EXHIBIT No. 347 FEBRUARY 8, 1946. To: Acting Chairman Macauley. From the number of letters prepared for your signature and coming to me for initialing before you sign them, I have the impression that there must be a good deal of confusion about our present responsibility in connection with the disposition of this surplus shipyard. For whatever this information may be worth to you or others, I think it might be well to set these facts down on paper. (1) Sometime last summer a prospective buyer made an offer for this yard which, when it came up for discussion months later, suggested two things: (a) The price was too low. (b) That the intelligent thing to do was to advertise the property and dispose of it on a public bid basis. (2) The property was advertised. Offers were received. They were analyzed and tabulated. A special committee named by the Commission to examine these offers made a report to the Commission. The Commission voted to reject all offers and readvertise on a sealed, competitive bid basis. (3) The property was readvertised. New bids were received. These bids were analyzed and tabulated. On the basis of this analyses and tabulation, the special committee presented all of the data to the Commission. The Commission awarded the property to the highest bidder. (4) During the process described above, the Surplus Property Administrator advised the Commission that it should not make final disposition of the property until the Commission had received approval of the Surplus Property Administrator. (5) In conformity with this request from the Surplus Property Administrator, the Commission, immediately upon reaching its conclusion as to what its judgment was with respect to the award, sent all the data to the Surplus Property Administrator. (6) The Surplus Property Administrator gave clearance to the Commission. (7) In view of the fact that the law requires that no surplus property which costs more than $1,000,000 may be disposed of finally without the approval of the Attorney General of the United States, the Commission, upon receiving clearance from the Surplus Property Administrator, then sent all the data in connection with this offer to the Attorney General of the United States. (8) A few days later the Attorney General wrote to the Commission and asked to have answers to some 7 or 8 specific questions which the Attorney General wished to be informed on before he would make his decision. (9) Subsequently, representatives of the Department of Justice gave a representative of the Commission certain questions to be submitted to the high bidder to be answered prior to their determination in the case. (10) The Commission answered all of these questions promptly and, so far as I am aware, that is where the transaction stands today. (11) It is my understanding that, in the meantime, representatives of several other concerns, some of them bidders, have called upon us, as well as the other agencies, with a view to having the Commission's determination changed, revised or reversed. For myself I say to all of these men who have come to me personally, telephoned me, or written me that so far as the Commission knows the next step must be taken by the Department of Justice. JACKSONVILLE LOAN AGENCY, EXHIBIT No. 349 Reconstruction Finance Corporation, JACKSONVILLE, FLORIDA, April 11, 1947. 205 Western Union Building, Jacksonville, Florida. GENTLEMEN: reference is made to my letter to you dated March 31, 1947, with which there was transmitted to you three copies of the application of Peninsula Steel Corporation for a participation loan. Capital or credit, at prevailing rates for the character of loan applied for, is not available through any of the three principal banks in Jacksonville, Florida. Copies of the subject application were submitted to and considered by: The Atlantic National Bank The Barnett National Bank and The Florida National Bank and said banks have declined to participate in the loan sought for the reasons stated in their letters which are enclosed herewith. Your early consideration of the application will be appreciated. Yours very truly, FRED WEBER, On behalf of PENINSULA STEEL CORPORATION, Temporary office and mailing address: Room 1009 Barnett Building, Jacksonville 2, Florida. Exhibit No. 350 on file with the subcommittee. Exhibit No. 351 printed on page 1618. EXHIBIT No. 352 INVESTIGATION OF THE EDUCATIONAL PORTION OF THE APPLICATION OF THE CITY OF PALM SPRINGS FOR LAND AND BUILDINGS OF THE TORNEY GENERAL HOSPITAL The city of Palm Springs in applying for land and buildings at the Torney General Hospital, Palm Springs, California, has claimed certain discounts because of educational benefits to be derived. These activities whose requests are included in the City's application are: 1. Palm Springs Desert Museum. 2. Physical education, youth activities, recreational facilities and public park. 3. City library. On April 22 and 23 I made an investigation of the application. My report and recommendation will be divided into three sections following the pattern in the paragraph above. 