Box 3, Folder 4, Document 39

Box 3, Folder 4, Document 39

KKELLSON, TNCOSPORATED
2794 CHAUCER DREVE, S. W. Tae -

ATLANTA; GEORGIA 30311
June 25, 1969

Mr. Edwin L. Sterne, Chairman ;
Housing Authority of -the City of Atlanta
824 Hurt Building
Atlanta, Georgia 30303

RE: Parcels 3, 9, 11, 12,. 19-and 40
West End Urban’ Area
Project GA-R-90

Dear Mr. Sterne:
This is in reply to your letter of June 17, 1969.

Although we are reasonably familiar with the escape clause provisions
of paragraph 8 of the "Invitation for Proposals" underwhich the Housing
Authority offered to sell the captioned parcels, we are sure that you
must realize that considerable time and effort was expended on our part
to comply with the Authority's invitation. We feel that reasonable con-
sideration should be given to the merit of the best proposal submitted
in connection therewith,

The proposal of Arkellson, Incorporated, submitted in regards to
parcel 19, specifically, was complete, detailed and clearly superior,
It more than met the Atlanta Housing Authority's requirements as set
out in the Invitation.

* The professional abilities of the personnel to perform the task
of redevelopment in accordance with the objectives with which parcel 19
and others weresoffered were amply documented by the chronolcgies of
training, employment and experience submitted on behalf of the members
in the Corporation. ;

We therefore urgently request reconsideration of our proposal to purchase
and redevelop parcel 19, based on the following reasons:

1. We believe that the Atlanta Housing Authority has erred
in its decision not to award parcel 19 to Arkellson. We
feel that the Housing Authority acted in an arbitrary
manner by deciding not to arard Arkellson, Incorporated,
this parcel. Also, since parcel 20 had been for sale
on the market for approximately 15 months prior to the
offering of the captioned parcels, the Housing Authority
already had ample time in which to restudy parcel 20;
therefore the disposition of parcel 20 should not have
been made a condition precedent to the sale of parcel 19.

Our study and review of the West End Urban Renewal plan
indicates that the use of parcel 19 for multifamily
housing and parcel 20 for motel use is entirely in con-
formance with the urban renewal plan as approved and
adopted by community, city and federal officials.

A review of the minutes of th: joint breakfast meeting

of members of the Aldermanic Planning and Development
Committee, Housing Authority Personnel, and City of
Atlanta Planning Department, which was held on June 9,

at 8:00 AM, Marriott Motor Hotel, reveals that personnel
of the Housing Authority recommended that Arkellson, In-
corporated, be awarded parcels 9, 12 and 19. It is
significant to note that the West End Citizens Advisory
Committee, whom the Chairman of the Housing Authority
recommended review our proposal, is the same group that
the minutes reflect as having endorsed a proposal sub-
mitted by other bidders, namely, D. L. Knox and Atlanta
Federal Savings and Loan Association, To make the proposal
of Arkellson, Incorporated, a group composed of all black
professionals, contingent upon the approval of the West
End Citizens Advisory Committee, which Committee had
already endorsed another bidder, justifies our questioning
the objectivity of the ruling.

After reviewing and studying the minutes of joint breakfast
meetings of the parties mentioned in three above, it appears

‘that the West End Citizens Advisory Committee did in fact

exercise a power of veto over the recommendations and actions
of the Atlanta Housing Authority in regards to parcel 19. The
Invitation for proposals did not indicate in any manner what-
soever that the concurrence of the West End Citizens Advisory
Committee was a necessary factor in having ones' proposal
accepted by the Atlanta Housing Authority.

It appears that the West End Citizens Advisory Committee
did a complete about face in regards to awarding parcel 19
at all when Arkellson, Incorporated, rather than their
a

endorsee was recommended by the Housing. Authority to be
awarded the parcel. It further appears that this Com-
mittee, through its representative (a lawyer), seized
upon the opportunity to sell the Housing Authority,
Aldermanic Planning and Development Committee, and
others connected therewith, on the idea of refusing

all proposals on parcel 19 and restudying same in
conjunction with parcels 20 and 40, when in total
fairness there was insufficient reason to do so.

Our information and belief is that this is one of the rare occasions
in which the Atlanta Housing Authority failed to award on the basis of the
best proposal. This action on the part of the Atlanta Housing Authority
causes us to wonder upon what grounds a denial was in fact made. It would
appear that when bidders have met all the requirements and objectives of
the Invitation for proposals and are genuinely interested in providing
much needed housing in the City of Atlanta, there would be no reason for
not awarding on the basis of the best proposal.

We presume that by the filing of this request for reconsideration,
all announcements that the Atlanta Housing Authority made in connection
with the awarding of captioned parcels will be held in status quo pending
consideration of our request for reconsideration. Unless we are immediately
notified to the contrary, we will assume that this is the case.

It is respectfully requested that in the process of the reconsideration,
Arkellson, Incorporated, be further heard on the issues at such time and place
as the Authority deems fair and appropriate.

very, truly yours, ap
ie a/). A ee
7 fi Tt / oe A
& rae: aft LF Ne i

Elvin Mitchell
fe PRESI DENT

r

ees
Honorable Ivan Allen, Jr., Mayor

Mr. Edward H. Baxter, Regional Administrator for DHUD

Mr. Edwin L. Sterne, c/o Ware, Sterne and Griffin

Mr. Lester H. Persells, Executive Director and Secretary for AHA
Mr. Howard Openshaw, Director of Redevelopment for AHA