Summary: Pursuant to a congressional request, GAO reviewed two urban development action grant (UDAG) projects to determine whether the number of jobs created, the amount of private investment generated, and the amount of taxes collected exceeded the expectations for the projects.
GAO noted that: (1) city officials were unable to provide adequate documentation to support the number of new jobs anticipated or the amount of new taxes expected to be generated for both projects; and (2) although UDAG funds may have created the opportunity for private investment, it was not possible to attribute all project results to the UDAG. GAO found that: (1) over 80 percent of the Hyatt UDAG project funds came from private sources; (2) 690 new jobs were created which included the employment of 390 minorities; (3) the goal of $37 million in invested funds for the project was exceeded; and (4) tax revenues have been steadily exceeding the amounts originally estimated. GAO also found that: (1) the Vista Verde UDAG project was behind its scheduled completion date; (2) $13.5 million of the grant funds had been drawn as of September 1985; and (3) the non-UDAG funded activities required by the amended grant agreement require a minimum private investment of about $59 million.
