Evening star., 1953-02-11
Initial Project
In Southwest 10
Cost$10 Million
District to Provide
One-Third Of Sum,
Lond Agency Says
By George Beveridoe

The District Redevelopment
Land Agency estimated today
the first project in the program
to rebuild Southwest Washing
ton will cost $10.2 million, one
third to be provided by the Dis
trict in public improvements.
The Area B project would
eliminate some of the city's
worst slums in a 76.6-acre tract
bounded by South Capitol street,
the Pennsylvania Railroad tracks
and Fourth and I streets S.W.
The new figures are based on
definite land appraisals and
computations of other costs. In
cluded are many items not used
in earlier estimates.
Plans Are Disclosed.
Plans for meeting the 0,240,-
301 cost, the land agency dis
closed today. call for:
l. A Federal grant Of $685.
108 from the Housing and Home
Finance Agency.
2. A total of $3,617.193 to be
spent by the District government
as the city's contribution. For
NAL agreements by the Commits
sioners to this phase Of the
program is expected tomorrow.
The Federal grant would cover
the cost Of buying the slum land.
clearing it, rehousing present
residents and selling the land to
private investors for rebuilding.
Permanent Facilities.
Thus, the city's $3.6 million
share would be put entirely into
permanent construction facilities
to serve the rebuilt area. with
no direct cash outlay toward
the programs operating cost.
These details were made pub
lie at land agency board meet
ing. open to the press today for
the first time.
The financing details are
spelled out in an application to
the HHFA for the Federal loan
and grant. HHFA approval
would enable the RIA to begin
taking title to the land and
negotiating for it's purchase.
Bids for the rebuilding Job al.
ready are being sought from
private investors.
improvements Listed.
The construction improve.
ments making UP the Districts
proposed share of the cost in
clude:
/. New gymnasium at the
Randall Junior High School,
$92, 600; new Randall swimming
pool, $345,000; revamping the
Randall playground, $59,127, and
a portion of the proposed South
west Expressway which will di-
rectly benefit the B area, $3,121,.
066.
The amounts for the three
Randall projects come to 57.5
per cent of the actual project
costs. The reason is that such
costs can be applied to the re.
development program only to
the extent that the new facilities
will directly benefit residents OF
the B area.
Cost Figures Given.
The land agency did not make
public exactly what it expects
to pay for the 67-acre properties
or the amount for which it ex-
poets to resell the land. It's net
cost of $6.6 million, however,
showed this breakdown:
Net land acquisition, admins.
tration. planning and demolition.
$5,520,855; rehouSing displaced
families. $178,272; managing
acquired properties, $50, ,435;
street. water. sewer and lighting.
$523,508; HHFA inspection fee,
$45,031; interest on Federal loan,
$286, ,767, and contingencies,
$138,110.
Officials said HHFA approval
actually will amount to Federal
backing of a loan which will be
sought from private lenders. In
order to get better interest rates
than Federal loan would carry.
The loan eventually would b.
paid by the Federal grant.