The I Love CVille Show With Jerry Miller! - Fifeville Student Housing - Livable CVille Responsible; Landmark Prop Behind The Standard & The Mark

Episode Date: May 6, 2026

The I Love CVille Show headlines: Fifeville Student Housing – Livable CVille Responsible Landmark Properties Behind The Standard & The Mark The Standard: 6-Stories, 649 Units, 661 Beds The Mark: 7-Stories, 180 Units, 770 Beds Landmark Sold The Standard To Morgan Stanley ($1B+ Deal) The Mark Will Eventually Be Sold; Fifeville Eviscerated Video: Attorney Valerie Long Teaches Council Zoning I Love CVille #1 Media: PHA Buying 501 Cherry Ave Read Viewer & Listener Comments Live On-Air The I Love CVille Show airs live Monday – Friday from 12:30 pm – 1:30 pm on The I Love CVille Network. Watch and listen to The I Love CVille Show on Facebook, Instagram, Twitter, LinkedIn, iTunes, Apple Podcast, YouTube, Spotify, Fountain, Amazon Music, Audible, Rumble and iLoveCVille.com.

Welcome to the I Love Seville Show, guys. My name is Jerry Miller. Good Wednesday afternoon to you. Thank you kindly for joining us on the water cooler of content and conversation in Charlottesville, Central Virginia, the Commonwealth, the country, and the world. This show spares no expense. We are unabashed. We are unaffiliated. We are unafraid.

We are unfiltered. It's long-form content that you can find no other place in central Virginia. Today's show, we will respond and react to Monday, Charlottesville City Council meeting. meeting, a meeting that will either go down in history or infamy. And I think most likely it will be infamy. Charlottesville's Fifeville neighborhood is straightforwardly on the cusp of being eviscerated as we know it today. On Monday evening, in a three-two vote,

Charlestville City Council ruled against the Board of Architectural Review vote, overturned it, and green lit a seven-story 180 unit, 770-bed apartment tower in the smack-dab middle of historically black Fifeville neighborhood.

I'm going to respond and to react to yesterday show in Charlottesville City Council. It's meeting from Monday night. I'm going to compare and contrast the mark, which is the student luxury tower that is now in the works for Fifeville, to the standard, the student luxury tower, that cast an overwhelming and dominant shower over public housing West Haven.

The standard and the mark have a common denominator, both developed by landmark properties. Landmark properties sold the standard as part of a larger deal for a billion dollars. One billion dollars landmark properties sold a portfolio of eight student housing properties across the United States of America, including the standard on West Main Street,

home to where Potbelly Sandwich Shop was. That's its most known landmark pot bellies in a $1 billion deal. Let's not forget, this is just a wild time, let's not forget that the flats on West Main Street were also sold. If anyone thinks landmark properties is going to own the mark long term, you're not reading the tea leaves correctly. Morgan Stanley, ladies and gentlemen, Morgan Stanley, ladies and gentlemen, the purchaser of the standard on West Main Street in that $1 billion-plus deal. I'm going to show a video from Monday night's council meeting of Valerie Long. She's a very talented attorney.

She's a partner at Williams Mullin. And on Monday night, Valerie Long, who guides property owners and developers through the intricacies of obtaining local government land use approvals in the Charlottesville region. So she is basically who you put. on retainer and you hire if you want to bring a big project luxury student apartment tower, for example, to market. She's who you hire if you want to start doing some development locally. Valerie Long, I hope you watch this program.

I have tremendous respect for you, Valerie Long. You've come on the I Love Seville Network in the past. I was impressed with you then. I'm even more impressed with you now. Valerie Long, you are a badass. I'm going to show four minutes. it roughly four minutes, this clip? Three to four minutes of Valerie Long in real time during Monday night's Charlottesville

City Council meeting, educating, if not teaching Lloyd Snook, Michael Payne, and the counselors on the dais during a real live meeting of what the new zoning ordinance is all about. Still, it's clear, Charlottesville City Council is not 100% up to speed with the new zoning ordinance. We'll talk about that on the show today. I love Seaville. this network, this platform. I can't believe I'm saying this, dude. This is, my firm is 18 years old on the 28th of May.