1. THE PALM SPRINGS DESERT MUSEUM The city is requesting approximately 8 acres of land and 3 buildings for the Palm Springs Desert Museum for, "Educational, Research, and Experimentation Purposes in the Field of Desert Plant Life. Desert Animal Life, Area Geology, and Botany." Portions of two parcels of land are requested designated as Areas 1 and 6 on Exhibit A of the application. The Museum is tax-exempt as a nonprofit organization, incorporated in 1939. Its present location is in a room approximately 20′ x 25′ loaned by the City Library. The room contains exhibits of desert plants, rocks, curios, stuffed birds and animals, and a few live snakes. Once a week a free lecture is offered on desert life. Twice a week free motion-picture films are shown. Several publicspirited citizens, several of whom are scientists, have contributed personal time without charge. Weekly field trips have also been conducted. All of these activities have been free. Up to the present, the Desert Museum has been entirely financed by annual membership donations, according to its 1946 Financial Statement. Disbursements for the year 1946 totaled $4,083. Beginning January 1, 1947, the Community Chest agreed to pay the actual running expenses of the Museum, including the salary of the Director. The City has apparently made no contribution toward its support. An interview was held with the Director, two of the trustees and a member of the advisory board to determine the proposed uses to be made of the two pieces of property requested. These are as follows: 1. Area 1 designated on Exhibit A comprises a city block situated between the main building of the former El Mirador Hotel and Palm Canyon Drive, the main street of the City. The group was vague as to how the entire piece of over four acres was to be used except to state that it would be used for research in desert plant life. This was admitted to be in the nature of a botanical garden. Further inquiry revealed that the applicant proposes to make the garden ornamental and admittedly has no intention to use it for experimental or research purposes. (A conference subsequently held with the City Manager affirmed this. He stated that a beautiful botanical garden would add to the appearance of the neighborhood.) Building 6 on this site which is included in the request is a stucco, tileroofed building approximately 30' x 90' which was built as a tennis clubhouse and cocktail bar by the former owners. Inquiry revealed that no thought had been given to its use if acquired. 2. Area 6 designated on Exhibit A is set considerably in the rear of the former El Mirador Hotel. It comprises approximately four acres. At the extreme southerly end of this area are two buildings which are requested with the land. Building 135 was formerly used as a library and would be ideal for an exhibit room and office building for the Museum. It is approximately 30' x 75' of frame construction and does not comply with the City Building Code. However, I was assured that the City would spot-zone the building if it were acquired. Building 137 was formerly used as a theatre seating approximately 320. The applicant proposes to use this building for its weekly lectures and semi-weekly showing of films. No other use is anticipated at the present. There were no definite plans as to the use of these four acres of land. I was informed that they would put some animal cages here, plant some flowers there, and the like. It was stated that part of the property would provide parking space for those attending the lectures or visiting the Museum. The budget for 1947, assuming the property requested is acquired, will be between $12,000 and $14,000. The City has agreed to provide not over 1% of its city sales tax revenue to the Museum for a period not to exceed five years. This amount has been estimated to be about $1,500 annually. I disapprove the application of the land and buildings requested for the Museum for the following reasons: 1. The land and buildings requested are greatly in excess of the needs of the Museum. Building No. 135 should provide ample exhibit room; and Not over two acres should suffice for any plant research or an experimental botanical garden. Building 137, the 320 seat theatre, could hardly be justified on the proposed use of one lecture and two film showings a week. Building 6 has admittedly not figured in the applicant's plans. 2. The proposed budget of $12,000-$14,000 for 1947 if the property is acquired would provide for only a fraction of the necessary funds for the research and educational program proposed by the applicant. Furthermore there is no reason to believe that even this amount is available since the Museum is dependent on small donations for its funds. 3. The research and educational program as outlined in the application is too full of generalities and lacks specific information necessary to prove the need for the property requested. My interview with the Museum people indicated that no educational or research program had been worked out as to projects, curriculum, personnel, estimated costs and other data necessary to justify the approval of the application. (Signed) S. L. SIMONIAN, U. S. Office of Education, Los Angeles, California. 1 2. PHYSICAL EDUCATION, YOUTH ACTIVITIES, RECREATIONAL FACILITIES AND PUBLIC PARK The city is requesting approximately twenty-one acres of land, a large gymnasium, a recreation house and a portion of another building to be used for these purposes. Portions of two parcels of land are requested designated as Areas 7 and 8 on Exhibit A on the application. An interview was held with the City Manager to determine the proposed uses to be made of the two pieces of property requested. 1. Area 7 designated on Exhibit A comprises a little over three acres. Located on it is a gymnasium approximately 90'x150'. There is also a building approximately 30'x75' which was formerly used as a civilian club, which the applicant proposes to use as a recreational center. A portion of Building: No. 139 extends on this area and the applicant proposes to use this wing for administrative offices in this program. 