Mr. HORTON. How do you expect you are going to solve this serious problem? You just don't have enough money to satisfy all these requests.

It is a good program, but there is no need to sell this program any longer if we don't have the money.

Secretary WEAVER. Well, I think this is a problem with a number of programs, and I think that this is something that we hope will be solved. It will not be solved within my Department. It is a matter of the whole budget and the various calls that are made upon the budget. I hope we will soon be in a position where we can put a greater proportion of our resources into these pressing domestic

issues.

Mr. HORTON. Do you envision that your Department will begin to undertake more of the coordination of these efforts, not only in urban but also in rural planning and development programs, recognizing that there are various programs in the various departments at the present time?

Secretary WEAVER. Well, I would say definitely that this will occur first, of course, in the predominantly urban areas. The first reason I say that is because the model cities program itself is the first, and I think the most definitive, approach yet made toward a coordinated approach. I think its approach is sound because the coordination starts at the local area rather than starting at Washington.

I am also afraid of too much effort to coordinate in Washington. Then, instead of a community being able to go to the supermarket and pick out the various products, it will only have one box. I think that such a box will not fit every need. But I think we will move in that direction.

I think the whole tendency and trend in legislation over the last 6 years, as I have known it is to put emphasis on requiring area wide comprehensive planning as a condition for Federal assistance. For example, open space, mass transit, water and sewer, just to mention three I have. This is true for the programs in other departments, too. This will be a very, very effective instrument for coordination. While our department will not do the coordinating, our department will take the leadership in the planning. We will become a coordinating instrumentality rather than the coordinator per se.

Mr. HORTON. Is it your intention under that model city program to apply the model city program to some rural areas to demonstrate what can be done?

Secretary WEAVER. It depends on how you define "rural," Mr. Congressman. I would say we will go into small communities, and small towns-many of which will be quasi-rural, but this is a city program which means city and town, but it will go down to small towns as well. How small I cannot tell you now.

Mr. HORTON. You do plan to utilize some small town.
Secretary WEAVER. Oh, definitely, yes.

Mr. HORTON. Thank you.

Mr. KLUCZYNSKI. Mr. Potvin has a short question.

Mr. POTVIN. Mr. Chairman--Mr. Secretary, have you considered creation of a special division or bureau to handle and coordinate small town matters within HUD?

Secretary WEAVER. Yes. In our Intergovernmental Relations Office, which is under one of the Assistant Secretaries we now have a study going on that is concerned with how this can best be accomplished and what its form should be. I am committed to doing this sort of thing. Whether it should be an information center or an operating center; whether it should be line or staff; and what its actual functions should be-these things we are now looking at.

Mr. POTVIN. Sir, at such time as it reaches final form and is no longer a purely internal document, would it be possible to obtain a copy of this study for our records?

Secretary WEAVER. I would be delighted.

Mr. POTVIN. Thank you, sir.

Mr. KLUCZYNSKI. Mr. Burton?

Mr. BURTON. No, Mr. Chairman. I have no questions. I just want to compliment the Secretary on a fine statement. I appreciate your coming up, Mr. Weaver.

Secretary WEAVER. Thank you.

Mr. KLUCZYNSKI. Thank you, Mr. Burton.

Mr. Secretary, you have been more than gracious and generous with your time today. I remain secure in the knowledge that your very able staff will be available as our hearings continue.

Secretary WEAVER. Yes, sir.

Mr. KLUCZYNSKI. While you were testifying, a great man walked in here a man who is responsible for this committee and these hearings-the chairman of our full committee, the gentleman from Tennessee, Mr. Evins. Say hello to him as you leave.

Mr. EVINS. Mr. Secretary, we enjoyed your testimony. It was most constructive and most helpful.

Secretary WEAVER. Thank you, good to see you.

Mr. KLUCZYNSKI. How about a picture with the Secretary?

Mr. EVINS. I would be delighted to have a picture with the Secretary.

Mr. KLUCZYNSKI. Thank you, Mr. Secretary.

Mr. POTVIN. Mr. Chairman, the Department of Housing and Urban Development has submitted a lengthy casebook showing examples of how small cities are helped by programs of the U.S. Department of Housing and Urban Development. This material has been especially prepared for this hearing, and I offer it herewith for the record.

Mr. KLUCZYNSKI. Without objection, it is so ordered. (The document referred to follows:)

EXAMPLES OF HOW SMALL CITIES ARE HELPED BY PROGRAMS OF THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

NOTE. This material has been prepared from first drafts of case histories to be used in a forthcoming publication. It is submitted in this early form to Subcommittee No. 4, Select Committee on Small Business, House of Representatives.

