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Opportunity gap: How your city neighborhood defines your life

The neighborhoods where poor children grow up can have a huge impact on their future earnings, a new analysis of census data shows. Here in Charlottesville, children growing up in Westhaven, the public housing complex in the 10th and Page neighborhood, have the least chance of escaping poverty, while equally poor children who grow up in northern communities such as Locust Grove, Wildwood, Willow Heights, and Village Square have the greatest chance.

The data, which planning commissioner Lyle Solla-Yates calls “disappointing,” but “not surprising,” comes from a new interactive map called The Opportunity Atlas, which “traces the roots of outcomes such as poverty and incarceration back to the neighborhoods in which children grew up.” Released October 1, the national mapping tool is the result of years of work by researchers at Harvard and Brown, in partnership with the U.S. Census Bureau, using anonymized data on 20 million Americans who are in their mid-30s today.   

In Charlottesville, the data shows that kids from poor families in Westhaven are projected to earn only $19,000 per year as adults. South of Westhaven, in the areas surrounding Lee, Grove, Ridge and Avon streets, that number is between $20,000 and $22,000. By contrast, in the northern neighborhoods that offer the most potential, (Locust Grove, Wildwood, Willow Heights, and Village Square) kids who grow up poor can expect to make approximately $36,000 each year.

What’s the difference? Solla-Yates says there’s more access to opportunity—”people who can give them jobs, training, experiences”—in the northern neighborhoods.

“For about a century, there’s been an effort to slice up the city to make sure there’s more mansions, or wealth, in the north part of the city, and less in the lower parts,” says Solla-Yates, who also serves on Charlottesville’s housing advisory committee. But, he notes, affordable housing is essentially “banned” in the northern areas of the city, where neighborhoods are mostly zoned as single-family residential with very little industrial zoning. In fact, more than half of Charlottesville is zoned that way.

“If you want to do affordable development, you basically need industrial zoning because there are the least amount of barriers,” he says.

In single-family zoned areas, the  main barrier is simply cost of construction, says neighborhood planner Brian Haluska. He adds that the average cost of building a single-family home in America is about $250,000 before land costs, which are usually about $100,000 in Charlottesville.

“If all you can build is one unit on that lot, it’ll be listed at $350,000 minimum and I’m probably undercutting the price,” says Haluska. “If the zoning only allows single-family housing, that’s all you can get.”

If the zoning permits multiple units per lot, he says, developers are able to spread the construction and land costs over several units.

The two most recently built affordable housing communities—The Crossings at Fourth and Preston and Carlton Views in Belmont—were in industrially zoned areas, where Solla-Yates says there’s also the least amount of neighborhood opposition because, “Well, it could have been a factory.”

In his analysis of the Opportunity Atlas data, Solla-Yates also pointed out a few gaps. In a recent tweet he said some areas, such as a chunk of real estate south of the U.S. 250 Bypass in the Carlton Avenue area, are “so perfectly segregated by income and race that there is no data to judge from. Yes, affordable housing is mainly banned there, too.”

The Atlas’ creators hope that their data will help policymakers recognize and be able to replicate the kinds of community features that help children succeed. “Using the Atlas,” they write, “you can see exactly where and for whom opportunity is lacking in your community and develop customized solutions to improve children’s outcomes.”

In Charlottesville, affordable housing is already high on the planning commission’s list of priorities, and they’re gearing up to start discussing the land use chapter of the comprehensive plan, Solla-Yates says. It’s also the core of the conversation that the housing advisory committee has been having for the past few years, he adds.

Fellow committee member Lisa Larson-Torres says that while everyone in the group understands and hears the need for more affordable housing, “unfortunately, it doesn’t happen overnight.”

Part of the challenge, she says, is that there’s so little land left to be developed in Charlottesville—and she suggests that all new construction should focus on increasing affordable units in all neighborhoods.

“Is that feasible? Probably not,” she says, but it should be on all city residents’ radars, and she hopes more engagement and education will lead to changes in zoning and affordable housing voucher programs.

Larson-Torres says the Opportunity Atlas data supports an ongoing national and local conversation on systemic racism. And addressing it starts with awareness.

“There are a lot of neighborhoods in Charlottesville who are struggling,” she says. “And so many people seem to be immune or unaware of the significant challenges and inequities of our neighbors, possibly on the same street or just a couple of streets down from where we live.”

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Budget busters: Finding the funding for affordable housing, schools

By Melissa Moody

This is a story about numbers.

The number of families currently served by public housing and rental assistance vouchers: 826. The number of people on the waitlist for public housing or assistance: 1,866. The number of units Charlottesville needs to serve low-income residents: 3,975—or 20 percent of the city’s housing supply—in a city where 54 percent of the households qualify as low-income, very low-income, or extremely low-income.

And now there is a new number—$50 million.

That’s the amount of a bond the Charlottesville Low-Income Housing Coalition requested for affordable housing redevelopment and improvement that was discussed at a City Council capital improvement program budget work session September 6.

“At this point, housing for low-income residents within the city, outside of subsidized units, is pretty much non-existent,” said neighborhood planner Brian Haluska. “The rental vacancy rate in the city is 1.7 percent, while a healthy vacancy rate is around 5 percent.

“It’s hard to see a path forward using just market forces to provide additional housing for low-income residents.”

City Manager Mike Murphy and city staff briefed councilors on existing projects, unfunded improvements and new projects, and deferred maintenance for the city to be included in the CIP plan for the next five years. Increased funding for new affordable housing initiatives was a major focus of the session, as was expansion and modernization of city schools, both of which would cause substantial increases in the city’s budget over the next five years.

City staff briefed councilors on the current budget, including $131 million of debt that is paid by taxes and utility revenue, and the city’s policy of maintaining a 9 percent debt service to operating expense ratio, with a ceiling of 10 percent. According to staff, an increase in the city’s debt to fund new affordable housing initiatives would increase the debt service ratio or need to be backed by an increase in revenue streams.

But the issue also is a story about people and the repercussions of a history that echo across generations—from the work of enslaved people at the University of Virginia 200 years ago to the displacement and destruction of Vinegar Hill just 50 years in the past.

“Affordable housing is an issue of our city’s values,” said Elaine Poon, managing attorney of the Charlottesville office of the Legal Aid and Justice Center. “The city—the residents, the developers and those who need affordable housing—know that the history of systemic and institutional racism in Charlottesville and the country are directly linked to affordable housing needs today.”

