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The tour headed by redevelopment agency director John Williams took Mayor John Redding and an entourage of city officials through the heart of Oakland's blighted housing area. Object of the tour was the 1500 block of Chestnut, a block which officials say demonstrates a new way of attacking

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the redevelopment problem. When redevelopment plans were announced, residents of this area who wanted to stay formed the Oak Center Neighborhood Association and demanded to take part in the project. After months of haggling, an agreement was reached. The 1600 block of Chestnut is the first fruit born

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of the new association. City officials talked with residents and inspected improvements made to bring old homes up to code standards. This house, nearly 80 years old, was one of the first to be rehabilitated in the 200 acre area slated for redevelopment. The Oakland plan, which officials

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point to with pride, is designed to keep residents in the area while redevelopment is going on. Those who stay become eligible for an outright federal grant of $1500 to rehabilitate their homes. If more money is needed, they get help in obtaining federal loans at 3%. Unemployed

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youth of the neighborhood are put to work in the project wherever possible. Redevelopment agency head John Williams talks about the purpose of the tour. For a long time, uh, redevelopment has had a great deal of criticism about how long it takes to get a job done.

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Why does it take so long? Well, when you're down on the ground dealing with the people and looking at the problems, you begin to understand why it takes so long. It's not an easy process. So this visit on the part of the agency today, redevelopment agency,

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our mayor, uh, John Redding of the city of Oakland. And several of the councilmen was uh designed for that purpose so that they would have real exposure to the problems of the redevelopment agency in carrying out the process. Uh, redevelopment just about every place runs into

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a great deal of opposition. How has the project been received in this area here? I would say generally in this area that it's an exception, not only for the San Francisco Bay Area, but for this entire country. For here we have had the full cooperation of

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the Oak Center Neighborhood Association where citizens are really participating. And being involved in the role of urban renewal. We felt that the Victorian structures existing here were sound, that the individuals who had resided here from 20 to 40 years were stable citizens should be

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allowed to remain. We felt that redevelopment not only should provide for those who have no houses but should help to maintain those who have. And after 4 years of effort, we are very happy to see the beginnings of rehabilitation. Some homes past the repair stage will

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have to come down. The agency helps residents obtain lodging in the same neighborhood. Officials say the plan will be put into wider use to minimize the bulldozer approach to redevelopment. Ben Williams, KPIX News, Oakland.