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
program atatemont, Thera hava boon sevoral davealopmants sinca:

“ preparation of the program statement: the Trust Company of Georgia S\
has granted the loan to tie up the land for the shopping center; pre-,
liminary 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 development 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 assisted by Reverend Ford of
Emmaus House in establishing a catering service as a profit-motivated
small business. The business will prepare and deliver lunches to small
businesses in tne ..2¢:ropolitan area. Existing catering services will
not serve locaticou. wita less than fifty employees, so the new venture
will tap a market with no present competition. The catering service

is expected to be the first indigenous tenant of the sopping center.

Occupancy has begun in the public housing project ac.jacent to the site.

The construction company which bui.c tnese units 4. asked to be
considered in -*~ctlati ‘sx Construc.ion of the _. ...:r and Georgia
POwes Goris: b . tO periowm ene electrica. engineering

On the cent COS. oo tie Corporation.

New ighc the Co cooeg tien nas, wnatis in effect, an op!: 1 ona quarter

Of a miiljies deliavs worth of land, the shopping Genter oR Fath has.

swing into full action, ye: v.e Corpoeratian FeMaina without staff and

technical assistance available on command. Resources to provide

this man power are needed as quickly as possible.

The other major program development is in regard to the industrial
goal. 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
specifically wall be for a community-owned and community-operated
plant. 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. A copy of the proposal will be
made available, if desired. Very little manpower is needed from

the corporation at this time on this item.

To meet minimum requirements, a grant of $20,000 is respectfully
requested. It is anticiapted that this amount will cover the needs of
the corporation for six months at the level of activity that can be
foreseen at this point. During the period, construction should get
underway on the center, tenants should be signed up and management
and maintenance plans made. Other prugram efforts should be con-

tinued, including the industrial efforts, and program alternatives

carefully explored.

The twenty thousand dollars, if provided, will be spent in two major

“areas: operation and assistance. One-half the amount ($10, 000)

would be alloted to each.
The proposed operating budget is as follows:

Operating Expenditures (on annual basis):

Salaries: :

Executive officer $ 7,800.00
Secretary 5, 200. 00

Subtotal 1% $13, 000. 00
Cverest? 5 ont $ 1, 200. 00
Utilities 900. 00
Telephone 300. 00
Transportation* 720. 00
Office supplies : 300. 00

Subtotal 3; 420.00

Total $16, 420. 00
(for one-half year. .... . - $ 8,210.00)

Capital Expenditures:

Used auto 7 $ 800.00

Renovation and signs 140. 00

Furniture 300. 00

* Office equipment 250. 00
Subtotal $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

Total $10, 000. 00

Expenses can be expected to vary from these amounts depending on

developments 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. MODEL NEIGHBORHOOD,

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 successful 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 chartered, non-profit, self-help
corporation formed by longtime residents of sections 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 and job training in their own community.
The corporation desires to be a vehicle through which the people of the area
can participate fully in promises of the social, physical and economic re-

' development of the Model Neighborhood Program. The Board of Trustees
keenly feels the need for such grass-roots participation and feels that it

must happen soon. Too often the people have been promised programs that
would directly touch their lives, yet have not seen or felt any effect. Too
often, it has seemed that programs designed to help the poor have helped
everyone but the poor. The time to involve the poor in the Model Neighborhood
Program is now. The corporation, made up of workers, residents and property

owners in the area, has as its purpose to be a means by which involvement can

occur and can begin immediately.

Specific Goals and Program Status

To develop and operate a neighborhood shopping center.

Negotiations are underway for purchasing two parcels of land from the

Atlanta Housing Authority. The tracts are across the street from each other;

together, they comprise about four acres; both are zoned for commercial

use. Total purchase price is $216,000.00. A firm commitment has been’

obtained from a local bank (Trust Company of Georgia) to loan the corporation

the down payment necessary to tie up the land while development plans are

_ being firmed up. The corporation has raised from its membership and placed
on deposit sufficient funds to prepay the interest on the loan. Arrangements

for permanent financing (land and construction) are under discussion with

participating companies in the insurance industry's one~billion dollar loan

program. The corporation is being assisted by the Trust Company of Georgia

in these negotiations. A preliminary market study prepared for the corporation

by Hammer, Green, Siler and Associates, showed . that the area could support

56, 000 square feet of convenience goods retail space. Six hundred fifty new

Meo 8

units of public housing are now being occupied adjacent to the site. Major
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
corporation assist them to obtain financing for proprietorship businesses
which would lease space in the center. The corporation itself is considering
establishing a cooperatively owned retail drug store which would be a Mi
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
located. What is needed is money to buy manpower--both staff and technical
consultants. 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 this time is crucial to 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 the
Model Cities Area under the sponsorship of 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's suggestion. The carporation 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's interest in the 221(H), housing rehabilitation ..

program. The Board was advised that approximately $1, 000 in refundable

"seed monay' would be required. -Tentative agreement for a loan for

this purpose has been obtained from the Presbyterian Chyrch of the United
States. A separate non-profit corporation has been chartered with Emmaus
House of the Episcopal Chruch to undertake the 221(H) phase of the program.

