Studio Says MTA Is Walking Out on Deal to Construct Pedestrian Tunnel at Station

A brouhaha between Universal Studios and the Metropolitan Transportation Authority over a proposed pedestrian tunnel is about to boil over into an all-out legal war.

Universal filed a claim Friday against the agency, alleging it breached an agreement to build a 260-foot underground passageway from the Universal City subway station to the entertainment conglomerate’s main entrance.

The tunnel is necessary to improve pedestrian safety and reduce traffic congestion, according to the claim, a precursor to a lawsuit against a public agency. The MTA has 45 days to respond.

But transit agency directors chafed at the tunnel’s $22.9-million price tag, saying it was unanticipated and, during a time of budget crisis, too costly.

“That would make it the most expensive crosswalk in the history of mankind,” said Los Angeles County Supervisor and MTA Vice Chairman Zev Yaroslavsky. “It cost $250 million to build a mile of the [Red Line] subway. This is twice the price per foot of a subway tunnel.”

He said he hoped Universal executives would continue negotiating with the MTA without going to court.

The seeds of the controversy were planted in a 1994 agreement that required Universal to sell $8.3 million in land to the transit agency for building the subway. In exchange, the MTA agreed to pay for a tunnel under Lankershim Boulevard that would have two openings on Universal’s side of the street.

At the time, the MTA estimated the tunnel would cost $2 million. Staff members now acknowledge that the estimate was unrealistic.

“The $2-million [figure] was not based on a design. It was not the result of a detailed estimate,” said Ed Scannell, a spokesman for the agency.

The most recent estimate includes $18 million for construction, $1.35 million for project administration and $700,000 for engineering.

Tunneling under Los Angeles streets is expensive because of the need to reroute buried utility lines, said James Okazaki, assistant general manager of the city’s Department of Transportation.

MTA staffers blame Universal for driving up costs by restricting heavy construction to late-night hours and demanding such features as decorative tile inside the passageway. “A plain vanilla tunnel with concrete floors, walls and ceilings would be considerably less money,” Scannell said.

But Universal executives say a deal is a deal, and point out concessions they have already made to help reduce costs. Although the original agreement called for a tunnel with two portals on the studios’ side of the street, Universal now asks for only one opening.

The two sides agreed that the MTA would begin construction by Dec. 3, 2002. In an October report, MTA staff warned that missing the deadline could spark litigation. A board vote on the proposed tunnel was postponed after directors expressed concerns about the cost.

About 300 to 350 pedestrians cross Lankershim every hour during the morning and afternoon commute, according to the Department of Transportation. But the intersection, a gateway for Universal employees as well as visitors to its CityWalk theme park, amphitheater and cinema complex, can also flood with cars and pedestrians for evening concerts and other events.

As an alternative to the tunnel, the MTA proposes building a pedestrian bridge, which would cost less than half the price. But Universal rejects the idea.

“The contract is for a tunnel and an exit portal,” a Universal spokeswoman said. “We look to ... MTA to fulfill its obligations.”

Some area residents and pedestrians say the MTA has delayed long enough and should start digging.

“It’s a dangerous intersection,” said videotape editor Bill Botts as he stepped across Lankershim on a recent morning. He and others said they also doubt that people would climb a footbridge to cross the street.

But others say the street is fine the way it is.

“We have lights. They tell you when to cross or when not to cross. We don’t need a tunnel for that,” said Mayra Ulloa, who crosses Lankershim every day to catch a bus to her job in Burbank. The money should be used, she added, “for schools, to help kids, maybe pay for more buses.”