The low-income housing coalition’s goals, aligned with those of the Public Housing Association of Residents, are that the city: prioritize extremely low-income housing; increase funding for the Redevelopment and Housing Authority, including issuing the first $50-million bond; earmark revenue for CRHA so that it has a stable source of income; increase funding for the Charlottesville Affordable Housing Fund to support nonprofit developers of affordable housing by at least four-fold; upzone areas of high opportunity for affordable housing; purchase and dedicate land for CRHA and nonprofit developers; and collaborate with major players in the area to develop workforce housing.

Murphy emphasized the need for council to prioritize projects to meet its goals—particularly in light of the fact that some of the goals exceed the current budget. Mayor Nikuyah Walker and councilors Wes Bellamy, Kathy Galvin, and Heather Hill agreed on the need to plan the budget strategically, to specifically address major projects like affordable housing and school modernization and expansion through more work sessions devoted to those topics in particular, and to bring in internal and external partners for input.

The cost to meaningfully address affordable housing redevelopment and maintenance and school expansion and modernization each exceed the current five-year CIP budget, Hill said. “Working with CRHA, Charlottesville City Schools, and other stakeholders to flesh out the actual costs and required timelines is critical to setting priorities.”

Community contributions to these conversations are also vital, according to council members.

Bellamy noted the importance of continuing discussions about how to fund affordable housing redevelopment and maintenance. “I think we at the very minimum, because of the history of our community and things that have transpired, we owe that much to our public housing residents.”

Council is planning to meet with housing representatives by late November. The budget discussions will continue across departments and come back to City Council in March 2019.

To watch a video of the September 6 budget work session, visit Charlottesville TV10.

Supply and demand

  • Public housing units: 376
  • City rental assistance vouchers: 450
  • People on the waitlist for public housing or assistance: 1,866
  • Years many of those people have been on waitlist: often more than eight
  • Units the city needs to serve low-income residents: 3,975—or 20 percent of the city’s housing supply
  • Percentage of Charlottesville households that qualify as low-income, very low-income, or extremely low-income: 54 percent
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A new page: Longtime 10th and Page residents are seeing a shift in the neighborhood

Sharon Jones’ childhood home no longer exists. It was in an area of Charlottesville called Gospel Hill, which also no longer exists. “My two brothers and I were born there,” says Jones, who was born in 1962. Around that time the rapidly expanding University of Virginia bought the dozen or so houses in the predominantly African-American neighborhood, and bulldozed them. The UVA Hospital stands in its place now. The family moved less than a half mile away to Page Street, one of the only areas in the city where white people did not use racial ordinances, neighborhood covenants and zoning laws to prevent them from living there. The neighborhood, known as 10th and Page, is the city’s largest continual African-American community.

Now, as Charlottesville faces a city-wide housing crisis, 10th and Page is reckoning with a massive tide of gentrification. A 2016 comprehensive housing analysis by Robert Charles Lesser & Co. found that Charlottesville’s upper-income earners are buying houses at lower prices than they can afford, preventing middle-income people from buying those same houses. It creates a trickle-down effect, where middle-income earners buy houses that lower-income residents can afford, leaving the lowest income earners with few housing options.

Over the last decade, dozens of white middle- and upper-income people have bought homes and property in 10th and Page. Many erect fences around their yards, tack on expensive additions or tear down houses entirely and build anew, driving up property assessments and taxes. Longtime residents say the culture of 10th and Page is also changing, and that their new neighbors keep to themselves more, creating divisions where before there was a shared sense of community. And for some African-Americans who have lived most of their lives here, the echoes of a not-so-distant past, when white people told black residents where to live, are very present. That history has largely been ignored and forgotten, leaving behind much of the nuance that helps explain why the city is the way it is—and the future that is possible.

Resident concern

On a recent Tuesday afternoon, Tate Huffman has just returned from the gym to his home in Fifeville, a neighborhood that, for most of its history, has been predominantly African-American. “It is definitely shifting,” says Huffman, sitting at his kitchen table. “In the seven years we’ve lived here, I’ve seen a lot of gentrification.” Against the advice of his brother, who called Fifeville “sketchy” after moving to Charlottesville to work at UVA, Huffman and his wife, Faith Levine, who are white, bought the house in 2010. “I like the location more than anything,” he says. Huffman grew up poor in West Virginia, he says, and used government grants for college in Utah and a chiropractic degree in Oregon. He owns a chiropractic business in Belmont, while his wife works as a dance instructor.

Two years ago, the couple bought their second home, this time on Page Street, across the street from Jones. And, as city residents are increasingly doing, they rented it for added income on Airbnb, where they wrote the following description: “The neighborhood of 10th & Page is predominantly black, lower-middle class with a quickly shifting demographic of 20-30 something middle class professional and grad students (aka it is in the process of gentrification, I am obviously contributing to that by renting my place on Airbnb). Physically the neighborhood is a mix of rundown houses and newly built/remodeled. My end of the street is not that pretty, nor is my house from the outside (inside is clean, comfortable, generally quiet, and spacious).”

Jones and several of her longtime neighbors were “livid” when they saw the description. Jones took to Facebook and replied: “As a life-long resident of Page Street, I am very offended by this description. Page Street has had its issues, just like any other neighborhood, but to purchase a house and use it for an Airbnb, and describe the neighborhood in this derogatory manner, hurts. Maybe the owner should have purchased in a different neighborhood.”

Huffman and Levine hadn’t realized they had offended their neighbors, and have since changed the wording and stopped by Jones’ house to apologize. She wasn’t home, but she says she appreciates the gesture. While Huffman and Levine are two of only a few Airbnb renters in 10th and Page, their arrival followed nearly a decade of upper-middle-income white families moving in. “Growing up, everybody knew everybody,” Jones says. “But now you don’t know who’s where.”

Huffman says he and his friends grapple with being gentrifiers. “It is tough,” he says. “In a way we feel like we’re doing a disservice, but at the same time…I really feel like it’s a mixed bag, I do. There was a time when this neighborhood was extremely unsafe.” He pauses, trying to choose his words carefully. “Yeah, I do feel guilty about gentrification of course, but I also–it’s that whole thing: If I don’t do it, is somebody else going to?”

