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4The Daily Tar Heel Wednesday, April 12, 1989
Taxi doiveirs regain
Dy LYNN GOSVICK
The Chapel Hill Town Council
voted unanimously Monday night
to return the taxicab permits of
a UNC student and two other taxi
The taxicab drivers regained
their permits after the council
amended sections of Chapel Hill's
ordinance on taxicab franchises
and taxicab driver permits. The
three drivers lost their permits
under the old town ordinance.
The changes in the ordinance
were suggested after three taxicab
drivers from Airport and Intown
Taxi had their permits suspended
after receiving more than four
points on their license.
Emma Jean Levi, the drivers'
attorney, charged that the town's
old ordinance was too restrictive
and unfair when compared to the
ordinances of other cities.
Levi said the council's amended
ordinance was fair to taxi drivers.
John Butz, one of the three
drivers whose permits were sus
pended, said he was glad the
council adopted the amendments.
Butz, who is a student at UNC,
had to withdraw from the spring
semester because his vocational
rehabilitation scholarship would
not pay for food and housing.
To support himself and stay in
school, Butz took the taxi driving
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Butz said he plans to enroll for
the University's summer session
now that he can work again.
Tm just glad to be able to work
again," he said.
Under the old town ordinance,
taxicab drivers were kept under a
point system similar to the system
that the state requires for normal
drivers. Before the amendment,
taxicab drivers were allowed no
more than four points on their
licenses in a two year period or
their permits were suspended.
If a driver had five points on
his license, his permit would be
suspended for 60 days, and if he
had six points on his license, his
permit would be suspended for 1 20
A driver's permit was suspended
after receiving seven or more
points until the proper number of
points could be taken off.
The amended ordinance
requires that no one applying for
a franchise have a criminal record
that would make granting the
franchise permit "against the
public interest and welfare."
The amendment also deletes
Chapel Hill's point system and .
allows taxicab drivers up to 12
points on their licenses within a
three-year period. This rule is the
same as North Carolina's general
in Thursday's Omnibus
V to make a
i - and the
"l""""""1'"1 Hill'""'!! I IIIIIIIIIJUJIJIIIIIIIIIHIIII.. I
By GLENN O'NEAL
Black legislators have decided not
to attend the Bicentennial Celebra
tion of the ratification of the Con
stitution in Fayetteville this week.
The decision follows a previous
decision by the black caucus to
boycott the special legislative session
to be held near the Market House
in downtown Fayetteville. The caucus
boycotted the session because slaves
were once sold in the Market House.
Initially, the members of the black
caucus planned to go to Fayetteville
and not attend the legislative session
at the Market House, said Rep.
Mickey Michaux, D-Durham, chair
man of the black caucus.
"Last evening, the group (the black
caucus) decided that because of recent
publicity, we would not go to Fayette
ville because we felt it would detract
from the celebration people down
there would be having," he said.
"The national press would detract
from the celebration, and we didn't
want to be a part of it," Michaux
lack llesisoatoirs. reject :meetas :Dte
State sues to:- keep
By STEPHANIE VON ISENBURG
The future of student loans in
North Carolina could be determined
by a state suit brought against the
federal government to block the use
of $2.6 million of state student loan
reserve funds to reduce the federal
"(The federal government's action)
reflects a breach of contract and a
breach of trust in our opinion," said
Stan Broadway, executive director of
the N.C. State Educational Assist
"The money in the reserve fund
belongs to the state of North Carolina
not the federal government," he
The lack of reserve funds weakens
the willingness of investors because
they are not insured against defaults
or other losses, he said.
Bat the student loan program
should not be hurt by this incident
because the state is likely to win in
court, he said.
Most of the states affected by the
federal government's policy have sued
the government and won, said Karl
Knapp, assistant for research and
policy analysis at the Washington
based National Association of Stu
dent Financial Aid Administrators.
If North Carolina loses its reserve
funds, it may decide not to continue
in the Stafford Loan program, he
In order for a student to receive
a Stafford Loan, the school must
recommend him or her to receive a
federal loan, said Thomas Langston,
By JOANNA DAVIS
The Carrboro Parent-Teacher
Association (PTA) has decided to
purchase land adjacent to its Carr
boro thrift shop on Jones Ferry Road
even though they have not yet
received all their land use permits.
