Business Owners Assail Parking Limits : Homeowners: Shouting occurred at a hearing on the plan for streets next to a stretch of Ventura Boulevard in Sherman Oaks.

Sherman Oaks residents and business owners shouted repeatedly at each other Thursday during a hearing on a proposed restricted parking district centered on a stretch of Ventura Boulevard where neighbors complain that their streets are filled with cars parked by patrons of popular restaurants and other boulevard businesses.

More than 300 people jammed the Dixie Canyon School auditorium to register their concerns over the plan, which is under consideration by the Los Angeles Department of Transportation. Department officials formed the district after more than 370 residents complained that parking on their streets was being monopolized by the employees and customers of the businesses, especially the restaurants.

The plan would restrict parking on residential streets next to Ventura Boulevard. Department officials have recommended that only those with a permit be allowed to park between 6 p.m. and 8 a.m. Parking between 8 a.m. and 6 p.m. might be limited to one or two hours for those without permits.

“I do not pay property taxes to subsidize an employee parking lot,” said Ellen Vukovich, who lives on Costello Avenue. “This is not an easy decision, but ultimately it is necessary for us to get control back in our neighborhoods.”

Residents have started referring to the thoroughfare as the “Melrose of the Valley.” Restaurant owners complained that they were being unfairly victimized by selfish homeowners.

“It just sounds like you’re out to shut down all the restaurants,” Reggie Thomas, the owner of Camille’s restaurant, told the crowd. “Why did you move to Sherman Oaks in the first place? What did you think this neighborhood was, Sleepy Hollow?”

Transportation officials said they would include the comments in a report to the City Council, which will make the final decision on whether restrictions are implemented.

If approved, the parking district would be the largest along Ventura Boulevard and among the largest in the city. It would be almost impossible for motorists who are not residents of the area to park on residential streets near Ventura Boulevard without risking a ticket.

The proposed district’s borders would reach at least to Moorpark Street on the north, Fulton Avenue on the east, Valley Vista Boulevard and Davana Terrace on the south, and Hazeltine Avenue on the west.

About 1,810 dwelling units are within the proposed district, made up of 580 single-family houses and about 1,230 apartments and condominiums.

Residents have said they need relief from restaurant employees and valets who put customers’ cars in front of their houses. They have also complained about departing diners laughing and slamming their car doors late at night.

City officials said the problem has escalated with the growing popularity of trendy restaurants such as the Moonlight Tango Cafe and the Great Greek.

Some restaurant owners say they have tried to ease the crunch by leasing parking space behind neighboring businesses that are closed at night.