EDITORIAL UNIVERSAL APPEAL STUDIO'S DEVELOPMENT PLAN COULD SPARK MAJOR URBAN RENEWAL.

In this, the city of limits, where housing is in short supply, traffic is terrible and open space is at a premium, it's hard to believe the real-estate gold mine that NBC Universal sits on - 400 acres of unused land, in the heart of the thriving greater Hollywood area, with easy access to the Red Line subway.

The possibilities are endless: community-friendly housing developments, a vibrant urban village with easy access to mass transit and jobs, theme-park expansion or new studio lots that would bolster the local economy - the film industry in particular.

The question is how it's developed, and to what end.

Officials at NBC Universal seem to understand that well. Past attempts to develop the land under previous management fell apart, in no small part because ambitious ideas were thrown out at the community without first seeking the public's support. Not this time.

After more than a decade of false starts, company officials announced Wednesday that they were starting from scratch. All old plans have been nixed, and experts will evaluate the property anew to determine its best use. But this time, NBC Universal is doing things differently. The company is holding periodic meetings with neighbors and local groups to keep the public informed and collect input.

Neighbors, in turn, are promising to keep an open mind, and to not resort to the sort of NIMBYism that has too often obstructed progress in the San Fernando Valley. Their input will be crucial in ensuring that any development has the proper mitigations and infrastructure to afford a decent quality of life for all.

This forward-thinking, cooperative approach has tremendous potential for the Valley and all of Los Angeles.

The open space to the south and east of Universal City is one of the great untapped resources in the region. It is in the heart of a surging district that, between the existing entertainment venues, the Red Line and further development, could become the great hub for tourism, night life and the entertainment business in L.A. But the potential doesn't end there.

City and county leaders, who have jurisdiction over different parts of the property, must also work with NBC Universal to create a plan that includes not just the company's unused land, but the entire area.

Los Angeles has an unfortunate history of failing to plan comprehensively, of not making the most of resources and opportunities, of approving half-baked visions. This time it need not be that way. NBC Universal seems to be taking a thoughtful approach, and local governments ought to join it.