Ocean Springs settles with Psycamore, agrees to pay $437,500 to settle lawsuit

Nov. 26--OCEAN SPRINGS -- The city has settled its case with Psycamore, a psychiatric clinic it had refused to allow in a prominent neighborhood in 2011, even though zoning permitted it.

The city has agreed to pay clinic owners $437,500 to cover damages and associated costs of relocation, according to documents filed Tuesday. As a result of the settlement, Psycamore's federal lawsuit against the city has been dismissed.

The U.S. Department of Justice oversaw recent negotiations between the city and Psycamore.

The DOJ ruled against Ocean Springs in August over the denial of the clinic's zoning request, finding the city's actions violated the civil rights of people with disabilities, in this case people who have psychiatric disorders but who do not require hospitalization.

Psycamore, which has a chain of clinics in the state, wanted to open a clinic on Iberville Drive, within a block of busy Washington Avenue, but neighbors complained.

Although the city found its C-3 zoning supported the clinic, the Board of Alderman voted 5-1 to deny the permit the clinic needed to open there. Psycamore sued and filed a complaint with the DOJ.

It has since opened in Biloxi.

The city will be fulfilling a DOJ requirement for city leaders go through sensitivity training and to designate an employee in the Building Department to make sure it is compliant with the Americans with Disabilities Act.

Mayor Connie Moran estimated the city's legal cost to defend the case at about $100,000 at the end of October, including an appeal to the state Supreme Court, which ruled against the city.

In a release Tuesday, Moran said the city has been working with Disability Connections, a Gulf Coast advocacy organization for people with mental and physical disabilities, to open up space in the mayor's office for an outreach resource manager.

The city has filed a motion to dismiss a federal lawsuit by Roger Applewhite, the property owner who offered the Iberville Drive location to Psycamore. Applewhite sued the city for $405,000. The DOJ is not involved in that claim.

Psycamore also will have the right to return to Ocean Springs in an appropriate zone, should the owners choose to do so. That does not preclude the city from making adjustments to its current zoning, according to a press release from the city.

Moran said the city plans to revamp its human resources policies to make sure language complies with ADA. It also is reviewing citywide zoning to deal with vague and conflicting elements and to update and streamline it.

The city agreed to pay $150,000 of the Psycamore settlement within a week and has six weeks to come up with the rest.

Karen Nelson, Sun Herald staff writer, contributed to this report.

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