Redevelopment Contract to Study Area Rescinded

In a setback to efforts to revitalize the northeast San Fernando Valley, the Los Angeles Redevelopment Board voted Thursday to rescind a contract to develop an economic development strategy after the firm failed to do the work.

The board voted Thursday to give the $180,000 contract to Gruen Associates, after another firm hired in 1997 failed to respond to repeated requests by the agency to develop an economic strategy for 600 acres around Hansen Dam, city officials said.

Richard Alarcon, who represented the area as a City Council member and now as a state senator, said he was disappointed in the delay, but said he still hopes the plan can help guide future development of the area around Hansen Dam.

“I would have preferred to see the strategy created quicker,” Alarcon said. The area includes large unused parcels, and other sites including the 200-acre Valley electric generating station, which might be developed in the future.

The study area is a key part of a larger redevelopment project area proposed for the northeast Valley, which could be jeopardized by the Community Redevelopment Agency’s financial problems.

The redevelopment board directed agency administrator John Molloy on Thursday to develop a plan for additional voluntary retirements to reduce the 210-employee work force if an $8-million budget deficit is not overcome. One source said as many as 30 positions may be eliminated through the buyout program.