MORRISTOWN, TENN.

The Chamber of Commerce of Morristown, Tenn. (population 21,265) published an article describing the financial benefits of the town's urban renewal program in the January 1, 1963 issue of Parade of Progress. Excerpts from the article follow:

Through urban renewal the investment of a minimum of municipal funds results in a maximum of long lasting benefits. When the facts are known, it is found to be a boon to every citizen and the greatest value that he can get for his tax dollar.

First of all, let us consider Urban Renewal's very tangible dollars and cents benefits. New structures in renewal areas result in a substantial increase in tax revenues to the city. At the same time the value of properties adjacent to former slum areas tends to increase as the blighting influence is removed. Consider Project 1, Rheatown: . . . The tax books will verify that the income to the city from these 40 acres of overcrowded-costly to maintain and servicereal estate, was a mere $2000 per year. Now taxes from redevelopers in about half (10 acres) of the light industrial section (total 18 acres)-Dance Freight Lines, Pet Milk Company and Burnett Produce-in 1963 will be in excess of $10,000, not just for one year but annually. These redevelopers have agreed to abide by the protective codes of the city to insure that their properties will not depreciate excessively and that they will not become blighting influences upon their neighbors. Thus tax values will be maintained as their production and business activity grows in a planned environment.

Each of these plants has expanded its operations, and is employing more persons (thus stimulating the economy of Morristown), and has, or will, increase its volume of business. For example, Dance Freight Lines reported to the Housing Authority and the Chamber of Commerce a 43% increase in business the first of 3 months of operating in the Urban Renewal area. We might ask these redevelopers what they think of their new locations in Project 1.

Mr. C. C. Dance, Jr., of Cincinnati, Ohio, President of Dance Freight Lines wrote the Housing Authority on October 10 as follows: "As you know, we recently moved into our new Morristown Truck Terminal in the Urban Renewal area, and we are extremely well pleased with our new building, the location, the new street improvements and our continued increase in traffic. Volume of outbound traffic has increased some 43% over the same period of 1961."

Mr. Hart Sprinkle, Morristown Manager of Pet Milk Company states, "We needed room to expand our operation, enough space to provide for the anticipated gradual expansion of our business over the years to come. The Urban Renewal location meets fully our needs and we were happy to obtain this land in this redeveloped area at a fair price. We appreciate the fact that in an Urban Renewal area these advantages will be protected for the future. My home office was so satisfied with this location that we built a more modern building than originally planned for our Morristown operation."

Mr. L. T. Burnett, whose new plant in the Urban Renewal area was ratified by the citizens of Morristown in a referendum last summer, told MHA, "We are anxious for the completion of our one-half million dollar building scheduled for the summer of 1963. When we have relocated into our new plant in the Urban Renewal area we will increase our chicken processing operation from 4800 birds per hour to 9600 per hour. This increased production should provide jobs for 150 additional Morristown citizens in 1963. We appreciate the spirit of cooperation that the city, the Housing Authority, and the citizens of Morristown have shown in making our expansion possible."

The minimum of tax income to the municipality will easily reach $25,000 per year when all of Project 1 has been sold and redeveloped. This is well over a tenfold increase in income to the city, and we have only spoken of real estate taxes to this point. Urban Renewal produces tax income rather than causing tax increases.

Project 1 cost the City $200,000. It can be readily seen that this total cost, which includes new streets, sidewalks, curbs and gutters, water, gas and electric systems, creek channel relocation and improvement, provision of a much-needed 7 acre recreation facility (to be improved and developed by the Sertoma Club), improved facilities to carry traffic, and safer street intersections, as well as proper zoning and land uses, will pay for itself in less than 10 years. Then the city has this added income to use for other purposes. If we consider service

costs to the city which have been reduced with the elimination of the slum conditions in the area, the picture becomes even brighter. Does such a picture indicate that Urban Renewal is a waste of the tax payers' dollar? Indeed, the contrary is evident. It is the wisest investment of the tax dollar-one that continues to reap tangible as well as intangible dividends.

