Mini-Mall’s Builder Finally Takes Steps to Widen Street : Sherman Oaks: Legal threats by an attorney for the La Reina retail complex forces the developer to begin a traffic project that has prevented the mall from operating legally.

Representatives for the builder of the problem-ridden La Reina Fashion Center Plaza in Sherman Oaks, after being warned of possible legal action, said Monday that they would seek a work permit this week for a much-delayed nearby street-widening project.

An attorney and a construction manager for the builder--Century City developer Dennis Bass--said a contractor had been hired and plans submitted to the city for an additional lane and signal light at Van Nuys and Ventura boulevards, which is one of the busiest intersections in the San Fernando Valley.

An attorney for the new owner of the La Reina mini-mall on Monday warned Bass that she would take legal steps to force widening of the intersection, action that neighborhood leaders contend the city has failed to pursue since early 1988.

Katherine B. Warwick, an attorney for Robert Dollar Building Associates Ltd. of San Francisco, the mini-mall’s owner, said she agreed to postpone action after representatives for Bass assured her they were taking steps to begin the widening project.

Bass’ company agreed to the widening project at the busy intersection to reduce the effect of traffic generated by the upscale, two-story mini-mall, built on the former site of the landmark La Reina movie theater. But the lane was never built, despite pleas by neighborhood activists.

Bass also agreed to build the lane as part of the sale of the mall to Robert Dollar Building Associates earlier this year.

Now, Robert Dollar has joined the neighborhood leaders and City Councilman Zev Yaroslavsky’s office in pressing for the project, because La Reina’s permanent occupancy permit is contingent upon its completion. City officials inadvertently discovered last week that the mall’s temporary occupancy permit had expired May 18, and Warwick said Monday that unless the occupancy permit is reinstated she would seek a court order on Thursday to force the developer to live up to his agreement with Robert Dollar.

“The city could shut us down, but I think the city understands we are trying to work with them,” said Warwick, who served Bass’ office with legal papers Monday morning.

Richard Close, president of the Sherman Oaks Homeowners Assn., said he has felt mounting frustration because of the city’s failure to enforce Bass’ agreement. “Our whole complaint has been that nothing was being done to enforce it,” he said. “We’re all rooting for the new owner.”

The expiration of the permit was discovered last week by city officials who had been trying to revoke the mall’s occupancy permit in an effort to gain leverage against the builder. The mall remains open, a Yaroslavsky aide said, because the city’s mission is to enforce developers’ agreements with the city, not shut down businesses.

“The bigger question, the Valleywide issue, is how many other cases are there like this, and who’s taking care of business downtown?” Close asked.

Bass has not returned repeated phone messages. His attorney, Paul M. Hittelman, and construction manager Jessica Watanabe said Monday that the company was moving ahead with the traffic project.

Watanabe attributed the project’s delay to a lack of money and an illness that required an extended hospital stay.

According to Warwick and Hittelman, Robert Dollar Building Associates bought the mall earlier this year in an out-of-court settlement of a foreclosure suit against DES California Limited Partnership No. 1, the mall’s developer and original owner.

Bass is president of City Equities Inc., a Century City-based company that is general partner of DES, the lawyers said.