MTA, CRA plan joint development at Hollywood-Western intersection.

The City of Los Angeles plans to buy and demolish a notorious Hollywood slum apartment building and additional housing units for joint development, in cooperation with the Metropolitan Transportation Authority, of a new mixed-use project south of Hollywood Boulevard along Western

The project is planned for a site that includes the new-vacant La Paula Apartments. made infamous 10 years ago when convicted slumlord Milton Avol was sentenced to live there -- the first-ever "house arrest" of a slumlord in his own building. Avol sold the property but foreclosed on it in 1992, taking back ownership.

In 1993, Avol pleaded guilty to 10 counts of fire, health and safety code violations in connection with the same 93-unit building and was ordered to pay $16,000 in fines and costs, complete 200 hours of community service, and bring the four-story complex up to code.

Avol, a retired Beverly Hills neurosurgeon, said he spent $300,000 fixing up the building, only to have it red-tagged after the Northridge earthquake. It has been vacant ever since. Recently, Avol signed on as a plaintiff in Hollywood Damage Control & Recovery Inc.'s lawsuit against the MTA, claiming the building was damaged by Metro Rail construction.

The Los Angeles City council is scheduled to vote this week on a proposal, approved last month by the Community Redevelopment Agency's Board of Commissioners, to negotiate a joint development agreement with the MTA regarding property the MTA already owns on the southeast corner of Hollywood Boulevard and Western Avenue, plus negotiate to buy Avol's property and other adjacent residential parcels on Carlton Way. The MTA board is scheduled to vote on the plan later this month.

One of the other three residential properties involved has a vacant four-unit apartment building on it and also is owned by Avol. The other two parcels have occupied single-family homes on them.

Speed an issue

The MTA and the CRA need to move quickly on approving the plan so they can obtain $3.5 million from the Los Angeles Housing Department's Earthquake Recovery Program fund for land acquisition, and so that the yet-to-be-named developer can obtain federal low-income housing tax credits. The tax credit application deadline is this coming March.

"Time is of the essence in order to take advantage of Federal Earthquake Recovery funds administered by LAHD," noted a CRA report. A rapid acquisition and disposition cycle will afford the selected developer the best opportunity to utilize both the Earthquake Recovery funds and federal tax credits and provide for timely redevelopment of the site."

According to the proposal approved by the CRA board, the CRA and the MTA would jointly issue a request for proposals to select a developer for their planned two-phase, mixed-use development on 2.32 acres.

"There has been greater developer interest in Hollywood over the past six to nine-months that hasn't been present for years," said CRA Hollywood project manager Len Betz. "I think there would be some interest."

The plan calls for development of housing, retail uses and a child care facility. Phase one, which would be developed on the residential property to be acquired plus a half-acre of MTA land, would include low-and moderate-income housing for families. Phase two, to be built on the rest of the MTA land, which is above a Metro Rail station site, would include the other uses.

The CRA would negotiate with the private property owners on price, with value to be determined by appraisal.

If a price cannot be agreed upon, the CRA has the power to take the property through eminent domain proceedings, which usually lead to a court-ordered settlement on price.

Setting a price

Avol said he would be willing to sell his property to the city if the government offers him a fair price, based on the property's 1993 value prior to Metro Rail subway construction in the area.

"We take the most recent, current appraised value. That's what we base the negotiations on," noted Betz. "We'll be doing the negotiations, so we'll be following our rules as if we were using Hollywood tax increment."

The MTA and CRA would jointly sell or lease the project site to the selected developer.

The LAHD would provide financial assistance to the developer.

Also on the drawing board for years at Hollywood Boulevard and Western Avenue has been another CRA-funded affordable house/retail project known as Hollywest, on the site of the former Hotel Rector.

"Hollywest is a different type of retail and a different types of housing," noted Betz. "The housing (planned for Hollywest) is all for seniors. This is for families."

Betz said he hopes to have construction under way on the new project's family housing component in 1996.

"This is something that could happen relatively quickly," said Betz. "It's been one of the worst intersections in the city. This could really help."

John Given, joint development project manager at the MTA, said the MTA/CRA plan for the intersection has been in the works for more than three years.

"We've always thought this was the best strategy," said Given. "It's a very important project for all concerned. It will work well with Hollywest and with other CRA plans."