Krekorian: Death of CRA Will Not Impact 'Exciting New Development at Valley Plaza'

The Los Angeles City Council today voted against becoming the successor agency to the CRA/LA as it winds down operations, according to the Los Angeles Times.

Absorbing the agency would have cost the city an estimated $109 million, according to City Administrative Officer Miguel Santana and Chief Legislative Analyst Gerry Miller. The vote now leaves the job of winding down hundreds of millions of dollars in projects to some other branch of government, according to the Times.

to read the story from Tuesday that outlined the pros and cons of the city absorbing the costs of winding down the CRA/LA's operations.

In a statement, Councilman Paul Krekorian, who represents North Hollywood and the area surrounding the troubled Valley Plaza, said that the death of the CRA/LA would not impact plans for a new development currently in the works at Valley Plaza, which is part of the Laurel Canyon Commercial Corridor project area of the CRA/LA. The site is owned by iStar Financial, and Krekorian has said in the past that he has been working closely with iStar as it drafts plans for development of the site. Krekorian's office said there were no specific plans yet available about the development in the works.

to see a video from September where Krekorian talked about his cautious optimism for a new Valley Plaza development and his talks with iStar.

“The State Supreme Court ruling that will abolish the CRA has raised understandable public concern about potential impacts in the redevelopment areas in the East Valley and elsewhere. Examining these impacts has been of paramount concern to me, especially regarding Valley Plaza in North Hollywood," Krekroian said in a statement. "I’ve never wavered from my longstanding commitment to economically revitalize Valley Plaza and the surrounding area, which has been ignored for too long, and I never will. Fortunately, it appears that the status of the CRA will have virtually no impact on the plans that are under consideration for the creation of an exciting new development at Valley Plaza."

Check out Patch's five-part video series to learn more the history once-mighty and now troubled Valley Plaza:

Krekorian was one of nine councilmembers who voted against the city absorbing the CRA/LA.

“Today, the Council voted against the City becoming the successor agency to the CRA to take over its operations as it winds down. It was clear to me that the risks associated with doing so far outweigh the benefits. I cannot in good conscience support any move by the city that could further jeopardize its financial standing by assuming a level of unacceptable risk.

“With or without the CRA, we are going to create a vibrant development at Valley Plaza that will create jobs and revenues, improve the economic health of the region and meet the needs of the neighborhood.”