Board members are now reviewing the City's plans for redevelopment in
the Mechanicsville and Summerhill neighborhoods with the purpose in mind
to coordinate the corporation efforts with those of the City of Atlanta.

In other housing efforts, volunteer technical assistants have been instructed
to develop innovative alternatives for possible housing demonstration projects
within the framework of the Federal 221(d)(3) program. Two area churches

have expressed desires to sponsor such projects.

- To provide vocational training.

The corporation's primary concern is to develop entrepreneurship rather

than simply job training. Through its experience with its own program
development, its activities in the fields outlined above, its facilities (shopping
center) and capital resources obtained through doing business and receiving
loans and grants, the corporation hopes to be the non-profit vehicle through
which assistance to area residents desiring to establish profit making small
businesses may be channeled. For example, a proportion of the shopping
center space sufficient to guarantee meeting mortgage retirement needs
(approximately 60 percent of the space) will be leased only to well-established

tenants; the remainder will be made available as first priority to local residents

attempting new business ventures. Direct technical assistance to such new

enterprises has been provided by various private and governmental groups
in the Atlanta area. One new carporation entirely separate and distinct from
Model Neighborhood, Inc., is already being formed by profit motivated residents

in anticipation of this corporation's success with the shopping center program.

~ To facilitate the physical redevelopment 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 as liaison between area residents and
governmental agencies, to reiterate both criteria and suggestions of proposals
through a continuing public information and idea exchange program. The
corporation intends to directly involve area residents in the planning process

in an advocative manner through technical assistance obtained by one or |

more of three methods:

1. 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 physically located in the area
with an office available to citizens desiring information and wishing
to express criticisms or suggestions of plans; \\
2. By obtaining funds to hire consultants or staff to prepare proposals
reflecting area residents desires and felt needs. Such proposals

would then be submitted to the Model Cities agency for consideration;


3. By obtaining volunteer technical assistance to develop more
satisfactory alternatives to Model Cities Program proposals
where necessary. Such volunteer technical assistance has been
offered, but is believed by the Board to be less satisfactory than
the other two possibilities, since it is the Board's desire to facilitate

the Model Cities Program rather than challenge or countermand it.

The corporation proposes to further facilitate the program through expenditure
of its resources on community improvement projects of a public nature. Such ;
projects might include building parks and recreation areas, landscaping and
beautification projects not within the city's budget or domain, and providing

equipment and supplies not otherwise available to area schools.

Continued Programming
The corporation has defined its purpose, listed goals as formulated to date

and stated progress made toward those goals in the preceding pages. Major
emphasis has been and continues to be placed on the shopping center. At

the same time, alternatives and new ideas are constantly being explored.
Volunteer technical assistance has been used solely to explore and implement
the corporation's ideas and desires, yet, such volunteer assistance, while
greatly appreciated remains the largest roadblock to implementation. By |
its very nature, such assistance is always at the leisure of the volunteers and

the program moves slowly as a consequence.

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 share in the improvement of their own community,

and demonstrate self-reliance. The corporation can serve to spark

initiative and provide a framework within which the people can help them-

selves only if decision-making remains in the hands of the people. While

the corporation will continue to seek assistance from outside the community

and will continue to give assistance within the community, any assistance

offered will not be acceptable unless it perpetuates this self-help

Board of Trustees

Edward Moody, Chairman 524-0060
241 Doane Street, S.W.
Atlanta, Georgia 30315

C. G. Ezzard
245 Atlanta Avenue, S.E.
Atlanta, Georgia

George Grier
398 Glenn Street, S.W.
Atlanta, Georgia

Avery Shields
985 Smith Street, S.W.
Atlanta, Georgia

Maggie Evans
159 Little Street, S.E.
Atlanta, Georgia

Samuel W. Cochran
137 Vanira Street, S.E.
Atlanta, Georgia

Robert Allison
914 McDaniel Street, S.W.
Atlanta, Georgia

Nathaniel Protho
689 Ira Street
Atlanta, Georgia

W. M. Lewis
71l Martin Street, S.E.

' Atlanta, Georgia

Clark Martin
1065 McDaniel Street, S.W.
Atlanta, Georgia

Joe Stallings

101 Vanira Street, S.E.

Atlanta, Georgia

Austin Ford
1017 Capitol Avenue, S.E.
Atlanta, Georgia

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