Mary Cay Corr, publicity chairwo
man of the thrift shop board, said
the PTA thrift formed over 35 years
ago and received its first permanent
location 10 years ago at the present
Jones Ferry Road site. The thrift shop
eventually outgrew that location and
two years ago the PTA added the
Kroger Plaza branch.
The PTA has been looking for a
new location for the Jones Ferry
Road store for over two and a half
years, Corr said.
When the lot adjacent to the
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The original decision to boycott the
session was based on the history of
the site where the session would be
held, said Rep. Annie Kennedy, D
Forsyth. "It is a part of history we
would like to forget." .
History has shown how many
slaves were sold at Market House and
on what years, said Michaux.
s "The major problem is that our
building has been labeled a slave
market," said Rep. Bill Hurley, D
Cumberland, co-chairman of the
Bicentennial. "It is not a slave market
to us. Slave markets were located in
seaport towns. The Market House
was a public building for auctions."
The Market House was a symbol
of slavery for many years, but
organizers did not know its past when
they planned the event, he said. The
organizers might have altered their
plans if they had been aware of it.
Hurley said the Market House was
chosen because it was the site of the
associate director of the UNC Office
of Scholarships and Student Aid.
UNC students received
$24,537,476 in financial aid from all
sources in 1987-88, he said. Federal
loans make up approximately 66
percent of that figure.
South Dakota discontinued the
Stafford Loan program to avoid
losing its reserve funds to the federal
government, he said.
Relatively small amounts of money
offered in federal loans go unclaimed
each year, Broadway said.
In the early 1980s, Social Security
education benefits were cut and
750,000 students lost some form of
aid, Knapp said.
The dollar amount given in aid has
increased since then, but restrictions
on eligibility have also increased, he
Fewer lower-middle-class students
receive aid as more money is given
to lower-income students, he said.
But private money, not federal
money, is used to fund student loans,
said Charlie Kolb, deputy undersec
retary for Planning, Budget and
Evaluation in the U.S. Department
There is $18 to $19 billion available
in student loans this year, Kolb said.
Borrowing has increased because
the federal government reduced the
number of student grants, Broadway
said. Many students must rely on
"Defaults arise largely out of the
heavy reliance on borrowing by
students who do not continue their
education," he said.
PTA thrift shoo to get
present site became available, Corr
said that the PTA decided the lot was
exactly what they wanted. "We want
a walking distance location to better
serve the Chapel Hill area."
' Sara Hammond, co-chairwoman
of the thrift shop board, said the PTA
thrift shop was originally in a contract
not to buy the land until they received
the land use permits.
But another buyer came along
before the permits were issued, and
the PTA was going to lose that
option, she said. "We feel the process
has been much slower than what it
The PTA applied for the land use
permits on Jan. 18 according to
Trudy Peppers, a spokeswoman for
the Carrboro Zoning Department. A
standard application for a land use
permit usually takes anywhere from
Register with our
at no chpfffot
M E N
t s JLU notei turopa
ratification of the Constitution. The
selection was not intended to provoke
Fayetteville was the state capital in
November 1789, said Jason Brady,
public information officer for the city
The General Assembly traveled
around the state and met in different
cities, he said. In November 1789, the
General Assembly met in Fayetteville
and ratified the Constitution, making
North Carolina the 12th state. The
charter of UNC was established at
the same time.
The Bicentennial Celebration was
initiated to celebrate the ratification
of the Constitution, he said.
Events scheduled for the celebra
tion include a firepower demonstra
tion at Fort Bragg, a tour of the city
for the spouses of the legislators, a
reception and dinner at the Charlie
Rose Agri-Expo Center and a special
legislative session near the Market
House, said Brady.
The General Assembly will not
convene in the Market House
studeot loami f u rods
Georgia Sen. Sam Nunn's proposal
of establishing a Citizen's Corps,
which would require community
service by those students who
received federal aid, would provide
an alternative to borrowing. But such
a plan could not replace the existing
system, Broadway said.
Eligibility for student aid should
not be based on the ability to work,
Broadway said the aid program
had plenty of problems, but the
problems could be fixed without
scrapping the entire system.
Most of the problems in student
aid are caused by the interference of
Congress rather than by defaults, he
"It's never left alone (by Congress)
long enough to work which creates
problems in delivery, equity and
public policy," Broadway said.
