Former Defense Contractor Plant Site Sold

Mayor Richard Riordan announced Monday that Trammell Crow Co. has completed purchase of a former defense industry plant in Van Nuys, with plans to develop it into a light-industry and high-tech manufacturing campus.

The development of the 24-acre site at 16555 Saticoy St., formerly owned by the Marquardt Co., has been a high priority for Riordan. He designated it part of Genesis L.A., a program to find a use for a dozen large industrial properties scattered throughout the city.

“The redevelopment of the Marquardt site is an excellent example of the ‘peace dividend,’ ” Riordan said. “A vacant site, which used to house a large defense contractor, will once again employ many people.

“This is another example of the San Fernando Valley’s long-term economic growth and the beginning of a long string of successes for my Genesis L.A. program,” he added.

In the works for months, the project has been dubbed by Councilman Joel Wachs as “Son of GM,” a reference to the massive redevelopment of the old General Motors plant nearby.

Wachs said the project will provide up to 1,200 high-paying jobs.

“It’s a major step in the revitalization of that area,” Wachs said. “It takes a site that really was in desperate need and revitalizes it.”

At its peak, the former Marquardt plant employed 5,000 people making rocket engines, bombs and tails for the B-1 bomber. But much of the property has gone unused for years.

Trammell Crow, which closed escrow Friday on the $23-million purchase, plans to spend $20 million more on redevelopment. It will market and manage the property, said Mark Ossola, the company’s senior vice president of development.

“We are excited about the acquisition of this prominent piece of real estate,” Ossola said. “We hope this project brings high-paying manufacturing jobs to the Valley.”

The company has several potential tenants, including a biotech firm and medical supply and clothing manufacturers, officials said.

“The Van Nuys vacancy rate is one of the lowest in the county for this kind of space, less than 4%,” Ossola said.

Under the plan announced Monday, Trammell Crow Co. will renovate two existing buildings of 200,000 square feet, which will be ready for occupancy in about a month. The company will also demolish three buildings and construct five state-of-the-art industrial buildings, which will be available within a year.

Stagg Street will be extended into the new development, and a new 900-foot street will be extended north into the property from Saticoy Street.

“At the moment we understand they will not require taxpayer assistance,” said Deputy Mayor Rocky Delgadillo, who heads the mayor’s L.A. Business Team.

The big question that delayed the project was whether past defense work on the site had left it contaminated with toxic chemicals. A private consultant hired by the city determined last week that the property poses no health risk to construction workers or employees of businesses that move into the industrial park, Ossola said.

In addition, the state Department of Toxic Substance Control issued a letter stating that an evaluation found the property can be used as an industrial park. The department pledged to take no action to force more cleanup of the property, Delgadillo said.

The city Planning Commission has approved a conditional-use permit for the project.

After decades of defense cutbacks, word that new high-paying jobs will be going to Van Nuys was a relief to local community leaders, including Nancy Hoffman, chief executive of the Mid Valley Chamber of Commerce.

“It sounds great,” Hoffman said. “We need to bring high-paying jobs back to the area. We lost quite a few jobs when we lost Marquardt.”