Market price

In 2004, when Brian Haluska was hired as a city planner, Charlottesville’s housing market was booming. Young white middle-upper-income folks were buying, renovating and selling houses in Belmont left and right. “Once the housing stock in downtown Belmont had been flipped over, and it was all $300,000, the buying opportunities were gone, so where are they going next?” says Haluska. Starr Hill was already in flux, as was Fifeville. Haluska oversees the city’s planning of 10th and Page, and recalls that the low cost of houses there put the neighborhood in the spotlight. But there was a problem: Many houses were in disrepair.

John Gaines, lifelong Charlottesville resident and former principal of the Jefferson School, was president in the late 1990s of the neighborhood association for 10th and Page, where he grew up. “At that time there were a lot of dilapidated houses in this area,” says Gaines, who lives in his childhood home on Ninth Street NW. “There was a lot of drug dealing going on right on this street. I’d get out of my car when I’d come [home] from work, and guys asked me, ‘You want anything?’ There were a lot of shootings and killings that occurred in this area.” In the mid to late ’90s, Gaines saw the Piedmont Housing Alliance rehabilitate rundown houses in Belmont, so he asked the nonprofit to do the same in 10th and Page.

Altogether, in the early 2000s, PHA constructed or rehabilitated 31 houses in 10th and Page, most in the heart of the neighborhood. Sunshine Mathon, the new executive of PHA, says that 71 percent of them were sold, using subsidies, to people earning an average of $28,925 a year (about 52 percent of the area median income at the time), while the rest were sold at full-market rates. Fifty-six percent of the homebuyers were people of color, says Mathon.

Gaines says he thinks it was good for the neighborhood, though he acknowledges some residents were upset. “A lot of people hollered because they felt people in the neighborhood couldn’t afford them, which probably was true in some cases,” he says. Jones was upset. “When PHA said they were going to purchase the houses and build low to moderate income, I got excited,” she says. “Because I’m thinking, somebody from Garrett will move in, somebody from Prospect, somebody who works and makes a low to moderate income, they’ll be able to own their own home. But that’s not what happened.”

While PHA’s project was underway, something else did happen, Haluska says. The city’s housing market boomed, and PHA sold some of the more central houses in 10th and Page at market rates to middle-upper-income white people. “By the time they had been built, already things had shifted,” says Haluska. “And now suddenly it was, okay, PHA just put a bunch of white people in 10th and Page neighborhood, and is this the beginning of a trend?”

The new PHA houses were intended “to attract a mix of incomes back to the neighborhood” and increase net asset growth for longtime residents, according to a PHA project booklet. Since then, neighborhood home assessments have risen, as have the number of white homebuyers. One of the most expensive new homes is a two-story house on Ninth Street NW built in 2015. It’s a modern design with gray Hardie board siding and a natural wood accent striped down the middle. Four raised wood garden beds sit next to an off-street parking spot, and an older concrete single-story accessory unit is in the backyard. It was recently assessed at $769,300. The older two-story house next door was built in 1900 and recently assessed at $202,691. Another new two-story modern design house was built in 2014 on 10 1/2 Street NW. It has a small front deck in place of a porch, and the exterior is made half of corrugated rust-colored metal siding and half of yellow and gray painted Hardie board. It was recently assessed at $422,000. The two-story house next to it, built in 1920, was assessed at $178,970.

Jones says increasing property assessments wouldn’t be so bad if she could afford to use her home as collateral to borrow against. But she can’t, and her property taxes keep increasing. “My biggest fear is that the property taxes are going to price us out,” says Jones. “We’ll lose our house, and then where do we go?” Gaines too has been hit. “Come next month, I’m going to have to shell out $1,400 to the city for property tax,” he says. The city offers tax relief for the permanently disabled and those over the age of 65, but only if they earn less than $50,000 a year and have a net worth below $125,000.

James Bryant and Sharon Jones, both longtime 10th and Page residents, sit on the Community Development Block Grant task force, which funnels small pools of federal money into neighborhood infrastructure. Jones and Bryant say the neighborhood is not the same one they lived in growing up, when you knew and interacted with your neighbors. Photo by Eze Amos

Longtime 10th and Page resident James Bryant says there’s another, more subtle, change occurring. “As white families move into the neighborhood they put up fences around their property,” says Bryant, who moved into his house on 10th Street NW in 1981. “To me, when you put a fence up, it says, ‘I don’t want to be bothered.’ To me, that’s a barrier.” Bryant says it makes him feel like a stranger in his own neighborhood. Most of the original houses in the area have front porches. Bryant and many others remember the old days when neighbors sat on porches and talked across their yards. “Neighbors knew each other,” he says. “But with the new folks coming in, they don’t introduce themselves.”

Bryant and Jones remember the days too when crime spiked in the neighborhood, and they’re thankful things have become safer again. But they note that it took white people moving in for that change to occur. “It’s not like we haven’t spoken up for ourselves over the years,” says Bryant. “It’s that, for the city, this wasn’t a priority neighborhood. I can remember a time when people wouldn’t even touch 10th and Page.”

In 2008, Lyle Solla-Yates and his wife bought their house on 10th Street NW. It was a PHA home, first sold to a young woman in 2006 whose parents ran a winery in Nelson County. “When we looked at this house, a lot of people told us, ‘You can’t live there, it’s not safe’,” recalls Solla-Yates, who is white. “And I think there was a lot of veiled racism in that.” He says he thinks it used to be a crack house before PHA took it over. The house next door was as well. That house sold in 2006 for $224,900. Five years later, a Texan bought it, after making $15.1 billion on the sale of an oil company. Solla-Yates says it was for the oil baron’s son, who was attending UVA.

Solla-Yates also attended UVA and now works for the Nature Conservancy. Lately, he’s been tracing how zoning policies established by Charlottesville’s white government were used to cut off African-Americans. (For example, in the 1950s the city government widened Preston Avenue to allow more traffic, splitting the largely African-American neighborhoods of Rose Hill and 10th and Page in two.) Solla-Yates unearthed the 1957 report that first makes the case for urban renewal, and found the City Council minutes from 1974 that closed the road connecting 10th and Page to the east—Vinegar Hill, the Jefferson School and downtown. Around this time, Page Street was cut off on the west side as well, where before it connected to the predominantly white neighborhoods of John Street and 14th Street NW.

