`HOLLYWOOD IS THE VALLEY' : CONFERENCE SPEAKERS SEE PROSPERITY AHEAD WITH ENTERTAINMENT INDUSTRY.

Byline: Gregory J. Wilcox Daily News Staff Writer

The San Fernando Valley will continue reaping the rewards from robust entertainment and high-technology sectors in coming years but an overhaul of local government is needed to sustain economic growth.

That was the conclusion of panelists and speakers Friday at the Valley Industry and Commerce Association's eighth annual Business Forecast Conference.

A good chunk of the entertainment growth will come from an ambitious expansion plan by MCA Inc., which wants to more than double its Universal City operations by 2020. And it will help cement the Valley's position as the world's entertainment capital, said attorney Howard Weitzman, MCA's executive vice president of corporate operations.

``Hollywood is the Valley, there is no doubt about it. We're all in show businesses one way or another,'' Weitzman said. ``This master plan will provide new jobs and economic opportunities for our community.''

The project could add 13,000 new jobs in Universal City, create 27,000 construction jobs during the expansion and infuse the local economy with $1.6 billion annually, he said.

It also would generate about $25 million in fees for local government agencies.

Stephanie H. Liner, executive vice president of the Entertainment Industry Development Corp., said this sector last year provided about $9 billion in salaries to 210,000 county residents.

The number of local government filming permits increased 50 percent last year, local trade unions are full and they are admitting new members for the first time in a decade, she said.

Entertainment companies are proving to be some of the best run, most efficient businesses in the country, she said.

``This industry will continue to be on the cutting edge, both in terms of technology and organization,'' she said.

Larry J. Kosmont, founder of Kosmont & Associates, a real estate consulting firm, predicts that the boom in entertainment will help speed the recovery in the local commercial property market.

He expects increased demand for new high-ceiling industrial buildings and predicts that existing industrial space will be converted to entertainment uses.

Entertainment firms also will be scrambling for suburban office space, he said.

On the retail end, he said the market should improve for discount stores and medium-size chains.

``The investment of corporate America today is in functional industrial space and technology,'' Kosmont said.

Local government's role will be crucial in the equation.

For example, city fees and taxes can add 80 cents to the cost of a square foot of office space in some parts of the Valley, making it more expensive than neighboring communities such as Calabasas and Westlake Village.

``One of the things that's going to cripple the Valley's recovery and the Los Angeles recovery is the cost of doing business. This is one of the most high-cost areas in terms of permits and fees in the country,'' Kosmont said.

Los Angeles Mayor Richard Riordan, a member of the conference panel on charter reform, said he has been trying to cut fees and red tape but that lots of work remains.

``We've been pushing for that,'' Riordan said. ``We're fighting very hard in that area.''

Reforming the city's charter could help streamline government and make it run more efficiently. This is turn would be a boon to businesses, the mayor said.

``I think the people here in the Valley who have been neglected for so many years need more of a voice . . . so they can hold government accountable, particularly elected officials,'' Riordan said.

About 400 people attended the event at the Warner Center Marriott. The event featured exhibits by more than 20 businesses, colleges, universities and health care facilities.

Conference sponsors included the Daily News, GTE California, the Los Angeles Department of Water and Power, 20th Century Insurance Co., Grant Thorton LLP and Anheuser-Busch Inc.