Bally’s proposal to redevelop wooded land near the intersection of Powhite and Chippenham was eliminated from contention. (Courtesy of Bally’s Corp.)
Then there were two.
The City of Richmond announced Wednesday that it is no longer considering Bally’s Corp.’s proposed casino at the intersection of Powhite and Chippenham parkways, a move that brings the number of remaining casino proposals to two.
The finalists are Urban One, which is pitching a resort casino at 2001 Walmsley Blvd. in the Southside, and The Cordish Cos., which is seeking to build on 17 acres owned by Bow Tie Partners at 1301 N. Arthur Ashe Blvd.
The proposals are being reviewed by a nine-person panel the city appointed as well as Convergence Strategy Group, a Louisiana-based consulting firm that specializes in the matter.
The city’s director of economic development, Leonard Sledge, said in a statement that Bally’s was cut because of “concerns about site access, environmental factors, and required approvals from non-city entities that may not be granted or extend the project timeline.”
Bally’s CEO George Papanier said in a statement that the firm was surprised and disappointed to miss the cut.
“Should the City reconsider its decision we would be pleased to re-engage,” Papanier said.
The Cordish Cos. built a 17-story, 310-room hotel and event center at its Maryland Live Casino. (Courtesy of The Cordish Cos.)
This is the second cut the city has made in the casino RFP process. In late March, it dismissed three other casino contenders.
The city is now expected to choose between Cordish and Urban One in May. Richmond residents are scheduled to vote on whether to grant a casino license to whomever the city picks via referendum on Nov. 2.
Urban One CEO Alfred Liggins said his group recently tweaked its proposal to provide more hotel rooms and a higher overall price tag. Urban One initially pitched a $517 million project that included a 150-room hotel. The price tag is now $600 million and the planned hotel includes 250 rooms.
“We heard feedback, not specifically from the city, but what folks liked about us and where they thought we were short,” Liggins said in an interview.
“Folks thought we were short on hotel rooms. We always contended that we’ve got the largest site so we can build more rooms as demand starts to build, but in order to short-circuit all of that and take the issue off the table we decided to build a larger hotel upfront.”
Urban One’s proposal for a casino in Southside. (Courtesy of Urban One)
Liggins added that the extra rooms contributed to the additional $83 million price tag, and that Urban One is also promising more money in upfront and recurring payments to the city.
Liggins said he was not aware that the city was going to select a user by gradually winnowing the field when they submitted their proposal.
“They told us (it would be like this) as it was happening,” Liggins said, laughing. “It was like, ‘I got bad news and good news. The bad news is someone’s got to walk the plank. The good news is it’s not (Urban One).”
Bally’s proposal to redevelop wooded land near the intersection of Powhite and Chippenham was eliminated from contention. (Courtesy of Bally’s Corp.)
Then there were two.
The City of Richmond announced Wednesday that it is no longer considering Bally’s Corp.’s proposed casino at the intersection of Powhite and Chippenham parkways, a move that brings the number of remaining casino proposals to two.
The finalists are Urban One, which is pitching a resort casino at 2001 Walmsley Blvd. in the Southside, and The Cordish Cos., which is seeking to build on 17 acres owned by Bow Tie Partners at 1301 N. Arthur Ashe Blvd.
The proposals are being reviewed by a nine-person panel the city appointed as well as Convergence Strategy Group, a Louisiana-based consulting firm that specializes in the matter.
The city’s director of economic development, Leonard Sledge, said in a statement that Bally’s was cut because of “concerns about site access, environmental factors, and required approvals from non-city entities that may not be granted or extend the project timeline.”
Bally’s CEO George Papanier said in a statement that the firm was surprised and disappointed to miss the cut.
“Should the City reconsider its decision we would be pleased to re-engage,” Papanier said.
The Cordish Cos. built a 17-story, 310-room hotel and event center at its Maryland Live Casino. (Courtesy of The Cordish Cos.)
This is the second cut the city has made in the casino RFP process. In late March, it dismissed three other casino contenders.
The city is now expected to choose between Cordish and Urban One in May. Richmond residents are scheduled to vote on whether to grant a casino license to whomever the city picks via referendum on Nov. 2.
