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Stadium planners want multiuse park

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WILL JONES AND JOHN O'CONNOR TIMES-DISPATCH STAFF WRITERS
Published: January 15, 2009

Developers want to build a $60 million ballpark in Richmond's Shockoe Bottom capable of hosting a variety of events. They detailed yesterday how they believe they can pay for the project without tapping tax revenues that currently flow to the city and state.

The facility annually would host about 30 events in addition to minor-league baseball, including festivals, concerts and high school games, the developers said.

Where will the funding come from?

The group led by Raleigh, N.C.-based Highwoods Properties said it plans to ask the Richmond City Council to establish a nonprofit authority to sell 30-year bonds to finance the ballpark.

Officials emphasized that the deal would be structured so that private investors -- not city taxpayers -- would be on the hook if revenue fails to cover debt payments.

A bill submitted for the current General Assembly session would allow some of the financing to come from the state's 4 percent portion of sales taxes generated by the ballpark and new buildings associated with it.

Details revealed yesterday show that the plan also calls for the city to rebate tax revenues that would be generated by the ballpark and new private development within a defined footprint of Shockoe Center, a proposed $363 million development. Those would include the 1 percent local share of sales taxes, as well as city admissions, meals and real estate taxes.

What are other sources of revenue?

The group also is counting on rental fees for the nonbaseball events at the ballpark, as well as parking fees and a $250,000 annual lease payment from Richmond Baseball Club LC, which would own the minor-league franchise. The costs of operating and maintaining the ballpark would be covered by the team owners, officials said.

In addition, the city would be asked to contribute land and $8 million in infrastructure improvements, including utilities, sidewalks, and other streetscape enhancements.

Projections released for ballpark financing show that all of the taxes and fees would generate nearly $9 million per year to cover annual debt payments estimated at $5.3 million. The projections assume an interest rate of 6.5 percent, which could end up higher, said Ronald L. Tillett, managing director of public finance with Morgan Keegan & Co. and a former state secretary of finance.

Officials said any surpluses would support reserve funds but also could be used to retire debt ahead of schedule or for other public projects, such as development of the Slave Trail and the Lumpkin's slave jail historic site in Shockoe Bottom.

What will the development look like?

The ballpark is envisioned to open by 2012 along with Shockoe Center's hotels, housing, and retail and office space in a largely vacant, flood-prone area of the city.

Paul Kreckman, a vice president with Highwoods Properties, said it's unrealistic to believe the site will develop gradually on its own because of federal limitations related to the area largely being in a floodplain.

He said the ballpark allows the large-scale development to occur by providing green space to meet federal requirements for building in a floodplain and by establishing access from a concourse that would rise above flood level.

Kreckman emphasized that what's planned is a "ballpark" rather than a "stadium." A ballpark is "very fan-friendly, very intimate," he said.

Officials would not release details on the mix of retail space and other uses being considered.

Who's going to play there?

The ballpark would be home to the minor-league franchise as well as Virginia Commonwealth University's baseball team. The facility annually would host about 15 high school baseball games, about six community festivals, about five concerts, and approximately five other events, project developers said.

The ballpark would include a grass playing surface and 7,000 seats (8,500 capacity).

A Double-A baseball franchise appears likely in Richmond's future if an agreement for Shockoe Center can be reached with the city. The team would relocate to Richmond and The Diamond in 2010 and move to Shockoe Center when construction is complete, probably for the 2012 season.

What happens now?

The developers are hoping to get a preliminary approval for the project from the city administration by March 1. Mayor Dwight C. Jones and his administration are reviewing the proposal and have no further comment at this time, city spokesman Michael Wallace said.

Contact Will Jones at (804) 649-6911 or .

Contact John O'Connor at (804) 649-6233 or .

Reader Reactions

Posted by ( MeToo ) on January 17, 2009 at 10:43 am

Either build downtown and make a stadium that fits in with the rest of the historical buildings, so it’s not a monstrocity, but “fits in.“ Anyone over been to Fenway? It’s a great example of a ballfield in the middle of a city that doesn’t compromise historical integrity. It’s surrounded by restaurants and little shops. Some undeveloped areas that could use a little fixing.

