Richmond moves closer to finalizing Diamond deal

In late April, city officials announced they had finalized a deal with a developer to replace the aging Diamond by building a new field and constructing a neighborhood around it. The deal brings with it a newly projected opening day in 2026, a year past the MLB’s deadline.

While the announcement came from the Richmond Mayor’s Office, the proposed deal still needs final approval from the City Council before it can move forward with the expected $2.4 billion project.

The city is well on its way after the Organizational Development Standing Committee’s unanimous vote Monday afternoon to recommend the city approve a 56-page ordinance that will authorize the deal at its meeting next week.

The committee’s vote came after the city’s Planning Commission also gave a unanimous recommendation to approve the plan at its earlier meeting that same day.

The decision came with some discussion as Leonard Sledge, the city’s director of economic development, presented the city’s proposed finalized deal with the committee.

“This project will be the largest economic development project in the city of Richmond at $2.44 billion,” Sledge said. “It is representative of the thoughts, desires and the opinions of Richmonders who actively participated in the planning process.”

Now, as a result of the committee’s vote, the city will make a final decision at the city’s next regular meeting at 6 p.m. Monday, May 8.

If approved, the ordinance authorizes Chief Administrative Officer Lincoln Saunders to execute the Diamond District Redevelopment Project Development Authority for the purpose of providing financing, construction, maintenance and operation of both public and private development within the Diamond District along North Arthur Ashe Boulevard and Hermitage Road.

According to Sledge, the city will cover some of the costs of Phase I, which includes the demolition of the stadium and the construction of a new one. It will pay for the public infrastructure, which typically includes roads, water and electricity.

The city anticipates covering those costs with cash from the land sale, public utilities enterprise funds and general obligation bonds. Additionally, the city plans to widen the tax district by adding adjacent properties along the intersection.

Tax revenue from the district will be used for building costs, and adding nearby properties to the district will help create a cohesive look from one neighborhood to another, according to a statement released by the city.

The city still had not released an estimated ballpark cost when it announced its proposed finalized plan per the development agreement. Years prior, the city estimated a total of $80 million, but that is projected to significantly increase.

However, Sledge said the EDA estimates a total cost of $118 million in bonds issued in order to construct the stadium. The city anticipates those bonds will generate a net proceed of $80 million.

Additionally, the city reassures Richmonders that low-income residents will not be priced out of the neighborhood with 20% of the apartments built going to low-income families and 100 units reserved for those with public housing vouchers.

The Flying Squirrels, the Double-A affiliate of the San Francisco Giants, will form a lease agreement to occupy the stadium. Additionally, Virginia Commonwealth University’s baseball team will use the stadium.

The project still anticipates an 11-acre park — the original design showed a crescent-shaped green space weaving around the stadium’s outfield wall and in between buildings. It is unclear how closely the actual design will match the original renderings.

“We are working aggressively to finalize the stadium design,” Sledge said. “With the approval of the development agreement, it does allow us to advance the financing conversations, the underwriting for the project and to take all of those definitive steps.”

While the city announced last fall that it had come to an agreement with RVA Diamond Partners to build a stadium, residences, a hotel, retail and green space on 68 acres along Arthur Ashe Boulevard, plans stalled shortly afterward as rising interest rates delayed progress.

Initially, when the city first began soliciting donors in October 2021, the federal interest rate was 0.08%. Now, the rate is resting at nearly 5%. As a result, the city will convey the land to the Economic Development Authority, which will sell it to RVA Diamond Partners.

In the months leading up to the city’s deal announcement, it faced criticism from folks in the community as well as those associated with the stadium regarding the glacial pace it is taking to construct a stadium with a two-year deadline looming overhead.

Lou DiBella, managing general partner for the Flying Squirrels, recently issued a statement claiming that there has been little progress on plans for a new stadium. With the clock ticking, Richmond is at risk of losing its baseball franchise.

In order to continue playing, the city’s stadium, like many across the country, must meet specific structural standards set by MLB. Following a previous evaluation of the stadium, the league gave the city until 2025 to comply with the understanding that if it did not, then the Squirrels could not play.

“While we ideally would like to have the stadium open in time for opening day 2025, we remain confident with the steps that we are taking in an expedited manner,” Sledge said.

The deal announcement last week brought with it the news of a delay to the ballpark construction process by an additional year.

Despite statements issued by DiBella and the promised one-year delay, Mayor Levar Stoney said in a previous meeting with the Richmond Times-Dispatch’s editorial board that the Squirrels are not going anywhere.

While it is still unclear whether the one-year delay will have any ramifications on the team or the stadium project, MLB gave several cities a 2025 deadline to build stadiums up to league standards.

Earlier this year, the city agreed to pay roughly $3.5 million for repairs and improvements to The Diamond despite future demolition plans — seemingly in an effort to buy time.

In February, MLB sent a letter to the Squirrels asking for more evidence from city leaders that they are committed to funding the project along with a finalized plan and timeline. Last fall, the city said it would not start construction unless it has a long-term commitment from MLB.

Currently, the city has not released a ballpark design or a construction timeline but, during the presentation, Sledge said it is in the process of working on a design and a timeline with the Squirrels and have spoken with MLB about next steps.