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Rebuilding Plan for Area Approved : Recovery: About 3,000 acres of quake-damaged neighborhoods in the northeast Valley will be placed in an emergency redevelopment zone.

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TIMES STAFF WRITER

Redevelopment powers will be used to help rebuild quake-damaged neighborhoods in Pacoima, North Hills, Sylmar and Sun Valley under a plan approved Tuesday by the Los Angeles City Council, the second such recovery plan in the city.

With little debate, the council voted unanimously to put about 3,000 acres of hard-hit neighborhoods in the northeast San Fernando Valley within an emergency redevelopment zone that uses property taxes to provide residential and commercial loans and money to repair streets and public buildings.

By purchasing bonds with the tax dollars, the city expects to raise about $14 million in the first five years of the project, said John Spalding, planning director for the city’s Community Redevelopment Agency, which is overseeing the recovery plan.

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Although residents harshly criticized a similar recovery program that the council approved last week for Sherman Oaks and Studio City, the plan for the working-class communities of the northeast Valley generated mostly support from residents.

Councilman Richard Alarcon, who represents the northeast Valley, said 5,000 residents from the area signed a petition to launch the redevelopment plan.

“This is something they want,” he said. “It is my goal to make the CRA work to the maximum.”

The project is one of six that city and redevelopment officials are proposing for hard-hit areas in the Valley and Hollywood. In total, the projects would raise about $160 million.

On Tuesday, the council also listened to critics and supporters of a redevelopment project proposed for 200 acres of mostly commercial property in North Hollywood that was damaged in the earthquake. A final vote on the matter is expected next week.

About a dozen redevelopment opponents waved placards and hoisted balloons emblazoned with the message: “NO CRA.”

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Mildred Weller, a longtime redevelopment foe from Sherman Oaks, said the city should help quake victims without the aid of the CRA, which has been criticized and sued by opponents in other project areas throughout the city.

But Larry Meyers, the owner of a Laurel Plaza hair salon, disagreed. “If the CRA is in the business of helping the small mom-and-pop businesses . . . then the council should support the CRA in the North Hollywood corridor,” he said.

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