Redevelopment Zones Studied in Quake-Damaged Areas : Restoration: A city agency approves 60-day review of neighborhoods that may be seized. Activist group says residents need more time.

A Los Angeles redevelopment panel took the first step Friday toward using redevelopment programs to restore quake-damaged neighborhoods despite criticism from activists that the city has not adequately informed those residents who could be most affected.

The Community Redevelopment Agency’s unanimous vote gave the go-ahead for a 60-day study on a proposal to set up six emergency redevelopment zones throughout commercial and residential neighborhoods, primarily around the quake’s epicenter in Northridge, Chatsworth, North Hills and Granada Hills.

But a representative of the San Fernando Valley Neighborhood Legal Services criticized the effort, saying CRA staff has failed to keep poorer residents in the so-called “study areas” informed of the program and how it might affect them.

“We have less than two months to involve this community from ground zero and that is not adequate,” said Ellen Michiel, an urban planning consultant for the group.

Under state law, redevelopment agencies have the ability to seize blighted property, a practice that has been controversial, particularly in poor neighborhoods. However, the city has repeatedly stated that such powers of eminent domain would rarely be used in the quake recovery area.

Although several City Council members from the Valley have held public hearings to discuss the proposed redevelopment zones, Michiel said better outreach is needed, particularly in the west and northeast Valley. Michiel added that her group would not rule out suing the CRA to stop its efforts.

Some CRA members agreed with Michiel and promised that the agency’s staff would do a better job of informing residents about the proposed zones.

“Frankly, I don’t think you did your job,” CRA member Cynthia McClain-Hill chided John Spalding, CRA’s director of policy planning.

Under emergency provisions of the state’s redevelopment law, local agencies can establish project areas in disaster zones without completing the time-consuming environmental studies required for traditional redevelopment areas.

The law allows the agencies to keep all the property tax generated by new construction inside a project area and to use that money to pay for improvements such as new streets, parks and sewers, as well as loans for quake victims.

But the zones must be established quickly to take advantage of the law’s emergency provisions, and attorneys for the city warned that extended delays could jeopardize the efforts. If the zones are not approved by January, the CRA must wait another year to begin collecting the tax dollars.

“I don’t think that the city can afford to lose a year of tax increments,” said Assistant City Atty. Dov Lesel. “That can delay the city’s recovery for a year.”

Nonetheless, CRA member Bobbi Fiedler warned that the city should find other options to jump-start the recovery because it will take the CRA up to five years to amass a large enough tax pool to make major repairs.

“There are many other options,” she said.