$1 Million Proposed to Stem Valley Blight

Citing the plague of blight and poverty in the northeast San Fernando Valley, the Los Angeles City Council moved Tuesday to step up economic development in the area and provide incentives to attract new manufacturing and retail operations.

“This motion is a small step, but a significant step, in one of the long-term initiatives, bringing about economic development and revitalization in one of the hardest-suffering areas of our city,” said Councilman Alex Padilla, who represents much of the area.

Padilla proposed the interim steps after joining in a decision last month to temporarily halt a controversial plan by the Community Redevelopment Agency to spend $490 million on economic development and affordable housing in the northeast Valley. With his constituents divided, Padilla put off any action on that major plan for two years.

Instead, the council agreed Tuesday to push a plan that would use more than $1 million in surplus federal grants for several proposals, including a project by the Sun Valley, Pacoima and Sylmar chambers of commerce to develop programs to attract and retain businesses and to form an economic alliance.

The council also agreed to enter negotiations to bring a Denny’s restaurant to Van Nuys Boulevard in Pacoima to address the dearth of full-service restaurants in the area, and to request that Industrial Metal Supply move from Burbank to Sun Valley.

The city Community Development Department was directed by the council to determine whether $300,000 in block grant funds could be used as a subsidy to bring the two businesses to the area. Council members also asked city departments to come up with a list of projects, such as installing sidewalks, street lights and sewer connections in underserved neighborhoods, using about $500,000 of the grant money.

Padilla’s 7th Council District has 1,800 residences that are not connected to city sewer lines, or about 10% of the unconnected homes in the city, said David Gershwin, a spokesman for the councilman. It costs about $5,000 to install a connection, which many property owners cannot afford.

The package of economic development and infrastructure proposals begins to address some of the long-standing problems of the northeast Valley, said Councilman Joel Wachs, who also represents part of the area.

Council members cited a recent series of stories by The Times that described serious shortages of affordable housing, quality jobs and accessible health care in the northeast Valley. Wachs said the series, by documenting pockets of severe poverty and blight, “paints a very different picture than the stereotypes that many people in substantial portions of the city have regarding the San Fernando Valley.”

But some activists complained that Padilla’s $1-million proposal is too little, too late.

“It’s not going to turn around the economy here,” said businessman Victor Carreon. “What we need are good jobs, not a Denny’s. This is Padilla saving face and appearing to do something to get himself reelected.”

Others called the initiative a good beginning.

“A little bit is better than nothing,” said Doris Jacobs, executive director of the Sun Valley Chamber of Commerce.