Transit Leader Proposes Single Headquarters : Transportation: Head of MTA recommends using building at Union Station. Staffs of former County Transportation Commission and RTD had planned two sites.

In an effort to resolve a long-standing controversy, the new leader of the Los Angeles County transit agency recommended Monday that only one headquarters building be constructed for the agency--not the two that were planned.

Franklin White, head of the Metropolitan Transportation Authority, issued his position in a memo to Mayor Tom Bradley and the other two members of a three-member committee that will analyze the issue of building space. It was distributed to MTA board members Monday.

“My approach was to ask what would a business do?” White said. “I believe they would try to meet their needs at one location--so that’s what I propose.”

Critics charged that the plan to build two transit buildings was wasteful and an illustration of empire building by the two rival agencies that until recently directed transportation planning for the region.

White’s action, he acknowledged, is his first foray into controversial territory since he took office last month. Observers say the outcome of this battle will be carefully watched because it will signify the extent of White’s power and his ability to unite sometimes warring factions.

“It’s a very gutsy thing for him to do given all the swirling political pressures,” said one alternate member of the MTA board, formed recently through the merger of the Los Angeles County Transportation Commission and the Southern California Rapid Transit District. Those two agencies officially dissolved April 1.

The office space controversy reflects the animosity that existed between the two agencies.

Behind closed doors in January, the Transportation Commission directed its staff to launch negotiations with developer Ray Watt to build a $111-million building, while a separate $137-million building--the Gateway project--was under construction at Union Station. The Gateway building, originally meant to be 26 stories, was scaled back by six stories and designed to house the RTD staff.

Citing financial reasons, White said expanding the Gateway project by six stories to accommodate the staffs from the two merged agencies was the “superior” alternative. This option would cost $170.7 million, according to his memo. He rejected two options that would have raised the cost to as much as $230 million.

Ted Tanner, vice president of development for Catellus Development Corp., which is building the Gateway project, said: “It’s the right decision and hopefully the MTA will find that to be the case.”

Developer Ray Watt was unavailable to comment.

On Thursday, the competing developers will meet with the three-member committee. The MTA will probably re-examine the issue next week.