A company previously involved in the mixed-use component of Richmond’s Diamond District project is suing its former partners.
Republic Properties claims Thalhimer Realty Partners and Loop Capital created a new development group, Diamond District Partners, without ending their prior agreement.
As a result, the lawsuit said, Republic will miss out on about $40 million of income. The initial arrangement, according to the filing, was Thalhimer owning 20% of RVA Diamond Partners, while Loop and Republic each owned 40%.
Thalhimer CEO Lee Warfield wrote in an email to VPM News that the redevelopment project won’t be delayed: “We are confident that the facts will prove that this suit has no merit, and it should not be allowed to stand in the way of the development of Richmond’s new ballpark for the Flying Squirrels and VCU and the surrounding mixed-use development.”
Edward J. Tolchin, the attorney representing Republic, didn’t respond to VPM News’ request for comment on Tuesday.
The filing said Thalhimer and Republic officially agreed in January 2023 that none of the groups involved in the development would independently pursue the project. Warfield disputed that claim in his email.
Loop negotiated certain points of that agreement, according to the filing, but did not enter into it.
The lawsuit also aims to recoup Republic’s legal fees.
The city of Richmond is not named in the lawsuit, and City Council President Kristen Nye told VPM News late last week that it won’t delay construction.
“I think multimillion-dollar companies get angry with each other every day. Our contract is what it is,” she said. “We've advertised for the bonds and we're preparing for groundbreaking of the Diamond. So, we're very excited about the progress on the project.”
The city of Richmond recently announced it had sold more than $129 million in tax-exempt bonds to fund the new stadium — but not the surrounding mixed-use development. The financing plan deviated from what initially was approved by City Council and prompted a lawsuit in May by Paul Goldman — who’s running for the First District council seat.
Goldman claimed the decision to issue bonds should have been voted on by residents. A Richmond Circuit Court judge dismissed his case in June.
City officials have said the bond financing will allow it to borrow at a lower cost, potentially saving millions of dollars.
City Councilor Katherine Jordan, who represents the district where the development is planned, reiterated Nye’s sentiment on Tuesday.
“A project of this scale will have many twists and turns, and I’m sure Republic does wish they were still involved, but they are not, and that was their own choice when they refused to sign the development agreement,” she wrote in a statement. “Thalheimer says the lawsuit is baseless, and I haven’t seen anything to suggest otherwise.”
A groundbreaking for the Diamond is scheduled for August.
VPM News features editor Whittney Evans contributed to this report.
