Box 15, Folder 5, Document 44

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Box 15, Folder 5, Document 44

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This application is for funds needed to provide staff and technical
assistance in the continuation of the activities outlined in the attached
'i' h !ii'ca h ~v Q b Qi.ln e0ve rai dtN~lopm~nts td,rHHI ·
"' _preparation
of the program
statement: the Trust Company of Georgia
p t- o g;~A-m
lll t: 1:1.1a ,mont,
_has gran:'t ed the loan to tie up the land for the shopping center; pre-.
lir.ninary site design studies have been made and one selected by the
Board of Trustees; and formal application to the Atlanta Housing
Authority for purchase and develop ~nt of the , site has been made
(see enclosed news clipping).
The Trust Company" of Georgia and the Atlanta Mortgage Brokers
Association are using their influence to interest the triple-A tenants
needed to satisfy mortgage requirements.
A nationwide, Negro-
owned grocery chain which has previously expressed interest in
locating in Atlanta is being contacted and arrangements set up for
representatives from their Baltimore headquarters to come to Atlanta
to discuss leasing space in the center.
A group of area residents is being assi s ted by Reverend Ford of
Emmaus House in establishing a caterin g service as a profit-motivated
.,.. small business.
T he bu s i n e ss will pr epare and deliver lunches to small
businesses in L • . .:, ~ ..:~ : :. ·. op o litan area.
Exis ting c a tering services will
not serve loc a h o ~-~~ w:;._tn l e ss t h an fi ft y e mployees, sp t he new venture
will tap a ma rket with no p r es e n t competition .
The catering service
is e xpected to be the fir s t indi g enous ·.: c:: ant of t h e s . : . op ping center.
Oc c upan cy h as b egun i n t he p u b lic h o u srng pr oj ec t acja c ent t o the site.
Th e c ons t ruction. c o.·.1. p a :: y which buL~ t,:;. ese un i t s
c o nside red in
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a s ked to be
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ijJ i:1- th~n3·fH'l !'l~Jh,.• cj WAJ'Ut oi" la ,,.i; th@ s;~t'}~pirlg eent e1· .p-i'egl'~ffi fia:§ _
sw~ng into full action, Yff~ ~:.e ,eur-p€H."(i.tl11:1f1 n ~m.air-..~ wi-lif+eH~ s t aff afi:J
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technical assistance available on cvmmand.
Resources to provide
this man power are needed as quickly as possible.
The other major program development is in regard to the industrial
The proposal for the feasibility study has been completed,
submitted to the Lockheed-Georgia Company and forwarded to national ·
· offices in Burbank, California.
At Lockheed's suggestion, the study
sp e Qi£iQally w~ll. b 9 £e ;r a 1;;gm m u nity -- ewn0 d a nd ~emmu n ity•ep 0 l"ated
Lockheed is ta: a) guarantee purchase of a set amount of
out-put, '-' b) provide management and engineering assistance and
c) participate in underwriting costs of initial operation, machinery
and physical facility procurement.
made available, if desired.
A copy of the proposal will be
Very little manpoy,er is needed from
the corporation at this time on thi~ item.
To meet minimum requirements, a grant of $20, 000 is respectfully
I t is anticiapted that this amount will cover the needs of
the corporation for six mont hs at the level of activity that can be
foreseen at t h is point.
During the p er iod, construction should get
undervay on t he cent er, tenants should b e signed up and manageme:q.t
and main t e nan ce plans made.
O t her pru g ram efforts should be con-
tinued, i n cluding the industr ial e ffort s , and :program alternatives
car efully e x plored.
T h e t w enty thousand dollars, i f provi d e d , will be spent in two major
ope rat i on and assis tanc e. · O n e -h 11£ th e amount {$10 , 000}
would b e alloted to each.
T he p r o p os e d op e r a ting b u dget is as follo w s :
Operating Expenditure s (o n annual b as is ):
Executive officer
$ 7,8 00 . 00
Transporta t i on*
Offic e supplies
$ 1, 2 00 . 00
900. 00
5,2 00 . 00
$13, 000. 00
1 (.