2. Area 8 designated on Exhibit A comprises approximately 18 acres and will be used for a city playground, public recreational facilities and a publicpark. The City proposes to operate the physical education and recreational program in conjunction with the Desert School District. An operation of this sort is not consistent with accepted educational practices. It is not customary for a school district especially an elementary one to administer the recreational activities of a community. Furthermore the Desert School District is not a subdivision of the City of Palm Springs but is a separate and distinct legal entity under the State. The District extends over a considerable area taking in several small communities. It is doubtful whether a project of this size could be put to successful operation because of the small population of the community. Palm Springs is entirely a resort town. During the winter season the population averages about 16,000 of whom 8,000 are tourists. During five months of the year the desert heat discourages tourists and the population drops to about 4,000. It , would seem that the use of so much land and two large buildings would hardly be justified. The applicant states that it is prepared to supply the necessary tax monies to operate the program. In my interview with the City Manager he stated that no budget had been prepared for the operation of this program. In my opinion such an undertaking would entail a large capital outlay for playground equipment and maintenance. One of the most expensive items would be planting and maintaining grass and shrubbery. Due to the extreme heat, all lawns die in the summer and it is necessary to reseed them each fall. Furthermore, it would require a large amount of water to maintain the necessary grass and shrubbery. The City Manager states that the City would be willing to spend some $10,000 or $12,000 per year in operating the program. This amount appears to be entirely inadequate for such an ambitious undertaking. The salary of the recreational directors and supervisors would use up this amount alone. The application states that "For many years it has been part of the program of the City of Palm Springs to acquire such a property." My investigation did not reveal any serious effort of this kind. For example, the City owns a ninehole golf course which it recently leased for ninety-nine years to a private interest. The greens fee for playing on this course is $3.00. The city also owns a tract of land of approximately thirty acres in the vicinity of the high school, which it has never used for any purpose. On the basis of past performance the proposed program does not seem consistent. In the application it is stated that contributions from such groups as the Boy Scouts, Camp Fire Girls, etc., will be used in meeting the expenses of the program. The applicant states that it will supply the balance of operating expenses. It does not seem consistent with good administration to rely on outside contributions to meet the majority of expenses of such a program as the applicant proposes. RECOMMENDATION I disapprove the application for the land and buildings requested for the following reasons: 1. No definite program of youth activities, physical education and recreational facilities has been prepared. Information furnished has been very general and exceedingly vague. 2. No budget of any kind has been prepared either as to capital outlay or operating expenses. 3. Most of the proposed activities are already conducted in the public schools under qualified supervision. 4. Need not justified has 30 acres not using. (Signed) S. L. SIMONIAN, (Typed) S. L. Simonian, U. S. Office of Education, Los Angeles, California. 3. CITY LIBRARY The city is requesting approximately 14 acres and a westerly portion of Building No. 139 for use as a branch of the City Library. This request is designated as Area 5 on Exhibit A of the application. The applicant states that the existing facilities, namely the main library, are overcrowded. It further states that a branch is needed in the vicinity. I interviewed the City Librarian who expressed surprise at the request, informing me that she had no knowledge of this application. The present lady is operating close to maximum capacity. However, it is repossessing the room which was loaned to the Palm Springs Desert Museum and the Librarian is of the opinion that this space will take care of the needs of the library for some time to come. No budget figures of any kind have been submitted to show the cost of operating the property requested in the application. Furthermore, no justification is given for asking for the entire 14 acres of land. The application states that a branch library is needed in this area in order to serve the school children and persons living in the northerly portion of the Palm Springs area. The site is on the outskirts of the city and is composed mainly of large private residences. It would appear unlikely that there would be many children living in this area, or for that matter adults, who would have use for a public library. The downtown library should satisfactorily serve a community of this size. RECOMMENDATION I disapprove the application for the land and building requested for the City Library. In my opinion the need for this property is not strong enough to justify approval. (Signed) S. L. SIMONIAN, U. S. Office of Education, Los Angeles, California. EXHIBIT No. 353 INVESTIGATION OF THE APPLICATION OF THE DESERT SCHOOL DISTRICT FOR A PORTION OF THE LAND OF THE TORNEY GENERAL HOSPITAL I. NATURE OF PROPOSED UTILIZATION A. The Desert School District, Palm Springs, California, has made an application for 21.66 acres of land located on the site of the Torney General Hospital, Palm Springs, California. This property fronts on Tamerisk Road, bounded on the East by Avenida De Los Caballeros and on the West by Via Miraleste and extending northerly to the rear approximately 750 feet. The Torney General Hospital is located on the northern outskirts of the City of Palm Springs. B. The educational program to be offered by the applicant is a standard elementary curriculum covering grades one through six and a kindergarten. If the property is acquired it is proposed to begin immediate construction on a school building. Eventually the applicant proposes to build a school plant containing fifty classrooms. |