The problem with defaults is only
a perceived problem, Knapp said.
The rate of default has remained
steady over the past 10 years, but the
amount . of defaulted money has
increased as the program has grown,
"Most of the problems are ones
that relate to students being unable
to pay loans when they get out of
school," Knapp said. "They are either
unemployed or being underpaid."
But the Department of Education
feels defaults are a serious problem.
"We're very much concerned about
the defaults. There were $1.4 billion
defaulted last year and $1.9 billion
this year," Kolb said.
"The real concern is not just the
90 to 120 days to process, said Roy
Williford, Carrboro planning
director. ' ,
"We see no problem with them (the
PTA) receiving the permits," he said.
"They seem to be in compliance with
Williford said the Carrboro Board
of Aldermen will vote on the permits
at a public hearing which is set for
Apr. 16. The permits will be effective
for two years from that day.
John Haggart, an architect with
Dail Dixon and Associates and
project manager of the renovations,
said the thrift shop will be much more
efficient and much more attractive
after its renovations and addition.
The preliminary estimates of the
costs of the renovation and addition
are $150,000 to $200,000, Haggart
All of the merchandise in the stores
comes from the citizens of the Chapel
Hill area as well as from the students,
Corr said. "We have enormous
support from the student population
from both ends." , . .
Many students donate merchan
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grounds or in the building, Brady
said. The House will convene on
Green Street, and the Senate will meet
on Hay Street.
The organizers started over a year
ago in planning the events, said
Rosalie Kelly, Hurley's co
chairwoman. The special legislative
session is a prelude to the statewide
celebration that will be held in
Kelly said the dual nature of the
site was a coincidence. The state
house was located on the site until
it burned down in 1 83 1 . After the fire,
the city decided it needed a produce
market more than it needed a state
house. The building used as a market
is not the same building in which the
Constitution was ratified.
Kelly said she did not become
aware of the controversy until March
31,10 days before the celebration was
scheduled to begin. The city has been
working on the celebration too long
to change the , site of the legislative
session, she said.
loss to the taxpayers some students
are being cheated by their schools.
They are not being given a quality
education," he said.
"We encourage banks (that make
the loans) to look at where the money
is going," Kolb said.
More restrictions on aid are being
considered by Congress to reduce the
number of defaults, Knapp said.
One proposal requires that aid
checks to first-time borrowers be held
until they have been in class for 30
days, he said.
"There's a feeling that a lot of
students drop out of school the first
month. If the check is held for a
month, the loan is smaller to default
on," Knapp said.
It would be difficult for someone
living off-campus to get an apartment
or pay the first month's .rent if the
aid were withheld, he said.
The federal government will sub
sidize a loan for a student if he or
she qualifies for need, Broadway said.
The capital for loans is provided
by banks, which are insured by the
state against loss, he said.
The state is reinsured by the
Department of Education, he said.
If the guaranteed agency has
defaults above the predicted amount,
it is reimbursed by the reserve funds,
"The existing student aid system,
with all its problems and flaws, is still
one of the best in the world in regards
to access to higher education,"
Broadway said. "The problem is that
over time it's gotten unbalanced."
dise when school is over and they have
to move back home, Corr said.
Others come in to buy an inexpensive
interview suit or a costume for a
The Carrboro and the Kroger thrift
shops' combined sales grossed close
to $500,000 last year, and the Carr
boro store netted close to $249,000,
Corr said. The profits go to the
Chapel Hill-Carrboro schools.
"The schools work out budgets,
and we allocate the funds," she saidi.
"Last year the high school received
$42,000, and two. junior highs
received $23,000 and $4,000
There was a small building fund
of $10,000 which has already been
spent on the planning process, Corr
said. "Well have a mortgage on the
land and pay it off a little at a time."
The 10-year mortgage on the
present Jones Ferry Road location
will be paid off this month, Ham
mond said. The PTA has planned a
ceremonial burning of the mortgage
at 2 p.m. at the Carrboro store on
Jones Ferry Rd. to Old
. Greensboro Rd. 12.5
miles to NC 87. Turn right
on NC 87 (north) for 9
miles to blinking light.
Turn right for 1 .2 miles on
Boywood Rd. to sign.
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