Park Panel Delays Vote on Fryman Allocation : Conservancy: The board decides to wait for state reappraisal of canyon’s worth before approving $8.7-million contribution.

The directors of the Santa Monica Mountains Conservancy Monday night delayed a decision on whether to allocate $8.7 million to purchase Fryman Canyon until the state reappraises the value of the controversy-cloaked ravine in Studio City.

The conservancy’s executive director, Joseph T. Edmiston, recommended the delay, saying it would allow time to resolve legal questions about a proposal that calls for the city of Los Angeles and the conservancy to buy the canyon for $10.9 million from developer Fred Sahadi.

If Fryman Canyon is not acquired as a park, Sahadi plans to build 26 luxury residences on the woodsy property. His construction plans have been vehemently opposed by environmentalists and neighbors.

The conservancy--a state agency charged with acquiring parkland in the Santa Monicas--has been negotiating since April to purchase the land. Sahadi has argued that the land is more valuable than the $8.7 million that the conservancy has said was the legal maximum that state appraisers had authorized.

In an effort to save the canyon from development, Los Angeles Mayor Tom Bradley and Councilman Michael Woo negotiated an agreement that would allow the conservancy, the city and private contributors to join forces to buy the land.

The plan, unveiled Sept. 7, called for the city to contribute $1.96 million, the conservancy $8.7 million and for charitable contributions from private parties to make up the remaining $250,000.

Last week the city’s Recreation and Parks Commission approved a contribution of $1.2 million from the Runyon Canyon Acquisition Trust Fund to the Fryman purchase. The commission action was taken with the understanding that Bradley and Woo would try to replenish the funds by selling surplus city Department of Water and Power properties in the Santa Monica Mountains or by tapping park bond funds.

Today, the Los Angeles City Council is scheduled to consider contributing $1.96 million to the purchase, including the $1.2 million approved by the parks commission.

But in a memo presented to the conservancy board at its meeting Monday night, Edmiston said he believed it would be illegal for the city of Los Angeles to use money from the Runyon Canyon fund to buy Fryman Canyon, because the money originally was given to the city by the conservancy.

City expenditure of the Runyon Canyon money, which Edmiston called “state source” money, could violate a law which prohibits state agencies from spending more to acquire properties than the value of the property determined by the State Department of General Services, Edmiston said.

Delaying the vote on allocations would allow the State Department of General Services to review a new appraisal now in progress. If the appraisal values the land at at least $10.9 million, then legal barriers to the Woo-Bradley plan to acquire Fryman would be removed.

The delay also gives the state attorney general time to respond to a request by the conservancy to determine whether the Runyon Canyon fund can be used for the Fryman purchase.

But attorney Benjamin M. Reznik, who represents Sahadi, opposed further delays and said it would be legal for the city to use the Runyon Canyon money to buy the canyon.

“The time to act is now,” he said, noting that the extensive delays were costing Sahadi thousands of dollars each month. “Legally, they can do the the deal. That Runyon Canyon money is city money.” The Bradley-Woo plan also has been criticized by the Sierra Club. In a letter last week to the conservancy, Joyce Coleman, chairwoman of the club’s conservation committee, warned that the plan was “unreasonable and maybe unlawful.”

Coleman said that the $10.9-million price tag included “a $2-million gift of public funds”--a reference to the fact that state appraisers have valued the property at $8.7 million.

Coleman also urged the conservancy not to “threaten the security of another acquisition” by buying Fryman Canyon. To obtain $8.7 million, the conservancy would have “to raid funds set aside to protect and expand Solstice Canyon Park and link it to the beach and the mountain park system.”

The Sierra Club, Coleman added, is “committed to the preservation of Fryman Canyon--but not at an artificially inflated price, not at the cost of other equally important acquisitions.”