So in 22 days, my firm will celebrate its 18 year anniversary. And I continue to be amazed with the work we're doing. I say that as a humble brag, but very candidly and straightforwardly. Last week, it was longer than last week. Nearly two weeks. weeks ago, we reported on the I Love Seville show that 501 Cherry Avenue was on the cusp of being sold to the Piedmont Housing Alliance. There's not a single media platform locally that's reported upon this, not a single one. I'm going to once again play the video on today's show of Sunshine Mathon, the executive director with the Piedmont Housing Alliance, asking city council for approval to to use taxpayer dollars to purchase 501 Cherry Avenue.

Why is this not being reported by anyone? Why is it our responsibility to drive the new cycle at I Love Seville? Why is it our responsibility to educate a 300,000-person community about what's going on around here? Why is every media outlet in town watching what I'm saying right now? I encourage you to join our substack and become an eye. I Love Seville Insider. It's an $8 a month subscription. Today, we reported upon real estate transactions that involve the University of Virginia

Foundation, a $14 billion, $15 billion backed entity. A piece of real estate in Charlottesville City recently transacted, recently closed, with UVA, the foundation as the buyer. I Love Seville Insiders, our subscribers, are the first to get this information. significant information. If you're not subscribing to I Love Seville, you are literally not as smart as the people that are subscribing to I Love Seville. Period. Facts. Facts. Facts on facts on facts. I'll give some attention to Charlestville Sanitary Supply and Charlottesville Swimming Pool Company. They've been in business for 62 years. If you need a swimming pool constructed above ground, or in ground, you call Charlottesville Swimming Pool Company. If you need your water tested, your pool clean, you need a new pool cover, you need shade for your pool, or you need a pool robot to clean your pool, you call Charlottesville Swimming Pool Company.

Charlottesville Swimming Pool Company.com. And anything cleaning related, it's Charlottesville Sanitary Supply and the Vermillion family. 62 years in business, five generations in Almar County, three generations of business owners. cleaning, sanitary, vacuum, vacuum repair, Bona, Charlottesville Sanitary Supply, period. I'm going to start the program with some accountability. Livable Seaville is a non-profit locally. Liveable Seaville. Its co-chairs are Matthew Gilliken and Stephen Johnson.

Both of them work, Stephen Johnson and Matthew Gilliken for the University of Virginia. If you want to point a finger at somebody over the mark and what it's going to do to Fifeville, it's going to eviscerate and destroy a historically black neighborhood. You first point the finger at Livable Seville and Matthew Gilliken and Stephen Johnson. They pushed a new zoning ordinance through. They relaxed the zoning. They pushed density. They pushed density and relaxed zoning because they thought that it would create

price stability through additional supply of housing stock. I was immediately out of the gate saying, you're wrong, livable Seaville. If you relax the zoning, all you're going to do is take your historically black, you're historically brown, and your historically poor neighborhoods, and make them targets for deep-pocketed developers

because the land there is cheap and it's easy to assemble. And that's exactly what happened. livable seville incorrect our stance correct the mark in fiefill destroying the neighborhood point your figure first at livable seville the changes that they have pushed over the last 10 years five to 10 years have radically impacted charlottesville city and now they're trying to do it in amar county that's the first folks you hold accountable they bullied city council into this new zoning ordinance and they did it in very public capacity. The second folks, you need to hold accountable city council.

It's absolutely city council. And anyone who says, OSHA economics, what did Nakaya Walker call it? I'm taking this from Nakia Walker. I'm giving Nakia Walker props for this. Oshronomics? I think we called it Oshronomics, but I think you said Osharing Economics.

Yeah, she called it Oshron Economics. I think we should change that word to oceanomics. Nakaya Walker, we're going to just call it oceanomics. On Monday's meeting, she said, hey, hey, hey, hey, hey,

more supply, more supply, more supply, cheap housing, cheap housing, more supply, more supply, let's green light this project, cheap housing for everyone. That's what Natalie Osheron said. She's not taking consideration history, legacy,

gentrification. She's not taking into consideration vehicle traffic, congestion, environmental impact. She's not taking into consideration the amenity effect. She's not taking into consideration the socioeconomic profiles. She's not taking into consideration tax assessments, trickle over tax assessments. And basically, Charlottesville turning into a white, rich playground even more so. Facts on, facts, on facts.

