Diamond Area / Hermitage Rd Corridor / Ownby District

[Shakman]

Oh HELLLLLLS no!  These warehouses need to be raised and replaced with structures in an urban setting.    

Edited May 2, 2023 by Shakman

[Flood Zone]

2 hours ago, ancientcarpenter said:

So, in summary, developers can demo these warehouses but these new historic designations would encourage them to do renos of existing structures because they can apply for historic tax credits? Essentially crippling hurting the potential for high density high rise potential in most of this area since developers would be more inclined to just go down the reno route instead of "demo and build up?" Am I understanding this correctly?

Your understanding is both cynical and correct.

[BigBobbyG]

I just saw that the Fed announced that they are raising interest rates yet again (only by a quarter percent this time). I have absolutely no knowledge when it comes to this stuff but do y'all think this was anticipated in the most recent plan for financing the Diamond District that is intended to be voted on during the May 8th council session?

If they have to go back to the drawing board AGAIN I can't help but think this thing is going to fall apart.

[I miss RVA]

1 hour ago, BigBobbyG said:

I just saw that the Fed announced that they are raising interest rates yet again (only by a quarter percent this time). I have absolutely no knowledge when it comes to this stuff but do y'all think this was anticipated in the most recent plan for financing the Diamond District that is intended to be voted on during the May 8th council session?

If they have to go back to the drawing board AGAIN I can't help but think this thing is going to fall apart.

Hard to say - maybe our experts @wrldcoupe4& @upzoningisgoodwould know whether or not developers would have some kind of advance "notice" ahead of a Fed interest-rate hike. Gurus - is it possible?

[upzoningisgood]

For private multifamily development, the first-order effects of interest rates aren't that bad as long as your leverage isn't too high. Like, the cost difference for a development with 5% vs 8% interest isn't that different as long as you're funding with like 50% debt. The pain comes from how those interest rates affect buyers of multifamily properties, which affects when loans get paid off, which affects how much new debt can be extended. Where the first-order effects higher interest rates get hard is if you're funding with like 70% debt. Then you really start to feel the impacts of 8% interest. 

The above is true for private MF development. I don't know what kind of leverage RVA is using or how interest rates affect municipal TIF financing vs. private financing.

[Urbs42]

 

The next public meeting for the Quality Inn Redevelopment has been scheduled. Details below pulled from Nextdoor. 

Quality Inn Redevelopment Meeting Tuesday, May 16, 6:00 to 8:00 PM
Linwood Holton Elementary School 1600 W. Laburnum Avenue, Richmond 23227

The possible future re-development of the Quality Inn property on Arthur Ashe Boulevard will have direct effects on Sherwood Park, Laburnum Park and Rosedale. At the first meeting of the Northside Coalition of Neighborhood Associations with the developers, neighbors expressed concerns about:
• Location of single entrance and exit
• Surrounding traffic patterns
• Lack of green space
• Lack of designated affordable housing units
• Exterior architecture incompatible with the nearby neighborhoods

Neighborhood participants also were disappointed that plans did not include first floor amenities for the public, such as a coffee shop or retail space in order for the developer to utilize 5 over 1 frame construction, a more economical construction model. This is a complex project, due to the surrounding traffic patterns, the yet-to-be designed Fall Line Trail Northside segment, and limited land. The second meeting open to the public will include representatives from Trinsic Builders Group and members from City Council, city Traffic, Planning and Equitable Mobility agencies and Sports Backers, plus the Northside Coalition.

[I miss RVA]

12 hours ago, Urbs42 said:

 

The next public meeting for the Quality Inn Redevelopment has been scheduled. Details below pulled from Nextdoor. 

