Firm to Leave Construction Field--but Not Warner Project

A Wisconsin-based development company that has spent nearly three years fighting for permission to help build a $150-million Woodland Hills office project said Wednesday it is getting out of the construction business.

But officials of the Johnson Wax Development Corp. said they intend to start--and finish--the Warner Ridge high-rise office project at the northeast corner of De Soto Avenue and Oxnard Street before halting land-development activities.

Johnson Wax is a partner with Los Angeles-based Spound Co. in the seven-building project, which is expected to receive final Los Angeles Planning Commission approval today at a meeting in Van Nuys, setting the stage for a City Council debate on the project.

City planners gave conceptual approval to the project on May 11, overruling objections by Woodland Hills residents who claim that the project will cause traffic jams and increase development pressures on nearby Pierce College.

No New Projects

A spokeswoman at Johnson Wax’s headquarters in Racine, Wis., said the firm will start no new development projects. She said existing projects will be completed and sold within the next two years as the company concentrates on consumer goods.

But Eugene Spindler, vice president of Johnson Wax Development Corp.’s West Coast office, said Warner Ridge does not qualify as a new project--even though it has not received final City Council approval and ground has not been broken.

Spindler said Johnson Wax’s 50% share in the project “is not on the market” at this time.

Development partner Jack Spound said Johnson Wax’s departure will not affect the quality of the Warner Ridge project because legal agreements with the city will protect neighboring homeowners “no matter what happens to the ownership.”

Spound said the terms of the partnership give him “approval rights over new partners” who might take Johnson Wax’s place. He said that construction financing has been approved by lenders.

Opponents Worried

But project opponents who have vowed to join City Councilwoman Joy Picus in fighting the project at the City Council level said they are worried by Johnson Wax’s changing plans.

“I feel the announcement puts a cloud on the project,” said Robert Gross, a vice president of the Woodland Hills Homeowners Organization and a leading foe of the project. He said he fears Johnson Wax will pull out entirely.

“Who will be the partner? I would think those who supported the project will be a little concerned about the verbal commitments and promises from Johnson Wax. I think some of those who supported the project did so because of the credibility of the company.”