CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – No city or economic development authority money is involved, but Charlottesville City Council has approved the UVA Alumni Association’s request for $50-million in Charlottsville Economic Development Authority bonds toward demolition and rebuilding of Alumni Hall. The UVA Alumni Association is a non-profit established in 1838 as the sixth such group in the United States, and has been at its 211 Emmet Street South location since 1936. As a non-profit, they are authorized under Virginia code to receive revenue bonds to “finance and refinance the acquisition, construction, and equipping of facilities for you by” that organization.
The city agenda item stated, “while the Authority will actually authorize the issuance the proposed bonds, federal and state codes provide that the highest elected governmental unit of the locality having jurisdiction over the issuer of private activity bonds is located must approve issuance of bonds”.
“There are no Authority funds involved. The Authority is acting as a conduit to confer tax-exempt status on the bonds. There are no city funds involved, and the city’s ability to issue its own bonds is not impacted by this transaction. In addition, there is no liability to either the Authority of the city as a result of the proposed transaction.”
The Association announced its plans for a new Alumni Hall on their Emmet Street property last year. “I feel like this project is a once-in-a-generation opportunity”, said Alumni Association Board of Managers Chair Tatia Granger.
“How often do you have the chance to recreate and yet build anew.”
In a video announcing the plans, Granger stated, “The physical location is the heart of the University, and I think that matters. I think it’s a reminder that what we do here is not tangential, but it is absolutely central.”
Click here to see the Alumni Hall plans.
City Councilor Michael Payne, as the lone “no” vote in a 4-to-1 approval, took the opportunity to object to the University’s conduct in regard to city matters. “UVA has an immense negative impact on the Charlottesville community in some areas. It prevents from being able to afford our school needs, transportation needs, affordable housing needs. It plays a huge role in accelerating housing prices, especially when they continue to expand things like the biomedical institute which will add gentrification pressure.”
“The expectation is when it’s a transportation project they care about or a project the UVA community cares about, we’ll work with them. But when we need something from the University… it’s nothing”, Payne said.
Councilor Lloyd Snook, to the contrary said, UVA alumni holding events in Charlottesville is a large economic factor. “When it’s something big for them, it’s something big for the city. I go to church right across from the Rotunda and we see that reunion traffic” Snook said.
He said he’s not referring to traffic on the streets, but foot traffic purchasing from the city’s stores, eating at the city’s restaurants, staying in the city’s hotels and motels.
“When literally thousands of people came back to Charlottesville for alumni reunions, it has a very large financial impact on the city of Charlottesville”, Snook said.
The city resolution states the funding “will allow enhanced location for UVA alumni and student engagement, as well as new meeting and event space for the community.
“The facility also employs 62 staff and is currently expected to increase employment by three full-time positions where the average annual salary of employees is currently $85,000 annually.
