Box 7, Folder 22, Document 7

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Box 7, Folder 22, Document 7

Text Item Type Metadata


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z cl
Mh brligers | and alder) Vhiondl Bonk,

Werte, Goreia 30302

December 28, 1966


Mayor Ivan Allen
City Hall
Atlanta, Georgia

Dear Ivan:

The other day, the Community Council and certain outsiders
listened to EOA's discussion of a proposed corporation in the
Summerhill=-Mechaniecsville area. Purpose of the corporation would
be to provide employment for adult semi-skilled and unskilled
workers in the demolition, cleaning and boarding up of substandard
housing and properties.

Those attending had several observations, one of which was
that a new corporation of this sort with untested leadership would
have difficulty making a go of this venture if it had to bid in
the open market for demolition work. There was a hope that the
city of Atlanta might be able to direct contracts to the group at
a negotiated price.

I'd like to urge your consideration of this idea. Never-
theless, I feel the city could do a lot to help make a corporation
of this sort successful if it put certain strings on its willing-
ness to negotiate.

The sort of strings I have in mind are that a negotiating
group would indicate to your satisfaction that it was properly set
up with reasonably experienced management, that it would have to
operate within a pricing structure fair to the city and that the city
would have assurance that the work would be done well.

Among the outside observers at the Council meeting were a
couple of men from our bank who were attempting to appraise EOA's
lending and development program for small business. Due to EOA
Mayor Ivan Allen
December 28, 1966
Page Two

cutbacks in funds, both these programs have been transferred out of
EOA to the Small Business Administration. We were wondering if there
were a place where private enterprise could step in and take over
some of the functions which government had been asked to do.

As bankers, my two associates and I saw some potential merit in
this particular application. Compared with some of the loans which
we have made, this one might be shaped into something which could be
handled provided the whole enterprise were set up right in the first
place. The advantage to the city would be to create a new way in
which people in poverty areas could gain useful work as they built an
organizationwhich ultimately could compete in the open market for
business. It would be a fairly dramatic way of demonstrating that
because one is poor does not necessarily rule out economic opportunity.

In thinking about this particular proposed company, it would be
helpful to know if the city would entertain a negotiated price for
some of this demolition and repair work.


| )

James P.




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