Lyle Solla-Yates and his wife moved into the 10th and Page neighborhood in 2008, after purchasing a Piedmont Housing Alliance-renovated home. Solla-Yates has been tracing the zoning policies Charlottesville’s government has historically used to segregate African-American neighborhoods. Photo by Eze Amos

Solla-Yates sits on the 10th and Page Community Development Block Grant task force, which funnels small pools of federal money into neighborhood infrastructure, such as new sidewalks. Solla-Yates sees that a lot of white families have moved in recently, but thinks it could be a potential force for good, a force for dismantling white supremacist zoning structures. “My theory is that if we have a certain amount of white people talking and angry, we can fight for social justice,” he says. “I’m angry about segregation. I’m angry about urban renewal. I’m angry that we’ve been intentionally segregated from the rest of the community. I’m angry that we’re underserved on infrastructure. I’m angry that we don’t have any trees. That’s all on purpose.”

A history of uprooting

Many in the city now point to mixed income housing as the potential solution to Charlottesville’s housing crisis. This follows several decades of studies showing that concentrations of poverty in neighborhoods lead to vastly disproportionate rates of crime, violence, drug use, health disparities, infant mortality rates, malnourishment and nearly every other key aspect of life.

Sharon Jones remembers the ’80s and ’90s quite well. It was a scary time, she says. The 10th and Page neighborhood had been labeled a Stay Out of Drug Area and she worried her oldest son would get caught up in the drug dealing and violence. “She was always at the door when I went outside,” recalls her son, Rickquan Jones. “I couldn’t go past the corner.” Rickquan is currently getting his master’s in sport and recreation management at George Mason University. His mom was part of a neighborhood coalition that attempted to take back 10th and Page. “We marched through the streets chanting and letting the drug dealers know we’re not going to let you take over,” she recalls.

The city’s crime spiked during this time, as did the disproportionate incarceration of African-Americans. In 1992, the Daily Progress published a year-long, six-part investigative series that found three out of four people convicted of a felony from 1989 to 1991 were black. The series pointed to two causes: the racially targeted crack-cocaine sentencing disparities, and a lack of adequate legal representation for people in poverty. The investigation led to the creation in 1998 of a public defender’s office in Charlottesville, which had not existed.

A generation earlier, in the 1960s, Charlottesville’s white city government pushed to create a housing authority in the city to not only raze Vinegar Hill, one of the largest hubs of African-American life, but to also place the city’s new public housing site in 10th and Page, concentrating one of the largest pockets of poverty in a mixed-income, predominantly African-American neighborhood. White city residents successfully lobbied to block it from their neighborhoods.

James Bryant’s family was one of the first to move into the Westhaven public housing project. While it improved some families’ living conditions, most African-Americans opposed it. In 1999, Christopher Combs writes in the Magazine of Albemarle County History: “Blacks increasingly expressed their concerns that public housing represented an attempt by city planners to create ghettos and continue the practice of residentially segregated housing.” A white public housing project was also proposed at the time, Combs writes, but the city opted instead to subsidize poor white families in private housing throughout the city, thereby deconcentrating their poverty. Years later, Bryant served for three years as a commissioner on the Charlottesville Redevelopment Housing Authority. “The whole concept of public housing was transitional housing in the ’60s,” he says. “It wasn’t meant to be permanent.”

White people too voiced opposition to public housing’s creation in the area, Combs writes, because it could have increased the number of African-Americans at the all-white Venable elementary school. Today, while children in the surrounding 10th and Page neighborhood walk to Venable, children who live in Westhaven ride a bus across town to Burnley-Moran, an elementary school opened in 1954, the same year the U.S. Supreme Court ordered school integration.

Displacement

Every week for more than 20 years, Jones has been part of a group of local African-Americans and University of Virginia students that tutors young children, many from low-income families, at Zion Union Baptist Church on Preston Avenue. In the face of centuries of discrimination, education is often seen as the greatest tool for economic mobility.

Jones’ family has gone to Zion Union Baptist, originally located in Vinegar Hill, for generations. In the early 1960s as part of the city’s urban renewal project, the white Charlottesville government voted to demolish the church along with the largely African-American neighborhood. The destruction of Vinegar Hill uprooted more than 600 renters and homeowners, along with 29 African-American businesses, which had a collective income of $1.6 million in 1959, according to the book Urban Renewal and the End of Black Culture in Charlottesville, Virginia by James Saunders and Renae Shackelford. Adjusted for inflation, that’s the equivalent of $13.6 million today. “The all-white downtown businessmen association were complaining that they were losing customers to the negro businesses on Vinegar Hill,” says Richard Johnson, who lives in 10th and Page, where he grew up. “They basically told City Council, if you don’t do something about this, we’re going to do something about you.”

“It destroyed black people’s pride,” recalls Eugene Williams, 90, who was recently honored by City Council for his civil rights work, especially around affordable housing.

Vinegar Hill is the most well-known example of the city’s white government moving African-Americans, but it is not the first. About 20 years earlier, in the late 1930s, the city razed African-American homes and an Episcopal church on the north side of Vinegar Hill. In its place, it built Lane High School, where white people prevented African-Americans from attending until 1959; the school shut down for months beforehand in protest.

Twenty years earlier, in 1919, many African-Americans were forced to move from McKee Row, a collection of downtown row houses sold to the white city government so it could clear them and build a park where, less than two years later, it placed a large statue of confederate General Thomas “Stonewall” Jackson.

This was two years after the U.S. Supreme Court’s 1917 Buchanan v. Warley decision, which effectively overturned an ordinance approved by Charlottesville’s white City Council in 1912 that made it illegal for black residents to live in white neighborhoods, and vice versa, while also requiring home builders to state the race of the intended occupant in their permit applications, writes Karen Water-Wicks in 2014 in the Magazine of Albemarle County History.

Income and opportunity

The current situation in 10th and Page is different, of course. Longtime African-American residents are selling their homes willingly to young white buyers. They’re not being strong armed, or pushed out in an overt fashion. Rather, there’s a deeper, more systemic, factor at play—one in which race and economics intersect.

In 1994, Gloria Beard bought her Page Street house, where she raised her three sons. When she started as a patient care assistant at UVA in 1978, she earned $3.09 an hour. When she retired as a certified phlebotomist in 2004, she says she earned $12 an hour. Adjusted for inflation, that’s a $3-an-hour raise over the course of 25 years. (In 2015, with inflation, Beard would have earned $15.14 an hour; the national average for a phlebotomist in 2015 was $15.21 an hour.) But in Charlottesville, that’s not enough. Beard worked two additional part-time jobs on weekends to support her family, all of whom have now moved.

