in determination notices is $8.52 billion from the Fire Victim Trust.
More information on how the PID settlement will be used is expected to come after financial meetings at a later date.