AREA'S GROWING PAINS MAY BUILD CHARACTER.

Byline: Brent Hopkins Staff Writer

NORTH HOLLYWOOD - Drawn in by the Community Redevelopment Agency's plans for developments that would meld the neighborhood's bohemian nature with hip retail and expansive housing, David Dion became one of the NoHo Arts District's most prominent backers.

With the aid of an $8,000 CRA grant, Dion opened his retro women's clothing store, VaVoom!, five years ago near the Red Line station at Lankershim and Chandler boulevards. He sat on committees, got involved with the business improvement district and praised local leaders for their support of the long-running project, developed with CRA funds.

``There was really a magical vibe here, and it was helped and created by the CRA and the (transportation authority),'' Dion recalled. ``We had a great time, and I was doing six figures easy in this store at the time. I was fat, man.''

But now he charges those unfulfilled promises have left him bankrupt and bitter.

Original developer Allen Radford's plans got so bogged down, he lost the rights to the area without a final proposal in 2001. Though his replacement, J.H. Snyder Co., plans to break ground this fall on an ambitious $140 million, 1.2 million-square-foot development adjacent to the MTA stop, some advocates say it may be too late.

``You'll see more loss of small business on the street,'' said Roberto Barragan, president of the Valley Economic Development Center. ``Snyder's project will come in, give people a reason to come there and let new businesses in. In the meantime, you'll have people like David's lives being turned upside down. It's too bad, since they were there from the beginning.''

Dion recently closed his shop and is in the process of selling his Burbank home in the hope that he can build anew. He concedes the general retail climate - suffering from slow sales nationwide - played a part in his failure. But he argues that quicker delivery on the promises made would have helped.

``I understand his frustration,'' said Amy Roth, owner of an art gallery and body piercing studio called The Art Coalition, and who also serves on the board of directors for the Midtown North Hollywood Neighborhood Council. ``We've been promised a lot that hasn't happened with the budget cuts. But we're still working hard, and I believe that in five or six years, this could be another Melrose.''

John McCoy, the CRA's deputy administrator, defended his agency's work. He highlighted its backing for the NoHo Commons and more than 300 units worth of privately financed development under way as evidence of progress.

``There's construction happening, people being relocated, deals being worked on,'' McCoy said. ``Unfortunately, none of this is as quick as people would like.''

Brian Sheehan, owner of the Eclectic Cafe, agreed that early dreams of turning NoHo into the hottest spot in town hadn't panned out. But he pointed to the neighborhood's evolution into a thriving theater district as an example of progress, and he said the economy was more to blame than the CRA.

``If you want something to happen, you've got to do the work. You can't just point the finger at a government agency and say, go do this.''

The district's backers see the NoHo Commons as the linchpin to revival. It should be under way by October and be finished in two years.

Councilman Tom LaBonge said, ``People wanted more and more and they didn't see it. I could understand how they'd be frustrated, but a year from now, there will be completion of a number of residential housing units, which will add tremendous vitality to the area. There'll be thousands within walking distance of the subway, which is key.''

Snyder faces a difficult task in revitalizing the area, but the developer faced similar conditions in 1987 when it built the Wilshire Courtyard on Miracle Mile, subsequently drawing additional investors to the once-blighted area. Cliff Goldstein, a senior partner with the firm, said he's already seen similar results after announcing plans for the NoHo Commons.

``I can appreciate the frustration, but I think all the right people are in place to make this happen now. We're in a position in a matter of weeks to pull the permit on the first phase, so we're through all our plans for the first phase.''

Brent Hopkins, [phone]

brent.hopkins(at)dailynews.com

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Photo:

(color) North Hollywood entrepreneur Amy Roth is active in the area's business community. She says the neighborhood is evolving, if slowly, and may rival Melrose Avenue in coming years.

Tom Mendoza/Staff Photographer