“Do you know this town ran all my kids away?” says Beard. “Many young people, this is their home. My kids left because there’s no jobs. Who wants to work at UVA when they don’t give you a sufficient raise? That’s not even fair. People who were born here leave because there’s no money to be made.”

In Charlottesville, from 2011-2015, the median household income for white families was $56,756. For African-American families it was $32,816. That’s a $23,940 gap, according to the Weldon Cooper Center. “Nine out of 10 of my classmates who graduated in the class of ’73, who are African-American, moved and never came back to Charlottesville,” says Richard Johnson, a 10th and Page native. “They couldn’t get a job after they graduated. I’m talking about lawyers, doctors, dentists, preachers, teachers, business people. White people wouldn’t hire them.”

A recent study on income mobility by Stanford economist Raj Chetty and Harvard economist Nathaniel Hendren found that Charlottesville ranks near the bottom, at 2,700 out of 2,885 jurisdictions, meaning that if you’re born poor in Charlottesville, you are very likely to remain poor, and that there are 2,699 other cities and counties where you’re more likely to gain wealth.

The consequences of these realities also play out in numbers. According to Weldon Cooper, over the last 115 years, the number of white people in Charlottesville has grown by 28,053, while the black population has grown by just 6,060. In 1900, there were 3,834 white people (60 percent) and 2,613 black people (40 percent) in Charlottesville. In 2015, there were 31,887 white people (80 percent), and 8,673 (20 percent) black people. Much of life in Charlottesville has been designed for and by white people, say many African-Americans. This plays a large role in why African-Americans are selling their homes when the elder generation passes away.

Lorenzo Carter grew up on 10th and Page Street in the ’60s and ’70s. He left town 10 days after he graduated from Charlottesville High School in 1976. “I wanted out of Charlottesville,” he says in a phone interview. “I didn’t feel there would be anything there for me. It just wasn’t a place I enjoyed or had a lot to offer.” Similarly, Sharon Jones’ older brother Leonard Medley moved when he turned 17, in 1963, and never came back. He’s now 72 and lives in Oakland, California. “Charlottesville had nothing to offer other than working for UVA hospital,” says Medley. “The jobs for the blacks were mediocre. For the whites, they could go to the top of any corporation there was.” Medley grew up in Vinegar Hill and moved with his family to Gospel Hill when he was 11. He recalls that banks would not loan his mother money when they lived there, a practice known as redlining. When she moved to 10th and Page, he says, they did.

This past September, the Federal Reserve Board found the median net worth of white families in 2016 was $171,000. For African-Americans, the median net worth was $17,600. A closer look at the statistics reveals that home ownership has proven to be the No. 1 way, outside of employment, that families increase their net worth. “There is a very deep national and institutional history of racial discrimination and disenfranchisement that has made it far more difficult for families of color to build wealth through home ownership specifically,” says PHA Executive Director Sunshine Mathon in an email.

Jeremy Caplin has been buying houses in the 10th and Page neighborhood for the last 30 years—he owns nearly 70—in order to provide affordable rental options for low-income residents. Photo by Eze Amos

Before his parents owned it, the brick house John Gaines, 80, grew up in was owned by a white policeman, and Gaines remembers another white policeman living across the street as well. The neighborhood was transitioning at that time from being racially mixed to becoming predominantly African-American, in large part because it was one of the few neighborhoods where white people did not prevent them from living there. It was the height of Jim Crow, and racial segregation was rampant.

Many of the city’s housing deeds at that time contained the clause: “This property is sold subject to the restriction that it shall be used for residential purposes only and that it shall not be owned or occupied by other than persons of the Caucasian race, family servants and servants quarters excepted.” These racial covenants existed in North Downtown, Locust Grove, Belmont, Fry’s Spring, Jefferson Park Avenue, Johnson Village and Rugby Hills.

In the decades following Emancipation, African-Americans had a number of their own neighborhoods as well, until the city began using eminent-domain, zoning policies and urban renewal to push them out. In 1930, about 50 percent of African-Americans owned homes in Charlottesville, the same percentage as white families, according to the Weldon Cooper Center for Public Service. But over the last 80 years, that has decreased, and now about 27 percent of African-Americans own homes, while white home ownership in the city remains at 50 percent.

Affordable housing —at a cost

Over the last several years, two giant student housing structures have been built along West Main Street, along the neighborhood’s south side, with a third building currently under construction. The massive towers loom over 10th and Page, and add nearly 900 units to the city’s housing market. But instead of making any of these apartments affordable for families making less than $50,000 a year, and creating a mixed-income housing complex, the developers and property managers—based in Georgia, Florida, Chicago and Singapore—opted to pay into the city’s affordable housing fund.

Now, all eyes are on the north end of 10th and Page after the old Monticello Dairy building and the surrounding 5.7-acre plot was sold earlier this year for $11.9 million. Chris Henry is the general manager for developer, Stony Point Design/Build, LLC, and says it aims to build a 50-to-80-foot-tall structure for 200 to 300 new multi-family units, some of which will be “affordable.” Henry says he wants to work with residents to find a common ground for the new structure. “We’re going to butt heads on some things, not everybody’s going to get what they want, including me,” says Henry. “But at the end of the day, it’s going to be a better process.” Henry’s company commissioned the design of a walking green space in the center of Preston Avenue. “Maybe this could be a way to try and heal some of the damage that was done,” says Henry. The company also owns the building across 10th Street NW where, until recently, the New Covenant Pentecostal Church worshipped. Henry says the congregation moved on its own accord to a new location in the county. One possible use of the church, which is historically protected, is turning it into an affordable daycare for nearby residents, he says.

Stony Point Design/Build LLC purchased the 5.7-acre plot on the north end of 10th and Page, the site of the old Monticello Dairy building, for $11.9 million earlier this year, with plans to build a 50-to-80-foot-tall structure housing 200 to 300 multi-family units, some of which Stony Point General Manager Chris Henry says will be “affordable.” Photo by SkycladAP

City planner Brian Haluska says this project comes as Charlottesville is breaking free from its old ways of developing neighborhoods. “Planning is beginning to focus a lot on people who have traditionally been left out of the process—marginalized groups that our processes are very much geared towards not serving or not notifying,” says Haluska. “They’ve been designed historically for people who have resources and can engage in that process. How do you reimagine these processes so everybody can be included?”

