N. Hollywood Development at Crossroads
The builder of a commercial project designed to be the cornerstone of North Hollywood redevelopment announced a tentative agreement with financial backers Thursday even as city officials questioned whether the project will be ready for approval by a Jan. 31 deadline.
Developer J. Allen Radford said he and representatives of the firm LCOR have tentatively agreed on terms of a joint venture partnership. He said he hopes to have papers signed in time for a special meeting of the Community Redevelopment Agency Board on Jan. 31.
“There is no doubt it will be done in time,” Radford said.
But agency officials told the board Thursday they are doubtful they can finish the required environmental review process for the project by the deadline.
“Then you have a project that has just tubed,” said Community Redevelopment Agency Board member Doug Ring, who told the backers he is unwilling to grant a third extension of negotiations to Radford past the deadline.
If the deal does not come together in time, Ring said he would press to reopen the competition to other developers interested in building on CRA-owned property south of the North Hollywood subway station.
While Ring insisted the environmental work must be completed at the time the board approves a development agreement with Radford, board President Peggy Moore said she is more concerned that Radford signs the agreement and has a deal with a financial partner by Jan. 31.
“I would hope that after 18 months he absolutely has the partners in place and a signed deal,” Moore said.
Radford proposed 1.8 million square feet of shops, restaurants and office towers on land he and the CRA own south and east of the subway station. The project has been troubled since its inception, when Radford proposed 4 million square feet of development. Market conditions forced some elements of the project, including 10 film sound stages, to be dropped.
CRA administrator Jerry Scharlin said Thursday that that after talks with Radford, it is still unclear whether the developer will meet the deadline for signing up a joint venture partner to help finance the project.
“I will see what happens on the 31st. It’s down to the last moment,” Scharlin said.
The administrator said the board’s warning to Radford on Thursday was meant to put pressure on Radford to take the deadline seriously.
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Even if a partnership agreement is reached between the two firms in the next few days, Radford said that would leave less than two weeks for the CRA staff to finish its own review of the partnership and development agreement, including time-consuming financial analysis and appraisals of the land involved.
The shortage of time might also hamper the ability of the CRA to complete the environmental review process by the deadline, said Pauline Lewicki, a senior planner for the agency.
At a hearing on a draft environmental impact report, Lewicki told the board Thursday that the agency must respond in writing to public comments and circulate the final report, with responses, 10 days before the board acts. That would mean the staff would have to complete the report in time to mail it out Saturday, just two days after the public hearing.
Asked if that can be done, Lewicki told the board it is “impossible” but said she would try.
Moore and board member Coby King said that if the required development agreement and partnership are finalized by the deadline, they would consider providing a short extension to wrap up the environmental process.
Under the proposed development agreement, the CRA would be obligated to spend up to $5 million to buy land for the project, in addition to a requirement to use property tax proceeds in future years to reimburse the developer for expenses, officials said.
