Sherman Oaks : Galleria Owners Aim for Compromise Plan

The owners of the Sherman Oaks Galleria have scrapped plans for a mall renovation project that would have included an entertainment center, Los Angeles City Councilman Michael Feuer’s office announced Monday.

Instead, in a conceptual deal agreed to with nearby homeowners and Feuer, the mall’s owners have decided on a remodeling project that would feature 13 additional movie screens--bringing the total to 18--and new restaurants. The mall is owned by Prudential Insurance Co. of America and Dai-Ichi Life (USA) Inc.

On Monday, details about the new proposal were just beginning to emerge. Howard Gantman, Feuer’s assistant chief of staff, said he hoped to obtain a copy today of the statement of goals agreed to by the mall and residents that would serve as the guiding principles of the project. Mall owners today will file an application with the city for project approval, according to Gantman.

“We have reached a consensus that we feel very strongly is mutually beneficial to all parties,” mall General Manager Joy De Backer said.

Prudential had originally proposed replacing the existing retail and office space in the mall and an adjacent building with an entertainment center, new restaurants and 17 movie screens. The entertainment center could have included a video arcade, an IMAX theater, a motion-simulation theater and virtual-reality games. Mall neighbors criticized that project as a Universal CityWalk-type attraction that they foresaw fostering youthful hooliganism.

Feuer said the new agreement is a good compromise between what mall owners and homeowners had wanted.

“I’m delighted,” Feuer said. “I’ve been concerned about the possibility that, without substantial renovation, the mall could become a source of blight in the community.”

Gary Holme, a member of the Sherman Oaks Homeowners Assn. who was involved in the negotiations, said that so far, homeowners have agreed to the proposal in concept only, and that he is looking forward to seeing Prudential’s specific plans.

“We feel good that they’ve begun to dialogue with us,” Holme said.

Gerald A. Silver, president of the Homeowners of Encino, who was also in on the talks, expressed similar sentiments.

“I feel the meetings have been productive and promising,” he said, adding that any final blessing that would be given by homeowners “is subject to seeing the plans that they file.”