.NjA0.NjA0

r . FUl'f0I NG OF URBAN R.EN:SW1~L AND lIBJ.GHBOREOOD DEVELO?i:,fENT PROGB}J,1 PROJ ECTS APRI L 29, 1969 . . �-I ,- . '---· · The City of Atlanta is pres ent ly engaged in eight Urban Renewal Projects and five Neighborhood Developme nt Program Projects (3 in execution, 2 in Thes e projects are fund ed jointly by the City and the planning only). Federal Governmen t. The funding arrangement calls for a contribution equal to one~third of the Net Project costs from tha City with the· re~ rnaini.ng two--thirds being suppJied by ·che Federal Gov ernmen t. The City's share may b e in the form of ca sh contributions or non-ca sh grants-in-aid, th e se grnrits-in- aid are demo lition and removal work, project or site i ~prov eme nt s , public and supporting facilities, and other s such as credits fro~ construc~ion of public housings. At pres ent, the eight Urb an Ren rn-1 al project~ presently in execution are Slunrna rized as follows: Net Project Costs Local Non- Cash Gra nts-In-Aid Local Cash and Real Estate Cr edits $60 millionl 20 rn:i.llion 1 million This points very emphatically to th e feet that our prese nt Urban Renewa l program has been financed al mos t comp l e tely through the use of non-cash grants·· in-aid. The res ults of this policy can be seen in th_e long delays encountered in the clo sing out of these projects, some of which date back into the 1950 's·. The cash used for these projects has cor:ie frcr:rt money set aside in the 1957 and 1963 Genera l Obl igat ion Bond Issue s and totaling $3.2 milliono There- fore, we have, at present, $2.1 million of unencu:.1bered fun ds available f:rom this source. Of this amount, $1. 7 is presently expected to be needed lof this amount $4.5 mi llion or 7\% has been incurred as interest charges. �- I ___·L__- to meet the cash requin:ments of the Be~:fo:cd-Pine Neit;hborhooc1 Develop;T1.2ni: Program Project in 1970. The non.,c ash contributions of $20 million are the eligible portion of total expenditures totaling about $29 million and have some of the following forms . School Sect i on 107 2 & Specia l Credits Streets Parks Water T.mp:r.ove1aent Sewer Improvement s Special Facilities Traffic I r,1p;:-ovemeats . Oth er $llol~ million 1.3 million l~. 7 m:i.llion .7 million . 6 million c6 m:i.lJ.:Lon .3 m:i.11:Lon .1 million million -~ $20.0 million Some of the problems encount ered because of t he use of non-cash contributions (9408% of total city funding) as the City's source of funding Urban Renewal activities are : 1. Butler Street A. Middle School with a total estim.'.lted co st of $2 million has been delaying the close of this proj ect , but should be under contract by August of 1969. 2o Ra-1vson - Washington A• . Neighborhood Fac ilities, Building with a total estimated cost of $1 million of which $150,0C0 will be an e ligibl e proj ect cost. This project is at present unfunded with -the only poss ible source of funds be i ng t~rough Mode l Citi es o It is presen t ly plenned f or the Ci t y to purchase the l and from t he Housing Authority and hold this until a det ermi na tion i s made _; 2r.rN1i rs rP.sulti.n ~ fro m th e construction of Publ ic Housing . �-I -· . L_ __ r egard irrg t h e t.1. se of :t-:ode J. CH :i. es f und s. B. P.s.rk 1-lith an es tiir.a t ed co s t 0£ $2L:0,000 of wh :i.ch $33,000 will b0 el igibl e cos ts . No s our c e of fu nding is pr e sently asce r tainabl e , A. El emen t a ry School 1-1ith an e st i ma t ed cost of $1.5 mj_llion a nd expected to be und er contract by Aui us t of 1969. B. An e:-::pansion of the cx:i.st ing el ernent 8. ry scho o1. with an e s ti- mated co s t of $700,000 and a t pre sent unf:un ded. c. Pa1·l~ with an e s tima t ed co s t of $75,000 which is al s o p:;:-es ently unftinded . 