What's probably also going on under the surface here is that there's been a HUGE public battle between the UVA President and the UVA Board - that got so messy that the Governor of VA actually had to intervene.
In a nutshell, the Board (led by the head of the Board) fired the president a while ago, because she hadn't been cutting costs and closing useless and wasteful departments like she was hired to do. Firing the President was the correct thing to do, but the way the Board did it was NOT the correct way, and it caused a lot of drama. Ultimately, it ended with the Board being forced to hire the President back, partly pressured by the Governor, because he was tired of all the drama being played out in all the VA and DC newspapers.
Now the President seems to be more like a liberal type, and the head of the Board seems to be more of a conservative type - so my GUESS is that the President did not want to agree to let Obama come in, which would be both disruptive and expensive to the university, because it would just give more ammo to the Board to say "see, she really is incompetent and fiscally irresponsible"