Richmond's Diamond District will move forward with crucial changes
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The Diamond District is moving forward, but it won't be quite the financial boon city leaders initially hoped.
- And it might not include the Squirrels.
Driving the news: Mayor Stoney's administration announced this week it finalized negotiations with the project's developer, RVA Diamond Partners.
Why it matters: The $2.4 billion development on Arthur Ashe Boulevard is the largest in the city's history.
What’s happening: Two big changes.
💸 First, the city announced the project won’t be quite as profitable as initially envisioned, blaming a big increase in interest rates since the project was first unveiled.
- "While the project remains the same, the math did not," the city said in a press release.
- The city is now planning to foot the bill for infrastructure improvements in the district, an expense the developer had previously agreed to cover.
- The city is also planning to expand a tax increment financing district to make the financing work. Instead of creating a new tax, the city will use this to divert tax dollars from new development to help fund the project.
Of note: We still don't have any hard numbers because Stoney's administration did not respond to questions or organize a press briefing.
⚾️ Second, the city announced the stadium at the center of the new development won’t be ready until 2026.
- That's a year later than initially planned, which is a big deal because the Squirrels have to meet a 2025 deadline set by Major League Baseball for facility upgrades.
Between the lines: The Squirrels declined to comment Tuesday and were conspicuously absent from the city's announcement, which included supportive quotes from all the other major players in the deal.
What they’re saying: City officials don't sound worried, saying they expect the MLB to grant an extension.
- "We can work with them on timing," chief administrative officer Lincoln Saunders told Richmond BizSense.
- As of February, MLB wanted to see concrete evidence the city is moving forward with a stadium plan before it granted another deferral, per a memo obtained by the Richmond Times-Dispatch, which noted there is still no design or construction timeline for the stadium.
What’s next: Expect more details to shake out as the project goes before the city council for final approval.
Editor’s note: This story was corrected to reflect that the city is proposing to expand a tax increment financing district (not a special tax district) and clarify that this would not create a new tax.