APOLLO, PA.

In this city of 2,500 people, a little more than $500,000 of HUD funds was granted to support a three-acre clearance project for commercial reuse.

Apollo businessmen formed a condominium, bought the project area and erected a building shell. Of 19 business firms displaced, about two-thirds have returned. The business complex includes a grocery store, shoe store. drug store, and other small establishments. The venture has been notably successful. The businessmen now want to extend it further into the heart of the central business district.

ATCHISON, KANS.

Many people are calling Atchison "The Miracle City of the Midwest." Others refer to it as "Renaissance by the River." Both are apt titles for this city where, in July 1958, two disastrous floods all but wiped out the business district of the city. Atchison has a population of 15,000. Its downtown area was in a sorry state, even before the floods. Buildings were obsolete; consumers had found other areas in which to do their shopping. The more than $4 million flood damage to buildings and facilities had just about "done in" downtown Atchison. Surveying the wreckage, the people of Atchison were convinced that a major effort was needed to restore the city's core. Following the floods, the President had declared the city a disaster area, which made possible Federal assistance, including urban renewal; with additional assistance from the State of Kansas, the citizens of Atchison then undertook to do the job that needed to be done. First, a program to prevent future floods had to be devised, and a comprehensive flood control system, that required 25 dams at an ultimate cost of $7 million in public and private funds, was launched. Then the upgrading of the downtown had to be initiated.

Planning involved practically everyone in Atchison. Numerous public meetings informed the citizens about plans and considerations for the downtown renewal project. Block meetings were held with merchants in the redevelopment area. Housewives campaigned in suport of the project. And on election day, 1960, the city voted more than 4-1 in support of urban renewal bonds to pay for the local share of the cost of the project (in 1962, the city again approved a bond issue for urban renewal).

Today, where once a dreary collection of dilapidated commercial structures stood, fountains play, flowers bloom, shoppers abound, children ride self-operated merry-go-rounds, while their parents patronize the attractive shops. The merchants report increases of sales up to 30 percent over pre-Mall days.

The Atchison Mall is pointed to as a model for other smaller cities with downtown problems.

The Atchison Downtown Urban Renewal Project area encompasses 12 blocks, totaling 53 acres. Only 20 percent of the area is slated for clearance; the remainder will be rehabilitation, with two-thirds of the buildings undergoing modernization and improvement.

Heart of the downtown renewal plan is a pedestrian mall occupying about half of the renewal area. It is about three blocks long, with a permanently covered arcade on either side. The arcade is lighted at night and provides all-weather protection, a real attraction in Atchison, where both summers and winters run to extremes.

Gay, sparkling fountains--no two alike-enliven the center of the mall, particularly at night, when they are lighted. They are complimented by trees, shrubs, grass, and flowers-and there isn't a "Keep Off" sign in sight. Behind the row of stores that line either side of the mall are parking spaces for 1,000 carscompletely separated from the pedestrian traffic.

From the parking lots, which are also landscaped with flowers and shrubs, and lighted at night, shoppers can enter stores directly through rear entrances (many stores have display windows at the rear as well as the front), or by way of paved alleyways. The former alleys were widened and surfaced to accommodate two lanes of traffic.

In addition to street and alley improvements, all substandard sidewalks, curbs, and gutters were replaced. The improvements include an interceptor sewer, new traffic control signals, and permanent thermo-plastic street markings to facilitate the flow of traffic.

Business in the redevelopment area has taken a sharp upturn since the completion of construction. During 1964, the first year the mall was open for business, retail sales showed an average increase of 20 percent.

Not counting professional offices, 47 businesses are operating in the mall area. All but 10 are locally-operated. An additional 48 enterprises are doing business elsewhere in the downtown project area, and all but one of these are locally-controlled. Not only has the downtown project retained these local businesses; it has also attracted 10 new businesses from out of town.

Federal grants to the Atchison urban renewal program have totaled nearly $2.4 million, and the local share of public costs amounted to about $1.2 million. The mall itself cost $300,000. All told, the total public costs have thus so far stimulated private investment of $3.5 million.

The entire city has been given a "lift" by the downtown renewal project. One indicator is the assessed valuation of $16,623,371 for 1965-the highest valuation ever recorded for Atchison. This record was achieved in spite of a drop in the actual assessment ratio in Atchison County, from 29 percent in 1962 to 26 percent in 1963. The assessed valuation for the project area is one-third higher today as compared to pre-Mall days even though approximately one-fourth of the area is now used for public parking, floodways, and arcades which eliminated it from the taxrolls.

