UNOCAL MAY DROP 118 INTERCHANGE.

Byline: Andrea Cavanaugh Staff Writer

SIMI VALLEY - Plans to build an $11 million interchange on the Ronald Reagan Freeway in Simi Valley may hinge on whether a developer is allowed to build a business park and upscale homes north of the freeway, the developer said Thursday.

Unocal Land and Development Co. owns 3,000 acres near Alamos Canyon and had drafted plans to build a commercial development and 1,300 homes on the property.

The project stalled earlier this month when the City Council declined to waive rules limiting hillside development.

In 1989, Unocal sued Caltrans, claiming the freeway cut off access to its property. Caltrans settled the lawsuit in 1994 by agreeing to reimburse Unocal for the cost of building an interchange at Alamos Canyon Road.

But Unocal will weigh its options before laying out money for the project, Vice President Brian Kelly said.

``Right now, it's our intention to build it,'' Kelly said. ``But at the end of the day, there has to be a purpose to build it. The benefits are related to what kind of development we build here.''

Unocal would be responsible for designing and building the interchange, then it would fall under state control, said Reza Fateh, project manager for Caltrans. The design must be approved by Caltrans, he said.

Biologists must determine what impact the interchange will have on wildlife and whether the area is a significant habitat for the endangered California gnatcatcher. A draft environmental impact report on the interchange is expected to be completed in June.

Construction on the interchange could begin in 2005 and be completed within a year, Caltrans said.

Andrea Cavanaugh, [phone]

andrea.cavanaugh(at)dailynews.com