The protest group (de)Occupy Honolulu and two of its members are receiving $16,400 to settle claims against the city tied to the controversial sidewalk nuisance ordinance.

The Honolulu City Council approved the plan 7-1 Wednesday. Councilman Ikaika Anderson voted "no" while Chairman Ernie Martin was absent.

Most of the settlement, $14,400, will go to pay legal fees of those bringing the federal lawsuit. The remaining $2,000 is compensation to Cathy "Sugar" Russell and Terry Anderson for items seized for violating the ordinance in September 2013 but later could not be recovered.

The settlement allows the city to continue enforcing the ordinance, but (de)Occupy supporters are claiming a victory because the city must now follow stricter rules when seizing property belonging to violators.

The sidewalk nuisance ordinance prohibits people and their belongings from impeding pedestrian access to city sidewalks.

After (de)Occupy filed a lawsuit claiming the ordinance is unconstitutional, U.S. District Judge Leslie Kobayashi allowed the ordinance to remain in force, but also ruled that the due process rights of Russell and her colleagues were violated because they were each charged a $200 fee to get their property back without proper notice about the process. As a result, the city was forced to change its procedures to make it clear an owner of seized property can request a hearing to waive the fee if "necessary" items are taken.

Council Executive Matters Chairman Ron Menor said city attorneys were able to negotiate down the original settlement demand by $1,100. City attorneys maintain the amount of fees could have been significantly higher had the case been allowed to continue.

Russell told the Honolulu Star-Advertiser on Wednesday the money received for the seized items will be donated to help homeless families in Kakaako.

The lawsuit helped shift the tide of public sentiment in favor of the plight of the homeless, she said.

Brian Brazier, a (de)Occupy attorney, said the case has helped "make the city see that they can’t just walk all over people."