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Wednesday, Apr 17, 2024

Metro Ruling a Wild Card

Business owners in Van Nuys who have worked for months to avoid the loss of their locations to a public transit project appear on the brink of victory. But now other nearby businesses may be at risk. Los Angeles County Metropolitan Transportation Authority plans to build either a light rail or bus rapid transit system between the Orange Line station near the intersection of Van Nuys Boulevard and Aetna Street and the Metrolink station in Sylmar. If the agency decides to pursue the rail project, it would need a storage and maintenance yard for the railcars, and last year announced several possible locations. A railyard near the Orange Line stop, known as Option A, would have displaced an estimated 186 businesses on 58 parcels of property. Many of the business owners banded together last year to voice their opposition to that option. Peter Scholz, owner of Showcase Inc., a cabinet manufacturer at 14815 Oxnard St., said that while his understanding is that the area where he is located is the least likely to be chosen for the railyard, he is not going to feel comfortable until a final decision is made. Owners that he knows are all in a wait-and-see mode, not wanting to do improvements to their building if there is a chance they may lose it, Scholz said. “We are all on standby with our fingers and toes crossed,” he added. “I don’t know what else we can do.” The Metro board is scheduled to decide in June on which option they will go with. Metro spokesman Dave Sotero said that if the board takes the light rail option, then it will have to find 25 to 30 acres of land for the railyard. “Any needed property acquisitions wouldn’t occur for approximately two years,” Sotero wrote in an email to the Business Journal. Alternate location Option B, which includes 37 parcels, is located south of the Metrolink tracks near Keswick and Raymer streets, while Option C, which includes 42 parcels, is located north of the Metrolink tracks near Arminta Street. Stuart Waldman, president of the Van Nuys business advocacy group Valley Industry & Commerce Association, questioned whether Metro was ever serious about Option A. When dealing with a public project such as this one, residents must be made aware of all the options under consideration, Waldman said. “You have to give notice and so they did, but I don’t believe it was ever really a serious option,” he added. Kenn Phillips, chief executive of the Valley Economic Alliance, said he was told by a Metro official that the agency was leaning toward Option B. It is an area made up of auto body shops, small manufacturers, distributors of heating, cooling and other industrial equipment, granite and marble wholesalers, a recycling center and a topless sports bar. That location makes the most sense engineering-wise because it is close to Van Nuys Boulevard and there is no need to create elaborate turns to be able to store and do maintenance on the railcars, Philips said he was told. But he added that it “didn’t make sense to wipe out all these different businesses.” The alliance is planning to conduct a survey of the businesses in the area that Metro would need for the railyard. Phillips said he did not know how many businesses would be displaced or the number of jobs that would be lost. “You can have one lot with multiple businesses in a building,” Phillips said. He also was not aware whether business owners were aware of Metro’s plans. Any outreach may have been limited to passing out fliers for five community meetings taking place late last year, he explained. “Maybe the owner of the building gets the information, but the tenants don’t necessarily get the information,” Phillips said. Bob Perret, chief executive of Diversified Environmental Catalysts, a manufacturer of catalytic converters at 14645 Keswick St., was among those owners not aware of Metro’s plans. Perret only leases the property where his company operates. “From my standpoint, I’d have to negotiate something with (Metro) to help with the cost of the move and so forth,” he added. “I’m sure they’ll be prepared to do that with all the businesses around that area.” If the Metro board chooses light rail, groundbreaking on the project would be in 2021 with completion in six to eight years. The cost for the entire rail line is estimated between $1.3 billion and $2.7 billion, depending on the number of stations and if any are underground. Waldman, of VICA, said that the group will soon start a campaign to get residents and other decision makers to push the Metro board to choose light rail.The group supports a 14-stop system in the center of Van Nuys Boulevard.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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