The 200-acre GreenCity site includes the 111-acre Scott Farm property, pictured. (BizSense file)
More steps have been taken toward the planned development of the 200-acre GreenCity site in Henrico.
At their meeting Tuesday night, county supervisors approved an agreement with Henrico-based Markel | Eagle for development of the northern half of the GreenCity property, where homebuilding arm Eagle Construction of VA will build all of the 880 for-sale homes that are planned as part of the arena-anchored, mixed-use development.
The approval followed the sale of that land, a 111-acre assemblage known as Scott Farm, in a $35.1 million deal that closed Aug. 31.
The purchase was shared between the county and Markel | Eagle, which contributed $17 million toward the payment. The county paid another $17 million through its Economic Development Authority, and the EDA covered the remaining $1.1 million.
As stipulated in the development agreement, the land was conveyed to the EDA, which then conveyed it to an LLC tied to Markel | Eagle. The agreement and purchase plan were announced by the parties last month, when the EDA board authorized the transaction. The county expects to recoup its part of the payment over 20 years from incremental tax revenues generated by GreenCity.
A conceptual rendering of housing groups planned for the Scott Farm property.
As such revenues would be collected by a community development authority for GreenCity, the development agreement with Markel | Eagle calls for the creation of a separate CDA to help finance initial work on the Scott Farm development and potentially other parts of GreenCity.
A special assessment of 25 cents per $100 of assessed value on taxable real property would be levied annually in the so-called Scott Farm CDA district, and the CDA would issue bonds to finance infrastructure improvements and pay back the EDA’s $1.1 million investment. Tax revenue from the Scott Farm development would be used to pay off the bonds.
Similar to TIFs, or tax-increment financing districts, CDAs are a financing tool that governments can use to generate tax revenue to support a development as it progresses. Henrico has used CDAs with three other developments in the county: Short Pump Town Center, White Oak Village and Reynolds Crossing.
The development agreement also stipulates a repurchase option for the county in the event of a developer default, as well as a ground lease for the use of 12 acres of Scott Farm as parking lots to support the arena, if needed. Once structured parking is built as the rest of GreenCity progresses, that acreage would revert back to Markel | Eagle for residential development, no later than 2031.
A site plan of the 200-acre GreenCity project. (File image courtesy Green City Partners)
The arrangement lines up Markel | Eagle as the principal developer of the residential portion of GreenCity, a so-called “ecodistrict” that’s planned to stretch between Parham Road and Interstate 295 east of I-95.
The $2.3 billion project also is planned to consist of a 17,000-seat arena, two 300-room hotels, office and retail development, a rehab of the former Best Products headquarters building, green space, and a total of 2,400 residential units. The rest of those units would be built on the 93-acre former Best Products site that makes up the southern half of the overall site.
Eagle Construction would build 163 homes on the Best Products site, and Markel | Eagle also will develop 80 acres that make up the Scott Farm portion of a linear park that’s planned to run through the length of the GreenCity site. The total buildout of the Scott Farm property amounts to a $400 million investment by Markel | Eagle.
The seller in the Scott Farm deal was Commonwealth Foundation for Cancer Research, a charitable organization led by Bill and Alice Goodwin. Bill Goodwin’s Riverstone Properties bought the land in 2015 and gifted it to the foundation earlier this year.
Riverstone had paid over $6.4 million for the four parcels that make up the Scott Farm land. The county assessed the parcels this year at $16.6 million combined.
A rendering of the planned GreenCity development. (BizSense file)
The 93-acre Best Products site that makes up the rest of GreenCity was sold by the county earlier this year to an LLC tied to Green City Partners, the lead development entity led by Susan Eastridge of Fairfax-based Concord Eastridge and Michael Hallmark of Richmond-based Future Cities.
Venue operating giant ASM Global is signed on to manage and help develop the arena and supporting retail and hospitality uses. The arena is targeted for completion by the end of 2026, and full build-out of the entire GreenCity project is anticipated in 2033.
Markel | Eagle has said the for-sale homes could start being built in late 2025 or in 2026. A preliminary plat approved in June shows the 880 units broken down as 510 townhomes, 302 “two-over-two” condos and 68 villas.
The 200-acre GreenCity site includes the 111-acre Scott Farm property, pictured. (BizSense file)
More steps have been taken toward the planned development of the 200-acre GreenCity site in Henrico.
At their meeting Tuesday night, county supervisors approved an agreement with Henrico-based Markel | Eagle for development of the northern half of the GreenCity property, where homebuilding arm Eagle Construction of VA will build all of the 880 for-sale homes that are planned as part of the arena-anchored, mixed-use development.
The approval followed the sale of that land, a 111-acre assemblage known as Scott Farm, in a $35.1 million deal that closed Aug. 31.
The purchase was shared between the county and Markel | Eagle, which contributed $17 million toward the payment. The county paid another $17 million through its Economic Development Authority, and the EDA covered the remaining $1.1 million.
As stipulated in the development agreement, the land was conveyed to the EDA, which then conveyed it to an LLC tied to Markel | Eagle. The agreement and purchase plan were announced by the parties last month, when the EDA board authorized the transaction. The county expects to recoup its part of the payment over 20 years from incremental tax revenues generated by GreenCity.
A conceptual rendering of housing groups planned for the Scott Farm property.
As such revenues would be collected by a community development authority for GreenCity, the development agreement with Markel | Eagle calls for the creation of a separate CDA to help finance initial work on the Scott Farm development and potentially other parts of GreenCity.