Urban One CEO Alfred Liggins said his group recently tweaked its proposal to provide more hotel rooms and a higher overall price tag. Urban One initially pitched a $517 million project that included a 150-room hotel. The price tag is now $600 million and the planned hotel includes 250 rooms.
“We heard feedback, not specifically from the city, but what folks liked about us and where they thought we were short,” Liggins said in an interview.
“Folks thought we were short on hotel rooms. We always contended that we’ve got the largest site so we can build more rooms as demand starts to build, but in order to short-circuit all of that and take the issue off the table we decided to build a larger hotel upfront.”
Urban One’s proposal for a casino in Southside. (Courtesy of Urban One)
Liggins added that the extra rooms contributed to the additional $83 million price tag, and that Urban One is also promising more money in upfront and recurring payments to the city.
Liggins said he was not aware that the city was going to select a user by gradually winnowing the field when they submitted their proposal.
“They told us (it would be like this) as it was happening,” Liggins said, laughing. “It was like, ‘I got bad news and good news. The bad news is someone’s got to walk the plank. The good news is it’s not (Urban One).”
Let’s save some time and money. Who didn’t think the One group would get the deal? Just another fine example of RFPs and semantics in RVA.
If site access is a primary consideration the proposal on Arthur Ashe Boulevard makes no sense at all. While it’s not far from Interstate 64/95, it’s an already congested area with periods of heavy traffic. It’s also on a main north/south artery for residents of the northside.
Personally I have no opposition to gambling but I think the casino will be like the Sixth Street Marketplace — a quick windfall followed by a slow and steady decline once the novelty wears off.
I would have far less heartburn over the Cordish proposal if it was located NORTH of the Acca bridge – and not dropped right there in Scott’s Addition. SA is growing organically on its own – in fact, from a development standpoint, it’s absolutely on fire right now, given the sheer number of residential buildings being built, having been announced/proposed, or are on developers’ drawing boards. I don’t see how a casino enhances Scott’s – if anything, I tend to think it could kibosh the big momentum that’s built up there over the last couple of years. A location north… Read more »
Another consideration: VCU is dropping a ton of money in the area around the Diamond for their Athletic Village. Do they want a casino for a neighbor? Their money speaks pretty loudly in RVA.
Well, the first thing I would like to ask is “Why are all these proposals on different sites?” I personally like Urban One’s proposed site because it will “do no harm” — as long as they are paying for it and not asking the city or State for money. If Urban One wants to invest a ton of money in that location, I say the city can’t lose even if the Casino doesn’t do well. This Bally’s site seemed to be a non-starter from the get-go and I wonder why Bally’s didn’t understand this themselves — who advises them? IDK… Read more »
“who advises them?”
Consultants – because when you’re not part of the solution, there’s good money in prolonging the problem.
I suspect any developer would insist on an exclusive deal for such a property. Especially if that’s what they perceive to be an advantage. And it would sweeten the pot for the seller to do so.
Interesting the Ballys casino has “environmental issues” with wetlands on their property but the back the PM parking lot, where RadioOne is planning the park and trails, is also a major wetland that leads directly to the James River. Why are the plans not getting the same level of environmental opposition…oh wait as other said in their replies the fix is in.
Gambling, drugs/alcohol & prostitution: three vices that mankind has regulated throughout most of history. Of course, sometimes these vices cannot be suppressed (see, e.g., prohibition) and therefore should not always be suppressed. But be warned, citizen: this is a slippery slope. E.g., “The Manhattan District Attorney’s office, headed by Cy Vance Jr., announced today that it will no longer prosecute prostitution . . . .” Hey, I enjoy a beer as much as the next guy, and a blackjack table is fun (sometimes). But there are costs when gambling comes to town. I’d leave it in Vegas if it were… Read more »
I both agree and disagree. The location of this site will mean it will attract business from I95 — also, after engaging with some supporters and employees of the Urban One project, they point out that they have a broad (geographically) reach and I suspect even influence on decision making within their realm — hence, this project could have a more broad reach than any of the others — which MAY be why they are so willing to take a chance on a sit that is not in the Heart of It All and rather merely a highly visible site… Read more »
I find it interesting that Richmond always seems to sell itself short of opportunities. While I am not a gambler, I do ask why can’t the city have more than one casino? Other cities/communities seem to be able to figure it out and make it work, why can’t Richmond?