I'll conclude the opening monologue by encouraging you the viewer and listener. If you're holding someone accountable, it's this lobbying group livable Seville. Your first level accountability. Second, it's the counselors without question. Now I'm going to transition by discussing the mark and the standard. I'm going to encourage Judah Wickhauer to put the Fifeville development rendering on screen. Give me a thumbs up when it's on screen, please. Look at the screen, look at the screen, look at the screen.

This is directly behind this project, the church that's on West Main Street. And the church that's on West Main Street is First Baptist Church. This is across West Main Street from Maya Restaurant, directly behind the church that's across from Maya Restaurant from Albarcos. What was it? Marisco. Marisco Al Barco. This is in Fifell. Seven stories, luxury,

180 units, 770 beds, $2,000 per bed per month. Monthly rent roll, $1,540,000, yearly rent roll, $18,480,000. Buildings that produce

yearly rent rolls that are $18,480,000 intrigued the rich of the And that's why Morgan Stanley, you ever heard of Morgan Stanley, folks? In a $1 billion deal purchased the standard among seven other student housing properties, eight in total, and the fourth quarter of last year, November to be exact. Morgan Stanley purchased the standard and seven other student housing properties across the United States from landmark properties and a $1 billion deal. Deep Throat, if you're watching this

program, I ask a kind favor of you. I was unable to find what the standard traded for online. I couldn't find it in the GIS. I searched by the address in the GIS. Morgan Stanley has since Deep Throat, this will help you, has since rebranded the standard to Hugo Crestline. Y, U, G, O, and Cressline. I searched the address that's listed online for the GIS to see what this traded for. Is there any intel that you can find specifically of what the standard traded for Deep Throat? I know it was a $1 billion deal with eight total properties. I'm talking specifically the standard.

I know it traded as a package with a bunch of other properties. Is there any way he's actually DM and me right now, I see the bubbles? Is there any way we can specify directly how much the standard traded for? All right. He says you probably won't see a transaction. The LLC got bought, not the property, if I have to guess. Yeah, that's what I think exactly what happened, deep throat, that the LLC got bought, not the property. Do we have any idea what the standard traded for?

And I think it's important to know this. This is why I'm asking this man who's very educated, fantastic family, fantastic kids, this specific question. because the developer behind the standard on West Main Street where potbellies is located is the same developer behind the mark in Fifeville. Common sense would suggest that if you sell the standard on West Main Street, and common sense would suggest that if the flats on West Main Street also traded in October of 2025 for $107 million, that the mark will eventually trade in Fifeville. Why I bring this to your attention is for the following reasons. The people that are discussing, the people that are presenting, the people that are pitching,

the people that are seeking approval before city council right now, the people, the men and women that are asking counsel for approval, that got this three-two vote approval, the men and women that are meeting with the Fifeville neighborhood that are trying to say, we are going to be good stewards of your neighborhood. The men and women with landmark properties that are saying, we are going to look out for what's best for Fifeville in having these town halls and these fired side chats. These men and women have good intentions now, but these men and women will not be the owners of this significant piece of real estate moving forward.

The new buyer will have no ties to Charlottesville, no ties to the approval process, will have no, no human name associated with Charlottesville. It's just going to be some kind of institution, some kind of private equity, hedge fund, some kind of reet, some kind of conglomerate. And they won't give a rat's ass about FIFO. Not a rat's ass about FIFO. That's just how it works.

So compare and contrast what happened with the standard, the developer landmark properties of the standard, six stories, 649 units, and 6161 beds. Two, the developer landmark properties of the mark. The mark, 7 stories, 180 units, 770 bets. Because what happened with the standard is the future of the mark. It's going to be traded.

