RICHMOND, Va. -- Richmond announced the developer they selected to transform "The Diamond District" on Monday to redevelop 67 acres in Scott's Addition. Dozens gathered on Tuesday for the introduction of the team.
"This is a great day in the great city of Richmond. The Diamond is literally and figuratively behind us," Richmond Mayor Levar Stoney said to the crowd, with the Diamond baseball stadium as his backdrop. "And the Diamond District is our future."
The $2.4-billion plan from RVA Diamond Partners LLC will be built in four phases and will be anchored by a new baseball stadium to serve as the home for the Richmond Flying Squirrels. It will also feature two hotels, an 11-acre park, businesses, restaurants, mixed-income housing, minority ownership in the project and hiring minority-owned business throughout the building process.
"Our goal at the end of the day was to really complement the city's direction with the Richmond 300 plan and bring to it mixed-income housing, class-A office space, retail, local food and beverage opportunities, and two class-A hotels," said Jason Guillot, a principal with Thalhimer Realty Partners — one of the companies making up the LLC.
Officials said among the top priorities of phase one would be the construction of the new baseball stadium to have it ready for the 2025 Flying Squirrels season — as Major League Baseball had set that year as a deadline for its minor league teams to be in upgraded facilities.
"We have an accelerated construction schedule and we're going take advantage of every day between now and when that opening pitch is thrown in 2025," added Guilott.
"We have no choice right now. This building is going to be behind us, this wonderful building that we had so much fun in, but is a monstrosity, is going to be condemned by MLB, for use...after 2025. So this needed to happen," said Flying Squirrels' majority owner Lou DiBella. "It's a serious deadline. We knew this was coming and, honestly, so did everyone involved here. And, I think, all involved from the mayor's office to the city administration to the city council to VCU, everyone understood the situation we were in and the time pressure we were under. And a lot of people worked incredibly hard to get us to this point and get us there in a way that works for all of our community. So I'm really, really grateful for that."
"I do feel encouraged and I believe it's because of the hard work of the economic development team," Richmond Mayor Levar Stoney said.
The project will be partially funded by the issuance of bonds, which the city said will be repaid by revenues created within the 67-acre project.
"The financing mechanism for this as the establishing of a new Community Development Authority that's only consisting of the 67-acre Diamond District site," said Richmond Economic Development Director Leonard Sledge. "The new revenues and new tax revenues that are generated as a result of the private development and the activities in the stadium will be the dollars and cents to pay debt service for this project. The developer will have a special assessment, if for whatever reason the revenues are not sufficient to cover that debt service, and as a special assessment that the developer is responsible for paying. And in the term sheet, we also refer to two revenue enhancements that are consumption base and that's an additional surcharge on hotels — for hotel nights purchase and also for retail sales."
The announcement of the selection of a developer brought to an end a nearly eight-month search that started with 15 submissions.
The president of the Greater Scott's Addition Association said among the three finalists, they supported the winning entry because it met their criteria.
"High-level green space, a variety of housing types and the willingness to show support for local business operators in the final product is a good summary of some things we were looking at as well as the ability to complete the project on time," Rob Long, the president of the Greater Scott's Addition Association, said. "This is such an exciting project for not only Scott's Addition with the whole city. So, to finally take the next step to really get the process started, the process of building a new stadium in this development. It's big, it's huge. It has been a long time. But, I'm glad the city took took their time and did the proper diligence to make sure that they picked who they thought the best team was."
Long, who owns River City Roll — which is south of the Diamond District project in Scott's Addition —said the developers told them they wanted to have the district build off of what is already there.
"Not its own new thing that, kind of, created a new destination, they want to continue to grow the area and continue to have people coming here and supporting a the businesses that are already here," added Long. "They wanted to help provide great access in terms of a new bike path across the Arthur Ashe bridge. Luckily, their group owns a property right here over your shoulder that allows them to maybe have a solution quicker than some of the other teams, in terms of making it easy on game days for someone to go to, whether it's Buskey Cider or bingo or my place, River City roll, is to have a beer before the game and then walk over. They did a really good job of keeping the project connected to what's already here, which a lot of folks I think, viewed as a strength."
In total, seven council members have voice support for the project, which is the number needed for the term paper and eventual deal to pass as it involves the transfer of city owned land.
8th District Council Member Reva Trammell is not among them and wants the process restarted.
"I had one meeting with them, did not go too well. I was not impressed with them. I was not impressed with their attitude. It looked like the fix was in," Trammell said. "I'm not happy with it and I think the fix was in and they knew it. That's why they didn't come to my people. What the hell is my people going to get out of this deal?"
"I thought it was a very cordial meeting, quite honestly," said Guillot when asked about Trammell's comments. "And we actually proposed a Workforce Development Center that is in her district. So, we're actually looking forward to working with her and building trust and earning her vote, hopefully."
The initial news release announcing the selection of the developers said they desire "to partner with the Richmond Public School Board to develop a Technical Training Center at the Maury Street and Richmond Highway former Altria site to create an available workforce with sufficient experience to support the development of the Diamond District, and other development projects throughout the city." Trammell was skeptical of that.
"Really? How many times we've been promised things and got nothing," said Trammell. "That's not our building. That building — they gave it to the school, they didn't give it to the city. Who's going to help fund all of that? They're gonna put all the money up for that? Oh, yeah. Talk is cheap isn't it."
However, the council members in the majority, including two who were on the selection committee that decided on the developer, said the proposal will meet the needs of the city.
"They had the best proposal for all of the needs that we have going on here in the city. They had the best, they came out the box, they were diverse, and they really addressed the community benefits that we need here for the city of Richmond. So without a doubt, I think we did a great job and it's what Richmond wants," said 3rd District Representative and committee member Ann-Frances Lambert.
"This team had the best, most well-rounded proposal and one that could get out of phase one and be successful. Because, if we don't get phase one and get the stadium built, then the rest of the designs don't matter," 2nd District representative and committee member Katherine Jordan added.
The city will hold an in-person meeting about the project on Wednesday night at 6 p.m. at the Bon Secours Training Center at 2401 W. Leigh St. It can also be watched virtually here. There will be a telephone townhall will be held on Sept. 20 at 6:30 p.m. There is also a survey to fill out by residents.
The council is expected to vote on the term paper at the end of the month, which will allow the city and developers to develop written agreements which are expected to be presented to council for another vote some time later this fall.
