The Virginia Informer

Last Updated:11/4/09 Section: News

In an era of mounting federal budget deficits, it is often easy for Americans to identify examples of fiscal waste at the national level. Some residents of Williamsburg, however, contend that their own city government is a rather egregious example of wasteful spending.

Since early 2006, the city has lost approximately $120,000 of taxpayer money in a seemingly-bungled purchase, renovation, and subsequent resale of a Harrison Avenue home, an action that, according to some, was meant to deny a potential off-campus housing location to William and Mary students.

Critics allege that not only has the deal been immensely wasteful, but that corruption on the part of city officials may have led to the deal.

In 2005, 110 Harrison Avenue was a residence available to rent, both for students and non-students alike, but was traditionally inhabited by students. In early 2006, David Kranbuehl, a chemistry professor at the College and the president of the Home Owners' Association of West Williamsburg Heights entered into contract to purchase the property for $277,005, roughly $129,305 above the assessed value of the property. He then assigned the rights of the contract to the Williamsburg Redevelopment and Housing Authority (WRHA). Both transactions have yet to be fully explained and have been subject to much speculation and theories of greater conspiracy.

The WHRA then proceeded to extensively renovate it, in hopes of reselling it for a net profit to a new, non-student permanent owner. The primary renovation was changing the property from a duplex to a single-family home.

In all, as of January 2009, the City had spent about $420,000 on the purchase and renovation of the property. This number, however, does not include lost interest and other undisclosed expenses. According to figures from Phil Cerra, Williamsburg City Director of Finance, if one takes into account lost interest, the number jumps from $40,000 to approximately $459,400. In addition, it is estimated that the city spent an additional $1,000 on various undisclosed expenses. Thus, in total, it appears the City spent approximately $460,400 on this property.

Despite its best efforts, the WHRA was only able to sell the property for a final price of $340,000, costing tax payers a total of $120,000. The new owners ended up being College faculty - Jonathan Glasser (Anthropology) and Kathrin Levitan (History).

Local landlord Gary Shelly, after questioning the intentions of the above contract reassignment, submitted a Freedom of Information Act (FOIA) request for documents pertaining to the acquisition. Mr. Shelly has lived in Williamsburg for decades and is a graduate of the College.

Continued...

Page 1 of 2 next >

Article Tools