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us a pretty definite idea ?s to the outcome of this
<br />P y year's investigation, I believe thet South .
<br />Bend officials should give very serious consideration immediately to the entire problem on ac- I)
<br />count of this Federal Pid.
<br />There is also the State of Michigan's "position in this matter to be - considered. In June of
<br />1937, the Attorney General's office of the State of Michigpn was advised that Indiana mould take
<br />rdtion in this matter not 1pter than 1939, ^nd I believe thpt this h?s had considerable influeno
<br />in their not Poing ahead with their suit against the City of .South Bend. I am inclined to be-
<br />lieve thpt unless action is taken this ye?r that they will go -head.
<br />I hope that you will be able to get this information_ to others who Pre interested in this
<br />matter as it mould be very unforunate for the City to receive nn officiel order after it is too
<br />lete to secure Federal eid.
<br />(Signed) W.H.Frezier
<br />Whether the City would receive rn official order to build a plent after the test Above. de-
<br />scribed is made, is of course, a matter of conjecture.
<br />There are other important rngles that must be taken into consideration when you e-re forming
<br />your opinions of this project.
<br />We must provide some project th, t will provide employment during the minter months for `NPA
<br />labor. The past two winters WPA has been employed in street grading projects. These projects
<br />were largely in areas very sprrsely populated and on March 16, 1939, we were notified by Mr..Roa.ch
<br />the Director of this area, that the projects must be abandoned at once, and that in the future,
<br />such projects..would not be Ppproved by WPA.
<br />Mr. Roach stated. at this meeting, that since these grading projects must be abandoned And
<br />would no longer be Approved, it is very essential some project be set up which would take esre o
<br />of the WPA workers during-the winter months, And, thpt the most feasible project, so far propcsed�
<br />wr-s the building of a Sewage Treatment System.
<br />Last year An application wps made for a SPA allotment for intercepting sewpTs, and, this was
<br />approved End has Presidential a "pproval for $1,335,773.00 in Federal. Funds. This money is ear -
<br />marked for thrt purpose. The Federal Fiscal Year closes June 30, and we are told tb t unless
<br />this project goes ahead, the above approved allotment will automatically be lost.
<br />Last year, ^lso, an application was made for a PICA grant to be used in the construction of
<br />P Treatment Plant, and. the cross -overs for the intercepting sewers. The project was approved .
<br />for a 45o /o grant of Federal Funds, but was rescinded because the sponsor's share of funds neces
<br />spry, was not provided. Investigation msd.e by this Board, as tb --the possibility of re- instating
<br />this grant, brought us the following letter from the Assistant Regional Director of PWA
<br />Hon. Jesse I. Ppvey, Mayor, South Bend, Indiana.
<br />Dear Sir:
<br />We have your letter of Februrry 11, wherein you request the status of a P"VA Axnplica,ticn
<br />which, prior to JanuAry 1, 1939, received ^n allotment and which was in a. preferred position.
<br />Our record indicate that this r1lotment-wp s rescinded. If it is the desire oftyour
<br />Common Council to reinstate, a resolution to thpt effect will be necessary. Such a request will
<br />be trAnsmitted to 11pshington without delay. If the Central Office taked an entirely fAvoralble
<br />view, it is quite possible that your application may be reinstated, which action would place it
<br />on a "-pending" st2tus.
<br />The reinstatement of nn ,application =end the reinsta�ement of an allotment are distinct
<br />and sepnre.te trpnspctions. You may hrve an active application, as is the case with hundreds of
<br />appliornts, but funds may not now be svAilable to take c ^re of your request.
<br />As a matter of further informrt.on, the Act under which this progrem is nndled, states
<br />specifically th-�t no funds may be" ^lloted for projects which cannot stArt prior to Jrnu =xy 1,1939
<br />(Signed_) Asst Regional Director, G.L.Rounds.
<br />No work can be started on the intercepting sewers, and the money already approved . for that
<br />WPA project mill not be av?ilrble until such time as the Council has taken action assuring suf-
<br />ficient evidence of intent of construction of the Treatment Plant, river cross - overs and pumping
<br />stations.
<br />It must be borne in mind thpt arrangements must be mrnd.e providing the City's sponsored
<br />share for both the above projects, if it is decided to go Ahead with the Sewage Treatment Pro-
<br />ject. Coming at this time, when we are fpced with large payments end cost, due to Supreme Court
<br />rulings concern�. ng Barrett Bond Assessments, it is a matter of vital concern. Only the necessity
<br />of providing wflk for.the unemployed daring the winter months justifies, in our minds, giving
<br />considerations to ways rnd means of progressing with this project at this time.
<br />It has been the thought of this Board thrt the most equitable method of providing funds for
<br />a Sewage Treatment System would. be through the issuance of Generel Tax Obligation Bonds for the
<br />Sponsor's share of the cost of the intercepting sewers tnd Service Charge Revenue Bonds for the
<br />Sponsor's"shpre of the cost of the cross- overs, pumping stations and Treatment Plant. In that
<br />way, all t^xpayers would- participate in the cost of the intercepting sewers and only those using
<br />the Treatment Plant would participate in theexpense of the building of the plant and the cross-
<br />overs.
<br />Our primary concern at this time, is confined to the contruction of the intercepting sewers
<br />The work of constructing this can, tnd we feel should be, extended over a period of perhaps
<br />three yeprs. Extending this work over a long period of time will provide more labor end the
<br />sponsor's share of the cost will be reduced.
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