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Historic Paramount Studios Expansion Faces New Environmental Hurdles
DevelopmentHollywood Reporter

Historic Paramount Studios Expansion Faces New Environmental Hurdles

2026-04-26Hollywood ReporterDevelopment

Paramount Pictures' ambitious $700 million expansion plan for its iconic Hollywood lot is encountering fresh environmental impact challenges, potentially delaying the multi-phase project. Local advocacy groups are raising concerns about increased traffic and shadow impacts on surrounding residential areas.

Hollywood, CA – Paramount Pictures' long-term vision to modernize and expand its historic studio lot at 5555 Melrose Avenue is facing renewed scrutiny from environmental watchdogs and neighborhood councils. The 'Paramount Specific Plan,' which proposes adding over 1.4 million square feet of new sound stages, production offices, and support facilities over the next 25 years, is currently undergoing an updated Environmental Impact Report (EIR) review.

The latest round of public comments, which closed last week, saw significant input from the Melrose Hill Neighborhood Association and the Hollywood United Neighborhood Council. 'Our primary concern is the cumulative traffic impact on already congested streets like Melrose and Larchmont,' stated Eleanor Vance, Chair of the Melrose Hill Neighborhood Association. 'The current EIR still underestimates the daily vehicle trips and the strain on local infrastructure, especially during peak production times.'

Another contentious point is the potential for new high-rise buildings within the plan to cast shadows over nearby residential properties. 'We appreciate Paramount's commitment to Hollywood, but that commitment cannot come at the expense of our residents' quality of life,' commented David Chen, a resident whose home on Van Ness Avenue is directly adjacent to the proposed expansion zone. 'The shadow studies need to be re-evaluated with greater transparency and community involvement.'

Paramount representatives maintain that they have diligently addressed all previous concerns and are working closely with city planners to finalize a plan that balances studio needs with community well-being. 'We are dedicated to being a responsible neighbor and a vital part of the Hollywood community,' said Sarah Jenkins, Paramount's VP of Studio Operations. 'We believe our updated plans include robust mitigation measures for traffic, noise, and visual impacts, and we are open to further dialogue.'

City Council approval for the Specific Plan is crucial for the expansion to proceed. A final decision from the City Planning Commission is now expected in late Q3 2026, pushing back the projected groundbreaking for the initial phase, which was originally slated for early 2027. The delays could impact Paramount's ability to compete with other studios rapidly expanding their production capacities across the region.

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