Mayor Avula calls Diamond District "pretty good bet" despite risk

Catch up quick: The latest financial scramble involved the VCU-owned Sports Backer Stadium site.

• The city needs to acquire it to demolish it and build a road through the property that's necessary for the Diamond District layout.
• To help close the deal, Avula said, the city "basically took a loan from ourselves" — a $14.7 million one — with the expectation that future Diamond District development revenue would repay it.
• VCU and the city had agreed on a $25 million sales price, but the final purchase hasn't been completed.

Zoom in: At Axios Richmond's Wednesday night event, Avula said if he had been mayor when the Diamond District deal was negotiated by his predecessor, he still wouldn't have walked away from it.

• But he would've pushed for surrounding counties to have a "joint and collective stake in what's being built."
• "I don't know if that where we're at is much worse," he told Axios, calling the deal "a pretty good bet."

• "I think it means that the city just bears more of the risk in that."

What we're watching: The city is also banking on the Flying Squirrels — which is planning to diversify revenue through concerts, weddings and other events — paying $3.2 million in annual rent.

• That's to help pay off the bonds the city sold to help cover the stadium construction and develop the Diamond District's infrastructure.
• But Avula sees the Diamond District as more than a financial bet.
• "It will become this bustling node in our city," he said. "That's the thing I'm most excited about."