Development of Henrico County’s arena-anchored GreenCity project remains at a standstill due to alleged failures by the developers, according to documents obtained by VPM News.
County officials have worked to move the project forward, while prodding developers to secure funding to complete construction. However, behind the scenes, the development partners associated with the $2.3 billion deal have allegedly defaulted on payments and failed to provide satisfactory updates on the project.
In a letter addressed to Future Cities and Concord Eastridge Inc., County Manager John Vithoulkas described steps the county has made to bring the project to fruition and what he called the developers’ lack of progress.
“[D]espite repeated assurance of imminent activity, GCP and GCDC have not obtained financing, submitted plans, or begun construction of any portion of the project,” Vithoulkas wrote to the group that makes up Green City Partners and Green City Development LLC. “As a result, GCP and GCGC are significantly behind the development schedule incorporated into the development.”
The development team began working with Henrico after being a part of Richmond’s failed Navy Hill development. The same companies also were behind the proposed redevelopment of the city’s Public Safety Building, which was not completed.
The developers didn’t respond to a request for comment by deadline.
GreenCity has been in the works since 2020
Since the 17,000-seat arena project was announced in 2020, Henrico has worked to increase the project’s footprint off East Parham Road, between Interstates 95 and 295, securing a developer for the site’s residential components. The county also enlisted entertainment booking firm ASM Global to manage events at the arena once it opens.
In 2021, the county’s Board of Supervisors rezoned the initial 93-acre site, which previously was home to Best Products, and began its mutually agreed upon timeline of completing the arena project by 2026.
The county conveyed the Best Products property to the developers at cost, then increased the project's footprint by facilitating the purchase of the 110-acre Scott Farm property and acquiring 16 acres across from Saint Gertrude High School in 2023.
Today, GreenCity’s projected size is just over 220 acres — up from 93 acres. Infrastructure developments along Magellan Parkway near GreenCity, including a new bridge over I-95, are currently underway. Property developers Markel|Eagle Partners have also signed on to invest $400 million over the course of the project’s residential buildout.
To help move the project along, the original purchase agreement with Green City Partners was amended in 2022 to ensure the developers could purchase the county property and cover the project’s construction cost. However, they haven’t met previously agreed-upon obligations, according to county officials.
‘Perform the project’
In July 2024, Henrico formally asked the developers “to begin work and restore public confidence in your ability to perform the project.” The county asked for an updated timeline, evidence that utilities for the property conveyed to the developers were being maintained and an update on the project’s financing.
According to a letter obtained by VPM News, the county claims the group of development firms failed to meet the terms of their agreement and to satisfy Henrico’s request from July.
County officials said they haven’t received an update on the project's advancement, a modified schedule or designs.
Additionally, Green City Partners are no closer to financing the project than they were four years ago, the county asserted in a notice of default on Feb. 15. Although Green City Partners made $1 million in payments to Henrico’s Economic Development Authority for the Best Products property, the developers missed a $5 million payment on Feb. 28.
Since the developers didn’t provide an update on the project’s scheduled completion, Henrico said in the notice of default it would “pursue one or more remedies available to it” to ensure its investments are recouped — including reclaiming the Best Products property.
“Simply put, the GreenCity developers have not performed to the terms of the agreements,” Vithoulkas said in a statement. “We believe it’s time to move forward and return the Best Products property to the county, as stipulated in the agreements.”
The county’s reclamation of the conveyed property will be negotiated with developers within seven days of the default notice being filed and end within 30 days.
As outlined in the notice, developers have until March 13 to complete payments on the Best Products property or ownership reverts back to the county EDA.
If the current agreement is abandoned, Henrico’s county manager said he’s confident private investors will come to the bargaining table.
“As a county, we remain bullish on the concept of a large, mixed-use development at this extraordinary location and believe it is perfectly suited to a privately funded arena for sporting events, concerts and other entertainment,” Vithoulkas said.