Jeremy Caplin, however, is worried that the added housing will tilt the market while also increasing traffic through the neighborhood. For the last 30 years, he’s quietly bought nearly 70 houses in 10th and Page, renting them out at deeply affordable rates to extremely low-income residents. His lowest rent is $200 a month, he says, and his highest is $990 a month for a five-bedroom house. He estimates the majority of his renters are African-American. “I try to preserve what’s left of the black culture in this neighborhood and to preserve these houses,” says Caplin. “This crowd never got any respect or any financial breaks or any help. I’ve had a lot of breaks, a lot of help. I see how the world works, and it’s just unfair. The deck was stacked. You get a deal of cards in life, and many people in this neighborhood got no high cards.”

Caplin first started by securing a loan to fix up the house of an African-American man who worked for his family. The man had an existing loan at 30 percent interest and he was set to default, which would have cost him his house. “I said, ‘This is not happening; I’m going to be the guy who fixes this,” says Caplin, who got a loan from his father and saved the man’s house. Caplin looked around the neighborhood and saw an increasing number of boarded-up houses. “Why isn’t anybody paying attention?” he wondered. One by one, he started buying houses, fixing them up and renting them through word-of-mouth. In the beginning, Caplin says, realtors wouldn’t even take a listing in the neighborhood. “They would scoff at the idea of having their sign in this neighborhood,” he says.

Wallace and Antoinette Dowell have preserved six affordable housing units in the 10th and Page neighborhood, directly across the street from their Tenth Street Bed and Breakfast. Photo by Eze Amos

Caplin follows in some large footsteps. From 1960 through 1980, Eugene Williams, a civil rights activist and former president of the local NAACP chapter, amassed more than 60 properties that became Dogwood Housing. Though not exclusively within 10th and Page, some of the houses were in the neighborhood, and have long given residents affordable rents, along with any needed financial literacy and workforce training to help ensure income mobility. Wallace Dowell too has preserved six affordable housing units, directly across the street from the 10th Street B&B, which he runs with his wife, Antoinette.

Caplin says he’s keeping his profit margin small and reinvesting earnings into property maintenance, which more developers and landlords could do. “It gets into [the] ethical question of how much profit is reasonable,” he says. “How much can you live with? Are you happy making 5 percent? Or do you feel you have to make 20 percent?” Caplin mostly hires neighborhood residents to do the work on the houses, he says. But no matter how many properties he buys—and he is heavily leveraged—he knows he can’t get them all.

Often, when considering a new tenant, Caplin will seek the input of lifelong locals like Jones, who says, if not for Caplin, “everything would be bought, remodeled and sold for $300,000 to $400,000. He’s keeping affordable housing in the neighborhood.

“If I hadn’t bought my house when I bought it, and if the lot didn’t belong to my grandmother who died and then passed it down to my dad, and if they hadn’t given me the lot, God knows where I would be,” Jones says. “Because I couldn’t afford to buy a house in Charlottesville anywhere now.”

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Living News Uncategorized

City regulations could have an effect on new breweries

Breweries have been popping up around Charlottesville like mushrooms after a rain. About a dozen beer producers are now located within an easy drive from town. But curiously, only four breweries are actually located within the city’s limits: Champion, South Street, Three Notch’d and—the newest addition in September—Random Row.

In the middle of a regional beer boom, a new city regulation on breweries was slipped into a zoning regulation change last winter. Nobody seems to know whose idea it was, but it was would-be brewer Julie Harlan who first noticed that new microbreweries within Charlottesville will have to derive at least 25 percent of their revenue from on-site retail sales.

In August 2012, Harlan bought an almost 1,500-square-foot foreclosed  home on Forest Street for the shockingly low sum of $17,700, which allowed her to purchase the property with cash. Located a few blocks from Bodo’s Bagels on Preston Avenue, it is zoned B-3, which is a flexible zoning status that allows for use as either residential or commercial purposes.

“I was looking down the list of zoning options and microbrewing was on the list,” says Harlan. “My niece had gone to Piedmont and studied viticulture and she suggested brewing. …I would take care of the business and we could have a small, woman-owned nanobrewery. …It seemed like a good idea because everything I read about the Virginia laws seemed like they were going in the direction of less regulation.”

Three Notch’d Brewing Company President Scott Roth says the brewery is expanding its operations into a larger space at IX Art Park next year that will include an outdoor beer garden and an event space. The company will keep its Grady Avenue facility for production and storage. Photo by Eze Amos
Three Notch’d Brewing Company President Scott Roth says the brewery is expanding its operations into a larger space at IX Art Park next year that will include an outdoor beer garden and an event space. The company will keep its Grady Avenue facility for production and storage. Photo by Eze Amos

The 25 percent requirement was tacked on to a change in law that Three Notch’d Brewing Company requested. Previously, breweries within Charlottesville were limited to a 15,000-barrel annual cap for production. As Three Notch’d has won fans both locally and around the region for its inventive range of beers, demand has increased beyond the 15,000-barrel limit and the company was concerned about possibly having to relocate outside of the city. Its owners asked that the limit be raised to 30,000 barrels, and the city agreed.

Three Notch’d’s management team realized they would need the increase as they prepared to move into a new, larger space at the IX Art Park that will include an outdoor beer garden and an event area (they will maintain their existing space in the old Monticello Dairy on Grady Avenue for storage and production).

“When we were contemplating the move it was necessary to ensure that we wouldn’t be regulated in terms of the amount of barrels we can produce,” says Scott Roth, president of Three Notch’d Brewing Company. “The city was very understanding and took a good look at the code and understood the need for a few changes.”

“We have been busting at the seams in our current location and wanted to find a more permanent home where we could focus on maximizing our production facility without being so hindered by space constraints,” Roth says. Three Notch’d’s new presence at IX will include “food and beer in a relaxing atmosphere that is comfortable for everyone, including families.”

But the changes aren’t settling well with everyone seeking to become part of the beer industry. The new 25 percent requirement has given Harlan pause and may scuttle her plans to open Charlottesville’s fifth brewery (C’ville-ian Brewery closed in October after two years in business). To start, she doesn’t understand how it would be enforced.

“Are the sales net or gross?” she asks. “I’m also worried, would we be pushing beer to make the 25 percent? Like, we’d be looking at the clock thinking we would like to close now but we haven’t made our 25 percent. …There’s no clear guidelines. How do you report it? What if you don’t make your 25 percent quota? Is there a penalty? Is it a zoning violation? Do they shut you down? …I couldn’t find anyone who could give me any reason behind the 25 percent, which would help me understand where they were going with it.”

