Box 2, Folder 1, Document 8

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APRIL 29, 1969°

The City of Atlanta is presently engaged in eight Urban Renewal Projects
and five Neighborhood Development Program Projects (3 in execution, 2 in
planning only). These projects are funded jointly by the City and the
Federal Government. The funding —— calls for a contribution


equal to one»third of the Net Project costs from the City with the re+

maining two»thirds being supplied by the Federal Government.

The City's share may be in the form of cash contributions or non-cash
grants-in-aid, these grants-in-aid are demolition and removal work,
project or site improvements, public and supporting facilities, and others
such as eredits from construction of public housings. At present, the
eight Urban Renewal projects presently in execution are summarized as

follows: 4

Net Project Costs $60 million!
Local Non-Cash Grants-In-Aid 20 million :
Local Cash and Real Estate

Credits 1 million

This points very emphatically to the fact that our present Urban Renewal
program has been financed almost completely through the use of non-cash
grants-in-aid, The results of this policy can be seen in the long delays
encountered os the closing out of these projects, some of which date back

into the 1950's,

The cash used for these projects has come from money set aside in the 1957
and 1963 General Obligation Bond Issues and totaling $3.2 million, There«

fore, we have, at present, $2.1 million of unencumbered funds available

from this source, Of this amount, $1.7 is presently expected to be needed

2 .

lof this amount $4.5 million or 74% has been incurred as interest charges.

to meet the cash requirements of the Beaford-Pine Neighborhood Development


Program Project in 1979.

The non-cash contributions of $20 million are the eligible portion of
total expenditures totaling about $29 million and have some of the
following forms.

School : $11.4 million

Section 1072 & Special Credits 1.3 million
Streets 4.7 million
Parks «7 million
Water Improvement «6 million
Sewer Improvements 66 million
Special Facilities «3 million
Traffie Improvements . el million
Other e3 million

$20.0 million

Some of the problems encountered because of the use of non-cash contribu-

tions (94.8% of total city funding) as the City's source of funding Urban
Renewal activities are;

ie Butler Street

A. Middle School with a total estimated cost of $2 million has

been delaying the close of this project, but should be under

contract by August of 1969,


2. Rawson ~ Washington


fetehbostond Facilities, Building with a total estimated cost
of $1 million of which $150,0CO will be an eligible project
cost. This project is at present unfunded with the only
possible source of funds being through Model Cities, It is
presently plannedfor the City to purchase the land from the

Housing Authority and hold this until a determination is made

Iroedits resultine from the construction of Public Housing.

regarding the use of Model Cities funds,

B. Park with an estimated cost of $240,000 of which $33,000
will be eligible costs, No source of cancine is presently

3. Rockdale

A. Elementary School with an estimated cost of $1.5 million and

. expected to be under contract by August of 1969, ;

B. An expansion of the existing elementary school with an esti-
mated cost of $700,000 and at present unfunded.

C. Park with an estimated cost of $75,000 which is also presently

4. Thomasville


A. Elementary school with $1.5 million estimated cost and ex«

pected to be under contract by August, 1969.

Be park with estimated cost of $126,000 which is at present
unfunded. |

Cc, Tw primary schools with $1 million estimated total cost and
a middle school with an estimated cost of $2 million are un-
funded and no source is seen until at least June of 1971.

The advent of the Neighborhood Development Program has brought to an end
the period during which the City could pledge an improvement and then
wait ert funding became available before completing it. Under the terms
of an NDP agreement, the City must have completed or have under contract

all non-cash grants-in-aid pledged for that particular year or contribute

the required amount in cash.

Our present MDP projects were funded for from already existing lmprove-

ments or supporting facilities amounting . total City committment of

$10.8 million. This supports a total Neighborhood Development Program of

$32.4 million.

The 1970 progrem is expected to have the following City requirements;
Cash | Non-Cash

Bedford=Pine $1.7 m3 $ .2 million
fodel Cities 1.5 1.3 million
Edgewood , i : 02 million
Vine City ; «2 million

$3.4 million $1,9 million



ee eee

This would support a total program of $19.9 million and would increase
greatly if the Edgewood and Vine City projects were expanded to a signi-

ficant level of activity.

This means that to support the fairly light level o

1970, the City will need approximately $1.7 willion. any new areas are

added or the level of activity increased this would increase from $2.5 to

$4.0 million for 1970,

The possible sources of funds include;
1. General Funds ~ This murce is already under considerable pressure and

no relief is presently anvierpaded,
2, The G. 0. Bonds already approved, for issue in the amennt of $4 million
annually. The financing of Neighborhood Development Programs finm these
bonds wevld requixe the use of almost this entire amount every year and
could very likely become embroiled in legal tangles,

3, Another possibility is a special Neighborheod Development Progran
General Obligation Bond Issue of $10 + $20 million in 1970 with anoth
issue 4 or s years later or the obtaining ab webes approval to issue

G. 0. Bonds for this purpose in the amount of $3-5 million per year,


This appreach is naturally subject to the wrims of the public, and, there«
fore, of uncertain dependability.

4, Pex thaps the best mathod would be through the obtaining of a new revenue

ales tax or a payroll tax of which a


source, by state approval, such as a
certain portion would be earmarked for Neighborhoal Development Programs,
Of course in the pursuit of a new source of revenue we are at loggerheads

with the state and may not be able to obtain a satisfactory revenue source,

Regardless of the method you favor in obtaining the neeced funds, it is


jiperative, if the City of Atlanta is to maintain its progressive image anc
to continue its diamatic development, that a source be found; because the

continuation of a sig gnificent program of restoration and rehablitation of

the central core of Atlanta is a vital element in the continued evolution

of our City.

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