Third phase of Dairy Central proceeding through Charlottesville’s review process

Nine years ago, the Stony Point Development Group was taking the first steps toward redeveloping the former Monticello Dairy on Preston Avenue into a mixed-use development.

Since then the original structure from 1937 had been repurposed as a 30,000 square foot food hall with 50,000 square feet of office space. There’s also a relatively new 180 unit apartment building called 10th and Dairy.

Plans for a third phase at the intersection of Preston Avenue and 9th Street NW were announced in July 2023 but were put on hold after opposition from some nearby residents. City Manager Sam Sanders said in August of that year he would encourage the company to enter into a community benefits agreement.

Such a step is not required by the Development Code but the property is within a zoning overlay district which caps buildings at a maximum of five stories without permission from City Council for a special exception permit.

The Dairy Market Central Phase 3 project would appear fall short of the threshold for such a permit. Representatives of the Stony Point Development Group have filed a major site plan with the city’s Department of Neighborhood Development Services in June after paying a $10,000 fee.

The plans call for demolition of two existing buildings and construction of three new five-story structures. Two of these would be residences and one would be a hotel.

“The redevelopment plan includes 277 multifamily units, a 133 room hotel, and a parking deck,” reads a narrative for the Traffic Impact Analysis conducted by the firm Gorove Slade. “If approved, the redevelopment is expected to be completed by 2029.”

The property is zoned Corridor Mixed Use 3 which allows five stories only if the project has satisfied the requirements for bonus height which includes providing enough affordable units.

NDS staff issued a first letter of denial on July 24 with over a hundred notes including a need for more information on the mix of affordable units. The first denial is a routine part of the review process with the developer receiving comments about what needs to be done to become compliant with the many aspects of the Development Code.

For instance, a traffic demand management permit is required because the project exceeds 50,000 square feet. A community meeting must be held.

“The City is committed to transparency and meaningful engagement,” reads section 3.4.2.b of the city’s Development Review Procedures manual. “Applicants beginning the Development Review process are strongly encouraged to conduct a community meeting and to keep impacted neighborhood updated.”

The city also requires all developments to obtain an Affordable Dwelling Unit Certification from the city’s housing division.

The project is also adjacent to properties zoned Resident Neighborhood A, a zoning district intended to reduce impacts on areas indicated in the Comprehensive Plan as “Sensitive Communities.” The current proposal has one deficiency in this area by not providing adequate step backs.

“Per Section 34-4.7.1.B.1, a Type A Street Lot Line Transition is required where RN-A zoned property is across a street, including across 9th Street NW and West Street,” the comment letter continues. “It is not demonstrated that Residential Building B provides this transition.”

There are also questions about whether the project exceeds five stories in some areas and whether there is enough “active depth” on areas facing 9th Street SW and Preston Avenue. There are also notes that the project does not include enough to satisfy tree canopy requirements.

Firms working with the Stony Point Development Group on the project have until October 23, 2026 to submit revisions.

The project will need to go before the Planning Commission for a Certificate of Appropriateness as it is within one of the city’s entrance corridors.

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