After the recession, local developers shift into high gear

All the ingredients are in place: A much-improved economy, a very accommodating Planning Department, state and local incentives that are hard to keep track of, and more available bank financing. What you end up with are numerous projects around town (Hollywood, West L.A., Westwood, the West Valley) that are either under construction or getting there fast. (Full disclosure: One of the smaller projects is being considered in my own neighborhood.) All of which is leading to some major policy conflicts between "smart growth" types who believe density is everything and neighborhood groups who fear that existing regulations are being bypassed in the name of cutting deals. From this week's Business Update on KPCC (Steve Julian is away):

Mark Austin Thomas: KPCC business analyst Mark Lacter, where do you see those changes?

Mark Lacter: You see it at LA City Hall, Mark, where a bunch of new projects are being considered by a council that - up until now - has been pretty accommodating. Seems that if you emphasize the number of jobs that your project will create, chances are you'll be treated well. A recent example involves Westfield, that's the big shopping mall company, which is being allowed to keep up to 42 percent of the tax revenue that would be generated from a hotel and a number of new stores it's planning in the Warner Center area. That amounts to $60 million in savings over 25 years. The tax money would normally go the city's general fund to pay for police, roadwork, and the like. What's striking about this deal is that it received practically zero debate.

Thomas: No one spoke out against it?

Lacter: Oh, there were opponents, but once it was brought before the council on Friday, the public comment period was limited to 10 minutes. When one of the opponents tried to get more time, Council President Herb Wesson said, "Do not debate me. You're wasting my time." And this is for a major project - you can imagine the potential for rubber-stamping on smaller developments that are being brought to the council all the time. (By the way, Wesson is up for reelection today as head of the council, though there's not much doubt about the outcome.)

Thomas: There's another controversial project in West L.A...

Lacter: That's right, the developer Alan Casden had wanted to build hundreds of homes, along with a Target and a supermarket, on a few acres of land right next to the planned Expo Line at Pico and Sepulveda. Neighborhood groups have been up in arms about the proposal, which is considered an example of "smart growth" - meaning that people would know to take the rail line instead of taking their cars. (One of the proponents said that shoppers would learn to use pull carts to carry their items, which might not be all that realistic.)

Thomas: This couldn't have gone over well.

Lacter: To say the least. Opponents threatened legal action, and last week the Casden people announced that they would drop the Target and the supermarket. That's a major concession, but even the smaller version means more residents in one of the most congested portions of the city. And now, there's word of yet another big project being proposed on the site of the Hollywood Palladium - that's in addition to the two towers being planned for the area around the Capitol Records building in Hollywood. So we're talking a lot of growth.