It will be sold. And whoever buys it, won't talk to council. We'll talk to the neighborhood association. won't have a fireside chat, won't have a conversation with community members. They're just going to have a lot of dry powder. And they're going to probably roll it up and bundle it

into some kind of seven or eight student tower deal in seven or eight different markets across the country, just like the standard was rolled into a deal that had eight student towers all over the country and Morgan Stanley dropped a million dollars, a billion, a billion, a billion, a billion, a billion, a billion dollars for it, a package. Deep Throats exactly right. He says, one of the sellers of the package is in Abu Dhabi Investment Authority.

He's talking about the standard. I'm not going to say, come out and say that ADIA is a client of mine, but let me ask them. And he says, the end state of all these kinds of properties is they end. up in some kind of real estate investment trust. So Fifeville, Fifeville Neighborhood Association, Charlottesville City Council, Sam Sanders, Matthew Gilligan and Stephen Johnson, specifically Matthew Gilligan and Stephen Johnson. The mark, you wanted density, the mark, you wanted housing stock, the mark, you wanted more supply because you thought it would stabilized price point.

You have literally let the wolf into the henhouse. this is the wolf in the hen house and the wolf is licking its chops because the wolf is going to do like what wolves do and it's just going to start eating the shit out of all the housing stock that's all over Fifell

eating it and this metaphor is speculating rehabbing tearing down renovating building up charging more finding mommies and daddies of the 1% that are the UVA population to black Amex, Porsche Carrera, Volvo SUV, Tesla, Gucci bag, Louis Vuitton bag, their $2,000 to $2,500 a month rents.

And to say FIFIL will be eviscerated in the next decade is the most significant understatement I've ever made on this program. The most significant understatement I've ever made on this program. And he's exactly right. that it's pretty funny that a bunch of Charlottesville socialists just put billions of dollars into the pocket of a real estate private equity firm. Socialism going to socialism, all right. And we told you this was going to happen.

We told you this was going to happen before COVID. We have it documented dozens of times on video, on audio, and in the written word that this was going to happen. And you didn't listen. and you know I'll be very straightforward as someone who's got 24 doors that speculates

that invest that buy stuff that offers 295 to 395 an hour consulting to folks in this region and beyond for businesses like mine and for folks that own businesses like mine

this is just going to drive profits and top line forward my kids are two boys they want to take over the family business the family real estate portfolio and do what we do they're just in a stronger position it's going to damn diversity

equity and inclusion now I'm going to play some video for you I'm going to play some video for you on Monday night Valerie Long a partner with Williams Mullen who's obviously

on speed dial for international, national, and regional developers if they want something to get done. Valerie, this is a commercial for you, frankly. I'm extremely impressed with you. I'm going to play four minutes of council meeting from Monday night where Valerie is basically teaching city council about zoning here while they're on the dais.

I really want you to pay attention to Michael Payne, the city councilor who just moved out of his parents' house. who's number one, whose primary way that he pays his bills is the $18,000 he makes as a Charlottesville City Councilor, Michael Payne. Even Lloyd Snook here is getting a masterclass from Valerie Long on the new zoning ordinance. I mean, watch this. And then I'm going to play a video from a city council meeting from two council meetings ago of Sunshine Mathan, the executive director of the Piedmont Housing Alliance, where he's basically asking counsel for a blank check.

says we want to buy 501 Cherry Avenue. Traditional media is still stuck in like the first inning of the story. Oh, the grocery store. Food desert. How's it a food desert if there's a food lion within walking distance of Fifeville and Cherry Avenue? You can get to the Fifeville Cherry Avenue and to the food line on Fifth Street on foot in what? 15 minutes? Seriously.

How long would it take to get from Tonsler Park to the food line on Fislein? fifth. Fifteen, twenty-minute walk? Food Desert. This is all smoke and mirrors or branding or perception utilized to drive subsidy and utilized to drive

political and social and lobbying and neighborhood engagement for someone on the back end to pad pockets. First of Valerie Long, the Valerie Long clip. Do you have that ready to go? Yep.

I'm going to put my earbuds in, and I'm going to listen to this for a tenth time, and I want you, the viewer, and listener, to watch as City Council, my earbuds are in now. I'm going to go to one of the 27 social media pages and podcasting platforms that is currently airing this show, and I'm going to listen to it. All right, I hear myself talking while I'm talking. Print radio and television is watching the program. Conan Owen, you and I are... So different in how we look at things.