There is another justification for Urban Renewal. Slums have typically required a very high level of fire, health, police and welfare services, as compared to good neighborhoods. With the elimination of slums the cost of providing these services has gone down sharply in the Rheatown Project I area. In 1957, before the urban renewal project was undertaken a careful study of these service costs in the total Rheatown neighborhood the Projects I and II area was made by our Planning Commission. Following are some of the results of this survey. It should be kept in mind that the Rheatown area contained approximately 1500 inhabitants or 8.74% of the 1957 total population (17,161) of Morristown. Approximately 60 percent of the total felonious convictions for 1957 were charged against inhabitants of the Rheatown area. Approximately 26 percent of arrests for misdemeanors in 1957 were charged against inhabitants of the area. Approximately 22 percent of the inhabitants of Morristown receiving funds from the welfare department were inhabitants of the area. Approximately 33 percent of the patients from Morristown who were admitted into the Hamblen County Hospital in 1957 were inhabitants of the area. Approximately 63 percent of the indigent patients who received free care from the Hamblen County Hospital in 1957 were from the area.

Now, an appreciable reduction, not relocation, in these costs to the tax payer is evident in Project I. Our tuberculosis rate alone has been drastically reduced. When Project II has been carried out these savings will be further evident. This is because of our Urban Renewal and housing program. Are these facts not an indication of the value of Urban Renewal to every citizen? Whether we realize it or not, such reductions make our tax dollar go further.

How about the enhancing of the economic base of the entire community? This is a factor any business man appreciates. Jobs are created during the building of the Urban Renewal site improvements and the construction of the new buildings. Local enterprises are getting contracts and local citizens are employed. Catron Construction Company built the Dance and Pet facilities; G. Marcus Jones is building the Burnett Poultry plant. Local home builders will build on the 25 residential lots in Project I, soon to be placed on the market to provide homes for our citizens. Local surveyors, real estate appraisers, architects and engineers receive contracts during all phases of Urban Renewal. It can be easily proven that more than $200,000 in payrolls have already been engendered by Urban Renewal in Morristown over the past 3 years. This does not include employment for 10 Hamblen County residents on the housing authority staff, who spend most of their incomes, as do the others, in Morristown. One should think again if he has been led to believe a $200,000 price tag on Project I is too high or that, applying the same yardstick to Project II, an investment of three-fourths of a million dollars (over half of which must be spent anyway for maintenance and flood control) is not an excellent investment.

Do the citizens of Morristown benefit from this employment? Are these payrolls spent in Morristown? Most are. Mr. Morristown businessman and industrialist, the local worker employed on Urban Renewal jobs is the man who helps buy the groceries you sell, your cars, your clothing, your manufactured products, your insurance, the recreation you sell, and your other varied services. These are cold business facts, not conjectures. Urban Renewal is a practical force on the contemporary scene. It is as important that we maintain, repair and replace our old run-down city areas as it is to repair your auto or washing machine, and indeed to get a new one after the old is beyond repair. The new and the expanded business coming into formerly deteriorated areas, and the consequent increase in employment, payrolls, and purchasing power in the community that continues permanently year after year, is reason enough of itself for our support of Urban Renewal.

You may want to question the relocation of families from an Urban Renewal area and this is worthy of consideration. Relocation of families who have resided in an area is serious. We are dealing with human lives. It can be stated flatly that Urban Renewal improves, yes improves, the plight of the vast majority of the families affected, even though it be a forced situation in many cases. did not want to move from my home in Project I", says Mrs. X.