-. I
_{for one- half year . • • . •
$16, 420. 00
$ 8, 210. 00)
�Capital Expenditures:
Used auto
Renovation and signs
Office equipment
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140. 00
$ 1, 790. 00
Grand Total:
$10, 000. 00
):<Gas, oil, insurance and repairs
It is anticipated that technical assistance would be procured as
Planning and Development Consultant
$ 6, 500. 00
Preliminary Architectural Services*
1,. 500 . 00
Economic and Bookkeeping Services
1, 000. 00
Legal Fees ana Expenses
1, 000. 00
$10, 000. 00
Expenses can be expected to vary from these amounts depending on
developmem:s and activities within the overall program framework, and
as a rule of thumb, a total of about $50, 000 will be needed to make
the shopping center alone operational.
However, additional funding
from other sources can also be expected and other requests will be
made of the Urban Crisis Fund, if receptive.
INC. is currently in urgent need of immediate funding as outlined above.
,. Any future requests to the Fund will depend on how satisfied the Fund
is with results of this money and how suc·c essful MODEL NEIGHBORHOOD,
INC. is in getting those results.
Edward Moody, Chairman
Board of Trustees

To be repaid from the mortgage.


Statement of Program
Model Neighborhood, Inc., is a legally charte red, non-profit, self-help
corporation formed by longtime residents of s e ctions of Atlanta included in
the city's Model Neighborhood Area.
It was formed to enable -those who
reside, work or ,,.own property in this area to sponsor self-help programs
of economic development, housing a n d job traini n g in their own community.
The corporation desires to be a v e hicle through w hich the people of the area
c a n participa te fully in promis es of the socia l, p h ysical and econ om ic r e development of the Model Neighborhood Prog r am .
The Board of Trustees
keenly feels the need for such grass -root s parti cipa tion and fe e ls that it
must happen soon.
Too oft en t h e p eop l e h ave been p romis e d pr o g rams that
would dir e ctly touch thei r lives , y e t hav e not seen or fe l t any effe ct.
o ften, it has seem ed tha t programs de s i gned to h elp the poor have helped
everyone but the poo r .
P r o g r am is n ow.
The time to involve the poor in the Model Neighborhood
T he corporat i on, mad e up of wo r kers, residents a nd property
o wner s in the area , has a s i ts p u rpose to b e a -m eans by which i n volve ment can
o ccur and c an b egin immedia t ely.
Specific G oal s and Pr o gram S tatu s
To develop and operate a neighborhood sho pping center.
Negotia tions are und erw a y for p urchasing two parcels of l an d from the
Atlanta H o using Authority.
The tracts are a c r o ss the street from each o ther;
together , they comprise about f ou r acres ; both are z o ned for commer cia l
Total purchase price is $216,000 . 0 0.
A firm commitment has been·
obtained fr om a local bank (Trust Company of Georgia) to loan the co rpo r ation
the down payment necessar y to tie up the land while developm ent plans are
being firmed up.
The corporation has rai s ed from its membership and placed
on deposit sufficient funds to prepay the interest on the loan.
for permanent financing (land and construction) are .under discussion with
participating companies in the insurance industry's one- billion dollar loan
The cor-poration is being assisted by the Trust Company of Georgia
in these negotiations.
A preliminary. mar ket study .prepared for the corporation
by Hammer, Green, Siler and Associates, showed . that the ar ea could support ·
56, 000 square feet of convenience g.o ods retail space.
Six hundred fifty new
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units of public housing are now be~ng occupied adjacent to the site.
oil companies are being contacted by the corporation for possible leasing
of combined gasoline service and training facilities in the shopping center.
Tentative verbal commitments have been obtained from several potential
institutional tenants pending the working out of space requirements and
costs, and a number of area residents have expressed desires to have the
COl" poration asaist them to obtain financing for proprietorship businesses
which would lease _space in the center.