Why are you complaining about properties being traded? You know why? Because you're taking a historically black neighborhood in Charlottesville City that is literally one of the few pockets of diversity in this city and you're eviscerating it. You're dropping a bomb on it. I want our two sons to live in a community that is diverse and not just homogenous white and wealthy.

I have an 8-year-old son and a 3-year-old. I'm now concerned with what Charlottesville looks like for my kids. You do not have kids, Conan. That's the difference in perspective that we have here. I am concerned what this community looks like for two little boys. All right. I want to play this, and this is Valerie Long, partner at Williams-Mullin, and three, two, one.

Those two IPP lots. If you could, first, could I ask to go to the next slide, if I could tag on to your comment about the zoning, Councilor Snow, because I think it's an important part about whether they were considered or not. This is the same current zoning map, just zoomed in a little bit to show the context of how all those parcels in orange, as you accurately noted, are zoned RX5, and they function as a transition from the R. N-A in the pale yellow, in the R-B, in the brighter yellow,

from there to across the railroad tracks where you have the slightly lighter red shade is quarter mixed use five, and then on that slightly darker to the next Balacover where the train station is, CX8. So that's kind of the current pattern. If you go to the next slide please, you see it's really a continuation of the exact same pattern that was in place at least as far back as the 2013 district.

Unfortunately, the old map showed all mixed-use districts in pink, but where the parcels are, all those parcels that are currently zoned RX-5 were zoned Cherry Avenue mixed-use corridor in the old ordinance. What's shown in orange is RX3, where you could actually go to 101 feet with a special use permit. But on the opposite side of the railway tracks, even though it's the same shade of map. This is under the old ordinance? That's the old ordinance.

So it wouldn't have been RX, just R3? No, excuse me, you're correct. R3. And that would have been by special use permit and unlike the current ordinance, there wouldn't be unlimited density by right? You're correct, exactly. But just in terms of what options were there potentially for height. But everything that is now RX5 was cherry. Avenue. What is now RB is shown in the orange orange parcels were R3 residential. The brighter

yellow there that was R1S. Now there are and A. On the opposite side of the railroad tracks, even though it's the same color, that was the West Main East zoning district, much more intensive than Cherry Avenue zoning. So again, it's the same pattern that was continued and I speculate that that may be why there was not much discussion about how those parcels were proposed to be zoned under the new code because it wasn't really a change it was just yes different districts instead of Cherry Cherry Avenue it's now Rx5 but a lot of the same transition in terms of intensity so remained in place I get we're getting a little off feel so I don't

want to go too down far down this rabbit hole but In your opinion, removing a special use permit requirement and having unlimited density by right isn't a change? I didn't say that. All I meant was that it was a similar pattern in terms of functioning as a transition between low-level residential, predominantly, if not entirely, single-family residential, to the much more intense mixed-use commercial districts. It was a pattern, certainly very, very different rules and regulations between the old and the new ordinance. So forgive me if I got on a tangent.

All right, that's Valerie Long, who again is going to get props and kudos for me on the I Love Seville show, a partner with Williams Mullen. I like McAllen 12, Valerie. Please. Joking. Not really. Not really. Not really.

That's literally on Monday night in the meeting. If you're going to hold somebody accountable for what's happening in Fifeville, it's livable Seville and it's co-chairs, folks. That's your first level of accountability. Brooks Baumgardner watching the program and he says, The I Love Seville Show and the I Love Seville Network puts local legacy media to shame on a daily basis. Thank you. John Blair has comments from LinkedIn that I'm putting in DMs to Deep Throat on Twitter. Deep Throat, check the Twitter DM.

