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‘Connecticut General Life
“and other businesses could increase their participation in the urban
ERARINGS BEFORE THES SUECCILITTSE Ol EAECUTIVE REORGANIZATION
OF THE SENATS COLAITPSS CH GOVERNMENT OPERATIONS
Afternoon Session; December 7, 1966 ; re
BRUCS P. HAYDEN, Vice President, Mortgage and Real Estate Department, |
,Mr. Hayden defined the conditions under which life insurance corporetions
redevelopment process. The extension of Govermnent financial assistance :
programs to profit ventures as well es nonprofit organizations and the
effective exercise of the planning and coordinating function on the part
of Government were described as necessary to the achievement or greater
business involvement in the rebuilding of the cities. The main points
raised in his testimony and during the questioning period were the follow-
1. The Weakness of Nonprofit Ventures
Mr. Hayden testified that development efforts undertaken by nonprofit
concerns usually result in failure due to a Jack of knowledge and experi-
ence. The tendency to limit Government financial support to nonprofit
organizations is thus undesirable.
2. The Gathering of Housing Ccsts
Mr. Hayden stressed the importance of reviewing the divergence between
housing construction costs and general price levels which forces builders
to tolerate low quality work. The continu2tion of reliance upon easier
financing arrangements will prevent a soluvion of the costs problen.
: canizati f the Attack uvon pa folems
3- The Organization of the Attack upon Urban Probl
Mr. Hayden stated that an agency should be created with the responsibility
for making a total systems approach to the problems of urban housing.
Such an agency could be organized along the lines of either NASA or COMSAT
JAMES W. ROUSE, President, The Rouse Company
Mr. Rouse described the steps taken to plan and finance the Columbia project
which involves the development of an entire new city within the next 12
years in an area midway between Washington and Baltimore. The experience
of the Rouse Corporation and the Connecticut General Life Insurance Company
with regard to Columbia can be applied to the reconstruction of the central
cities according to Mr. Rouse. The main points raised in his testimony
and during the questioning period were the following:
1. The Need for Concentraticn of Financial Resources upon a Single City
Mr. Rouse suggested that all urban renewal and demonstration city funds
should be utilized to accomplish the total and successful renewal of a
single large American city. The country needs to be convinced that
urban problems are capable of solution.
2. The Place of Profit Considerations in Urban Redevelopment.
Mr. Rouse declared that the construction of new cities and the reconstruc-
tion of old ones so that the real needs of their people are satisfied t
will be a profitable enterprise. Once the market success of well-planned t
development projects is established, the solution of the nation's urban
problems will be possible.