A special assessment of 25 cents per $100 of assessed value on taxable real property would be levied annually in the so-called Scott Farm CDA district, and the CDA would issue bonds to finance infrastructure improvements and pay back the EDA’s $1.1 million investment. Tax revenue from the Scott Farm development would be used to pay off the bonds.
Similar to TIFs, or tax-increment financing districts, CDAs are a financing tool that governments can use to generate tax revenue to support a development as it progresses. Henrico has used CDAs with three other developments in the county: Short Pump Town Center, White Oak Village and Reynolds Crossing.
The development agreement also stipulates a repurchase option for the county in the event of a developer default, as well as a ground lease for the use of 12 acres of Scott Farm as parking lots to support the arena, if needed. Once structured parking is built as the rest of GreenCity progresses, that acreage would revert back to Markel | Eagle for residential development, no later than 2031.
A site plan of the 200-acre GreenCity project. (File image courtesy Green City Partners)
The arrangement lines up Markel | Eagle as the principal developer of the residential portion of GreenCity, a so-called “ecodistrict” that’s planned to stretch between Parham Road and Interstate 295 east of I-95.
The $2.3 billion project also is planned to consist of a 17,000-seat arena, two 300-room hotels, office and retail development, a rehab of the former Best Products headquarters building, green space, and a total of 2,400 residential units. The rest of those units would be built on the 93-acre former Best Products site that makes up the southern half of the overall site.
Eagle Construction would build 163 homes on the Best Products site, and Markel | Eagle also will develop 80 acres that make up the Scott Farm portion of a linear park that’s planned to run through the length of the GreenCity site. The total buildout of the Scott Farm property amounts to a $400 million investment by Markel | Eagle.
The seller in the Scott Farm deal was Commonwealth Foundation for Cancer Research, a charitable organization led by Bill and Alice Goodwin. Bill Goodwin’s Riverstone Properties bought the land in 2015 and gifted it to the foundation earlier this year.
Riverstone had paid over $6.4 million for the four parcels that make up the Scott Farm land. The county assessed the parcels this year at $16.6 million combined.
A rendering of the planned GreenCity development. (BizSense file)
The 93-acre Best Products site that makes up the rest of GreenCity was sold by the county earlier this year to an LLC tied to Green City Partners, the lead development entity led by Susan Eastridge of Fairfax-based Concord Eastridge and Michael Hallmark of Richmond-based Future Cities.
Venue operating giant ASM Global is signed on to manage and help develop the arena and supporting retail and hospitality uses. The arena is targeted for completion by the end of 2026, and full build-out of the entire GreenCity project is anticipated in 2033.
Markel | Eagle has said the for-sale homes could start being built in late 2025 or in 2026. A preliminary plat approved in June shows the 880 units broken down as 510 townhomes, 302 “two-over-two” condos and 68 villas.
The other three CDAs cited in the article were strictly commercial entities without residential components, built during a period when office and retail development was surging. If an element within either of them failed to develop and carry its share of the bond payment, the developer (and other landowners?) was responsible to make up the difference. For that reason, the County restricted residential uses within the boundaries. And for that reason, the County refused to allow HHHunt to develop “Wilton” with CDA bonds. The new home owners of Green City will be responsible for a mil-rate of $1.05 per $100,… Read more »
The more we learn about this project, it seems less and less likely to be successful. As Bruce notes above with the CDA having residential as part of the special assessment, it changes the game in terms of who is on the hook. While there is a lot of infrastructure work needed, I don’t fully understand waiting until 2025 or 2026 for homes to be built. That seems very slow given this project has already been in the works a few years now.
Funny it was not pushed in the article here or other media but Henrico is using a CDA and TIF bonds to finance an entirely RESIDENTIAL project. This project will have TWO Community Development Authorities with two different taxing structures and two different rates and taxing zones for different bonds. That is a FIRST for the region. I do not think even the City has done a CDA/TIF financed bond to build housing!
Bruce: For the record retail isn’t hurting these days. While there are several big boxes available, such as Bed, Bath & Beyond, they are being backfilled. Second generation restaurant space has many users lining up to take over. The weakest link is office, and that’s not likely to change in the near future.
Yes retail is finding backfill but also no one in RVA is building BIG retail centers on spec. Older center (SteinMart Festival off Midlo) are being reworked to reduce their retail footprint. But if a mall could not survive up the road on Brook from the surrounding area how much interest (and from whom) would be interested in retail around an arena? 2400 residents will help but name a large retailer??? You think Target, Walmart, Penny, Macys are considering stores in this area??? Why would they??? TJ Maxx?? I heard someone on their team say new retailers but who??? Ikea… Read more »
Brian, For years you preached that Richmond had nearly twice as much retail square space per person as the national average. You said we were over retailed and a reckoning was ahead. At best, local retail is falling back in line with the national average instead of growing. Investment sales for shopping centers appear to be bargains compared to apartments and warehouses. Once thriving malls are being converted to other uses. Many big boxes have closed and been torn down. I put the two of office and retail as an investment in the same category, still spiraling downward. I think… Read more »
Brian only says positive things about Henrico, but rest assured If this development was in any other locality he’d be quick to jump all over it and it’s odd financing.
I just can’t wait to see cranes in the air and see the arena built.
I was kinda hoping we’d get an “area library” out of this like Libbie Mill. I know it was never discussed, but the North Park branch could use an upgrade. But it looks like Henrico has dumped enough into this thing… I’m good.