- November 3rd, 2006, 8:33 am
#38546
http://www.newsadvance.com/servlet/Sate ... 8736&path=
Liberty Village changes proposed
By Ron Brown
rbrown@newsadvance.com
November 2, 2006
A proposed change to Liberty Village would transform the financially troubled retirement community into an apartment complex targeting Liberty University students.
“We’ve already made the pitch to the bank,” said Jerry Falwell Jr., LU’s vice chancellor. “It’s a business decision and I’m sure they are considering all the ramifications. We tried to explain to the bank that we believe we can fill up those apartments with students a lot faster than we can sell out a retirement village. While a retirement village would still work, the market has changed because of Liberty’s growth.”
LU’s residential enrollment will likely top 10,000 by the fall of 2007.
In August, LU acquired controlling interest in a development company hoping to resurrect the Campbell County project, which has been mired in bankruptcy for several years.
At the time bankruptcy was filed, Community National Bank was the project’s chief creditor with a $20 million claim. Subcontractors who did work on the project filed another $3 million in lawsuits.
Earlier this year, the school paid $2.2 million to bring the project, located on Candlers Mountain Road, out of U.S. bankruptcy court in New York.
“It is our understanding that the money we paid will go to pay everybody except the bank and the bank has agreed to stay in the deal long term,” Falwell Jr. said earlier this year.
American Heritage Communities, a firm that took over the project from its original developer, Liberty Village Associates, had until Nov. 1 to show it could come up with the financing to build the project as planned. It never did.
“We haven’t seen a lot of forward progress,” Falwell Jr. said.
The local engineering firm of Perkins & Orrison has designed a plan that includes 520 apartments on a 60-acre tract, which will one day house an even larger apartment complex.
Falwell Jr. said the 520 apartments proposed would be considered Phase One of the project.
Liberty officials met about a month ago with Campbell County officials, who said the land would not need to be rezoned for the proposed apartment project, Falwell Jr. said.
The original Liberty Village plan covered 140 acres with 80 acres set aside for single-family dwellings.
“The new apartments would be affordable so they would appeal to off-campus students,” Falwell Jr. said. “One developer from North Carolina sent us a proposal this week. There is another group of local developers that will present a proposal on Monday.”
With the number of off-campus students reaching the 4,000 mark and growing, Falwell Jr. thinks there is a ready-made customer base for the apartment complex.
“We have surveyed that group and about 30 to 40 percent of them said they would like to live closer to the university,” he said.
If the bank approves the apartment complex idea, the new project will be called Liberty Ridge.
“It would cater to Liberty students, but not be restricted to Liberty students,” Falwell Jr. said. “The public could rent there.”
Falwell said he thinks the change from a retirement community to an apartment complex would be a “smart business move.”
“The final call will be the bank’s,” he said. “We are moving forward so the bank has that as an option. They might want to continue with the retirement village option. If they do, we’ll certainly honor that request.”
Liberty Village changes proposed
By Ron Brown
rbrown@newsadvance.com
November 2, 2006
A proposed change to Liberty Village would transform the financially troubled retirement community into an apartment complex targeting Liberty University students.
“We’ve already made the pitch to the bank,” said Jerry Falwell Jr., LU’s vice chancellor. “It’s a business decision and I’m sure they are considering all the ramifications. We tried to explain to the bank that we believe we can fill up those apartments with students a lot faster than we can sell out a retirement village. While a retirement village would still work, the market has changed because of Liberty’s growth.”
LU’s residential enrollment will likely top 10,000 by the fall of 2007.
In August, LU acquired controlling interest in a development company hoping to resurrect the Campbell County project, which has been mired in bankruptcy for several years.
At the time bankruptcy was filed, Community National Bank was the project’s chief creditor with a $20 million claim. Subcontractors who did work on the project filed another $3 million in lawsuits.
Earlier this year, the school paid $2.2 million to bring the project, located on Candlers Mountain Road, out of U.S. bankruptcy court in New York.
“It is our understanding that the money we paid will go to pay everybody except the bank and the bank has agreed to stay in the deal long term,” Falwell Jr. said earlier this year.
American Heritage Communities, a firm that took over the project from its original developer, Liberty Village Associates, had until Nov. 1 to show it could come up with the financing to build the project as planned. It never did.
“We haven’t seen a lot of forward progress,” Falwell Jr. said.
The local engineering firm of Perkins & Orrison has designed a plan that includes 520 apartments on a 60-acre tract, which will one day house an even larger apartment complex.
Falwell Jr. said the 520 apartments proposed would be considered Phase One of the project.
Liberty officials met about a month ago with Campbell County officials, who said the land would not need to be rezoned for the proposed apartment project, Falwell Jr. said.
The original Liberty Village plan covered 140 acres with 80 acres set aside for single-family dwellings.
“The new apartments would be affordable so they would appeal to off-campus students,” Falwell Jr. said. “One developer from North Carolina sent us a proposal this week. There is another group of local developers that will present a proposal on Monday.”
With the number of off-campus students reaching the 4,000 mark and growing, Falwell Jr. thinks there is a ready-made customer base for the apartment complex.
“We have surveyed that group and about 30 to 40 percent of them said they would like to live closer to the university,” he said.
If the bank approves the apartment complex idea, the new project will be called Liberty Ridge.
“It would cater to Liberty students, but not be restricted to Liberty students,” Falwell Jr. said. “The public could rent there.”
Falwell said he thinks the change from a retirement community to an apartment complex would be a “smart business move.”
“The final call will be the bank’s,” he said. “We are moving forward so the bank has that as an option. They might want to continue with the retirement village option. If they do, we’ll certainly honor that request.”
Isaiah 33:1
Woe to you, O destroyer, you who have not been destroyed!
Woe to you, O traitor, you who have not been betrayed!
Woe to you, O destroyer, you who have not been destroyed!
Woe to you, O traitor, you who have not been betrayed!
- By Dalegarz1