L.A. COUNCIL OKS GALLERIA'S EXPANSION.

Byline: Patrick McGreevey Daily News Staff Writer

The Los Angeles City Council voted Wednesday to approve a $30 million renovation and expansion of the Sherman Oaks Galleria that will add movie theaters and eight restaurants, although some nearby residents fear it will negatively affect their neighborhoods.

The council action paves the way for expansion of the mall to include eight new restaurants, 13 new theater screens, a Los Angeles Police Department field office and 45,000 square feet of offices.

``We look forward to making the mall a contributor to the community and to the economic vitality of Sherman Oaks,'' said Cindy Starrett, an attorney for the Sherman Oaks Galleria Joint Venture.

``(The Galleria) was impacted by the earthquake,'' she said. ``It's much in need of renovation to contribute to the area and the tax base.''

City Councilman Mike Feuer, whose district includes the Galleria, said the project was scaled back and deserves approval as part of efforts to help the Sherman Oaks economy to recover from the Northridge Earthquake.

``This renovation would represent the most significant investment that I know of in the Valley since the Northridge Earthquake,'' Feuer said. ``This is a community that needs the Galleria to be revitalized. Simply doing nothing there is to consign the area to be blighted.''

Additional planning approvals and liquor license permits are needed but mall general manager Joy DeBacker said she hopes the renovation project can begin in 1998.

Members of homeowners groups whose membership is centered in Sherman Oaks and Encino said they were unhappy with the council's decision and would continue to fight for a scaled-back project.

David Rankell, speaking on behalf of the Sherman Oaks and Encino homeowners associations, said the project will turn the shopping mall into an entertainment mecca, creating the kind of congestion that has plagued the area near Universal CityWalk.

``We're concerned that the changes to the Galleria may have potential to create a major problem in the surrounding neighborhoods,'' Rankell told the council.

He also objected to the project expanding the number of liquor licenses in the mall from 14 to 22, saying the state Alcohol Beverage Commission has established that in a census tract the size of the mall there should be six alcohol licenses.

Gerald Silver, president of Homeowners of Encino, said in an interview after the hearing that his group would fight the additional liquor licenses proposed for new Galleria restaurants as they come up for state hearings.

``We're very disappointed,'' Silver said. ``The council is more interested in businesses than neighbors.''

Sherman Oaks Homeowners Association President Richard Close also said in an interview later that the council action was disappointing.

``The project is much better than it was, but we're still not satisfied with what was approved,'' Close said.

Other residents of the area told the council that the renovation is a major boost for Sherman Oaks.

``It consistently annoys me when I have to drive over the hill to have a meal in Beverly Hills,'' said Bernie Harrison. ``It would mean an enhancement to the community to be able to not have to drive to have a choice of decent restaurants and a choice of movies to see.''

Joyce Rooney of Sherman Oaks said she also believes the renovation will improve the area without negatively impacting neighbors.

The council approved a Specific Plan exemption and zone change, denying an appeal by the Homeowners of Encino and Sherman Oaks Homeowners Association, which had challenged the Ventura Boulevard project.

The project was scaled back from an original proposal for 10 new restaurants. In addition, a dance floor and virtual reality theater were dropped and the mall operators agreed to reduce to 30 percent the amount of revenue that will come from alcohol sales in the restaurants, rather than the 40 percent allowed under state law.

The renovation also will seek to change the image of the mall, Starrett told the council.

``The target of the mall will be older shoppers and families. We're going to try to get away from the teen image that the Galleria has had over the years,'' Starrett said.