The corporation itself is considering
establishing a cc;;·~ peratively owned retail drug store which would be a
tenant of the center.
The Atlanta Housing Authority and the Chairman of
the Aldermanic Planning and Development Committee have endorsed the
project and are giving full support to the corporation's efforts.
The current critical need is capital to make the project "operational." Sources
to provide one hundred percent of land and construction costs have been
What is needed is money to buy manp ow er --both staff and technical
Staffing requirements are very minimal at this point; no more
than two full-time employees are necessary and they would be area residents.
Technical assistance requirements include architectual, legal, financial
and managerial.
It is estimated that as much as $50, 000 may be required
eventually in order to make the one-million dollar· center operational; however,
a $10-20, 000 grant or loan at thi s time is crucial t o allow the Board of Trustees
to firm up plans and realistically appraise overall cost-benefit ratios.
To create neighborhood owned and operated industry.
Representatives of the corporation are now negotiating with one of the state's
leading industrial firms to establish a component assembly plant within th~
Model Cities Area under the sponsorship o f the corporation.
A proposal to
the industrial firm to provide financing for a feasibility study is now being
prepared by the Industrial Development Division of Georgia Tech at the
firm I s suggestion.
The corporation will request several thousand dollars in
the form of a loan or grant to undertake the feasibility study.
To sponsor low- and moderate-income housing.
Members of the Board of Trustees have met with the Federal Housing Agency
to express the corporation I s interest in the 22l(H), housing rehabilitation
The Board was advised that approximately $1, 000 in refundable
�"se e d mone.y 11 would be r equired.
-Tentative agreement for a loan
this purpose h a s been obtained from the Presbyterian Ch4rch of the United
A separate non-profit corporation has been chartered with Emmaus
House of the Episcop~l Chruch to undertake the 22l{H) phase of the program.
Board members are now reviewing the City's plans for redevelopment in
the Mecha nicsville and Summerhill neighborhoods with the purpose in mind
t~ QQr,n,•dinat~ th~ c 0 :1:pora.ti.on efforts w i t h the e~ o f tho City of Atl a nt a. .
In other housinl efforts, volunteer technical assistants have been instructed
to develop innovative alternat ives for possible housing demonstration projects
within the framework of the Fede ral 22l(d){3) prog ram.
Two· area churches
have e x pressed desires to s p onsor such projects.
To provide vocat ional training .
T h e corporation ' s prim a ry conc e rn is to deve lop e ntrepreneurship rather
than sim p l y job t r a ining . Through its experienc e w i th i t s own prog ram
developmen t, i t s a c ti vities in the fi e lds outl i n ed above, its f a cilities (s h opping
cente r ) and c apital r e sou rc e s obt ained t h rou gh doing business a nd r e ceiving
loa n s and g r ants , the co rp o ratio n h o pe s t o be th e n on - p ro fi t ve h icl e thr ough
which a ss i s tance t o area re s ident s de siring t o establ is h pr o fit m aking small
b usin e s s e s may be c hanneled .
F o r exampl e , a pr o p o rtion o f t he s h o pping
c enter spac e suffi c ien t to g u arantee meeting m o rtgag e retirem e n t n eeds
(a p pro ximately 60 per c ent o f th e s pa c e ) w ill be lea s e d only to well-e stablis h ed
tenant s ; the remainder will be made a vail able as firs t p rior ity t o local r es i dents
attempting new business v entu res.
Di re c t techn ical a s s i s tanc e t o such new
e n terprises has been p r ovi de d by v ario u s p rivate and g o vernmental gr oups
in the Atlant a area.
One new c ~ r a tio n entirely separate and distinct fr om
Model Neighbor h ood, Inc . , is · alr e ady b e ing formed by profi t motiva ted r e sidents
in anticipation o f thi s corporation's succe s s with the shopping center program.
