The 9-acre City Center site is anchored by the Richmond Coliseum, which is to be demolished. (BizSense file photos)
Richmond’s search for its preferred development team for the seemingly stagnant City Center redevelopment project is said to be down to one team and in final negotiations as the slow-moving process enters a third year.
According to multiple sources with knowledge of the situation, just one of the four project finalists – Capstone Development – remains in active negotiations with the city. Richmond has been leading the selection process after issuing a joint solicitation in late 2022 with the Greater Richmond Convention Center Authority.
The 9-acre project would replace the Richmond Coliseum with a 500-room convention center hotel and a mix of office, retail and housing development.
The city and GRCCA have not officially selected or announced a City Center developer and aren’t expected to by the end of this year, according to the sources, who spoke on condition of anonymity because of the ongoing negotiations.
But the sources said those negotiations are solely with Capstone at this point, suggesting that the three other finalists – City Center Gateway Partners, led by Capital Square and Shamin Hotels; Richmond Community Development Partners, led by Machete Group and Bank Street Advisors; and Lincoln Property Co. – are no longer in contention.
The timing means a selection will not be announced before the end of Mayor Levar Stoney’s term. Stoney’s administration initiated the project in the wake of the unsuccessful Navy Hill plan, a larger redevelopment effort that didn’t go forward and involved some of the same properties.
Mayor-elect Danny Avula, who takes office in January, has said his administration will see City Center through.
In addition to its new construction components, City Center also would involve the rehab of the neighboring Blues Armory building and include infrastructure improvements, parking and transit facilities, bicycle and pedestrian improvements, and public open space.
Renderings from Capstone’s proposal for City Center last year. (City documents)
Capstone, a minority-owned firm based in Maryland, is already known to city administrators for its role as the hotel developer for Diamond District Partners, the development team leading the mixed-use portion of Richmond’s ballpark-anchored Diamond District project.
In addition to hotels, Capstone’s portfolio includes residential and mixed-use projects, typically in urban locations, according to its website. Capstone CEO Norman Jenkins did not return a call seeking comment Wednesday.
Capstone’s team includes D.C.-based retail developer Edens, and Ventas, a life sciences-focused real estate investment trust out of Chicago. Also on the team are Atlanta-based architecture firm Cooper Carry and Richmond-based general contractor W.M. Jordan Co.
A map shows the City Center project area outlined in orange. (BizSense file)
The four City Center finalists were narrowed down from an initial field of five teams that responded to the November 2022 solicitation. Formal proposals were released in May 2023, and in subsequent months at least two of the teams reworked their proposals to include a taller convention center hotel, with City Center Gateway Partners pitching a 30-story hotel and Richmond Community Development Partners proposing 40 stories.
Richmond Community Development Partners, led by Houston-based Machete Group and local firm Bank Street Advisors, is a variation of a same-named team that was the runner-up for the Diamond District, the 67-acre mixed-use development replacing The Diamond with a new baseball stadium.
In the past year, negotiations for City Center were said to be ongoing with just two of the teams: Capstone, and the City Center Gateway Partners team led by local firms Capital Square and Shamin Hotels.
A site tour in 2022 kicked off the selection process, which is entering a third year.
A development team selection had been targeted for the summer of 2023, after being pushed back from an initial goal of that spring. Little has been said about the selection process since, though in October the Richmond Economic Development Authority met in closed session to discuss disposition of land and awarding a contract for City Center. No action was taken after the closed session.
Earlier this year, administrators proposed putting $3 million in the city budget toward demolishing the Coliseum to help ready the City Center site. City Council opted instead to put those funds toward Richmond Public Schools and other priorities.
The duration of the selection process has been attributed to complexities involved in financing for City Center, which the city is looking to maintain a stake in through long-term ground leases. The city-owned properties were transferred in 2022 to the EDA, which would maintain ownership through the ground leases, similar to its agreements for the new Diamond District ballpark.
Asked for comment on City Center, Lincoln Saunders, Richmond’s chief administrative officer who represents the city on the GRCCA, said he couldn’t comment on the status of the teams.
“Negotiations continue,” Saunders said. “I’m optimistic that a final deal can be announced early in the new year.”
Saunders is stepping down as CAO at the end of this month. Mayor-elect Avula has said Senior Deputy CAO Sabrina Joy-Hogg would serve as interim CAO after Saunders’ departure.
The 9-acre City Center site is anchored by the Richmond Coliseum, which is to be demolished. (BizSense file photos)
Richmond’s search for its preferred development team for the seemingly stagnant City Center redevelopment project is said to be down to one team and in final negotiations as the slow-moving process enters a third year.
According to multiple sources with knowledge of the situation, just one of the four project finalists – Capstone Development – remains in active negotiations with the city. Richmond has been leading the selection process after issuing a joint solicitation in late 2022 with the Greater Richmond Convention Center Authority.
The 9-acre project would replace the Richmond Coliseum with a 500-room convention center hotel and a mix of office, retail and housing development.
The city and GRCCA have not officially selected or announced a City Center developer and aren’t expected to by the end of this year, according to the sources, who spoke on condition of anonymity because of the ongoing negotiations.
