Universal Expansion

* Scaling back the proposed Universal expansion plan may bring a sense of satisfaction to those who would like to turn back the clock or at least raise the drawbridge against change (“New Theme Park Cut as Universal Scales Back Plan,” July 3). But taking the ax to this project doesn’t change reality. In an era of serious belt-tightening, we are squandering an opportunity to create jobs and generate new tax revenues.

The scope of private investment in the city of Los Angeles proposed by Universal is increasingly rare. Yet even as Los Angeles city and county officials grapple with ominous budget shortfalls, they have unwisely smothered a project with the potential to generate $25 million in new tax revenues each year. While President Clinton is calling upon states and the corporate sector to create more entry-level employment, neighbors are blocking creation of those jobs.

Did everyone miss the point that the Universal plan was focused on bringing a bigger share of the $22-billion annual tourism business to communities in and around Los Angeles? Under intense pressure, the key component of that strategy--the creation of a destination resort--has been pared down. Scissoring away the Universal plan may have been expedient for today, but we’ve shortchanged our future.

MARVIN R. SELTER

Chairman of the Board, Valley

Industry and Commerce Assn.

Studio City