CITY PANEL BACKS DEVELOPER; PLAN COVERS 42 ACRES AT NORTH HOLLYWOOD HUB.

Byline: Beth Barrett Daily News Staff Writer

A key Los Angeles city panel chose Jarco/SLG&G of Santa Monica on Tuesday to develop a mammoth $850 million North Hollywood studio-office-residential complex that could anchor East Valley regeneration around the subway station, the Daily News has learned.

The firm's 3 million-square-foot proposal won out over a smaller, similar project by Academy Media Center of Beverly Hills, based on a stronger financing package, a certain partnership, and better overall ``scope and development,'' said Lillian Burkenheim, North Hollywood project manager for the city's Community Redevelopment Agency overseeing the competition.

The Jarco/SLG&G 42-acre proposal is expected to be cut to 30 acres to preserve existing residential neighborhoods and small business corridors when it is considered by CRA board on March 4.

With 10 proposed sound stages, two 20-story office towers, a 10-acre office campus, 480 midrise condos, and restaurants, shops and other amenities, this development clustered around the soon-to-be-completed subway station could at build-out represent about a 44-fold increase in the property's value, said J. Allen Radford, managing partner of Jarco/SLG&G.

``North Hollywood after years of being the ugly duckling will turn into a swan,'' Radford said.

CRA Commissioner Dr. Keith Richman said board members are to be briefed on the staff recommendation this week.

``From an overall perspective, a studio project has potential to bring a large amount of economic development to the area,'' he said.

City Council President John Ferraro, whose district contains the project area, said, ``This looks to be a very strong project, one that could provide a significant contribution to the revitalization of the area. I'm glad to see it move forward and look forward to its completion.''

Deputy Mayor Rocky Delgadillo, who heads the mayor's Office of Economic Development, declined comment.

The CRA decision could lead to negotiations with Jarco/SLG&G on a development agreement that could include incentives.

Radford said the four-phase project could create 4,500 construction jobs, 14,000 permanent jobs and attract 1,000 or more residents by its completion.

``With the Metro Red Line built at our doorstep by next spring, we'll have a subway artery to most of the urban areas and to six southern counties,'' he said. ``We'll be at the transportation hub for the entire San Fernando Valley. Tens of thousands of people can come in and out.''

The project faces many opponents who don't trust the CRA and oppose massive redevelopment that would mean condemnation of private property and force out many small businesses, art studios and theaters that have located in the area.

``We are ready to mount our attack, we'll band together; we'll do everything we can to stop them,'' said Mildred Weller, a Sherman Oaks resident whose office building is in the project area. ``It's absurd to take a small office that's in good condition and build condos. It should be illegal.''

CRA officials and Radford, who has already purchased significant chunks of property within the project boundaries, said they are sensitive to those concerns and will do all they can to avoid using the redevelopment agency's powers of eminent domain.

Others in the area have mixed feelings about the plan and want to see infrastructure issues dealt with.

``The city government moves from crisis to crisis without planning. You can't have that kind of intense development without improving the streets, the sewers,'' said Glenn Hoiby, president of the project area committee, a citizen's advisory group to the CRA.