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May 21, 1969 CITY HALL ATLANTA, GA. 30303
Tel. 522-4463 Area Code 404
IVAN ALLEN, JR., MAYOR
CECIL A. ALEXANDER, Chairman
Housing Resources Committee
MALCOLM D. JONES
Housing Coordinator
MEMORANDUM
TO: Mayor Ivan Allen, Jr.
This morning I heard a rumor that the 800 unit East Lake
No. 2 Public Housing project is in difficulty. I immediately
called Gilbert Boggs in the Housing Authority who confirmed
the report.
According to Gilbert, a Letter of Intent had been issued
on the project to be produced for a given price and that now
the Developer claims that the escalation of cost, particularly
interest, makes it impossible to produce the project at the
price stated in the Letter of Intent and has asked for more
money.
HUD has apparently taken the position that the Letter
of Intent is equivalent to a contract and will not up the
price. The difference in price I understand is about
$1,000,000 or $1,250 per unit.
It appears that the Developer proposed to use a patented
pre-stressed concrete slab panel type of construction and the
patent holder has raised tis previous estimate disproportionately.
The Developer is currently attempting to revise the plans
to use a different type of construction, which may not be any
cheaper, Since costs have risen recently in all fields since
the original commitment,
Thought you should know about this, Gilbert Boggs has
agreed to keep me informed of further developments.
Sincerely,
Arak
Malcolm D. (Jones
Housing Coordinator
MDJ/me
ce: Mr. Cecil A. Alexander