Evening star., 1955-09-13
BY GEORGE BEvERIDGE

~ ~ANOASN1S 49, v A~4N1AS - -
The question of which private
investor should get a contract to
rebuild Washington's pilot Area
IB redevelopment project appar-
emily will be decided more by the
merits Of building plans than by
money bids.
| This is the indication. at least.
after appraisals Of two Of the
three Area B proposals submitted
Iby private investors to the Dis
trict Redevelopment Land
Agency.
The agency asked probing
Questions yesterday Of two Of the
bidders, a Washington group
headed by builder Stewart Bal
mum and architect Ronald Sem
seman, and a New York syndi-
cate headed by James H. Scheuer
and Roger L. Stevens.
Tomorrow, it will hear the
third group, led by /. s. Turover.
Washington lumber dealer.
The RIA is clearing the TO-
acre B area, bounded by East
Capitol and Fourth, e and /
streets S.W.. and intends to lease
the cleared land to the selected
investor for rebuilding. Each
group has submitted annual
ground rental bids on both resi-
Dental and commercial use lard
involved, along with site plans
showing where various buildings
would be located.
Would Tailor Bids
The money bids vary, with the
Bainum groups proposal to pay
| $8l, 900 a year for residential
land and $35, 1000 for commercial
being the highest.
Both the Bainum and Scheuer-
Stevens groups indicated. how
ever, that they would tailor their
residential rental bids to what
ever figure results from the Fed
eral Housing Administrators
estimate Of the lands actual
value.
FILA already has set a tenta-
tive figure Of SITS a square foot
as the residential lands average
value II it were to be sold. RIA
Ioficials said that II a AZ per
cent mortgage rate were applied
to this value, the ground rental
would figure to about $4,000 a
Iyear-just about what the Balm
um group offered.
Mr.. Bainum, however, said his
group would 60 along with a
moderate increase If FHA's final
value determination sh hould
change.
Mr.. Scheuer. in a letter to the
RIA. also said his syndicate
would raise it's figure "if the
FILA determination Of ground
rent should be higher than our
offer 100000.
It was not known what atti-
ltude the Turnover group would
take toward a possible increase
lin its bid.
Could Minimize Factors
II all three should agree to
meet the FHA figures, the money
angle would fade in Importance
as a decisive factor in determin-
ing which should get the con-
tract.
Both the Bainum and Scheuer-
Stevens groups also said they
would like to do the Job even If
Area B is to become an all-resi-
dental project, with proposed
c 0 m m erctal development re-
moved. This change is under
study because Of a large retail
center planned just south Of
Area B in the william Zecken-
Idorf plan for rebuilding the rest
of the Southwest section.
In such an event, the assump-
ton is that the Area B builder
would participate financially in
the larger Zeckendorf shopping
center.
Questions asked by RIA board
members and Federal and city
2oning, housing and planning
officials of the two investors
heard yesterday. meanwhile, cen.
tered almost entirely around de-
tails of the plans submitted.
The Scheuer-Stevens group
raised one matter that may be-,
come a major planning ISSUE
The issue was brought on by the
fact that the proposed Southwest
|freeway will pass along the