Evening star., 1954-11-23
Green Light
On Southwest
Project Seen
RIA Chief Says
High Court Ruling
Leaves No Obstacles
By George Beveridge

By George Beveridge
The Supreme Courts new de-
cislon supporting Southwest
Washington's redevelo o pment
program was hailed by Govern
ment officials today as a sweep
ing victory, wiping away "the
one cloud that could have
blocked the program.
The historic decision, handed
down with no dissents by the
high court yesterday, affirmed a
year-old finding by a three
judge Federal court that the
city's basic 1945 Redevelopment
Act is constitutional.
But it also went far beyond
this affirmation to remove doubts
cast by the three-judge decision
on the limits to which a redevel-
opment program might go.
Federal lawyers viewed the
ruling as being conclusive enough
to rule out any legal point raised
so far against the program.
>Searles Sees No Halt.
John r. Searles, jr., director
Of the District Redevelopment
Land Agency, said the legal is
sues ruled upon yesterday had
made up "the one great possi-
bility that there could be no
program at all"
There is nothing we can see
now that can stop the program, !"
he added. "It could be modified
but there doesn't appear to be
any cloud on the horizon that
could bring it to a halt.
''It brings in line the three
branches of Government-the
legislative, which started the
program; the administrative,
which is carrying it out. and the
courts, which support It"
The court ch hallenge was
brought by a Fourth street S.W,
department store owner, who
sought to prevent seizure Of his
property as part of the plan to
clear and rebuild a vast 76-acre
rundown section in the So
called B Area. The legal issues
he raised were substantially the
same as those raised by several
others fighting the program.
Clears Way for Contract.
MIR. Searles said the decision,
beyond clearing the legal shad-
ow which has hung over the en-
tire concept of redevelopment.
would have these immediate
effects:
/. Clear the way for his agency
to complete soon a contract with
the Bush Construction Co. of
Norfolk, which is in line to pur-
chase most of the area B land
and rebuild it according to a
city-adopted plan.
2. Permit his agency to save
''nany thousands of dollars" by
using private money, borrowed
on the open market at low in
terest rates, instead of high
interest Federal loans.
3. Give a tremendous lift" to
slum clearance and redevelop-
ment programs throughout the
country.
The RIA already has title to
about 81 per cent of the area B
property, about half acquired
through direct negotiation and
half through condemnation.
About one-third of the more
than 1900 area B families have
moved out and been rehoused
elsewhere. Demolition is either
completed or under way in five
blocks.
February Is Deadline.
Mr.. Searles said the RIA
schedule calls for acquisition of
all the area B land by February
is. Other steps to be taken in
clude: Re-zoning of the area to
comply with the proposed new
uses, execution of the Bush Co.
contract. further rehousing of
area B residents, demolition of
more properties and, finally,
transfer of land for rebuilding
by the Bush Co.
Mr.. Searles said he felt the
RIA should have title to all land
before any is turned over to the
Bush Co. Beyond his February
is target for acquiring all the
land. however, he said no def
mite schedule has been set down.
Progress is under way on all
the steps. he said, so that one
can follow the other without
delay. The extremely complex
Bush contract, ON which work
has been under way for months,
will now get immediate and top
priority consideration" he said.
Thus far, the RIA, has OBJ
tanned $3.550.000 in loans from
the Federal Housing and Home
Finance Agency to defray land
acquisition and other expenses
Of the area B job. The agency
is paying interest on the loans
at the rate of 2.7 per cent.
May Issue Bonds.
The RIA is empowered by it's
1945 act to issue tax-exempt
Federal bonds to raise expense
money. But in view of the legal
questions the agency's bond
counsel has been unwilling to
approve any such ISSUE" Mr..
Searles said.
With the court decision in, he
said. he feels certain the RIA
will attempt to issue the bonds
for money "at less than one
third the interest rates we are
paying now" The bonds would
be retired through two means
money raised through sale of
the area B land to the Bush
Co. and other investors. and
through Federal grant that
would represent two-thirds of