Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-09-25
BY GEORGE BEvERiDGE

NAA4SA9-AS
factors tomorrow in trying t.
select q private investor to re.
build the pilot Area B South.
west Washington redevelopmeni
project.
The District Redevelopment
Land Agency Board called a spe.
|cial meeting at 10 am. TO make
the decision from among three
investment syndicates bidding FOL
the job.
John A. Remon. board chair.
man. said he hoped the fina'
word can be given tor. row. Il
|it can't, he said, I'm call another
early meeting-I'm not going Il
let any more grass grow undei
this project"
Problems Involved
The reason for Mr.: Remon's
uncertainty about tomorrow was
that problems--some Of them
brand-new--are involved in each
of these big factors figuring In
the decision:
1.-The financial capacity" oil
each bidder. his ability to put
up the heavy cash required fol
FILA financing and to stick with
the project through a long pro-
cess Of restrictions and red tape
2. Whether the bidder Is will
ing to rebuild most OF the area
as an all-residential project.
with no lucrative first-commer-
cial tretail shopping) develop
ment included.
This is required by q new
change approved by the Nationa.
Capital Planning Commission
which viii eliminate about 49,.
900 square feet OF first CONNER.
Icial land from Area B and change
that footage to residential use
The change was voted because
Ia large retail Town Center" i,
proposed Immediately south Of
Area B and adjacent to 1t. ir
the zeckendorf plan for redevel.
oping the waterfront area.
The problem here is whether
the bidders are willing to abide
by the change. since their pro.
posals all have been submitted
ION the basis of both residential
and commercial development
RIA has asked each bidder fol-
IAN answer.
8. Whether each bidder Is will.
ing to pay RIA annual grounc
rental for use Of the Area Z
land in an amount stipulated By
the FILA. The bidders previously
had submitted varying rentaI
amounts based on their own es.
Inmates of fair return.
I. The merits of "site plans
submitted by each bidder, show.
ing just what types Of building
would go in each block, parking
facilities and other features.
1t appeared that the most i'm.
Iportant Of these factors will BIZ
the financial capacity" of the
bidders.
Ofiicials feel, for example. that
the FILA determination Of GROUND
rental will pretty much determine
that factor. Since first com.
fmercial use is to be eliminated
from Area b. bidders presum-
ably would have to comply Il
qualify. And the site plans sui.
United will have to be at least
partly revised to meet this
change.
One Builder Withdrew
Another reason RIA members
will be particularly sensitive
about the financial angle is thai
Ia previous Area B bidder, Nor.
folk Builder Ralph e. Bush
withdrew when he was unable t.
Iget satisfactory financing undel
Section 220 Of the new Fedora
Housing Act.
This section provides for at.
ltractive FHA-insured mortgage.
of up to 90 per cent Of the cos
Iof redevelopment projects--re.
Iquiring far less investor casf
than other forms OF financing
But 1t also is a new, unprover
program. with q number Of pit.
falls and reams Of red tape to b,
waded through.
About the worst thing ! car
Imagine happening" one RLl
official said, "would be to selec
a bidder---from among the threl
good ones we have--and fin,
later that he couldn't 60 through
with It,"
Even with selection OF a bid
der, meanwhile the start Of con
struction on Area B is month
away.
! One Of the big problems ! It'll