Quality Inn Redevelopment Meeting Tuesday, May 16, 6:00 to 8:00 PM
Linwood Holton Elementary School 1600 W. Laburnum Avenue, Richmond 23227

The possible future re-development of the Quality Inn property on Arthur Ashe Boulevard will have direct effects on Sherwood Park, Laburnum Park and Rosedale. At the first meeting of the Northside Coalition of Neighborhood Associations with the developers, neighbors expressed concerns about:
• Location of single entrance and exit
• Surrounding traffic patterns
• Lack of green space
• Lack of designated affordable housing units
• Exterior architecture incompatible with the nearby neighborhoods

Neighborhood participants also were disappointed that plans did not include first floor amenities for the public, such as a coffee shop or retail space in order for the developer to utilize 5 over 1 frame construction, a more economical construction model. This is a complex project, due to the surrounding traffic patterns, the yet-to-be designed Fall Line Trail Northside segment, and limited land. The second meeting open to the public will include representatives from Trinsic Builders Group and members from City Council, city Traffic, Planning and Equitable Mobility agencies and Sports Backers, plus the Northside Coalition.

Interesting -- so the developer is voluntarily meeting with the local neighborhood association? I'm assuming this is NOT a prerequisite to this project being developed, correct?

[wrldcoupe4]

This happens on every project. Totally normal. 

[I miss RVA]

8 minutes ago, wrldcoupe4 said:

This happens on every project. Totally normal. 

Makes sense.  Thanks, Coupe! 

[I miss RVA]

A smattering of new information in an otherwise very well-written, highly detailed "situational recap" of the state-of play of the Diamond District. A  good article what with the plan particulars up for approval before City Council tonight.

While most -- if not all -- of us are 100% behind the Diamond District redevelopment (or at least support it from the standpoint of really wanting it to succeed), for the sake of discussion, I wanted to pull out something Bruce said in the comments section today as it was quite thought-provoking. He made a very compelling argument about the alternative path the city could choose. It's hard to fault his logic, even as we tend to overwhelmingly support the redevelopment plan, and I think there's little question that Bruce ranks up there with the gurus in our esteemed community ( @wrldcoupe4& @upzoningisgood) as E.F. Hutton-level voices on all things CRE industry (meaning: when they speak, we listen).

Here's Bruce's comment:

I hope this works out. Mostly it’s being done to create a a very expensive home for a Double A baseball team, one that generates very little revenue, if any, for the City. The city could have sold it all, block by block for redevelopment into a mixed use community and reaped tens of millions of dollars annually from the taxes. As it is, an expanded area of revenue producing developments will see their taxes tied up to pay down long term bonds for this project. Those bond obligations are likely to extend beyond the commercial viability of the new ballpark itself. But this is what we’ve got now, so let’s keep our fingers crossed. I won’t be on this earth to see the day of its success or failure.

Thoughts?

Also - Jonathan Spiers' reporting includes a couple of interesting new/updated graphics.

From today's Richmond BizSense:

https://richmondbizsense.com/2023/05/08/with-expanded-tif-district-final-diamond-district-deal-goes-to-city-council/

[Flood Zone]

It seems a fair point as far as it goes. But the city obviously wanted to control the vision of what went there. Think of it as a civic project of sorts.

[I miss RVA]

12 minutes ago, Flood Zone said:

Think of it as a civic project of sorts.

!!  Definitely agree with that view. A follow-up question to your point: do you think this (Diamond District) redevelopment is "more" of a civic project than is City Center or do you see them as on equal footing? Does retaining the Squirrels make that much of a difference from a civic-project standpoint vis a vis City Center (particularly since City Center -- unlike Navy Hill -- does NOT involve a sports venue or team)?

[123fakestreet]

3 hours ago, I miss RVA said:

A big chunk of this is VCU property that while it will generate some limited sales tax will not generate any property tax which is the biggest part of the TIF. Why would the city bother to include these areas which make the TIF look pretty large? Including 1 plot somewhere else would probably  generate more in property tax than those huge areas will in sales tax.  But now people will look at the TIF map and say it's too big.

[Downtowner]

Any idea if council voted on the diamond district tonight?

https://www.virginiabusiness.com/article/richmond-city-council-approves-diamond-district/
 

got my answer. She has been approved. Yes!!!

[I miss RVA]

1 hour ago, Downtowner said:

Any idea if council voted on the diamond district tonight?

https://www.virginiabusiness.com/article/richmond-city-council-approves-diamond-district/
 

got my answer. She has been approved. Yes!!!

That, friends, is what is called... a HOME RUN!!!

[Downtowner]

On 5/4/2023 at 7:17 PM, wrldcoupe4 said:

I have no idea since we’ve never defaulted. 