To facilitate the physi c al redevel opment of the Model Cities Area,
The corporation desires to contribute to redevelopment efforts of the Model
Cities Area not only through coordinating its own development programs with
proposed ·city activities, but also to act a s liaison between area resident s a nd
governmental agencies, to reite rate both criteria and sugges tions of proposals
through a continuing public information and idea ex change program.
corporation intends to directly involve area re sidents in the pl a nning process
in an advocative manner through te_chnical assistance obtained by one or .
. more of three methods:
By having technical assistance made directly available to area
residents as a part of the Model Cities Program.
At best, this
would mean having a planning staff p h ysically located in the area
with an office available to citizens desiring information and wishing
to express criticisms or suggestions of plans;
By obtaining funds to hire consultants or staff to prepare proposals
r e flecting area reside nts desires and fe lt needs.
Such proposals
would then be submitted to the Model Cities agency for consideration;
By obtaining vol unteer technica l assistan ce to develop more
satisfactory alte rnatives to M o del Cities Pr o g1·am proposals
where nec e ssary.
Such volunte e r technical assistance has been
offered, but is believed by th e B oard to be less satisfactory than
the other two possibilitie s, since it is the Board's desire to facilitate
the Model C iti es Program rather than challenge or countermand it.
The corporation proposes to further fa cilitate the pr ogram thr ough expenditure
of i ts resources on community i mproveme n t projects of a public nature.
proj ects might include building parks and recr eation areas, landscaping and
beautification projects not within the city's budget o r domain, and providing
equipment and supplies not o therwis e available to area schools.
Continued Programming
The corporation has defined its p u rp ose, listed goals as formulated to date
and stated progress made toward those goals in the preceding pages.
emphasis has been and continues to be placed on the shopping center .
the same time, alternatives and new ideas are constantly be ing explored.
Volunteer technical assistance has been used solely to explore and implement
the corporation's ideas and desires, yet, such volunteer assiste1.nce, while
greatly appreciated remains the largest roadblock to implementation.
its very nature, such assistance is always .at the leisure of the volunteers and
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the program moves slowly as a con_sequence.
Rapid progress will be
made only when the corporation has funds enough to buy manpower.
Yet, it is central to the Board's policy that the corporation retain its
"self-help" nature.
The people of the Model Neighborhood Area have
the abilities needed to shar e in the improvement of their own community,
and d e monstrate self-reliance.
The corpo r a tion can serve to spark
initiative and pr~wide a framework within which the people can help themselves only if de'~ision-making remains in the hands of the people.
the corporation will continue to seek assistance from outside the community
and w ill continue t o give assistance within the community, any assistance
o ffe red will not be acceptable unless it perpe~uates this self-h'elp
Board of T rus tee s
Edward Moody, Chairman
2 41 Doan e S t r e et, S . W .
Atl a nt a, G e orgi a 30315
C. G. Ezzar d
2 4 5 Atlanta A v enu e , S. E.
A tlanta, G e orgia
W . M. L ewis
711 M arti n S t r eet, S. E.
/ ' Atl anta, Ge or g ia
Avery Sh i eld s
9 8 5 Smith Street, S . W.
Atlanta, G e org i a
S amu e l W . Coch ran
137 Van i ra Street , S. E .
Atlanta , Georgia .
N a thaniel Pr o tho
68 9 Ira Str e e t
Atlanta, G e orgia
G e orge G r i e r
398 Glenn Stree t , S. W.
Atlanta , Ge o rgia
Maggie Evans
159 L ittle Street, S. E.
Atl anta, Ge o rgia
Robert Allison
914 McDaniel Street, S. W.
Atlanta, G e org ia
Cl ark Martin
10 6 5 M c Dani el S treet, S. W.
Atlanta, G e o rg i a
Joe Sta lling s
101 V a nira Street, S. E.
Atlant a , Geo rgia
Aus tin Ford
1017 Capitol Avenue, S . E.
Atlanta, Geo_r gia


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