"I

"But when I realized I must, and did relocate in a much better home on Valley Street with the assistance of the Housing Authority, I was amazed. Looking back, how I could ever have been satisfied to live in that old, run-down section?" This is not an isolated case. Records at the Housing offices contain many more such statements. Seventy-five to eighty percent of the families are in better housing in better neighborhoods than before, and many in a fully standard home for the first time in their lives. Many with low incomes are living in the housing projects in a modern home, with all conveniences at a rent they can afford. Up to 15 percent of the displaced families have not bettered their plight, neither have they worsened it. There are those who do not wish to have a better environment. Progress and improvements have never been impeded by this minority in the growth and modernization of America.

Relocation by Urban Renewal is tough, but efforts are constantly being put forth by the Housing Authority Commissioners and staff to help this small percentage who lack initiative. This is a constant policy of your Housing Authority in the low rent housing and Urban Renewal relocation operations.

No, Morristown has not gone into Urban Renewal ill-advisedly; Urban Renewal pays big dividends-now and for the future."

MORRISVILLE, MO.

A water facilities system was established in this city of only 228 residents with assistance of a HUD long-term, low-interest loan.

Since its installation, two new homes have been built, others remodeled, and the following businesses have been set up:

A coin-operated laundry with one employee.

A barber shop with one barber.

A beauty shop with one operator.
A restaurant with three employees.
A grocery store with two employees.

A plumbing shop with five employees.

MUSKEGON HEIGHTS, MICH.

This city of 19,500 has a $50,147 Federal grant reservation, with which it is redeveloping a blighted area for light industrial, public and commercial use. The Port City Machine and Tool Co., and the Stiendler Paper Company have come into the renewal area from outside the city.

The Bennett Pump Division of John Wood Company manufacturers of pumps, has expanded its facilities with the renewal area. The Quality Plating Company expanded its existing facilities in the renewal area, and the Quality Tool and Stamping Company, a local company, relocated in the renewal area.

NATCHITOCHES, LA.

The following report was prepared by Earl L. Ryder, administrator of the Natchitoches Parish Hospital Service District. Natchitoches is a city of 13,924 residents.

The Parish hospital was expanded with a HUD Public Facilities Loan. Since then, about 75 new residences have been built and a new industry employing about 55 people has been established.

"I do not believe," says Mr. Ryder, "the hospital attracted the industry to our city. However, I believe an accredited hospital certainly has some merit toward attracting industry."

NEW SUMMERFIELD, TEX.

In a letter to the Fort Worth HUD Regional Office, Mayor Paul Chupp of New Summerfield, Texas (population under 1,000) said:

"I would like to express our appreciation and gratitude to HUD and to you for loaning our community the money for installing the Gas Distribution System.

It is not only a savings for each customer, but it has helped the merchants and other business people by putting more money into circulation. The majority of the employees of Cavanaugh Construction Company are from this community or within Cherokee County.

"One of our biggest customers, who owns and operates a large plant farm, made a cost comparison between butane and the natural gas this past week. He found that it would save him approximately five hundred dollars a month, which is a considerable savings, during the heating season. There are approximately five other plant farms and two large brooder houses in this community that aren't quite as large as the one mentioned above but will be using a lot of gas. This will also help but more money into circulation and also help create more jobs due to expansion."

OIL CITY, PA.

Oil City (population 18,111) discovered that sometimes a city's biggest problem is finding out there is a problem. The town grew up on a rich diet of petroleum, but when the oil industry moved southwest, the other industries it had attracted began to trickle out. The loss was gradual, as were the deterioration of the downtown area and the aging of the city's assets-building, sewage, and water-treatment plants.

Then in 1954, a small group of younger men took over the Chamber of Commerce. They turned what had been only a downtown merchants' alliance into an agency for community redevelopment. The Chamber's new Community Development Committee sat down with city officials to talk about a master plan for Oil City. Talk brought action. The first renewal project has been completed, and two more are underway. Oil City looks brighter.

OXFORD, ARK.

Mrs. Claude Caldwell, mayor of this small town, wrote this letter to HUD's Regional Administrator:

"This is a small town. We now have a number of older people living in their own homes due to the convenience of the city water. Without it they would have to go to the rest homes.

