Rules Aimed at Ending Redevelopment Fight : North Hollywood: The proposal calls for a 25-member area committee to advise the city. Project critics say it fails to ensure the panel’s independence.

A Los Angeles City Council panel took steps Monday to terminate months of confusion and controversy by recommending new rules for establishing a citizens group that will give the city advice on the North Hollywood redevelopment project.

But critics of the project quickly complained that the council’s Community Redevelopment and Housing Committee had overstepped its authority and failed to reform the proposed rules sufficiently to ensure that the next citizens group will be independent of the Community Redevelopment Agency.

The committee drew up rules to govern the composition of the North Hollywood Project Area Committee--or PAC--and the way its members are elected.

Jerry Belcher, CRA project manager in North Hollywood, said he hoped the new rules will win easy approval this week by the entire City Council, thus paving the way for an Oct. 13 election of a new PAC board by residents in the 740-acre North Hollywood project.

Earlier this year, the council abolished the previous PAC at the request of Council President John Ferraro, who represents North Hollywood, after it fell under control of critics of the city’s redevelopment agency. City officials said the PAC was illegally constituted due to election irregularities.

The council acted after an April PAC meeting at which redevelopment critic Mildred Weller, wielding a huge gavel, out-shouted and out-maneuvered a Ferraro aide seeking to gain control of the PAC, resulting in a walkout by the pro-CRA, pro-Ferraro faction.

The rules proposed Monday call for formation of a 25-member PAC, with 10 members elected by homeowner-tenants, 10 by businesses and five by community organizations, the makeup of the previous committee.

The rules also would require PAC candidates to get one-third of the vote to win election. Previously, a majority vote was needed. In addition, another new provision provides that if candidates cannot obtain this threshold percentage for election, then the district’s council representative--Ferraro--could fill vacancies by appointment.

Establishing a legally constituted PAC is critical to survival of the North Hollywood redevelopment project. The project’s current mandate to operate has run out and must be renewed by the City Council. However, under state law, the council cannot renew authorization for the project unless a PAC exists to advise it.

Meanwhile, Weller, president of a group that still claims to be the legitimately elected PAC for North Hollywood, said the council committee action Monday was illegal.

Weller claims state redevelopment law gives local residents the right to establish their own rules for self-organization, free from local government interference. “The city clearly does not want a PAC that operates independently of the CRA and City Hall,” she said.

Norton Halper, another redevelopment critic, argued that the proposed rules “fail to create a level playing field” and will serve to continue PAC domination by redevelopment boosters from the business community who critics contend favor commercial development that displaces residents. Halper said the PAC should have more homeowner-tenant representatives who can “act as a watchdog” over redevelopment.

But Halper also praised Councilman Richard Alatorre, the committee chairman, for proposing to have future PAC elections administered by independent third parties, such as the League of Women Voters. In the past, CRA administration of the elections has resulted in the unfair treatment of agency critics, Halper said.