$70-Million CityWalk Plan Wins Council OK : Entertainment: Nearby residents complain MCA’s 257,000-square-foot mall will add noise to an already burdened neighborhood and block their views.

Over some objections from neighbors, MCA, as expected, won Los Angeles City Council approval Wednesday to build a $70-million addition to be known as “CityWalk” at its Universal City entertainment complex.

CityWalk plans call for construction of a 257,000-square-foot pedestrian-oriented mall, consisting mostly of boutiques and restaurants but also including a 50,000-square-foot music production studio and a 20,000-square-foot UCLA Extension facility.

In voting for the project, Councilman Joel Wachs praised the media giant as “being about as responsive a neighbor as you can find.”

But Miriam Palacio, whose Blair Drive residence is next door to the Universal City property, contends living next to Universal City is like having a bully for a neighbor.

The Toluca Lake travel agent and her neighbors have opposed the CityWalk project, complaining that it would add an unacceptable amount of noise to their already burdened neighborhood and mar their views.

Palacio contends MCA, a media conglomerate that is being purchased by a Japanese firm for $6.5 billion, filed a $50,000 lawsuit to harass her because of her vocal opposition to the project. “It’s harassment, a nuisance lawsuit designed to intimidate me,” she said.

The lawsuit, filed by MCA Development Co., the MCA subsidiary building the project, is over a portion of a sidewalk that encroaches onto the company’s property.

Palacio said the sidewalk, which she refused to remove, is a single square foot, but MCA officials say it is more like 13 square feet.

Former City Atty. Burt Pines, now an attorney-lobbyist for MCA, denies Palacio’s allegations of harassment and adds that the foes of the CityWalk project are merely a “small group of dissidents.”

The CityWalk project is to be the first major addition to the popular entertainment attraction--which now draws about 9 million visitors per year--since nearly a dozen movie theaters were opened there about three years ago.

Before the council on Wednesday was an MCA request for a zoning variance for a small part of the project that is in the city. The remainder of the project is in unincorporated areas governed by county zoning and building codes.

The council unanimously approved the variance at the urging of council President John Ferraro, who represents the area. The council also removed a series of restrictions on the use of a parking lot and driveway that MCA is proposing to build at the southeastern end of its huge property.

The restrictions, imposed by the city’s Board of Zoning Appeals, placed limits on when the parking lot and driveway could be used.

Homeowners have contended that the 500- to 600-space parking lot and driveway will bring additional noise into their neighborhood and mar their view from Blair Drive, which overlooks the planned parking lot.

The homeowners are suing MCA, the city and the county of Los Angeles to require a full environmental impact report for the CityWalk project.

So far, however, the homeowners have not had any luck in court in halting the project.

“There’s no merit to their claims--the city says it, the county says it and the courts say it,” said Lawrence D. Spungin, president of MCA Development Co.

Regarding the lawsuit against Palacio, Spungin also said MCA was only trying to protect its property rights “like any homeowner would.”