Evening star., 1961-05-14
Plaza OKd,
But Lid Is Set
On Land Cost
BY SAM EASTMAN
Star Staff Writer

The District Commissioners
have approved the Columbia
Plaza urban renewal project in
Foggy Bottom, but with a new
spending-ceiling stip u lation
that may save the taxpayers
as much as 100000.
The Commissioners backed
the project with the provision
that there be no write-down on
the land cost-that the Rede-
velopment Land Agency's SELL
ing price to the private de-
veloper be as much as the
agency paid for the property.
This stipulation marked the
first time that the Commits
sioners have set any direct fl
nancial control on the land
agency.
SIS Million Public Subsidy
The RIA proposals for H.
nancing the FoggS Bottom
project under a land write
down plan added up to a SIS
million public subsidy-$1 mil
lion from the Federal Govern
ment and the $500,000 balance
from the city.
The decision by the Commits
sioners, announced yesterday
may bring the total Federal
local project cost for the luxury
apartment development down
to a little over 81 million, Of
ficials said.
In a letter to RIA, the Com
missioners said:
I'VE will authorize your ap-
lication for Federal loan and
grant funds with the stipula-
ton that the total sellin 6
price for land sold for private
redevelopment shall not be less
than the acquisition price OF
all such land"
Asked to comment, John R
Searles, jr., RLA's executive di-
rector. although obviously dis
pleased with the spending re-
striction, said the financing
would be tight but workable. ;
In drafting plans for the
project, RIA has been dealing
with a syndicate headed by
James F. Salkeld of Shannon
e. Luchs. Asked what would
happen if the syndicate de-
cided it was not interested in
the project because of the land
write down ban, Mr.. SearleS
said there would be two pos
sible moves.
One would be to ask the
Commissioners to ease the re-
striction and the other to seek
other developers, Mr.. Searles
said.
The $25 million development
is to go up on eight acres
bounded by Virginia avenue
E, G and Twenty-third streets
NV.
Plans call for 800 apartment
units, plus a 400-unit hotel.
Expensive Extras Cited
The explanation by urban
renewal officials of the neec
to subsidize the private de.
veloper has been that the
Columbia Plaza plan calls fol
expensive extras" such as 6
series of open spaces and un-
derground parking for 1,50t
cars.
The estimated cost to the
private developer of the Com.
missioners' land price stipu.
lation does not come up tt
the full amount of RLA's
e-down plan, officials said
The reason is that the Com.
missioners decided to ease this
financial impact by a city
contribution of the streets anc
alleys that will be closed of
for the construction of the
| apartment-hotel development.
, The Commissioners action
taken at a closed session Fri.
day. was based on recon-.
mendations by Assistant En-.
gineer Commissioner Thomas
K. Fullerton.
, Under the Commissioners &C.
tion, the project cost will bt
narrowed down to the amoun
needed for such items as lane
clearance and RLA's overhead
/ expense.
How much cash the city will
: have to put up is still no
known. This depends on tht
land prices and the total fig
l ure for city projects, such a
e installation of water and sewe,
: lines which qualify as part o
: the Districts matching contri
! button.
Officials estimated, however
r that the cash figure would b.
less than $4,000. Because O
the city's "non-cash grant