Recovery Plan Draws Ire of Lawmakers : Government: South L.A. council members fear northwest Valley redevelopment project would siphon too many tax dollars.

A proposed redevelopment project for the northwest San Fernando Valley--the largest of six projects under consideration to aid quake-damaged neighborhoods--is drawing fire from South Los Angeles lawmakers who say it threatens to drain a disproportionate share of future city tax dollars.

Their opposition could jeopardize a recovery plan designed to generate at least $25 million in funds for residents and business owners in the hardest-hit neighborhoods of the city.

Under a proposal that is scheduled for a public hearing today, a 21,000-acre area that includes Northridge, Chatsworth, Granada Hills, Porter Ranch and North Hills would be designated an emergency redevelopment area.

State redevelopment laws allow local governments to establish emergency redevelopment areas in disaster-struck sections and siphon away future property taxes within the areas to provide disaster aid.

The Los Angeles City Council has approved three other emergency redevelopment areas--in Sherman Oaks, North Hollywood and in the northeast Valley communities of Pacoima, North Hills, Sylmar and Sun Valley. Three other proposed redevelopment projects have yet to be approved.

The proposed redevelopment project for the northwest Valley was initially discussed at a public hearing last week. A second hearing is scheduled for today but a final decision is not expected until Friday, at the earliest.

Several council members have raised objections to the northwest Valley redevelopment plan, saying that because it is the largest proposed area, it will siphon away too much money that will be needed in the future for schools and government services.

Councilman Hal Bernson, who represents the neighborhoods proposed for the redevelopment zone, said he is unsure if the plan has enough support on the council to win approval.

“It may not win,” he said. “I don’t know.”

Particularly strong criticism has come from South Los Angeles lawmakers, who also charge that the plan has been rushed through the approval process without a fair chance for public review.

Councilwoman Rita Walters, who represents parts of South Los Angeles, complained that lawyers for the city’s Community Redevelopment Agency released a rewritten version of the redevelopment plan only a few minutes before last week’s hearing.

“I really question the viability of the process,” she said. “It’s had no public airing.”

Councilman Mike Hernandez, another South Los Angeles lawmaker who has criticized the plan, said he may vote against the project because it covers nearly all of Bernson’s district and is not limited just to hard-hit neighborhoods.

“He went for the whole banana,” he said.

The redevelopment plan, which was drafted by redevelopment lawyers and community representatives, is unlike previously approved plans that will use tax dollars to provide residential and commercial loans and money to repair public buildings and streets.

The project in the northwest Valley would generate money for loan guarantees--funds that would be used to guarantee repayment of traditional bank loans, thus making it easier for victims to get loans.

The project also would not use tax dollars to repair public facilities, such as damaged sewers or city parks. And if the plan fails to generate $25 million by March 15, the project is canceled, according to officials.

Because of such strict limits, supporters of the redevelopment plan said it will actually siphon away fewer tax dollars than other projects that have already been approved by the council.

Several City Hall insiders have suggested privately that the opposition is purely political and that Walters and Hernandez are criticizing the plan as a way to get back at Bernson for previous clashes he had with them over housing and senior citizen funding.

Lee Hintlian, a Bernson deputy who helped draft the plan, said at least four of the 14 council members are likely to vote against the redevelopment plan. But he said he is confident that the plan will nonetheless win final approval.

In a related development, Los Angeles city officials said Monday they plan to apply to the U.S. Department of Commerce’s Economic Development Administration for a $30-million grant to rebuild quake-damaged streets, bridges or other city-owned structures. A decision on the application is expected to be made by the end of January.

12th Council District redevelopment area

A proposed redevelopment area in the northwest Valley would be the largest of six project areas considered for earthquake repairs. However, some South Los Angeles lawmakers are raising objections.

Source: Community Redevelopment Agency