Council Discusses Transfer Fee & Ground Rent :: Local Trick-or-Treating Set for Oct. 31

by Leslie Lytle, Messenger Staff Writer

On behalf of the Sewanee Leaseholders, Louise Irwin addressed the Sewanee Community Council at the Oct. 26 meeting, ushering in a discussion about hardship posed by the transfer fee and ground rent, especially for non-university employees. The council also received an update from the Project Funding Committee.

Chartered in 1986, Sewanee Leaseholders, Inc., is in the process of reinstating its corporation, Irwin said. The group’s goals are to promote the interests of leaseholders, to assist the University in arriving at a lease policy and to provide a platform for discussing grievances. At a public meeting scheduled for 6 p.m., Monday, Nov. 9, at the Sewanee Senior Center, Irwin anticipates discussion about plans to establish a Welcome Wagon and concerns about the transfer fee.

“I hope the University will consider re-evaluating the transfer fee,” Irwin said. “It’s a big issue with many people.”

The ground rent and transfer fee policies differ for University employees and non-employees.

“Some people can’t afford to live here,” one community resident said, pointing to the increase in ground rent for a person who lost University employee status. He also cited potential hardship imposed by the transfer fee in inheritance circumstances involving non-employees.

Council representative John Flynn concurred, saying black residents were leaving the community because of the transfer fee’s impact on inheritance decisions. The policy “divides people on economic grounds.”

Another resident said the ground rent posed an even bigger burden than the transfer fee, especially for low- and low-to-middle income residents, because it increases on an ongoing basis relative to the increase in accessed property values. “In 20 years, I will pay the entire value of my house in ground rent,” he said. He recommended a fixed fee for ground rent.

Council representative Drew Sampson reminded the council that the University committed to revisit the transfer fee in the future following a decision five years ago to lower the fee from 6 percent to 4 percent.

Vice-Chancellor John McCardell agreed with the need for reviewing the ground rent and transfer fee and said the committee charged with examining the fees impacting residents should give due diligence to the issues raised.

The committee made its first report to the council last March, Provost John Swallow said. Complexity associated with evaluating the municipal service fee data has prolonged the review process, Swallow said.

Theresa Shackelford updated the council on the distributions made by the Project Funding Committee. The committee was established to review proposals for community enhancement projects on behalf of the council and to make allocations of up to $10,000 annually. In March of 2015 the committee recommended and the council approved awarding $9,975 to fund or partially fund seven projects. The committee has distributed just under $8,000, Shackelford said. Two grant recipients did not undertake the goals outlined in their proposals, leaving an additional $2,000 to be awarded in 2016. Shackelford said the committee will initiate the next request for proposals cycle earlier than it did in 2015. 

Sewanee Police Chief Marie Eldridge said trick-or-treat activities will take place on Saturday, Oct. 31 this year, the calendar day for Halloween. The council next meets on Jan. 25.