4, Th omasvi ll e A. El ement ary schoo l wi th $1.5 mill i on es timat ed co st and expect ed to b e under contract by Au gus t, 19 69. B. Pa rk with est i ma t ed cost of $126,00 0 which i s at pr esent unfunded. C. Tvn primar y scho ol EJ with $1 million es tina t ed total cost and a middl e school wi th an est i ma t ed co s t of $2 mi llion are unfunded and n o s our c e is s een until nt l eas t J ~~e of 1971. The a dvent of th e Neighb orho od Deve l opment Program has br ought t o a n end t he period during whi ch t he Ci ty could pl edge an i mprovemen t and t he n wai t unt il funding b ecame av.s.i l ab le b efore c ompl et i ng it. Und e r t he t erms of an NDP agreeme nt, the City must h ave co~nple t ed or have unde r cont ract al l non- ca sh grants - in- aid p l edged f or tha t pa r ticul ar yea r or contribut e the requ i r ed amoun t in c ash. - 3- �.. ,.... ' Our p:rc: :, cnt 1-mr p1~ojects We:re funded fo;~ 19 69 £r ora c11;:-eac1y existing imp:rnve·· ments o~ supporting facilities amounting to a tot a l City coDmi ttment of $10. 8 million. This supports a tot a l ·Nei ~hbo:choo<l Development Program of $32.l, million. The 1970 progr~~ is expected to hav e the follo wing Ci~y requirements: Non··Cash Ca sh $1. 7 milli on $ • 2 f\l:i.llion Bedfor<l-Pine 1.3 million 1.5 mi lli on Hocl e l CHie3 Edgei-lOOcl Vine City .1 milU.on .1 mill ion • 2 million . 2 million $3.l} million $1.9 mi J.lio~1 - ·-- --'"-- This would su pport a to tal pro gram o f $19.9 mi ll i on aud wou ld increase gr eat ly :i.f the Edge'i·wocl and Vine Cit y projects were expanded to a signi .. fic abt l eve l of activi ty. This means that to support th e fairly light l eveJ. of r:c tivi.ty projected fo,~ 1970 , th e City i·i:i.1.l need approxima teJ.y $1. 7 million . I£ any new m:eas are added or the l eve l of activity incr eased t his would increase from $2.5 to $4.0 million for 1970 . The possible sourc es of funds include: l. Gen::;ra l Funds ~ This s:i urce is already under consid er-ab l e pressu::ce and no relief is p resent ly anticipated. 2. The G. annually. o. Bonds already ap prov ed, fo r i ssue in the amo un t of $4 mi llion '. The financing of Neighborhood Development Programs f m m these bonds wou ld r equire the us e of almos t this entire amou~t every year and could very likely become erriliroifed in l egal tangle s . 3. Ano ther possibility is a sp ec ial Neighborhoo d Deve lopment Program General Obligation Bond Issue of $10 - $20 mil lion in 1970 with a nother issue 4 or 5 years lat er or the ob ta i ning of voter approva l to issue G. O. Bonds for th i s purpose i n the amount of $3-5 m:i.lJ.ion per year. [ • �. L. - This appr o 2ch is natu~elly sub ject t o .. T'df . ~.E!S of th e _p~b lic, and, there~ fo re , of u~cer tain dep enclabil i ty. L~. I I Ii. !' ' ' . Pe;:-haps the best method would be tln:ou::;h th e obtri:.i.ning of: a n ew rev-e nue sour c e , by state approval , such as a sales t ax or a payro ll tax of which a Cf,rtain portion ,-,oulc~ be eari;;art e d for Ne.:i.ghbo:chocrJ Dev_e lopment Programs . I • Of course in the pEr.suit of a ne-::-1 s ource of revenue we ,:n-e at loige:cheads !I ;, i' . with t he stet e and ma y not be able to obta in a satisfac t ory revenue s ource . I1 · Regardless of th e raetho <l you favor in obta i n ing the nee2c<l funds, it is .. i mperat i ve , if th e City of Atlanta is to 11'.aj_nte.in its progressive i mage and

l

1· •' "•, r

i to continue • ,_ C J_ LV thcrt a som~ce be found ; because the c ont i nuat ion of a signific ant program of r es tora tion and reheblitation of th e c entra l core of Atlanta is a vital cl ement in tl1 e continued evolution H Ii r: of our City. r: il ,I 1 ,.- I j ·1 I

I -5- �