City Council agrees to contribute half of Premier Circle’s $1.5M shortfall

Last fall, Charlottesville City Manager Sam Sanders outlined the beginnings of a strategy to help provide more services to unhoused individuals in the city and the greater community. On Tuesday, he brought forth one specific proposal for Council’s consideration. 

“One of the discoveries in the work that came to pass in that October period when we were addressing Market Street Park was the full recognition that Premier Circle as a project had stalled,” Sanders said.

Premier Circle is both the planning name and location for a proposal to replace a 20th century motel with two residential projects reserved for low-income households. The first phase would be 80 units constructed by Virginia Supportive Housing. A second phase not subject to this appropriation would see 60 units built by the Piedmont Housing Alliance. 

The former Red Carpet Inn had been used during COVID as an emergency shelter, an arrangement that ended last year in order to prepare for the new development. Sanders said there were concerns last fall that the project would not proceed even though money had been raised from a variety of sources including a $4.25 million contribution in 2021 from the Charlottesville Area Community Foundation. 

“There was still a $1.5 million gap and Virginia Supportive Housing was in need of not only dollars but vouchers,” Sanders said. 

Sanders said Albemarle will consider their half of the project at their meeting on January 10. 

“That brings forward 80 permanent affordable housing units to very low income households at 40 percent of [Area Median Income] as well as 50 percent of AMI,” Sanders said. “As we all know, those are the hardest units to come by. The goal would be to make something that is this close to being done to move forward and this would ensure that that project could start in May as scheduled.” 

As for the vouchers, Sanders said there would be another request before Council in the future. He also reminded Council that he will be coming back with suggestions on how to use a $21 million surplus from FY23.

City Councilor Michael Payne said this is the kind of item he hopes to see more of in the future. 

“This is one of those issues like a lot where I think people in the community understandably get frustrated thinking nothing is happening but there’s just so much that happens behind the scenes and by staff,” Payne said. “Not just with the Premier Circle project in general but proactively identifying this funding gap and working with the county to bring this item forward.” 

Construction would be expected to take between 18 to 20 months once it gets underway. Council agreed to put a final vote on this appropriation on the consent agenda for their January 16 meeting. 

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