I think the issue is that there essentially NEEDS to be a monopoly in most cases to bother having the first one at all. Even Destination type locals like Atlantic City have a hard time if they don’t tend to attract the wealthy enough — the wealthy high rollers are VERY mobile and they don’t like rubbing elbows with the rest of us (and, from their points of view, there are valid reasons for this — certainly, if one is in a “low class” establishment there are high potential costs to acting like a Big Shot.) so they will fly… Read more »
Correct, Atlantic City and Vegas are destinations for gambling. Richmond does not have a strong travel or tourism industry. The reality is most of the revenues generated by a casino in RVA will come from low and moderate income households.
I believe the biggest issue involving having only one casino is there way the state law was written. The localities that are permitted to have a casino are all limited to one per locality. The city really has nothing to do with that. Where that might be challenged is if the Pamunkey actually go the federal route and seek relief to build on their site next to I-95. Not sure what legal challenges it would face, but under federal law, they are permitted to build and operate a casino – the only thing is, it is a long and from… Read more »
Search the archive of the Washington Post’s coverage of MGM National Harbor. I think this is an applicable roadmap of what Richmond can expect.
What makes you think that?
Such a conspiracy theory has occurred to me as well, but it would involve collusion of some private parties who have to spend money on proposals.
And, correct me if I am wrong, but no one has to propose anything anywhere — do they all lock up a site to other bidders? Couldn’t another party propose something at the same site, a la the failed downtown sites for other iffy projects?
Shawn – some good points! And it raises the question: IF – and that’s a big if – there was/is some form of backroom, under-the-table collusion going on between the Urban One developers and the city, do the other developers have ANY legal recourse in terms of lawsuits? Not that I want the city to be embroiled in a string of litigation with casino developers, but under the guidelines, statues set forth (I guess by the state?) – does the city actually potentially have some kind of liability? I raise this question because if, in fact this was the case,… Read more »
Urban One renderings look like a 70s high school. If they win, I hope someone modernizes the look
Out near Phillip Morris is likely the only place they can hope for a steady flow of customers with money. So they can cash their paychecks for them and clean them out before they can get home to buy their baby a new pair of shoes. Pretty sad commentary. PM has plenty of gamblers and druggies working there, from what I have heard from some who have worked there. I-95 will supply customers commuting between Richmond/Petersburg. Not my cup of tea. You can have it. I’d rather spend a few extra dollars and enjoy the nice weather in a resort.… Read more »
I agree. If you put it there, it will quickly turn into a dump. Horrible location. Terrible area. But the way Richmond is run, that is exactly where it will land.
As in any profession? Would that include PM? I never worked at PM, just what I’ve heard from people that have worked there. Maybe it’s cleaned up since I last discussed the place about 25-30 years ago. I’m retired, as probably most of the people from back then are likely gone. I concede your point and hope PM is clean as a whistle, although I doubt it. Judging from the news I get out of Richmond, VA., it is anything but clean and I have no desire to spend a dime in that rundown dump.
As a sovereign nation, with built in advantages against Urban One, I hope the Pamunkey build their casino along I-95 anyway and put Urban One in bankruptcy within a year. Like everyone else is saying… the fix is in.
Hey,
Has anyone seen a big spike in property costs near either one of these sites yet?
I am sure it will be as successful as the 6th Street Marketplace and Redskins oops I mean the Washington Football Team training camp.
I think you meant Stony Point Fashion Park.
At least that was private money going poof…
Stony Point had city issued bonds and city for the longest time OWNED the parking lots. They sold them back to the mall owner or were supposed to as part of redevelopment.
Yeah. Will I have to pay extra for a room with a view of I-95, perhaps a view of the pike would be more to your liking. Will binoculars be included for a view of the beautiful Richmond skyline? lol.