Citing a lack of funding and other...

Citing a lack of funding and other concerns, the U.S. Army Corps of Engineers has turned down a proposal from the Fish and Wildlife Service suggesting that the Corps buy and restore a 139-acre parcel of land in Marina del Rey that is part of Playa Vista.

Playa Vista is a 1,087-acre area, a portion of which is the Ballona Wetlands and some of which is slated for a development project that includes the DreamWorks production facility.

The Corps already has spent all of the money budgeted this year for preliminary restoration plans--the first step in the restoration process, officials said. The Corps may talk with Fish and Wildlife officials about restoring a portion of the 139-acre site when the Corps gets more funding.

But the project faces still other hurdles. The cost to buy and restore the property probably exceeds the $5-million limit mandated by the federal program that would pay for the project in Marina del Rey, officials said.

Further, the 139 acres probably would cost the Corps more than it is allowed to spend under regulations of the funding program, officials said. The last appraisal on the property in Marina del Rey set the value at $12 million, and the Corps figures it to be worth far more now.

Officials also noted that no local sponsor has committed to handling the operation and maintenance of the property after the restoration.

“I would be surprised if anyone has enough money to purchase it and that the developer would want to sell it,” said Los Angeles City Councilwoman Ruth Galanter, who has been working with Maguire Thomas Partners, the developer of Playa Vista, on a separate restoration plan for the Ballona Wetlands. Maguire Thomas does not want to sell, said project manager Doug Gardner.