Keep the stadium on The Blvd and completely revamp the ENTIRE area! Make it a real site with some good shops and resturants all around it. Maybe other entertainment options (laser tag, skating, bowling, etc) around as well. Make it a site to see from 95 so people will want to get off the highway and check it out! Right now it just looks like the wasteland it is.

I don’t think a ballpark in the subs will be successful because it would have to be far off the interstate. You’d probably run into an out of sight out of mind situation. No one sees it so everyone forgets about it. It’s all about promotion and it just wouldn’t happen. How often do you think about RIR unless #1 it’s race week or #2 you drive Laburnam? The Blvd site AND Shockoe are both right at the interstate. I think if the city worked with GRTC to set up park and rides (that already exist) in the surrounding counties it would help the traffic concerns being expressed.

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Posted by ( OutOfLeftField ) on January 16, 2009 at 11:55 pm

Fanguy - ok ok, I won’t use my own words to express myself anymore. But I have a link! Here is an article from MiLB.com that shows why I believe a minor league team will be successful. Pay particular attention to Greenville and Arkansas (1&2) as they relate to new stadiums. Read the rest to realize how attendance is sustained. MiLB attendance 101, if you will.

Link!http://web.minorleaguebaseball.com/news/article.jsp?ymd=20090115&content_id=496101&vkey=news_milb&fext;=.jsp

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Posted by ( FanGuy ) on January 16, 2009 at 12:25 am

OutOfLeftField, stop posting, you are making too much sense!

The naysayers will never see the forest because of the trees. On top of that, they are looking at the wrong trees.

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Posted by ( yusaywhat? ) on January 15, 2009 at 11:51 pm

Wouldn’t we all feel a little better if the developers (private) were putting up the first 20-30% of the money like they would on anything else?

One wonders why we aren’t hearing about a private $70-90 million being committed up front for all the promise of retail and offices, etc.

Taxpayers ought to get a decent shake and return, measured in dollars to the Treasury.

Does somebody have evidence of how other stadiums have created huge economic benefits? Google it up.

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Posted by ( fedup ) on January 15, 2009 at 11:32 pm

NO to downtown stadium. Harsh obvious landgrab attempt: back off please.
Move the ABC warehouse downtown and consolidate and fix up the baseball zone at the Diamond/Sportsbackers ranch to attract a team. The state would sell a lot more of their $206 tequila and free up some good already zoned sports acreage adjacent to two interstate highway systems and a bus depot.

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Posted by ( OutOfLeftField ) on January 15, 2009 at 10:19 pm

What recently built minor league stadiums have failed? Attendance was up in minor league baseball AGAIN this past season. Its been increasing for years.

If you’re going to site DC, please don’t. Major league baseball is completely different, *especially* in DC. Ticket prices were outrageous for a mediocre team (team performance actually matters in MLB, it only helps in MiLB). Average team ticket prices at DC were higher than the World Champion Phillies, for example.

Limited customer base? Great stadiums draw ~400k/year. The problem in Richmond was not the fans, it was the ballpark - the physical building AND the area.

Contribute *nothing* to the cities? Here’s the short list of benefits: More jobs!, community involvement by team members (charities, role models, etc), providing a low-cost OUTDOOR place to take your kids on one or multiple afternoons, providing revenue streams for the cities, attracting MORE opportunities for growth and improvement - the list goes on.

I don’t NEED the stadium to be built in the Bottom, if I really only wanted to watch baseball, I’d be happy with it out in the ‘burbs. I think it’d be something interesting that our city could be proud of (that used to matter to metropoleis); the crown jewel to the Canal Walk renovation project.

I agree a majority of the financing should come from private investors. Those involved are asking for 2.5% of the final cost for an area that needs fixing regardless of the development. The legitimacy of borrowing against the sales tax revenue is to be determined, in my book, depending on the extent of the loan. If that area has no future plans of being developed otherwise (and thus no sales tax revenue stream), then how does this allowance hurt the city?

