In 1977, when Charlottesville resident Ethel Crowe acquired her property adjacent to the University, at 408 Valley Road, she paid a total of $40,000. When the plans for the South Lawn project were unveiled and the University's desire to expand into Crowe's neighborhood became public, the value of her property skyrocketed. When she sold her Valley Road property to the University last year, along with another residence on nearby Brandon Ave., the true value of her investment became apparent. For her properties, with a current collective value of $715,200, as assessed by the City, the University paid $1.5 million. Thanks to the South Lawn project, Crowe and her neighbors are living on million-dollar lots. But is the University really getting its money's worth?
The South Lawn Demolitions
According to the U.Va. Foundation, the body of the University that oversees its real estate purchases, demolitions will begin this month to make way for the South Lawn development. Four properties are scheduled to be torn down this month, including Crowe's. Several more will follow this summer. Though the start of work on this project was anticipated, the prices the University paid for the houses it plans to demolish are unprecedented, with properties on Brandon Avenue and Valley Road selling for double or triple their assessed market value.
How much is too much?
This month the University will demolish the structures at 434 and 501 Brandon Ave., and 408 and 502 Valley Road. A total of nine properties in the area are scheduled to be torn down to make way for the University's new building project.
According to City of Charlottesville real estate records, the University paid well over the assessed market value for the properties, paying a total of $2.8 million for the four residences.
The University paid $1 million for the 1,813 square-foot house at 434 Brandon Ave. The city assessed the house at $461,000 in the 2006 property assessment. Crowe's properties at 408 Valley Rd. and 501 Brandon Ave. are 2158 square-feet and 2,166 square-feet respectively.
The University paid $300,000 for the 1886 square-foot house at 502 Valley assessed at $263,700. The house was bought by the U.Va. Foundation in 2004, before the South Lawn plan was finalized.
UVA Foundation CEO Tim Rose stated in an e-mail that the University plans to buy about five more residences and several apartment buildings to make room for the project.
The Realtor's Perspective
According to area realtors, price inflation of this kind is not surprising when it is known that a university, or any large institution, wants to expand.
Charlottesville realtor Stu Rifkin said there is a difference between assessed value and market value.
"The fact is that a piece of real property has a certain value on the open market, but to some individuals on the market, the property has additional value," Rifkin said.
For the University, the added value comes from land location.
"The University of Virginia has a greater need for property in the area than anybody else," Rifkin said.
Dave Phillips, chief executive of the Charlottesville Area Association of Realtors, agrees that interest in a property for a specific project often dramatically affects the price.
"Each individual property value is a unique combination of things," Phillips said.
Rose stated that a combination of factors weighed into the University's decision about how much the Foundation was willing to pay.
"Assessed value and market value are subjective terms. The recent change in zoning has added value from a development perspective, hence the recent increase in the number of new apartment complexes in this area."
Rifkin said he believes that this sort of expansion is beneficial to the University and Charlottesville as a whole.
"The University needs the property and the City of Charlottesville should be thankful that the University is vibrant and growing and well run and its resources are serving so many people," Rifkin said.
Eminent Domain
According to University spokesperson Carol Wood, the school has the ability to acquire property through the right of eminent domain.
Through eminent domain, the University, as a public entity, can seize property to make it available for public use and pay only assessed market value for the property.
Wood said that although the University has that right, it has never exercised that option.
Rose also stated that he has no knowledge of eminent domain ever being used by the University.
"I think the University would rather first try to work out a transaction with a prospective seller," Rose said.
Rose added that he did not know whether the University would ever seize land because it has always been successful in working with prospective sellers.
Phillips said he believes the University's reluctance to expropriate property stems from practical reasons.
"The eminent domain process likely takes a lot longer," Phillips said. "If it is just a couple lots, it is probably cheaper for them to just buy the land.
University Law Professor Thomas R. White said the reason is more likely concerned about public relations.
"I guess is it has to do with thier relationshhip to the commmunityand the kind of adverse reactions they would et from the community," White said.
Read More
PBS NewsHour correspondent speaks on bringing humanity to international conflict
By Grace Little | YesterdaySchifrin's work exploring Putin’s Russia, his coverage of COVID-19 and his reporting in Afghanistan and Ukraine have earned him various accolades.
Spring meal swipe drive aims to tackle food insecurity at the University
By Nicolas Biernacki | YesterdayU.Va. Dine facilitated the drive by converting each meal swipe donated by a student into one pound of food that is then donated to the CFP.
Winsome Earle-Sears talks higher education in first U.Va. event of the campaign
By Ford McCracken | 3 days agoA Jamaican immigrant and a U.S. Marine Corps veteran, Earle-Sears is the first female lieutenant governor of Virginia,
