Picus Calls New Warner Ridge Plan ‘Out of Line’ : Development: The proposal calls for 650,000 square feet of commercial space and 250 apartments on the controversial Woodland Hills parcel.

The partnership that owns Warner Ridge, which has been struggling with the city over development on the 21.5-acre site, has offered another building plan as an alternative to continuing a lawsuit over the issue.

But Councilwoman Joy Picus, who has led city opposition to the partnership’s previous plans, Wednesday rejected the proposal as “plainly out of line.”

The developer’s latest proposal calls for 650,000 square feet of commercial space and 250 apartments to be built on the controversial parcel in Woodland Hills.

But the plan--not much different from one proposed nine months ago by the developer--was quickly rebuffed by Picus. “I can’t imagine this will be viewed by the council as a compromise,” Picus said of the plan being offered by Warner Ridge Associates, the developer.

At Picus’ request, the Los Angeles council in January, 1990, passed a zoning ordinance allowing only about 65 single-family homes to be built on the property.

The developer--a partnership of Spound Cos. and Johnson Wax Development Co.--subsequently sued the city, claiming that the zoning ordinance was illegal. A Superior Court judge ruled in favor of one of the developer’s legal claims, and the city took the issue to the state Court of Appeal. A hearing is scheduled June 19.

Only a residential project would be acceptable to her, Picus insisted Wednesday. But Picus refused to specify what kind or size of residential project she could tolerate. “I’m not going to negotiate in the newspapers,” she said.

The new plan was presented as a reply to a recent council “invitation” to submit a plan “composed wholly of multifamily residential development,” according to the three-page settlement offer letter from Warner Ridge Associates attorney Robert I. McMurry.

But a residential-only project is not economically feasible, McMurry said. Rather than accept the heavy financial losses involved in developing such a project, his client would “take his chances in court,” McMurry said in an interview.

In its lawsuit, the developer asks the court to impose zoning that would permit a large-scale commercial project or require payment of damages of tens of millions of dollars.

The developer originally sought an 810,000-square-foot commercial project, which was rejected by the council in January, 1990.

In August, the developer proposed another compromise plan, calling for 540,000 square feet of commercial space and 350 residential units. It was rejected by the city.

Picus said the next step for the council is to consider the settlement offer in executive session. But she said the council will not take up the matter until she returns from a two-week vacation she will begin next week.