Dublin Core
Title
Box 3, Folder 7, Document 49
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Text
CITY OF ATLANTA
DEPARTMENT OF FINANCE
a ATLANTA, GEORGIA 30303
July 15, 1969
TO: Jay Fountain
FROM: General Staff Io’
SUBJECT: West End Redevelopment Area, Project GA. R-90
The following is a review of the changes incorporated in Amendatory Application
No. 1 for the West End Urban Renewal Area as requested in your memo of June 20,
1969;
(1) With reference to the 34 parcels determined not to be feasible for rehabili-
tation, but which will be added to acquisition: there is no breakdown provided in
the narrative statement as to the cost of acquiring these parcels. As a result,
_this portion of the summary cannot be verified.
(2) Similarly, the individual parcel costs (which will be deleted from Acquisition
Expenses) are not listed in the narrative statement, so these cannot be checked
against originally projected costs of acquisition,
(3) The reuse designations of four parcels will have no affect on cost of projects.
(4) Street widening activities being undertaken by the City on Gordon Street are
not reported in the narrative statement, From a conversation with Mr. Jim Hunter
of Street Engineering, it was learned that the cost of the widening activities is
estimated at $90,000.00. In the Project Cost Estimate and Financing Plan (line
A-20), the revised estimate for noncash local grants-in-aid increased by $270,734 of
which this $90,000.00 would make up approximately one-third. However, we have no
supporting schedules with which to check these figures and thus cannot determine
how much, if any, of this increase is applicable to Gordon Street.
(5) With regard to the increased interest costs, there appears to be an error in
the narrative statement accompaning the Project Expenditures Budget. Computation
of total interest cost from March 31, 1969, indicates total interest of $624,500
and a net increase of $493,400.00. When the unencumbered balance of $131,441.00 is
deducted from the total interest cost of $624,500.00, the net increase of $493,059.00,
which differs from their computetion by $341.00. In addition, the interest to DHUD
is increased by $10,653.00 with the only explanation being a correction for a small
overrun; it appears that more information should be disclosed by the Housing Autho-
rity with reference to this increase. (It is somewhat frightening to note that the
extension in time will cost the City over cne-half million dollars in interest.)
Memo - Jay Fountain
General Staff
Page Two
July 15, 1969
(6) The requested increase in administrative costs is also confusing. It is stated
that the present costs in this line item are computed at the rate of $19,800.00 per
month, Based on this rate, they arrive at a total cost {from April, 1969, to the
completion date of July, 197i--a period of 28 months) of $443,400.00. With an unen-
cumbered balance of $193,505, a net adjustment (increase) of $360,900 is requested,
Based on the total cost as shown by AHA, the correct net adjustment would be $249,895;
however, $19,800 per month for 28 months gives a total cost of $554,400 which when
reduced by the unencumbered balance requires a net adjustment of $360,895--a difference
of $5 from their request. - Their indicated total cost would cover a period of only
22.4 months, based on the rate given. This does not conform to the extension period
of Apri] 1, 1969, through July, 1971.
Although two-thirds of the Summary of Changes could not be checked for verification
due to the lack of information from AHA, it is hoped that the above findings will
be helpful to you.
DEPARTMENT OF FINANCE
a ATLANTA, GEORGIA 30303
July 15, 1969
TO: Jay Fountain
FROM: General Staff Io’
SUBJECT: West End Redevelopment Area, Project GA. R-90
The following is a review of the changes incorporated in Amendatory Application
No. 1 for the West End Urban Renewal Area as requested in your memo of June 20,
1969;
(1) With reference to the 34 parcels determined not to be feasible for rehabili-
tation, but which will be added to acquisition: there is no breakdown provided in
the narrative statement as to the cost of acquiring these parcels. As a result,
_this portion of the summary cannot be verified.
(2) Similarly, the individual parcel costs (which will be deleted from Acquisition
Expenses) are not listed in the narrative statement, so these cannot be checked
against originally projected costs of acquisition,
(3) The reuse designations of four parcels will have no affect on cost of projects.
(4) Street widening activities being undertaken by the City on Gordon Street are
not reported in the narrative statement, From a conversation with Mr. Jim Hunter
of Street Engineering, it was learned that the cost of the widening activities is
estimated at $90,000.00. In the Project Cost Estimate and Financing Plan (line
A-20), the revised estimate for noncash local grants-in-aid increased by $270,734 of
which this $90,000.00 would make up approximately one-third. However, we have no
supporting schedules with which to check these figures and thus cannot determine
how much, if any, of this increase is applicable to Gordon Street.
(5) With regard to the increased interest costs, there appears to be an error in
the narrative statement accompaning the Project Expenditures Budget. Computation
of total interest cost from March 31, 1969, indicates total interest of $624,500
and a net increase of $493,400.00. When the unencumbered balance of $131,441.00 is
deducted from the total interest cost of $624,500.00, the net increase of $493,059.00,
which differs from their computetion by $341.00. In addition, the interest to DHUD
is increased by $10,653.00 with the only explanation being a correction for a small
overrun; it appears that more information should be disclosed by the Housing Autho-
rity with reference to this increase. (It is somewhat frightening to note that the
extension in time will cost the City over cne-half million dollars in interest.)
Memo - Jay Fountain
General Staff
Page Two
July 15, 1969
(6) The requested increase in administrative costs is also confusing. It is stated
that the present costs in this line item are computed at the rate of $19,800.00 per
month, Based on this rate, they arrive at a total cost {from April, 1969, to the
completion date of July, 197i--a period of 28 months) of $443,400.00. With an unen-
cumbered balance of $193,505, a net adjustment (increase) of $360,900 is requested,
Based on the total cost as shown by AHA, the correct net adjustment would be $249,895;
however, $19,800 per month for 28 months gives a total cost of $554,400 which when
reduced by the unencumbered balance requires a net adjustment of $360,895--a difference
of $5 from their request. - Their indicated total cost would cover a period of only
22.4 months, based on the rate given. This does not conform to the extension period
of Apri] 1, 1969, through July, 1971.
Although two-thirds of the Summary of Changes could not be checked for verification
due to the lack of information from AHA, it is hoped that the above findings will
be helpful to you.
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