BizSense Beat is a weekly collaboration between VPM News and Richmond BizSense that brings you the top business stories during NPR's Morning Edition on Fridays.
Here’s a recap of the top stories for the week of February 16, 2024:
With local funding boost, development team winding up for Diamond District’s first phase
Reported by Richmond Bizsense’s Jonathan Spiers
With initial land transfers completed and a newly acquired boost of local capital in the hands of its development team, the first phase of Richmond’s multibillion-dollar Diamond District project appears set to get into full swing.
RVA Diamond Partners, the team leading the massive mixed-use project, has secured millions of dollars in additional capital from multiple Richmond investors that it plans to put toward purchases of the land and initial bonds for the project’s first phase.
The recently secured funding was needed for the team to go forward with the phase, which includes a new stadium for the Richmond Flying Squirrels and initial commercial and residential development, tax revenue from which would be used to help fund the new ballpark.
‘I know you feel like we’ve wronged you’: City responds to restaurants with tax policy changes
Reported by Richmond Bizsense’s Jonathan Spiers
As proposed bills to address the issue make their way through the General Assembly, the City of Richmond has taken its first regulatory steps to change its tax collection practices that in recent years have plagued restaurant owners in particular.
City Council on Monday approved an ordinance amending city code to allow tax payments to be applied to the month they are made, rather than applying them first to delinquent balances as is currently required by a state law.
The practice has resulted in a snowball effect in which tax payments are put toward unknown penalties, leaving only part of the balance paid and racking up additional penalties without notice to the taxpayer. For restaurant owners making meals tax payments, the practice in some cases has produced tax bills amounting to tens or even hundreds of thousands of dollars owed to the city.
At Monday’s meeting, councilmembers heard from some of those restaurateurs directly in a hearing that preceded the vote.
Lego chooses local GC to build its massive factory in Chesterfield, delays start date
Reported by Richmond Bizsense’s Jack Jacobs
Lego has tapped a local general contractor to help oversee construction of its massive manufacturing facility in Chesterfield.
The Danish toy giant confirmed that Richmond-based firm Hourigan will build the $1 billion factory complex through a joint venture with Kentucky-based contractor Gray.
Lego said it expects work to kick off later this year on the construction of what will eventually be 1.7 million square feet across 13 buildings in Meadowville Technology Park.
The Chesterfield campus will manufacture Lego bricks and package boxed sets, as well as be home to offices and warehouse facilities. The company plans to hire more than 1,760 employees for its Chesterfield plant over a 10-year period.
The news of the contractor selections came as Lego also announced a delay in the anticipated start of production at the facility. The company previously said it expected to get the plant up and running in 2025 but now expects production to begin in 2027.
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