It’s a grand slam. It’s our World Series win for rva after decades.  Can finally put the arena and ballpark talk to rest. If this goes great I think you are about to have very large developers come develop projects even more so. Now that they see rva is capable of passing this type of development it’s going to really open the door for alot of other developers and development all over rva both in and out of the city.

[upzoningisgood]

@I miss RVAI see both sides of it. I think there's a perfect world where the city invests in necessary infrastructure upgrades, does a great job designating public spaces, and successfully sells off lots for 20 years and after 30 years there's a bustling neighborhood.

In practice, I would not trust that strategy to survive 4 elections.

[I miss RVA]

4 minutes ago, upzoningisgood said:

In practice, I would not trust that strategy to survive 4 elections.

!!!!!  Fully agreed!

[I miss RVA]

Here's the Richmond Times-Dispatch's coverage of tonight's Diamond District vote. The article includes a link to the 56-page ordinance - see link below.

From tonight's Richmond Times-Dispatch:

https://richmond.com/news/local/government-politics/diamond-flying-squirrels-richmond-baseball/article_0d40d1dc-edb8-11ed-b71c-5f0bc7c16788.html#tracking-source=home-top-story

Here's the actual ordinance if you would like to review the language contained therein. (No idea if it was modified prior to the final vote):

https://richmondva.legistar.com/LegislationDetail.aspx?ID=6185136&GUID=6451009C-D423-478C-9434-0F13F1E3D71C&Options=&Search

[I miss RVA]

Gents -- did I miss something or was there NO coverage of the City Council votes on either the Diamond District or the Grove Avenue SUP in today's Richmond BizSense? I realize the VCU-Block D story is going nuclear and is sucking away a lot of the news cycle oxygen right now, especially now that former governor Wilder is getting involved - but man, the City Council vote was HUGE.

@RVABizSenseMike-- just curious: was the council meeting staffed last night?

Edited May 9, 2023 by I miss RVA

[rjp212]

This is pretty cool, the Crescent Park follows the Fall Line.

[I miss RVA]

8 minutes ago, rjp212 said:

This is pretty cool, the Crescent Park follows the Fall Line.

NO WAY!!! Holy moly - how cool is that! GREAT find, @rjp212From where did you source this?

Really impressive!

[rjp212]

It was in the link to the ordinance you posted.  Seems the Fall Line is going to be a prominent feature of the park.

[I miss RVA]

6 minutes ago, rjp212 said:

It was in the link to the ordinance you posted.  Seems the Fall Line is going to be a prominent feature of the park.

Oh wow - now that's REALLLLLLY cool!!!

Man - especially if we can get some decent height and density in this development, when this is fully built out, it has the potential to be amazing.

[Urbs42]

On 5/6/2023 at 10:45 AM, Urbs42 said:

 

The next public meeting for the Quality Inn Redevelopment has been scheduled. Details below pulled from Nextdoor. 

Quality Inn Redevelopment Meeting Tuesday, May 16, 6:00 to 8:00 PM
Linwood Holton Elementary School 1600 W. Laburnum Avenue, Richmond 23227

The possible future re-development of the Quality Inn property on Arthur Ashe Boulevard will have direct effects on Sherwood Park, Laburnum Park and Rosedale. At the first meeting of the Northside Coalition of Neighborhood Associations with the developers, neighbors expressed concerns about:
• Location of single entrance and exit
• Surrounding traffic patterns
• Lack of green space
• Lack of designated affordable housing units
• Exterior architecture incompatible with the nearby neighborhoods

Neighborhood participants also were disappointed that plans did not include first floor amenities for the public, such as a coffee shop or retail space in order for the developer to utilize 5 over 1 frame construction, a more economical construction model. This is a complex project, due to the surrounding traffic patterns, the yet-to-be designed Fall Line Trail Northside segment, and limited land. The second meeting open to the public will include representatives from Trinsic Builders Group and members from City Council, city Traffic, Planning and Equitable Mobility agencies and Sports Backers, plus the Northside Coalition.

Curious if anyone attending this meeting or saw any media coverage? 

As I understand the developers were going to show first renderings to the community and discuss an updated timeline. Hope it's still moving forward.