Backer Found for North Hollywood Plan, Builder Says

The builder planning a commercial project designed as the cornerstone of North Hollywood redevelopment announced a tentative agreement with financial backers Thursday, even as city officials questioned whether the project would 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 will 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 doubt they can finish the required environmental review process for the project by the deadline.

Community Redevelopment Agency Board member Doug Ring told the backers he is unwilling to grant Radford a third extension of negotiations past the deadline.

If the deal does not come together in time, Ring said, he will press to reopen the competition to other developers interested in building on CRA-owned property near 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.

Moore and board member Coby King said that if the required development agreement and partnership are completed by the deadline, they would consider providing a short extension to wrap up the environmental process.

Radford has 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.

CRA administrator Jerry Scharlin said Thursday that, after talks with Radford, it is still unclear whether the developer will meet the deadline to sign up a joint-venture partner.

“I will see what happens on the 31st. It’s down to the last moment,” Scharlin said.

He said the board’s warning on Thursday was meant to put pressure on Radford to take the deadline seriously.

Radford said that, even if a partnership agreement is reached in the next few days, there would be less than two weeks for the CRA staff to finish its own review of the partnership and development agreement, including financial analysis and land appraisals.

The time crunch might also hamper the ability of the CRA to complete the environmental review process by the deadline, said Pauline Lewicki, an agency senior planner.

At a hearing, 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.

Asked if that can be done, Lewicki told the board it is “impossible,” but said she would try.

Under the proposed development agreement, the CRA would be obligated to spend as much as $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.