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B-168174 1 (1970-08-04)

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 V,                COMPTRO _ER GENERAL OF TH2 UNITfED STATES
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    B-6874                    4RELEASED             AUG 4 Ift


    Dear Mr. Derwinski:  C               (l&ej

         Pursuant to your re__q~uest of October 16, 1969, we have
    examined into the possibility that public funds may have
    been misused in the sale of park land by the Oak Lawm Park
    Board, Oak Lawn, Illinois. The park land had been acquired,
    in part, with funds provided by the Department of Housing and
    Urban Development (HUD) under the Open-Space Land Program.

         In February 1965, the Oak Lawn Park District applied for
    a HUD grant, under title VII of the Housing Act of 1.961, as
    amended (42 U.S.C. 1500), to assist in acquiring several pro-
    posed park sites. HUD approved a revised version of the Park
    District's application and allocated a grant of $724,082 to
    the Park District in November 1966. The grant covered 50
    percent of the estimated park site costs of $1,442,564, plus
    a relocation grant of $2,800. The estimated costs comprised
    $1,048,288 for land acquisition, $374,712 for land develop-
    ment, and $19,564 for administrative expenses. The grant ap-
    plied retroactively to land acquisitions made after Febru-
    ary 12, 1965, the date of HUD's tentative approval of the
    original application submitted by the Park District.

         One of the proposed park sites--Simmons Park--a rectan-
    gular tract of land consisting of about 57.5 acres, is lo-
    cated about 280 feet north of 95th Street and about 615 feet
    west of Ridgeland Avenue in Oak Lawn, Illinois. The sale of
    the land in question involved part of Simmons Park.

         Prior to the establishment of Simmons Park, Mr. Christ
    Mitchell, a private landowner, owned a 7.5-acre tract of un-
    developed land about 330 feet wide, extending about 943 feet
    north from 95th Street. The rectangular area planned for
    Simmons Park included the northern 663 feet of this land;
    however, Mr. Mitchell refused to sell the entire 663 feet and
    on March 25, 1966, sold only the northern 363 feet to the
    Park District.

                   p  Hf e /, PP_/

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