This is John Blair's comment. Jerry, Deep Throat is 100% correct. And that is where. the idea of more density ends. Absolute and total destruction of local ties and control of property. Perhaps deep throat can correct me, but I would estimate that 75% or greater of all private sector 100 plus unit multifamily developments built in America in the last decade ends up syndicated in a real estate investment trust. It's all about providing yield, rents to the wealthiest individuals in the world. That's the reality of multifamily market today. Each one of the

these projects just results in higher monthly income reed yields for the wealthiest people in the world 100% right 100% right 100% right look and I know this from like at the local level like I am so effing small potatoes here I have 24 doors 24 I also help put humans bodies lease executive office space help executive office space get filled in totality with what I own and what I'm helping lease put together, fill, evolve, remodel, just basically monetize. It's probably under my purview somewhere between 150 and 200 executive office space doors. When one person backed by a network that reaches a lot of people has 150 to 200 doors at their disposal, they can set the market. One person with a massive social media following can set the market.

when they have 150 to 200 doors at their disposal. And everyone wins on that supply chain. My clients, me, the subcontractors, are providers. Everyone wins there. We can set the market there, folks. Imagine what's happening when Morgan Stanley owns eight apartment towers. Imagine what, luxury student apartment towers. Imagine what happens when landmark properties builds the standard, develops it, and sells it to Morgan Stanley for in a billion-dollar transaction, rolls it up in a deal.

Don't you think that landmark properties is going to follow the exact blueprint it used for the standard and these other seven other properties that it rolled into a $1 billion deal and do the same thing in Fifeville and probably optimize it even more learning from its mistakes? And the people that buy it, the next Morgan Stanley that buys the mark, ladies and gentlemen, is not going to give a rat's ass about Vinegar Hill or history, or Mr. Jones, or Mr. Miller, or Mr. Wickcower, or Mr. Anderson, or Mrs. Smith, Mrs. Klein, Mrs. Linsky, Mrs. Corini that lives in Fifeville and has been there for generations. All they're going to care about is yield and rent roll. and vacancy and occupancy and escalators.

That's it, period. And the buyers will never even have to step foot in here from a politicking or lobbying or pitching or presenting or fireside chatting standpoint. Now, I'm going to close the program here on the water cooler of content and conversation. And I want to give some attention to partner Stanley Martin Holmes who's doing business the right way here locally.

They got 600 homes that they've built in the last 24 months, Stanley Martin Homes, in Charlottesville, Almar, and across Central Virginia. 600 homes in central Virginia. Dedicated to building homes that cater to each person's unique needs and lifestyles. Stanley Martin Homes, high-quality, single-family homes, townhomes, and condominiums. Design and constructed with innovative techniques to ensure exceptional efficiency and aesthetic appeal. Stanley Martin Homes is doing fantastic product in Green County. fantastic housing in Green County. Stanley Martin Holmes is about to bring fantastic housing

to Breezy Hill and Keswick next to Glemore. The Stanley Martin product is A++++ plus plus plus. They care. They live here. A lot of the folks that work for this firm in this market. I'm going to close the program, ladies and gentlemen, with a sizzle reel. And John Blair, you have an answer from deep throat.

Real estate investment trusts own like a one. 1.2 to 1.5 million multifamily housing units. They are heavily focused on large Class A projects. So while they don't own a huge portion of total multifamily, maybe 2%, they own a very large portion of large Class A. I think it is like 20 to 25 million units in large buildings. Maybe 25% of these are Class A. I'm going to close the show by playing a video for the second time.

playing this for the print and radio and television that's watching the program. You guys, if you're not covering this, you're doing a disservice to our community. This is why I encourage the viewers and listeners to subscribe to our substack at $8 a month. It's literally the price of a cup of Starbucks coffee. The hundreds of subscribers that are doing this already, the even more subscribers that are subscribing to jerry rackliff.com at $8 a month, are getting the best content coverage possible in the respective content verticals. Jerry Rackliff.com, UVA sports from a man that's been on the beat for more than 50 years.

Virginia Sports Hall of Famer, $8 a month, 40 pieces of content per month. I love Seaville from a man that's been in the market for 26 years that used to work for print, radio, and television. That is a multi-time award-winning Virginia Press Award winner that was trained by Jerry Rackleff. truly 40 to 50 pieces of content per month on the I Love Sevo substack. I'm going to close the program with content that we aired on the I Love Seville show that will forever be free, but clearly is a gateway and marketing vehicle for our subscriber content. This is called cross-pollinating your content, vertically integrating your content,

creating content at scale to drive top line revenue. It's a company that we're running in the black while leaving the community, in a better place than when our company first started because we're educating the community of what's going on around here. Here's a microcosm of what I'm talking about. I'll close the show with Sunshine Mathan, the executive director, before City Council two meetings ago, basically getting approval.

