Finally, an Expansion Plan That’s Universally Acceptable

What a difference a few weeks--and a few million square feet--can make. Responding to criticism from neighbors and two key politicians, Universal Studios last week cut its ambitious expansion proposal by nearly half. The result: A project that’s far more sensible and realistic than previous incarnations. Although still a massive project by any measure, Universal’s revised proposal eliminates most of the components that alarmed neighbors. Those disputes that remain can be hammered out in the yearlong approval process that lies ahead.

The new plan substantially scales back plans to develop the 415-acre property as a destination resort with expanded theme parks and big hotels. The number of hotel rooms would drop from 3,425 to about 1,200. A new theme park for kids would be dropped. And expansion of the popular CityWalk entertainment complex would be reduced by about 30%. Even so, the current plan would increase the amount of development on the property by about 60%, including 1.6 million square feet of office and studio production space. In addition, the expansion would take place over 15--rather than 25--years and be accompanied by a number of public improvements such as bike paths along the Los Angeles River.

Most problematic, though, is the proposed 388,000-square-foot expansion of Universal’s existing theme park. That’s about the size of three big warehouse-style stores such as Home Depot or Price Club. Some neighbors already complain about noise and traffic from the theme park and fear any expansion will only worsen the problems. Because of the odd terrain of Universal’s property, sound bounces in several directions and affects neighborhoods as far away as Toluca Lake. In a letter to Universal last month, Los Angeles City Councilman John Ferraro and county Supervisor Zev Yaroslavsky called on the studio to virtually eliminate expansion of the theme park. That’s a tough pill for Universal to swallow because theme park operations generate higher, more dependable returns than films.

Universal’s new proposal represents the clearest sign yet that the studio genuinely wants to resolve the most contentious issues neighbors have with its project. Realistically, it had little choice. Sticking with a bigger project would have mired Universal in an endless fight no one could truly win. Is the new plan perfect? No, but it’s getting there. Refinements in the months ahead should result in a project that is at least tolerable to both neighbors and Universal.

As Yaroslavsky said last week: “We’re all singing from the same hymnbook now.”