A $168-Million Boost for Playa Vista Project

Giving a significant financial push Tuesday to the controversial 1,087-acre Playa Vista development on the Westside, the Los Angeles City Council approved more than $168 million in public bonds for infrastructure and housing at the project.

In taking that step, the council relied heavily on a study it had commissioned of environmental hazards at the site near Marina del Rey. That report, strongly contested by Playa Vista foes, contended that any dangers, such as underground methane gas, could be properly mitigated.

Patricia McPherson of the Grassroots Coalition, one of the environmental groups seeking to stop the project, said she was appalled at the council’s votes Tuesday.

“I feel like Alice in Wonderland,” McPherson said. “We’re at the Mad Hatter’s tea party--all whirling around in the city’s madness.”

She said her group would try to get state officials to block the bonds, based on what her group contends are the dangers of the methane gas from an old underground storage facility in the area.

The massive development, with 2.5 million square feet of offices and stores, 13,000 houses and apartments, and 340 acres of restored wetlands, has had a rocky economic and political history. Environmentalists for years have protested what they say is sure to be increased pollution and traffic from the development. They hope that the U.S. Supreme Court will hear their appeal to halt bulldozing on a parcel of wetlands there.

Although other City Council actions and regulatory approvals are needed to build the full project, especially on areas west of Lincoln Boulevard, developers walked out of City Hall happy Tuesday.

“We are clearly pleased they got approved,” Playa Vista project spokesman Neal Sacharow said of the bonds.

In a 10-0 vote, the council dedicated $135 million in Mello-Roos bonds to the project’s infrastructure east of Lincoln Boulevard. The bonds will reimburse the developers upon the completion of work like roads and parkland.

The bonds, sold to private buyers, are to be repaid through a special tax placed on the property owners and the city’s general fund is not liable for repayment, said John Henschel, city senior administrative analyst.

Councilman Mark Ridley-Thomas said he voted for the bonds because he believes the “positives of the project outweigh the negatives.”

“They have gone through considerable lengths to satisfy any significant environmental issues,” Ridley-Thomas said. “We have worked on this project for years to make it the best possible deal. There is much to be proud of here, even though there are those who feel otherwise. I respect their opinions. At a certain point, progress must be made.”

Councilwoman Ruth Galanter, whose district includes Playa Vista and who joined in the bond approvals, said: “We worked hard to turn it into a model of smart growth.” She stressed the need for affordable housing in the area that she said the financing would help fill.

The council voted 11 to 0 to release $33.6 million in Multi-Family Housing Revenue Bonds to finance the construction of affordable apartment units at Playa Vista. The bonds will be repaid by the owners of the properties.

Councilwoman Cindy Miscikowski did not vote to avoid conflict of interest because her husband, Douglas Ring, is a developer in the Playa del Rey area. Eric Garcetti, who took his council seat this week, abstained because, he said, he believed he did not have enough time to assess the matter.