Julie Harlan had planned to open a microbrewery on her Rose Hill property, until she learned a city code added last winter requires 25 percent of her revenue to come from on-site retail sales. Photo by Eze Amos
Julie Harlan had planned to open a microbrewery on her Rose Hill property, until she learned a city code added last winter requires 25 percent of her revenue to come from on-site retail sales. Photo by Eze Amos

Brian Haluska, principal planner for the City of Charlottesville, has a few answers.

“The rationale for the 25 percent requirement is that if we are permitting these facilities in our commercial and mixed-use districts, they need to incorporate a ‘front door’ that contributes to the activity on the street,” says Haluska. “Our commercial and mixed-use districts are intended to have activity at the street level. The fear was that without some sort of on-site sale requirement, a microproducer could locate in the commercial or mixed-use zone, have no on-site sales, and have all of their beverages leaving on trucks out of the back. That is a bottling facility—which we allow, just not in the commercial and mixed-use zones.”

Andrew Sneathern, former assistant commonwealth’s attorney in Albemarle County who is now in private practice specializing in alcohol-related law, says the likelihood of a company being a bottling-only facility is small.

“The costs of being in the city of Charlottesville versus, say, Waynesboro, for example, would be completely disparate,” he says. “I think you could probably pick up for about $3 a square foot in Waynesboro for a bottling facility. In Charlottesville you couldn’t come anywhere near that, so the chance of that happening is extremely small.”

Nor does Haluska’s concern make a lot of sense to Hunter Smith, owner of Charlottesville’s Champion Brewery and co-chair of the Government Affairs Committee for the Virginia Craft Brewers Guild.

“Any brewer would tell you that you would be nuts not to have the retail component,” says Smith. “If you’re going to have some retail component, chances are it will be a large portion of your sales early on. It’s as you grow that it becomes of concern.”

Real estate and rent in Charlottesville are so expensive that it would not typically make economic sense for someone to open a facility that only brews and bottles without selling retail. Such a facility could easily be opened in another county with cheaper land and closer access to a highway, like Devils Backbone’s outpost in Rockbridge County.

Breweries have a special legal status under Virginia state law. Most businesses that serve alcohol are required to sell a certain amount of food as well. You can’t legally open a business that is only a bar in Virginia—it also has to be a restaurant. But breweries can sell their own beer at the same site where they brew without being required to offer food.

And those on-site sales are something that small to mid-sized breweries value. A beer sold directly from the brewery keeps all of the profit in-house. All beer sold to other restaurants or retailers is required under state law to pass through a third-party distributor and then to the point of sale. Each business needs to make a profit and marks up the beer along the way. Normally, a small Virginia brewery will sell as much beer as possible through its own pub and distribute the rest for a lower profit per pint. According to Smith, a pint of beer sold to a thirsty brewpub patron typically provides about five times more profit to the brewer than the same pint sold through a distributor.

“The reason to have a business in Charlottesville is the great retail potential,” says Smith. “So this is solving a problem that doesn’t exist.”

Smith agrees with Harlan that the 25 percent requirement could scare new breweries away from Charlottesville, but he disagrees about the point in a brewery’s development that this would happen. Champion has grown from producing 500 barrels per year when it opened in December 2012 to 10,000 barrels per year in 2016. In fact, they opened the Missile Factory, a 7,000-square-foot facility with a 15,000-barrel capacity, in Woolen Mills in 2014 to keep up with distribution demand. 

“Here we are in year four and [Champion is] opening multiple extra states for wholesale distribution. It’s going to be hard for my 1,500-square-foot taproom to keep up with my multimillion-dollar wholesale business,” Smith says. “The long-term situation is that it could disincentivize someone from locating in Charlottesville in the first place if they are going to be hamstrung down the road.”

While a quality product and good marketing can dramatically expand the distribution of a brewery’s products, the brewpub located at the brewery can’t make more people walk in to have a drink. In fact, it is illegal under state law for them to try.

“It is illegal to advertise specifically alcohol or prices on alcohol because of the ABC [Alcoholic Beverage Control],” says Smith. ABC regulations, some of which date back to the era immediately following Prohibition, prevent businesses that retail alcohol from promoting their prices or doing certain other things that could encourage people to drink beer.

“So if you find yourself in a pinch on that regulation, it is hard to go out and drum up more business,” says Smith. “I can’t just go make more people to drink beer here.”

A local business might actually have to turn down orders for its beer if it is unable to increase on-site sales to 25 percent of the new total in revenue. This is deliberate.

“One of the chief concerns from the Planning Commission was how much truck traffic would these uses generate, especially with some of our commercial zones being close to residential neighborhoods,” says Haluska. “So, in addition to the desire to see retail sales in the microproducers, the 25 percent on-site sales rule would limit the volume of shipments.”

Haluska does not know who initially requested that a 25 percent minimum retail sales requirement be added to the city’s zoning regulations along with the production increase to 30,000 barrels annually. Smith, heavily involved with the Craft Brewers Guild, says he had not been consulted on or made aware of the proposal. The craft brewing industry currently provides about 8,900 jobs in Virginia, according to the guild.

Sneathern thinks there might be some unintended consequences of the 25 percent requirement. “It may be that a real microbrewery might have to extend its hours in order to meet that requirement,” he says. “If they had to stay open later [in order to raise their on-site sales to 25 percent of sales] and they’re in a neighborhood like Belmont where there are residential neighbors, it would probably impact those neighbors. When I practiced law in Belmont I was on Douglas Avenue, and I remember distinctly a number of neighbors being bothered by what was going on after the zoning changes happened in Belmont. Noise issues and people being out intoxicated late at night and everything that goes along with that.”

Harlan wouldn’t want her imagined brewery to stay open late.

“I could foresee doing a tasting room as part of the brewery, but if we got busy we might just want to do contract brewing,” she says. “Our goal is not to get bigger and bigger. We were not looking for the requirement for the hours to be open to the public. Staying open at night is not something we want to do.”

Andrew Sneathern, a local attorney in private practice specializing in alcohol-related law, says the likelihood of a company being a bottling-only facility on city land is small, which city staff says is the main concern behind the code change. Photo by Eze Amos

Breweries that distribute their beer to local restaurants have to walk a fine line by selling beer through a tap room but not appearing to compete with their customers.

