Evening star., 1958-07-15
Signal to Go Ahead
Given S.W. Project
contruct OKd
For $5.2 Million
For Area CT

The Commissioners today
acted to clear the technical
hurdles out Of the way Of the
remaining 30 acres Of the
Southwest redevelopment area.
They authorized the Redevel-
opment Land Agency to execute
a contract with the Housing
and Home Finance Agency for
$3.5 million in loans and SIT
million in grants for the So
called Area C-l.
Area C-1, bounded by South
Capitol street, NJ street, Dela-
ware avenue and I street, was
cut of from the 450-acre Area
c of which it originally was
part Of a public housing de-
velopment. Since then. it has
been best by one technical
snarl after another.
"This little area has been
tying up the whole Southwest
for some time said Assistant
Engineer Commissioner Robert
Mathe.
Tax Tangle Develops
The latest tangle was over .
new tax policy of the HHFA.
which said project funds might
not be used by the land agency
to pay certain required taxes to
the city on property itacquires
for redevelopment.
The policy refers both to
property which was tax exempt
before acquisition by RIA. such
as church land, and to former.
ly improved property, which
has been cleared.
The city's 1945 redevelopment
act specifically requires pay
ment of real estate taxes on
property held by the land
agency. HHFA has agreed to
waive its new policy for Area
C-1 on condition the city In
turn seek legislation for q
waiver Of the taxes on such
property for RIA. The Com
missioners agreed to this move
today.
Property Tied Up
"The poor property owners
in Area C-l have really had
their troubles" said John r.
Searles, land agency director.
pointing out that while the
property has long been tiedNup
as a designated redevelopment
area RIA has been unable to
buy it..
Instead Of going ahead be-
fore Area C, it is a year and
a half behind it," he added.
"This Is the worst possible ex-
ample Of Government taking
land" he said.
In Area C, 10 per cent Of
the property has been bought.
SO per cent of the occupants
have been relocated and g
fourth of the demolition work
has been completed.
Meanwhile, a proposal to
build a multi-million dollar
restaurant and planetarium at
the Mall and Tenth street re-
ceived an encouraging nudge
from the land agency.
Procedure Agreed On
The agency agreed on a pro-
lcedure to be followed in bring
ing the project to reality. The
procedure, the agency empha-
sized, would be subject to ap-
proval of the HE1FA.
Watson and Joseph Rulon,
operators of Hogates Restau-
rant, have proposed to build
as the Overlook Corp.-the res
taurant and planetarium. The
planetarium would be under a
non-profit foundation setup by
the Rulons.
The procedure approved by
the Land Agency today calls
for a public hearing and adj
vice and counsel from variety
Of consultants.
Door Not Closed
Malcolm Burrows, deputy
executive Of the land agency.
assured agency directors their
resolution would not close the
door on other persons who
might be interested In joining
in the Mall project.
/
The land agency also ap-
proved, in principle, retention
Of the McLachlen Banking
Corp. at Twelfth street and
Maryland Avenues S.W., sub
ject to certain improvements
to be made in the building.
Low bids also were accepted
from firms that viii clear two
Southwest redevelopment area
sites. One Of there, S2S,500
from the General Wricking Co..
would cover demolition Of the
Amidon School site: the other.
$47,693 from the Ace Wrecking
Co., would cover clearing the
site for the east half Of the
proposed town center.