BATAVIA, N.Y.

About 21,000 people live in Batavia, where Federal funds are enabling the completion of two adjoining renewal projects. One is the $1,700,000 Court Street project, now in execution, and the other is the $6,400,000 Jefferson Plaza project. Both are central business district programs.

Batavia's renewal programs are significant for their prompt action and for the support they have received from all groups of residents. The projects have been staged to avoid commercial disruption and, most important, to enable businesses to return to their earlier sites upon completion of redevelopment.

BENTON HARBOR, MICH.

This city of 19,000 is combining clearance and rehabilitation, under a $4,612,562 Federal grant reservation, to revitalize its downtown, reestablish local business, and provide an in-town site for public housing for the elderly.

BEREA, OHIO

This city of 16,600 has a $2,456,000 Federal renewal grant. It has in planning a complete redevelopment of its central business district to provide a unified business area in the town. This will include bringing together sections that are separated by a river, and also developing air rights over parts of the river for downtown use or apartments.

BLAIRSVILLE, PA.

This is a conservative coal mining town of about 5,000 people. HUD grants made possible a 4.7-acre clearance project. Reuse of the site saw the creation of 40 units of sorely needed low-rent public housing.

Also, Vale Technical School-next to coal the city's biggest industry-was expanded with a doubled staff. The school trains insurance adjustors and provides the source for a thriving auto repair industry.

BLANCO, TEX.

Four new small businesses have opened in this small town since a new sewer system was built with the help of a HUD loan. An automatic laundry, drive-in grocery, and two rest homes brought an investment of $262,000 and 27 new jobs to the community. Nine new houses have been built.

BLYTHEVILLE, ARK.

Blytheville (population 20,800) has received approval of $30,000 to build a housing project for low-income people under the new Rent Supplement Program. The project will contain 50 units.

CEDAR LAKE, IND.

The small resort community of Cedar Lake has only one source of incomeits $3 million a year recreation business. The city was threatened with financial disaster when its lake became polluted and was condemned by local, State and Federal authorities. The stores, service operations, boat rental businesses, beaches and cottages operated by the 5,770 residents would be forced to close if summer visitors stopped coming to the lake.

Grant funds of $974,000 from HUD will help the town build a $3 million sewage collection system to curb the lake's contamination. The new system is to be completed by 1969.

CHAMA, N. MEX.

Community water and sewerage facilities financed with a Public Facility loan from HUD have replaced this small community's shallow wells, which dried up in summer, and outdoor toilets with septic tanks which froze in winter. The former conditions made it dangerous to use ground water and created unsanitary situation generally.

The town's new look has been followed by new businesses, a new elementary school is about completed, and a 28-acre recreation area is planned to provide playground, swimming pool, and other facilities for the townspeople.

CHISHOLM, MINN.

This city of 7,140 has in execution a renewal project to rehabilitate existing business structures, and to provide new commercial facilities for local and new business development.

COLTON, CALIF.

This city of 20,000 has one redevelopment area well under way and another is in its early stages.

The first project has $51,000 of HUD funds for small business displacement payments. Most businessmen affected have voiced satisfaction with their relocation. Here are two examples:

Manuel had a three-chair barbershop. He has been relocated for the time being, aided with a $2,500 business displacement payment plus a $3,000 payment for moving costs and property loss. With a Small Business Administration loan of $14,000, Mr. Castillo will return to a shop near his former one. There he will be the owner of a five-chair shop.

Mrs. Chris Scott has relocated her florist shop from a deteriorating building she leased. Mrs. Scott found it difficult to pay $85 a month to rent the former space. Now, two blocks away from the redevelopment area, she is able to pay $200 a month. Business has improved so much that she now has two full-time employees as well as the one-part time employee from the old location. She made the move with the help of a $2,500 small business displacement payment and $3,000 for moving and equipment loss.

CULLMAN, ALA.

A HUD Public Facility Loan of $3,575,000 is financing a new water system for this city of 10,863.

The new facilities include a 600-acre lake for additional water supply. The added supply was needed to meet growth needs including the building of new industrial plants.

Private financing for the project was not available to the city.

Cullman was also assisted by HUD urban renewal grants, one of $364,000 for an 11-acre central project for a new city hall, library, and commercial buildings.