"Our school has been greatly benefitted by the system.

"We are hopeful of some time in the near future of some industry coming to our community.

"However, if we can help our elderly people maintain their homes, our efforts have not been in vain."

Mayor Caldwell reported that since the local water system was built with HUD assistance, 20 new homes have been built and 78 have been "made modern."

PALACIOS, TEX.

This city of 4,500 on the Gulf Coast sees a brighter economic growth ahead, thanks to a new sewerage system. This was made possible by a long-term, lowinterest loan from HUD.

Palacios is a picturesque city with an abundance of good water. But it was held back by an inadequate waste treatment system. Oyster beds on two nearby bays had been untouched since 1961, because of waste contamination. The trunk system serving the northern part of the city is overloaded, causing extensive flooding of some sections. One part of the city is served only by septic tanks, and new growth there has been held up. A 1,300-acre industrial area is not growing, for lack of sewage.

Mayor Herman Bond believes that as soon as the new sewage treatment plant, outfall line, force main and lift station are installed, Palacios will gain new growth. The two bays will be opened again to oyster harvesting. New business will be added, and the best prospective residential areas can be developed for new homes.

The new facilities will enhance tourist attention to the already existing recreation areas and activities. These include boating, swimming, hunting, fishing piers, free boat launching ramps, marinas, a recreation center, and a new golf

course.

PRESTONSBURG, KY.

This small city of about 3,400 has completed two urban renewal projects and now has a HUD grant to help create a 29-acre park with a sports field, a children's play area, and other recreation features.

Much of the labor will be provided by an Unemployment Fathers Program which will assist the unemployed in obtaining job training.

The first privately built housing development in Rankin borough (1960 population 5,164) in 50 years was marked by the opening of 18 townhouses in the Palisades Plaza Project area. The 28-acre renewal project will make land available for 112 new houses, off-street parking, neighborhood stores, playground, new borough building, and other facilities.

Town House Developers, Inc. is the redeveloper of the project land which previously had 234 substandard ramshackle structures, about 86% of which had no private baths. The new houses contain 3 bedrooms, bath, kitchen-dining area, and basement, and sell for $11,800 on 40-year FHA-insured mortgages. Prior to redevelopment the site paid $41,000 annually in taxes; the new homes and commercial facilities will produce $127,000 in annual tax revenues, a gain of 210%.

ROCHESTER, MICH.

This city of 9,500 has in execution, under a $550,147 Federal grant reservation, redevelopment of an area for industrial use, including new business in the town.

The following businesses are within the renewal area and are expanding their facilities: Higbie Manufacturing Company (refrigeration tubing); Larry Jerome, Ford Dealer; Westin Ellis (Hill Plumbing Contractors); and Rochester Paper Mill. New businesses moving into the renewal area are: Ferco Development, Inc.; John A. Dahlman, (Landscaper); Uren and Sargent, (industrial developers); Acorn Tool and Die Company; Daukler Moving and Storage Company; and Guinn's Construction Company.

RUTLEDGE, TENN.

Rutledge, the county seat of Granger County, lies 32 miles east of Knoxville in the TVA Area. Six years ago, it received a Public Facility Loan of $155,000 from HHFA (now HUD) and constructed a public water system. Since then, this small community of slightly less than 1,000 people has gained new industries, decreased its health hazards, and increased significantly its permits for residential construction.

"Without the public water system made possible by the Federal loan, this community would have deteriorated significantly rather than improved during the past six years," said Major Lawrence D. Smith. "We were able to get the C. R. Daniels Company of Daniels, Md., to set up a plant here five years ago and we would never have gotten this industry without the public water system which the Government financed for us.

"This industry is just completing an expansion to its original plant which will double its production capacity and provide jobs for 150 to 200 people. The plant makes canvas coverings of different types . . . mail bags, helicopter sets, gun turret covers, and other canvas items.