The following letter was sent on May 19 on behalf of the Skinker DeBaliviere Community Council
Dear Chancellor Wrighton;
The Skinker DeBaliviere Community Council has historically described its mission to include the stabilization and improvement of housing in the neighborhood. This is reflected in the 1991 Skinker-DeBaliviere Housing Corporation's "Interim Housing Strategy", prepared with input from residents and collaboratively with CDA. Its long-term goals include 'increasing owner-occupancy, discouraging speculation by absentee landlords, reducing the density and improving the residential character of the neighborhood.' In that context, the University's forgivable loan program to encourage employees to purchase and live in homes in Skinker DeBaliviere is perceived to have positive impacts upon the neighborhood. Subsequently, Council members have learned that employees receiving these loans are required to sign Right of First Refusal agreements.
Therefore the Skinker-DeBaliviere Community Council requests that Washington University permanently discontinue the use of the Right of First Refusal agreements for residential property purchases by university employees in the Skinker-DeBaliviere neighborhood, eliminating this component of an otherwise excellent program. This request is a result of a motion passed unanimously (with one abstention) by the Council at its May 8, 2000 meeting.
To put the request regarding the Right of First Refusal in context, please consider the following concerns, which have been expressed by residents:
a. The 30-year Right of First Refusal agreement, which grants a "continuing right of first refusal and option to purchase", stays in effect beyond the 5-year residence period required of the employee, and after the loan's forgiveness or repayment takes place; b. The agreement is "binding on successor owners", even if they are not employees, or did not receive a forgivable loan from the University; c. It is our understanding the agreements are in effect mostly with single-family residences, though Vice Chancellor Roloff in November 1997 specifically told the Council in response to a question, that the University had no interest in owning single-family residences; d. It is being applied to purchases east of Des Peres, though the university indicated at an August 1999 meeting, that it had no interest in ownership in that area, since it was too far from campus; and e. It increases the potential for a substantial concentration of property ownership when the number of properties with the Right of First Refusal purchase option are added to the 48 residential properties already owned by the University in the Council's service area.
These and other items create a situation with far-reaching and potentially negative implications for the long-term viability of our balanced and diverse community.
Council members have had meetings with the University that have been constructive. Your willingness to listen and respond to neighborhood issues is recognized and appreciated. We would like to meet with key university representatives to explore in more detail the University's position and the neighborhood's concerns surrounding this matter.
With best personal regards,
Daniel Schesch, President
cc: Steven Givens Suzanne Goodman Richard Roloff SDCC Board of Directors
In a letter dated May 23, Chancellor Wrighton replied:
"Thank you for your letter dated May 19th asking Washington University to reconsider its use of right of first refusal agreements in connection with its forgivable loan program for employees.
I understand your concerns and assure you that we will consider your request.
Yours sincerely,
Mark S. Wrighton"
Original newspaper source
Originally published in The Times of Skinker-DeBaliviere, June–August 2000.
Read this article in the original newspaper issue.
