When the Piedmont Housing Alliance begins construction of a 71-unit apartment complex in Fifeville later this year, it will do so without anyone in place to operate the desired community space required for the complex’s approval.
City Council voted in September 2023 to rezone 501 Cherry Ave. on the site of a former supermarket that will be demolished as part of the redevelopment. One of the conditions required that the “owner agrees to reserve a minimum of 5,000 square feet of commercial space at the Property for lease to a small grocery store that sells fresh produce.” For many years, an IGA supermarket was housed on the site.
The Fifeville Neighborhood Association took the lead in identifying a group that could operate the market. A group called the Charlottesville Food Co-Op formed in early 2025 and began the process of fundraising and figuring out logistics. PHA and Woodard Properties selected the co-op to be the operator in May 2025.
The city’s Department of Neighborhood Development Services approved a site plan in March 2025 that included 6,742 square feet for the store. The site plan also called for 11 dedicated parking spots.
Approval of a site plan is a necessary step to apply for secure low-income housing tax credits from the Virginia Housing Development Authority; PHA received 40 in the 2025 cycle for the project.
On July 20, the co-op issued a statement announcing it was no longer involved with the project after hiring Seven Roots Group to conduct a feasibility study of the site.
“Last month the Co-op determined that the current site plan, as designed, coupled with the already thin profit margins in the grocery industry, does not provide a path for a financially viable, full-service grocery store focused on affordable food access,” reads the statement.
Purported design issues included a lack of parking, inadequate space for large semi-trucks, and challenges with storing trash and recycling. According to the statement, the co-op sought adjustments to the design and were told that changes would cause a delay and put funding at risk.
“While disappointed by the outcome,” the statement continues, “the Food Co-op’s Steering Committee members have not dismissed the possibility of exploring other locations where a community-owned grocery store might operate successfully and serve residents for generations to come.”
Sunshine Mathon, PHA’s executive director, said space was set aside in the site plan with guidance from potential operators to meet the community vision. Efforts will continue to find a tenant, building off existing fundraising efforts.
“We are encouraged by ongoing conversations with other grocery operators who have concluded that the site is, in fact, a viable opportunity, and we will continue working alongside the FNA to find the right fit for Fifeville,” Mathon says.
Mathon said the goal is to break ground this fall, with completion in the spring of 2028.
