$1 BILLION PROJECT AWAITS ODD VOTE MTA BOARD FACES PRE-BALLOT LOTTERY.

Byline: SUE DOYLE

Staff Writer

NORTH HOLLYWOOD -- With transit-oriented development reshaping the Los Angeles landscape, the Metro board is expected to vote today on a massive $1 billion mixed-use project near a key San Fernando Valley subway and bus hub.

Spanning 15.6 acres around Lankershim and Chandler boulevards on Metro-owned land, it will mark the region's largest private development in recent memory.

But the crucial vote has become tangled as 11 of the 13 Metro board members are barred from casting ballots -- because they have all received campaign contributions connected to projects considered for the site.

"I can't recall that many board members ever being conflicted," said Marc Littman, Metro spokesman. "But it happens."

The only two board members without conflicts are Richard Katz and John Fasana.

Because of so many conflicts, a board would usually be unable to reach a quorum to take a vote at all.

But in this case, the Metro board will use an obscure lottery-based procedure, established by former state Sen. Tom Hayden, that solely applies to Metropolitan Transportation Authority, Littman said.

Under the legislation, a lottery will be used to randomly select five of the 11 conflicted members to vote on the project.

Still, the development measure will fail unless all five conflicted members -- plus Katz and Fasana -- vote to approve it.

It was unclear Wednesday how the members were leaning. Because of the conflict of interest, many board members refused to comment for this story.

But the board is weighing three development proposals that have been reviewed by an outside panel and come from CIM Group, Forest City and Lowe Enterprises.

Of the three, Metro's staff has recommended the NoHo Art Wave from Lowe Enterprises, a Los Angeles-based real-estate company.

That plan calls for more than a million square feet of office space in three towers, plus 157,500 square feet of floor space for retail and entertainment use.

It also calls for development of 562 residential units, with 15 percent dedicated to affordable housing.

Costs for the North Hollywood project would top those for the massive Hollywood & Highland mall, which at $500 million was known for years as the most expensive project in the area.

Lease of the land at the latest North Hollywood project site would generate $11 million annually for the transit agency.

The plan from Lowe is also the top contender because it offers large amounts of community space, including a YMCA. Foliage would be planted on rooftops of office buildings to help with runoff and the environment, said Roger Moliere, Metro's chief manager of property and development.

The plan calls for 6,200 parking spots -- 1,500 of them for the use of Metro transit riders.

Although critics blame overdevelopment for the city's jammed roadways, Moliere said people coming to the complex would more likely use mass transit since it sits adjacent to the Orange Line and Red Line.

"Traffic doesn't come from density around stations where people rely on transit. The real difficulty with traffic starts with sprawl," Moliere said. "Hopefully, this will ease congestion."

The development project is the latest of many for Metro.

In a push for transit-oriented development, Metro next month expects to unveil plans for a project next to the Red Line at Wilshire Boulevard and Vermont Avenue.

That project is set to include 450 apartments, 45,000 square feet of shops and a multistory middle school.

Also, at Hollywood Boulevard and Vine Street, Metro has leased its land for a mega-size development designed to bring glitz back to the rundown area.

That project, to be completed in about two years, includes a W Hotel, 143 high-end condos, 297 market-rate units and 78 affordable apartments.

Those two projects also should net about $11 million each annually for Metro, Moliere said.

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