The first guy you're going to see in this video is James Freeze, which is Sam Sanders' lieutenant. And then the second guy is Sunshine Mathan, the executive director of Peabon Housing Alliance. Why the F has no one local, reported on what you're about to see. Like, Sevo right now, at least do this, Daily Progress, you pretty much T-Rex bones under the dirt

that were now using a paintbrush to brush off the dirt to find your bones. NBC29 and CBS19, you have no personnel in your newsrooms, and the personnel you hire are 22-year-olds that stay there for 18 months and then leave to a bigger market. I mean, Sivo, right now, you need to cover this. Play Sunshine Mathan. After this, end the show, because I have a 115 meeting with the developer that is really, really important how we really pay our bills. So here's Sunshine Mathan, Pibon Housing Alliance, basically asking counsel for a blank check so he can buy 501 Cherry Avenue, the grocery store site across from Tonsler Park.

I'm Jerry Miller, and that's Judah Wickhauer. And this is the water cooler of content and conversation. Cherry project. This item before you represents essentially a modification to that authorization. It's an ordinance that would authorize the city manager to to provide for that loan agreement to allow PHA to use some of those funds for acquisition of property. So it's noted in the staff report has been city's typical policy that we only provide funds towards construction costs on a reimbursement basis

or to essentially buy down the affordability level of a unit. In this case, because being able to use these funds towards the acquisition of the property would result in a substantial overall project savings. Staff is offering and recommending that the city manager be authorized to allow some of these funds to be used for property acquisition.

Again, Executive Director of PHA, Sunshine, athon is available to answer any questions that you may have for him, and I am here as well. I'll start down here. Michael, do you have any questions on this? So I know we discussed this before, but just for the public's benefit, is this change just for this specific policy, or is it kind of citywide allowing it as a potential activity? No, only for this project.

Okay, and that's something could be... There certainly could be future discussions around the policy itself and how it might apply to other projects. I think we're open to looking at that, but for right now this evening, we're looking at this project alone. Sure. Got it. I think it's worth thinking about, you know, citywide, but I know we're just here tonight. So for the public's benefit, just what is the reason for making this change? I'm gonna go ahead and defer to PHA.

Good evening, Sunshine-Matham, Executive Director Piedmont Housing Alliance. So the original purchase of the site and the current owner of the site was done by watered properties, they purchased it with a line of credit. So every day, month year that passes they pay interest rate payments on that acquisition original acquisition financing recently we've had a delay in the start of the

construction of the project we've the equity investor has pushed us to the next bond round which will be more towards the September October time frame unfortunately it's incredibly frustrating for us and every person and organization on the on the partnership but it's outside of our control because that's another four months of potential four to five months of potential cruel of interest payments on the acquisition cost that would originally made with using using debt by closing on the land now we would then allow him to repay the the loan and there would be no further interest payments so it

It reduces an increase in cost that we would otherwise see because of the delay over the next four to five months. And just at ballpark, it's about $20,000 a month in interest payments and other related expenses. So it's not insignificant. So we end up saving $100,000. Plus or minus, yeah. Other questions, Michael? Thank you. No.

I think, yeah, that covers it. I would just say long terms, I think it would be worth to consider. about the policy citywide because more and more localities I've seen are using acquisition of land to either pair vouchers with existing older units or preserve naturally affordable housing and it's way cheaper per unit the new construction so it's just interesting I know that's separate from tonight but I am in support of the ordinance in front of us tonight Natalie have any

No, I'm not. Okay. Lloyd? Okay. I'm good. So with this, we can take action on this one. Is there a motion to approve? So moved.

I'm moved the ordinance on modification of the terms of the 501-chary loan agreement. Second. Second? All in favor, please say yes. Yes. Yes.