CRHA Board approves $2.65M Downtown Mall purchase for agency’s new headquarters

The governing body of the Charlottesville Redevelopment and Housing Authority has approved a resolution giving the director the power to purchase a building in the 300 block of East Main Street, otherwise known as the Downtown Mall. 

“It’s a 22,000 square foot mixed-use development with three commercial spaces, three dedicated office spaces, and three three bedroom apartments,” said John Sales. 

The Board took their action after coming out of a closed session, a closed session invoked after a motion from City Councilor Michael Payne. Under Virginia law, meetings of public bodies can meet privately for certain matters that are laid out in the motion. 

“I hereby move that CRHA close the open meeting and go into closed session for the purpose of discussion or consideration of the acquisition of real property and the disposition of property as authorized in Section 2.2-3711(A)3 of the Code of Virginia,” Payne said.

The closed meeting lasted for 23 and a half minutes and the Board took up Resolution #1468 and voted on it with no discussion. Seeing that there was media present on the Zoom call, Councilor Payne asked CRHA Executive Director John Sales to explain what was happening. 

“The property will be redeveloped in partnership with other entities that will occupy the commercial spaces and then CHRA will be moving its headquarters to that building as well,” Sales said. 

The property formerly provided office space to the firm Silverchair and retail space to Vita Nova.  Sales said the property had been listed for $2.75 million, but Sales said it is under contract for $2.65 million and the deal should close by the end of February. 

The apartment units would be renovated for the CRHA’s use as well. Sales said the agency will seek grant funding to help subsidize those units as well. 

There were no comments from any of the members of the CRHA Board and after the vote, there was action on Resolution #1469. This is for the sale of 405 Levy Avenue and 405 Avon Street to the City of Charlottesville for $4 million. 

“We are slated to close by the end of February for this property as well,” Sales said. 

The Board had no discussion or comments on that matter either. 

The sale appears to indicate that the CRHA Board will not directly follow one of the recommendations of a sustainability study for the agency’s future. The work by the firm Northern Real Estate Urban Ventures presented two options for how the CRHA could benefit from the sale or long-term lease of the land. (view the presentation)

Charlottesville City Manager Sam Sanders briefed Council on the purchase at their meeting on January 22. He said no final decision had been made about what to do with the property.

“Because I have spoken very little about this particular project, a lot of other information has been circulating and going beyond what I have said,” Sanders said. 

Sanders said the city will use leftover funds from the COVID-related American Rescue Plan Act to purchase the property. 

“And we’ve been able to bring to you an item that would ask that you would allocate a little over $4 million for the acquisition of this site,” Sanders said. “The intention is to hold the site until we can determine what our housing need is as it relates to homeless services in addition to permanent supportive housing units in addition to those that we know are coming online. I am not committing to building a shelter any time soon.” 

Sanders said the city will now control what happens on that site. City ownership also means no property tax revenue will be collected, a situation that exists anyway under CRHA ownership. He said more work needs to be done to determine how many shelter beds are needed. 

The NREUV report anticipated the CRHA could have made between $7 million and $11 million in a market rate sale. Sanders said what the city will eventually propose on the site would be dense. He also addressed what the other government agency would get from this transaction.

“I’ll add that there are additional community benefits that will come later as CRHA unveils what they would do with the resources that they will receive for this site,” Sanders said. “It checks additional boxes to benefit the city and its economic development strategies. 

Last year, the city’s Office of Economic Development finalized an economic development strategy which has several goals which could appear relevant:

• #6 is Reimagining a more inclusive Charlottesville is an essential part of its economic development future
• #7 is Charlottesville has a growing, diverse, entrepreneurial community
• #8 is Charlottesville can bridge equity gaps through innovative workforce development

Council held first reading on the purchase. Mayor Juandiego Wade said there will need to be public engagement.

“We’ve gotten several comments from residents in the area that brought up some excellent points,” Wade said. “I’m still supportive of it but I think that should we move forward, we definitely have to have some very robust community engagement.” 

Councilor Michael Payne said he is excited to see the purchase and added this did not come from elected officials. 

“This was not a proposal that came through City Council,” Payne said. “This was a proposal that city management really proactively sought out and looked for and that is really a sea-change I think in what city government is prioritizing in how its operating.” 

Second reading of the resolution will be on the agenda for Council’s February 5, 2024 meeting. 

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