RICHMOND, Va. -- City leaders announced their updated plan to build a new baseball stadium in Richmond.
The City of Richmond announced late Monday it had finalized its agreement with RVA Diamond Partners, the developers who will do the work of reimagining Arthur Ashe Boulevard near the Diamond.
But, the announcement made specific note of the change in interest rates over the past 18 months which has moved around some of the details of the deal, most notably a new baseball stadium would not be projected to open until 2026.
That's one year later than expected and one year beyond the deadline Major League Baseball gave Richmond to upgrade the playing facilities for the Flying Squirrels.
However, with the improvements the team has made to the Diamond in preparation for this season and with soon-to-be tangible evidence of a new ballpark, it is hoped a one-year delay will not be an issue.
The city is also creating a new tax district immediately surrounding the proposed development that will raise funds for infrastructure improvements along Arthur Ashe Boulevard, Hermitage and Robin Hood roads.
"Building a new mixed-used district anchored by a baseball stadium that has a great fan experience is extremely complex, with numerous parties and support teams working together," a city spokesperson wrote in the announcement. "When the solicitation process for the Diamond District began in October 2021 with the launch of a marketing effort, the Federal interest rate was 0.08%.
Since the time the City announced the selection of RVA Diamond Partners in September 2022, the rate has increased to 2.56%, and now it’s at 4.83%. While the project remains the same, the math did not; therefore, there are some nuanced changes in the final agreement."
Here's what the city said has changed:
• The City will convey its land holdings to the Economic Development Authority (EDA) and the EDA will then work alongside the City to implement and sell the land to the developer.
• Opening day of the stadium is now projected to be for the beginning of the 2026 season.
• The City of Richmond will be responsible for the public infrastructure in phase one of the project.
• Funding will come from multiple sources, including cash from land sales, public utilities enterprise funds, and General Obligation Bonds as Capital Improvement Projects.
• To address the desire of the City and the surrounding residents to have a cohesive streetscape surrounding the Diamond District an incremental tax district will be created that captures properties abutting Arthur Ashe Boulevard and Hermitage Road to ensure that the future tax revenues generated are available to pay for the necessary infrastructure improvements along both roadways and Robin Hood Road to create a gateway experience for visitors as they enter into this section of the city.
"Today, I am proud to announce that we are moving forward with a gamechanging agreement with RVA Diamond Partners! With this partnership, Richmond is one step closer to bringing a high-quality baseball stadium, good-paying jobs, affordable housing, new small businesses, billions in investment, and green space to the Diamond District, which will benefit our entire city," Richmond Mayor Levar Stoney said in a statement provided with the announcement. "I am incredibly grateful and proud of the city and development team that helped bring this vision to reality. We have hit a home run with this project, and our residents will reap the benefits for years to come."
After outlining some of the plan's changes, the city noted what would remain the same from the old plan to the new plan:
• RVA Development Partners (RVADP) will complete the design phase of the baseball stadium as soon as the Development Agreement is executed with a commitment to purchase the first $20M of bonds needed to finance the new baseball stadium.
• The project provides a master plan approach to creating a strong sense of place that honors the legacy of Arthur Ashe Junior, with walkable blocks, and a mixed-use, mixedincome development program that celebrates the baseball stadium as its anchor.
• The project creates an 11-acre signature park that is envisioned to be a place for all Richmonders to enjoy, with several distinct areas and programming planned throughout the year.
• The agreement provides 20% of the rental units to households earning between 30% - 60% of the area median income (AMI), with 100 of the units with project-based vouchers for public housing residents.
• The agreement provides 20% of the homeownership units to households earning between 60% - 70% of AMI and funding a $1 million fund that will assist affordable home buyers with closing costs and other transaction expenses.
• The project showcases a diverse ownership team that includes 45% MBE ownership.
• The developer seeks to include MBE/ESB business throughout the project, from ownership and development to construction and operations, maintenance, and leasing, inclusive of employment, contracting, and leasing.
• The developer desires 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.
"Today is a crucial step in fully realizing the future of the Diamond District. Strategic economic development is necessary for smart growth and productivity in the City of Richmond, and the Diamond District will benefit our entire community with jobs, housing, sports, and entertainment," Richmond City Council President Mike Jones said in a statement provided with the announcement. "I believe this project will change the trajectory of the area and the city for generations to come. I am grateful for the work of our City team and RVA Diamond Partners for getting us to this point with a comprehensive and thoughtful agreement that moves the City forward."
Richmond City Council would still need to approve the Development Agreement and Conveyance of the city-owned land to the EDA.
Other things that must happen include:
• Rezoning the Diamond District by amending the TOD-1 district and creating the Stadium Signage Overlay District
• Creation of a Community Development Authority
• Creation of Public Realm Design Standards
• Lease agreements with both the Flying Squirrels and VCU
• RVADP submits the subdivision of land to create the new District
"Our entire team at RVA Diamond Partners is thrilled to cross this important milestone of finalizing a development agreement with the City of Richmond. We look forward to continuing to collaborate with the Flying Squirrels, VCU, and the City on transforming our current concept ballpark plan into the anchor of this amazing mixed-use project," Jason Guillot, with Thalhimer Realty Partners and RVA Diamond Partners, said in a statement provided with the announcement. "We continue to appreciate the support of the community, the faith of the City Council, and the trust of Mayor Stoney's team as we set the stage for the largest economic development project in the City's history. While Parney and the Squirrels are in the memory-making business, we are in the placemaking business, and together we will make Richmond proud!"
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