Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-06-03
RIA Promises Competition
On Urban Renewal Jobs
BY GEORGE BEvERDGE
star star writer

BY GEORGE BEvERDGE
star star writer
Washington redevelopment
officials said today they intend
to have q good deal more COM
petition in the future than
we've had in the past" In Sc
lecting investors to rebuild ur-
ban renewal areas.
At the same time. however.
District Redevelopment Land
Agency ofiicials said they will
Five up TO our agreements" and
continue to negotiate for several
areas with william Zeckendorf.
New York developer.
John r. Searles. jr.. RIA d.
rector, made these comments In
reaction to q General Account
ing once report which sug-
gested RIA be required to dis
pose Of redevelopment land by
competitive bidding instead Of
by negotiation with q single
predetermined redeveloper.
Report to Rayburn
The GAO report, representing
an audit Of RIA programs for
the fiscal years 1878, was
dated May 20. 1859. and was
sent yesterday to House Speaker
Rayburn by Controller General
Joseph Campbell.
Ironically, the report reached
Capitol Hill just prior to cere-
monies at RIA headquarters
in which the agency signed a
negotiated contract with Mr..
Zeckendorf for construction Of
the 20-acre Town Center retail
shopping area. The agency also
heard the New Workers. pres
entation of detailed plans to
be negotiated for a 22-acre. $85
million plaza area in the South
west.
While its major pitch was
on the competitive bidding VS..
negotiated contract issue, the
83-page GAO report challenged
about a dozen procedures in
volving RIA operations. which
ranged all the way down to a
question of whether RIA keeps
SUFFICIENT records Of the accrued
leave Of its employees. The re-
port suggested some corrective
action by RIA, some by the
Urban Renewal Administration
(which pays the cost Of re-
development) and some by
Congress.
Came Out Well
Mr.. Searles said he felt the
competitive bidding recon-
mendation by GAO was
largely q matter of opinion"
and that I'VE feel we came out
in the survey very we'll"
THE GAO had about 10 au-
ditors working here for about
six months" he said. Some OF
the suggestions they made we
agree with, and in those cases
we have made changes. Others
we don't agree with. But we
were pleased that there were no
more serious faults than are in
the report"
Restricting another old con-
troversy, the GAO questioned
whether Congress intends that
the District should be able to
credit such projects as the
Southwest freeway against costs
Of the big Southwest redevelop-
ment program. Under rede-
velopment. the city is to pay
one-third of the public cost,
which can be credited in such
public improvements as schools
and roads.
Credit CHALLENGED
Last year, the Controller
General challenged the South
west freeway credit. City Of
f1cials warned that the entire
Southwest program might flop
if the credit were not allowed,
and argued that special pro-
visions Of the city's 1945 re-
development act permitted this
even If other cities could not
qualify for such broad benefits.
Last December, the GAO
agreed that this was legally so,
and Withdrew its challenge. In
the new report. however. it
asked whether Congress might
want to amend the 1945 act to
tighten the provision.
The GAO attack on negoti-
ated contracts with developers
also flew in the face of dis
agreeing policies from Federal
housing officials, who have
stated that the administrations
position actually favors nego-
tiation over competitive bidding
in disposing of land.
Obligation Noted
The GAO said it understood
the memorandum" was agreed
to as q moral obligation" be-
cause Mr.. Zeckendorf's firm.
Webb & Knapp. had helped
RIA develop the Southwest
plan.
1t noted that MIR. Zeckendorf
had negotiated a price Of $3.50
a square foot for the Town
Center shopping area, all
though a first RIA appraisal
had indicated a value Of "a q
foot. Since then, Mr.. Zecken-
dorf has agreed to pay 50.
Even If RIA gets the Zecken-
dorf firm to agree to q land
value Of So per foot (Which is
the case), the report said. "it
still will not have reasonable
assurance that it has obtained
the highest return obtainable.
Our belief is based on the fact