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Posted by ( hjackson ) on January 15, 2009 at 8:30 pm

Outofleftfield I didn’t mean it to be a personal attack. What I’m trying to point out is non-Richmonders in the affluent suburbs who like baseball trying to force a new stadium in Richmond. Developers using voodoo financing involving tax money to foot the bill for it and requiring the city to ante up 8 million in infrastructure that the city could use for essential needs. Sure it would be nice to fix the area but it is no way essential.

As I stated before the developers can put a stadium anywhere they want as long as they use their money and private money to finance it. What’s wrong with that? If it’s viable then it can be done. The reason for the voodoo scheme for its financing is no sane lender will buy into it. Why should Richmond. How much is Henry Marsh being paid to promote it?

This facility would only have a limited customer base. The Braves were only so-so with attendence. I don’t believe the majority on non-baseball fans should or would want to give up future tax money if this actually is built to enhance the profits of the developers.

These stadium scams have been built all over the country costing taxpayers millions upon millions of dollars for the sole enjoyment of those who happen to like the the sport that is played there. They contribute nothing to the betterment of the cities they are located in. This would be the case in Richmond.

So again if you took it personally I apologize.

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Posted by ( rukiddinme ) on January 15, 2009 at 8:20 pm

I can never get over life-time Richmonders. Are you genetically engineered to resist change? Have you ever been to other cities of Richmond’s size? Despite years of bashing by suburbanites who think they will get mugged or carjacked if they leave Henrico or Chesterfield, Richmond is a thriving city. The James River Park System, the museums, the restaurants, and nightlife are better than what you will find in most bigger cities on the East Coast. The changes in the city in the last ten years (thank you Dr. Trani) are amazing. I work downtown, live on the Southside (in Richmond), and go out in the bottom, slip, or fan several times a month. And there are a lot of young people in Richmond just like me.

And most of us agree, that a ball park downtown would be amazing. And maybe a new arena one day.

And to all the people who cry “Look at the 6th Street Market,“ get over it. Not every project is doomed to fail.

Plus, a ballpark downtown would give the West Enders a chance to get out of suburban New Jers, er, Short Pump every once in a while.

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Posted by ( Larry Lanberg ) on January 15, 2009 at 7:29 pm

“I wouldn’t call the bottom filled with businesses. At least enough that you could walk a few blocks without stumbling upon an area you wouldn’t want to be in (aka - underdeveloped).“ Posted by Outofleftfield

That’s the way I see the bottom also. Really its just a small collection of bars—what the kids call ‘clubs’. Some old buildings being refurbished into apartments too, that’s about it. Still much more potential to realize down there.

I remember when it was all 100% rundown old buildings, winos etc. (I know mskinner remembers this too—Hi mskinner!)But in any event Shockoe Bottom is still far from being the productive, attractive area it could be. I myself would like to see a stadium there. Something else besides just bars…clubs.

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Posted by ( OutOfLeftField ) on January 15, 2009 at 6:26 pm

What’s good for Richmond is good for all of central Virginia. I don’t appreciate what seems like a personal attack, I realize the boundaries of what I can rightfully request.

I drive on those roads and visit those areas as many visitors to the area do, regrettably less than I used to because of the hassle and because the area has lost a lot of its charm. Personally, I love downtown Richmond, and I think city officials have a responsibility to keep its economically attractive areas well-developed and well-kept.

As far as floodzones go, I wouldn’t label the bottom as a high risk area. Gaston was how long ago? And dumped how many inches of rain? Not to mention, much of the development is meant to improve the drainage in the area, or at least sustain it. Would you have those areas remain underdeveloped? Would you condemn New Orleans to never rebuild?

I wouldn’t call the bottom filled with businesses. At least enough that you could walk a few blocks without stumbling upon an area you wouldn’t want to be in (aka - underdeveloped). To me, this warrants further development. Bring a little more light to the area.

Finally, the area the Diamond is in is not a good area for baseball. The alternative to downtown is not the outskirts of downtown Richmond, its the suburbs. No matter how shiny a ballpark you build on the Boulevard, it will still be surrounded by run-down businesses and the Greyhound station.

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