“You don’t want to be open till 2am like they are,” Smith says about bars, “trying to steal their alcohol business and competing with them. We are in the tourism and tasting business, not in the bar or restaurant business.”

But Smith is actually planning to make that leap. At the November 5 Top of the Hops beer festival, Smith announced plans to open the first-ever brewery on the Downtown Mall.

“We intend to sell all the beer produced there, right there,” says Smith. “The business model is to sell 100 percent of the beer retail. We’ll be opening the first brewery on the Downtown Mall. It will be a new category for us to get into.”

Smith’s new brewery will offer different varieties of beer that are currently unavailable at Champion and it will be combined with a restaurant, a joint venture with Wilson Richey. Under Charlottesville’s new 25 percent rule for microbreweries, Champion can get to the 25 percent by selling anything retail, including food. But the restaurant/brewery combination is a risk that most brewers aren’t comfortable taking.

“The inherent risk of the restaurant business is higher,” says Smith. “In a restaurant you are being judged on so many other criteria. You’re getting out of your wheelhouse so you can grow the business you are good at. It’s like you would have to get better at hockey so you can play basketball. It just doesn’t make sense.”

Three Notch’d’s Roth isn’t worried about the 25 percent minimum.

“They are focused on providing a healthy combination of retail and interactive space for the city of Charlottesville,” he says, “while also providing the breweries with what they need in terms of barrel limits to succeed. …If you really dive into the numbers, the 25 percent requirement should not prove to be overly daunting.”

Harlan plans to tear down the single-family house currently on her lot and replace it with a new building that she designed herself. Right now she’s considering erecting a duplex on the site, and says parking requirements for a brewery also factored into her decision to table that business venture.

“The rules are pretty clear for anyone looking to open a facility in the city,” says Haluska. “If the sales to distributors start to rise, then those businesses need to consider how to accommodate that expansion in production—if a second site is necessary in a zone that permits a standalone bottling plant or whether to relocate to a zone that permits small breweries.”

What neither Harlan, Sneathern nor Smith understand is exactly why the city would need to limit breweries in a situation where the price of real estate already seems to be doing that. Is there something undesirable about having a brewing industry in Charlottesville?

“You have the idea of some old Guinness building with rats and the spent grain and labor strikes and things like that,” says Smith, invoking the images of American breweries from the gilded age of the late 1800s. “In 2016 it’s an irrelevant concern.”

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News

Partial demolition underway on West Market

An owner of the two-story brick building on West Market Street says a partial demolition is currently underway after a January 25 roof collapse.

“It would’ve happened one way or another,” owner Josh Rogers says. He and his partners had plans to renovate the 206 W Market St. building for their proposed private club, called Common House. He doesn’t think the roof collapse will significantly interfere with the club’s construction because it was previously ahead of schedule.

“It accelerated our production schedule,” he says, though he hasn’t made any permanent plans for after the demolition.

The building’s roof also collapsed in 2010 when snow cracked one of the trusses supporting the rafters, according to the city’s building code official, Tom Elliott.

While Rogers says he was aware of the initial collapse, the back right corner truss that failed this time was not the one repaired six years ago. He and his partners are paying for the selective demolition, he says, which will require removing loose bricks and wood from the roof and second floor of the building.

According to the Neighborhood Development Services website, specific design criteria for Charlottesville requires buildings to be designed to withstand temperatures of 16 degrees with a ground snow load of 25 inches per square foot. According to principal planner Brian Haluska, that doesn’t translate exactly to number of inches of snowfall.

Rogers says the demolition could take between two and three days and the strip of West Market between Old Preston and 2nd Street NW is projected to stay closed during that time. City inspectors want to be sure engineers have confirmed that falling debris will not be a threat, he says.

Even though the damage is on the backside of the building, city spokesperson Miriam Dickler says, “We want to know the structure is stable and sound before the road opens,” adding that it could stay closed until Saturday.

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News

Welcome to the club: Common House takes over former Mentor Lodge space

The space for a 7,000-square-foot private club on West Market Street was purchased in 2013, and what plans call a “brick and mortar establishment” may be one step closer to becoming a reality.

A joint public hearing between Charlottesville City Council and the City Planning Commission was held Tuesday night after C-VILLE went to press, to discuss a special use permit for the space, which the city requires for private club-type dwellings. Beforehand, Brian Haluska, the principal planner with Neighborhood Development Services who was scheduled to present the report, said he didn’t think he’d see much public concern at the meeting.

Derek Sieg, Josh Rogers and Ben Pfinsgraff are the men behind the club at 206 W. Market St., called Common House in their application submitted to the city November 24. The application states it will be social in nature and “where individual members can meet to dine together or simply for personal connection sometimes lost in the days of online social media.”

Common House will go into the building that was constructed for Mentor Lodge in 1913, a social club intended for the then largely African-American neighborhood of Vinegar Hill, and for which the building provided “a venue for dances, political meetings and music for more than six decades,” the men cite in their application. The space has housed different businesses over the years, including Studio 206, a fitness studio.

Amenities planned for Common House include a banquet hall, lounge, tea room, library, bridge room, billiards room, bars, kitchen, office and rooftop terrace.

An introduction letter from the club to prospective members of both sexes describes a contemporary social club “built to meet the substantial and growing desire in our culture for true, meaningful connection with likeminded people.” There’s mention of bridge and chess leagues and all-day “well-crafted” food and drink, too.

Sieg says the club won’t be invite only, but he and his partners initially sent out fewer than 100 invitations.

“We’re trying to build a place that’s going to be very inclusive,” he says, adding that there will probably be a limit to the number of people who can join.

“We want it to be a place that’s lively,” Sieg says, “but one where you can count on getting a table when you go in.”

Membership to the club will also include special programming, such as a Common Knowledge Series, an ongoing series of seminars by local craftsmen ranging from home craft brewing to “whole hog butchery,” as noted in the application. The owners declined to disclose how much a membership will cost.

According to Planning Commission meeting minutes, city staff says the proposed private club would not be out of character for the downtown area and would complement nearby businesses, but they do have concerns about the potential for a new owner to change the club’s business model in the future. For that reason, staff imposed the condition that there should be no noise, vibration or odor beyond the confines of the building between 1 and 8am.

In a December 15 meeting, the Board of Architectural Review recommended approval of the special use permit in a 7-0 vote.