Picus Said to Have OKd Larger Plan for Project : Warner Ridge: The councilwoman has long been a foe of commercial development at the site. The concession reportedly occurred in a pretrial session.

Los Angeles City Councilwoman Joy Picus reportedly told a judge in a closed-door meeting Wednesday that she was ready to accept a 500,000-square-foot commercial project at Warner Ridge.

Two sources confirmed that Picus, a zealous foe for several years of any commercial development at Warner Ridge, made the concession during a pretrial, mandatory settlement conference before Superior Court Judge R. William Schoettler.

But Picus later denied that she had endorsed a 500,000-square-foot project. “I won’t confirm any numbers,” she told The Times. “I’m fighting for my constituents. I want to keep the commercial there at 235,000 square feet. Nothing else is acceptable to me.”

Picus’ acceptance of even 235,000 square feet of development, the smallest commercial project that could be built under the city’s zoning laws, represents a major shift for the lawmaker, who previously has refused to concede that any commercial development was tolerable.

Robert McMurry, attorney for Warner Ridge, said Schoettler told him and the developers’ team that Picus would accept a 500,000-square-foot commercial project. During the negotiations, the judge shuttled between the opposing parties.

Another source, who asked for anonymity, also said Picus accepted a 500,000-square-foot figure.

Nonetheless, McMurry said the 500,000-square-foot proposal is unrealistic and demonstrates that Picus “continues to think that she is a law unto herself in her district.”

The Warner Ridge development group continued to press for 690,000 square feet of commercial, 125 condominiums and a waiver of millions of dollars in future building fees during the session with the judge.

Warner Ridge Associates has sued the city for $100 million, claiming that the city in January, 1990--at Picus’ insistence--illegally zoned its 21.5-acre parcel in Woodland Hills for single-family houses even though the city’s community plan identified the property as a suitable site for a major commercial project.

Two recent court decisions--one before a three-judge state Court of Appeal panel--have upheld the developers’ case to the extent that the only issue left to be decided at a trial set for Feb. 10 is how much in damages the city owes.

Prior to trial, however, the city and the developer were ordered to try to settle the case out of court, with a Superior Court judge serving as a referee. The first settlement conference was held Wednesday.

Prior to the court-sanctioned talks, however, Council President John Ferraro and Councilman Hal Bernson met with the developer to try to iron out an accord to end the litigation, which threatens to cause heavy damage to the city’s land-use practices as well as provoke similar lawsuits.

Tuesday, Ferraro and Bernson told the council of the Warner Ridge developer’s offer of 690,000 square feet of commercial space and the 125 condominiums. No action was taken on the item, however, as council members sought additional information to help them weigh the fairness of the offer.

City staff members and a private attorney, hired to provide “a second opinion” about the litigation, will try to provide the council with some answers at a council executive session Friday.

A second settlement conference is scheduled for Tuesday.