WALKWAY MAY COST MTA EXTRA MILLIONS.

Byline: Lisa Mascaro Staff Writer

A back-room City Hall deal that was quickly and unanimously ratified by the Metropolitan Transportation Authority board nearly a decade ago has come back to haunt the agency, which faces spending millions dollars more than budgeted for a pedestrian tunnel to Universal City.

Former Mayor Richard Riordan ordered his close adviser Ted Stein, a San Fernando Valley developer who now heads the Airport Commission, to step in and resolve a bitter dispute between the MTA and Universal Studios over where to put the Metro Red Line Station, one of only two subway stops in the Valley.

But the resulting agreement, which didn't set specifics on the tunnel's design or price for the property, now leaves MTA considering approval today of a $17 million contract to build the 200-foot walkway with granite and ceramic tile flooring and other enhancements not spelled out in the original $2 million plan. Construction will force periodic closure of two of the three lanes on Lankershim Boulevard each way for up to 21 months.

``I know that people will wonder, 'Gee, how could that money be spent in other ways?' I mean we're fighting tooth and nail to get landscaping in the parking lot, we've been unsuccessful in getting street trees at the entrance to Studio City, yet they're going to spend millions on a tunnel that basically will serve as the entrance to Universal?'' said Studio City Homeowners Association President Tony Lucente.

``It's just interesting when these things are worked out without the benefit of public purview or input. That's really the story of this whole station.''

The agency faces a Dec. 3 deadline to honor the agreement with Universal.

MTA board member Michael D. Antonovich, a long-time county supervisor, said through an aide he hopes other options can be identified.

``It seems a little frustrating to think they entered an agreement and didn't have any parameters. What if they came in with gold-plated requirements?'' said Antonovich's transportation deputy, Rosa Fuquay. ``The question is, under the agreement, what were we really responsible for doing? What should MTA be paying for, what is fair in honoring the agreement, what is above and beyond, and who is it being requested by?''

The MTA said there were problems with the contract, but also blamed Universal for adding new requirements in exchange for the land to build on.

Universal declined to comment on the specifics, but believes the current plan meets the objectives of those involved, a spokeswoman said.

Riordan, who didn't remember sending Stein into the negotiations, said the MTA should work out a new agreement with Universal.

``This is total baloney, when you're talking the difference between $17 million and $2 million. ... Who determined it was going to cost $2 million?'' the former mayor said.

Riordan blamed MTA executives who drew up the agreement for not putting together the details.

``One of the reasons I got new management in there - constantly we were getting wrong facts,'' the former mayor said. ``You reach an agreement, you rely on the executives and the lawyers to finalize the agreement. They're the ones who are really responsible for making sure it was put right. We had really bad executives. We lived by a lot of consequences.''

Construction is expected to start by spring, tying up traffic in the area.

The feud between the MTA and Universal's then-parent company MCA in 1993 hung up over where to put the Universal City Red Line Station, which the MTA had planned for Lankershim and MCA wanted closer to its CityWalk entrance.

Less than a week after the deal brokered by Stein, it got unanimous MTA board approval. It called for keeping the station at Lankershim, having the MTA build the $2 million tunnel and having MCA put a $20 million people mover to ferry visitors up the hill to the entertainment area. The Daily News reported at the time MCA was not bound to the people mover.

As part of the deal, MCA agreed to sell the MTA the land needed for the station for $8.25 million, and the MTA waived the $6 million fee MCA was to have paid as part of a benefits assessment.

MTA Interim Executive Officer for Construction Dennis Mori said the land along the east side of Lankershim where the tunnel would let pedestrians in and out became a key issue because Universal wanted the MTA to buy the property. Mori said the MTA in 1999 shelved bids it had solicited that came in at $15 million because it still didn't have rights to build on the land.

Instead, it was agreed Universal would give MTA the land in exchange for enhanced features - including advertising space inside the tunnel, and more than $1 million in such materials as granite flooring and ceramic tiles that match the look of the station, rather than the white concrete MTA had planned to use.

``We wanted a plain vanilla, all-concrete tunnel. What's wrong with that?'' said Mori, pointing to what's used in Union Station. ``That's the main tunnel in Los Angeles.''

Los Angeles Department of Transportation also stepped in with a new requirement that historic tiles discovered beneath Lankershim Boulevard from the Campo de Cahuenga be protected with a layer of sandy substance, adding about $500,000 to the total price tag. ``It's peanuts compared to the rest of the project,'' said DOT engineer Sami Wassef.

LADOT estimates 200 pedestrians an hour in the morning and 300 in the afternoons would use the tunnel.

MTA's Mori blamed Universal for driving up costs and the time needed for the tunnel. ``If Universal didn't put so many restrictions on us, we could build it faster, get out of this intersection faster.''

A Universal spokeswoman said they have been working to meet the needs of the agencies as well as the many businesses that rely on Lankershim to access the area.

``We've been working with LADOT and the MTA over the past two years to meet everybody's objectives. We believe the current plan does that,'' the spokeswoman said.

Stein did not return calls for comment.

The Howard Jarvis Taxpayers Association's Jon Coupal said the agreement doesn't sound good for taxpayers.

``MTA, per usual, engages in Enron-type accounting and didn't cost it out on the front-in end,'' said Coupal. ``Cost be damned, we're going to come up with a number and worry about it later. That's certainly not in the taxpayers' best interest.''

Mori said he understood the frustration.

``I think that's a very valid concern. It doesn't seem like the cost-sharing aspect is very equitable,'' he said.

``Maybe it seemed like a pretty good deal. Maybe in the grand scheme it seemed equitable. I don't believe the board at the time was made aware of all the potential costs. It's a pretty huge agreement. I would think the board should have time to read these things.''

He added, ``We've inherited this. We're just trying to execute the plan. We want to fulfill our obligation. ... We just want to bring this to closure.''

CAPTION(S):

photo, 2 maps

Photo:

The MTA plans to build a pedestrian tunnel from Universal Studios to the Lankershim subway station, shown here.

Michael Owen Baker/Staff Photographer

Map:

(1 -- 2) UNIVERSAL CITYWALK PEDESTRIAN TUNNEL

Jon Gerung/Staff Artist