Ahead of Richmond’s last baseball season at The Diamond, city officials and others involved in developing a district centered around a new stadium touted the project’s progress and gave an optimistic outlook for its future.
Mayor Danny Avula and city council leaders toured the site of the new ballpark Thursday, a visit that came a day after a panel discussion on the future of the massive Diamond District project.
The Diamond District redevelopment will replace the Richmond Flying Squirrels’ home stadium with a new ballpark called CarMax Park. It will be a mixed-used development with a 180-room hotel, retail and housing on roughly 67 acres along the Interstate 95 east coast corridor, and near Scott’s Addition.
Virginia Commonwealth University is also involved in the city’s project, with plans for a nearly 42-acre athletic village in the area with stadiums, tennis courts for the public and practice facilities for its student athletes.
Despite the challenges and funding questions they face, the people helping lead the project said they are confident that the effort will be seen as a success.
Jason Guillot, the general manager of the development team leading the mixed-use portion of the project, Diamond District Partners LLC, was one of four panelists at a discussion hosted by Richmond BizSense at River City Roll earlier in the week.
Richmond BizSense editor Michael Schwartz asked Guillot if people would say the developers were successful 10 to 15 years from now.
“A 100 percent, because there's no way this project's not happening,” Guillot said. “Failure is not an option.”
Guillot, city leaders and others on the panel acknowledged they faced issues, from delays to economic headwinds to simply getting people to believe in the project.
The build-out
Avula said Thursday at the site that even though the sale of a recent 18-acre parcel to Diamond District Partners was behind schedule, he felt the developers would be able to make up for any potential delays.
“There are few things that capture the public's imagination, like constructing new things,” Avula told reporters after touring the CarMax Park construction site. “And so, I think as people drive up and down Arthur Ashe Boulevard, as they see the steel coming up out of the ground, I think it does give people, not just in the city, but across the region, hope and excitement about what's to come.”
Panelists on Wednesday cited the progress to date for their confidence in the project — including financing critical components and the city’s commitment to the development.
“We've gotten through the hard parts,” VCU Athletic Director Ed McLaughlin, another panelist, said during Wednesday’s discussion. “We've gotten through the hard parts and the tensions.”
McLaughlin said the first phase of VCU’s athletic village is funded, but the money for the next phase isn’t yet accounted for. That step will depend on private philanthropy, and corporate and foundation support, he said.
“There aren't many people doing $180 million projects in college athletics right now, but this is super important for our community and super important for student athletes,” McLaughlin said.
The city shifted the financing plan for the project, selling more than $129 million in tax-exempt bonds to pay for the new baseball stadium. This pivot made headlines and raised concerns over risk to the city.
But Guillot said during Wednesday’s panel discussion that he felt it was a safer option for the city. He said with lenders and investors skittish on projects they invest in, the city was expecting funding interest rates between 8% and 10%.
“The real question you have to ask yourself is, let's say the city had gone out and borrowed and nosebleed interest rates in the day, and there was a challenge with revenue in the future,” Guillot said. “What happens? Do we really want to lose the ballpark to a lender? To take it back as collateral?”
Guillot said the developers want to stretch the city's funds.
“We try to be respectful of the fact that the city is investing a massive amount in terms of bond funds, both in the ballpark and the public infrastructure,” he said Wednesday.
Lou DiBella, the Flying Squirrels managing general partner, joined Avula for the Thursday site walkthrough. He estimated the stadium’s price tag to be between $110 and $120 million — potentially higher than the $110 million initially projected for the park.
DiBella told reporters Thursday that while we’re “not in times where things cost less,” he said he’s not “overly concerned” about a possible increase in cost.
“I’m concerned with delivering a [ball]park for Richmond,” he said.
Richmond City Council Vice President Katherine Jordan, who represents the area encompassing the Diamond District, and the city’s Department of Planning and Development Review Director Kevin J. Vonck were the other two panelists for the BizSense discussion.
Both noted the array of factors the city must consider for the project, including the placement of trees along the street, pedestrian infrastructure, streets, parking options and zoning regulations.
“I can say with full conviction, every single one of us realizes this project is bigger than any individual interest, so we're all moving in the same direction, and that's exciting,” Jordan said. “It's not always been the case.”
