Alleged Sale Of Dirt To The Louisville Urban Renewal And Community Development Agency V. B-118754

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B-118754 1 (1972-02-22)

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i-ROJ 4RGSLERAL OF TfU14-I -C UT AT S

B-118754 RELEASED 22--27
FEB 2 /9,72

BEST DOCUM 1T A'AILABLE
Dear Mr. Snyder:

Pursuant to your request of November 18, 1971, we have examined
into the circumstances relating to the alleged sale of dirt to the
/ Louisville Urban Renewal and Community Developmen~'ey CURCDA)
from land owned by the Chairman of the Board of Commissioners of that
agency, or by a corporation in which the Chairman is the principal
party in interest. It was alleged that the dirt was obtained from a
site for a proposed shopping center near Bashford Manor and Bardstown
Roads and used in the Newburg urban renewal project in Jefferson County,
Kentucky. Our review of this matter included examination of project,
contract, and engineering records and discussions with Department of
Housing and Urban Development (HUD) and URCDA officials.

On February 8, 1972, we met with you to discuss our findings
concerning this matter. This letter report has been prepared pursuant
to your request that we provide you with a written summary of the mat-
ters presented to you during the meeting.

We found that some fill dirt for the Newburg urban renewal proj-
ect was obtained from Bashford Manor property--land in which the
Chairman has an interest. However, the information we obtained does
not indicate any impropriety in the manner in which the dirt was
acquired. Information concerning the transactions in question is
summarized below.

HUD and URCDA entered into a Loan and Capital Grant Contract for
the Newburg urban renewal project on April 1, 1968. URCDA is the
local agency responsible for administering the project. The approved
grant for the project as of April 1, 1971, was $5,111,817.

Work on the project involves preparation of about 205 acres of
land for use as a predominantly residential area. The preparation of
the site, which involved the construction of drainage systems, streets,
and sidewalks, required the use of a substantial quantity of fill dirt.
Plans for the preparation of the project site were developed by a
consulting engineering firm under contract with URCDA.

The actual site preparation work w-as done under three separate
construction contracts awarded by URCDA. The first and third of these
contracts were awarded to the K.A. Barker Construction Company, Ihe.,

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