CITY OF CHARLOTTESVILLE, VIRGINIA
                  CITY COUNCIL AGENDA



  Agenda Date:        October 17, 2022

  Action Required:    Approve Resolution

  Presenter:          Samuel Sanders, Jr., Deputy City Manager

  Staff Contacts:     Brenda Kelley, Redevelopment Manager
                      Krisy Hammill, Director of Budget

  Title:              Appropriating $107,203.32 for Jefferson School African American
                      Heritage Center Rent Agreement (1 of 2 readings)


Background
The Jefferson School African American Heritage Center (JSAAHC) currently occupies and rents
11,065 SF of space at the Jefferson School City Center located 223 4th Street NW, Suite A. The rent
has been paid by JSAAHC using prior grants by the City Council of funding from what was formerly
known as the "Equity Fund". The grant resources were placed in an escrow account and used
monthly to cover JSAAHC’s rent from December 2012 – November 2017 and again over a 5-yr
renewal option that was exercised for the period of October 5, 2017 - November 30, 2022. JSAAHC
intends to execute a new lease for a 5-year period of December 1, 2022 – November 30, 2027 with
an option.

Discussion
The new lease rate beginning December 1, 2022, will be $15,314.76 per month. During the FY23
Budget discussions, JSAAHC requested consideration from council to provide ongoing grant funds to
ensure continued operations. At that time, council did not add any grant funds, but instead indicated
a willingness to revisit the matter, while determining how best to evaluate its agreements with
external organizations. That work concluded in early summer with work sessions on City Leases and
City-Owned Properties that have provided staff with direction on how to organize a consistent
process for following in the development, execution, and management of these types of
agreements.This arrangement with JSAAHC is different and requires additional consideration as it is
the direct payment of rent on behalf of a private entity, which may only be done in the nature of a
"donation", pursuant to the enabling authority set forth within Virginia Code 15.2-953.

The City Manager has reviewed the matter and JSAAHC is a nonprofit organization to which City
Council may make gifts and donations under the provisions of Virginia Code SEc. 15.2-953.

Alignment with City Council's Vision and Strategic Plan
This item aligns with Strategic Plan Goal: 1.5 Intentionally address issues of race and equity.
Community Engagement
City Council will resume discussions of special investment agreements as a part of their upcoming
strategic planning process.

Budgetary Impact
This item will use $107,203.32 from the existing Council Strategic Initiatives Account.

Recommendation
With City Council's approval, staff will remit the equivalent of 7 months of payments from the Council
Strategic Investments account to the Jefferson School Foundation’s Operations Account for
continued processing by JSAAHC as an ACH payment for the monthly rent. This would make the
new grant award: $107,203.32.

Recommended motion: “I move the RESOLUTION approving a gift or donation in the amount
of $107,203.32 to the Jefferson School African American Heritage Center"

Alternatives
City Council could choose to approve at a different amount or choose to not fund at this time.

Attachments
1.   Resolution_$107,203.32_JSAAHC