But the sources said those negotiations are solely with Capstone at this point, suggesting that the three other finalists – City Center Gateway Partners, led by Capital Square and Shamin Hotels; Richmond Community Development Partners, led by Machete Group and Bank Street Advisors; and Lincoln Property Co. – are no longer in contention.
The timing means a selection will not be announced before the end of Mayor Levar Stoney’s term. Stoney’s administration initiated the project in the wake of the unsuccessful Navy Hill plan, a larger redevelopment effort that didn’t go forward and involved some of the same properties.
Mayor-elect Danny Avula, who takes office in January, has said his administration will see City Center through.
In addition to its new construction components, City Center also would involve the rehab of the neighboring Blues Armory building and include infrastructure improvements, parking and transit facilities, bicycle and pedestrian improvements, and public open space.
Renderings from Capstone’s proposal for City Center last year. (City documents)
Capstone, a minority-owned firm based in Maryland, is already known to city administrators for its role as the hotel developer for Diamond District Partners, the development team leading the mixed-use portion of Richmond’s ballpark-anchored Diamond District project.
In addition to hotels, Capstone’s portfolio includes residential and mixed-use projects, typically in urban locations, according to its website. Capstone CEO Norman Jenkins did not return a call seeking comment Wednesday.
Capstone’s team includes D.C.-based retail developer Edens, and Ventas, a life sciences-focused real estate investment trust out of Chicago. Also on the team are Atlanta-based architecture firm Cooper Carry and Richmond-based general contractor W.M. Jordan Co.
A map shows the City Center project area outlined in orange. (BizSense file)
The four City Center finalists were narrowed down from an initial field of five teams that responded to the November 2022 solicitation. Formal proposals were released in May 2023, and in subsequent months at least two of the teams reworked their proposals to include a taller convention center hotel, with City Center Gateway Partners pitching a 30-story hotel and Richmond Community Development Partners proposing 40 stories.
Richmond Community Development Partners, led by Houston-based Machete Group and local firm Bank Street Advisors, is a variation of a same-named team that was the runner-up for the Diamond District, the 67-acre mixed-use development replacing The Diamond with a new baseball stadium.
In the past year, negotiations for City Center were said to be ongoing with just two of the teams: Capstone, and the City Center Gateway Partners team led by local firms Capital Square and Shamin Hotels.
A site tour in 2022 kicked off the selection process, which is entering a third year.
A development team selection had been targeted for the summer of 2023, after being pushed back from an initial goal of that spring. Little has been said about the selection process since, though in October the Richmond Economic Development Authority met in closed session to discuss disposition of land and awarding a contract for City Center. No action was taken after the closed session.
Earlier this year, administrators proposed putting $3 million in the city budget toward demolishing the Coliseum to help ready the City Center site. City Council opted instead to put those funds toward Richmond Public Schools and other priorities.
The duration of the selection process has been attributed to complexities involved in financing for City Center, which the city is looking to maintain a stake in through long-term ground leases. The city-owned properties were transferred in 2022 to the EDA, which would maintain ownership through the ground leases, similar to its agreements for the new Diamond District ballpark.
Asked for comment on City Center, Lincoln Saunders, Richmond’s chief administrative officer who represents the city on the GRCCA, said he couldn’t comment on the status of the teams.
“Negotiations continue,” Saunders said. “I’m optimistic that a final deal can be announced early in the new year.”
Saunders is stepping down as CAO at the end of this month. Mayor-elect Avula has said Senior Deputy CAO Sabrina Joy-Hogg would serve as interim CAO after Saunders’ departure.
Wow… on the one hand it’s exciting to FINALLY have even a smattering of an indication of progress on this initiative. But I have to say – I am very much disappointed that – apparently – we won’t be getting that 40-story hotel that was slated to become the tallest building in Richmond, surpassing the height of even the Monroe Building. This hotel tower likely would have been an iconic, “signature” tower – and given the higher elevation of that northern part of downtown, its prominence on the skyline would have actually been enhanced and even more pronounced. As Chef… Read more »
I expect that this project will be hindered by the rising cost of steel and concrete—and labor— if tariffs are imposed. It was wise to allow the arena to slip away to Henrico. The cost for a 17,000 seat arena is prohibitive without a major sports tenant to occupy the space 100 days per year. JPJ at UVA has succeeded only because it was funded almost entirely by private donations at a time materials like steel and concrete were a third what they are today. It couldn’t have been built without those donations and probably not today with the costs.
I think this development or the nearby bus transfer center will want to consider having an eVTOL landing pad for airport rides, etc. The tech is coming very fast.
Fingers crossed it’s not another 6th Street Marketplace!
It’s time to let 6SM go.
We barely use the convention center we have.
Hence the need for more hotel rooms. One of the things conventions have said they are looking for is more hotel rooms in close proximity to the convention center. This a convention center hotel and not a new convention center.
As someone who has worked for and with hotels and restaurants nearby, I can assure you that this is not true.
Now, convenient lodging, however – as David points out – absolutely is a sticking point. 500 additional rooms within walking distance, plus the nascent north-south Pulse line and transfer hub should go a long way towards addressing a lot of the issues I’ve heard from convention-goers.
Maybe I’m missing something, but two things pop out. With a 500-room convention center as a part of this redevelopment plan is that not an overlap of the Richmond Convention Center already in place? And second, is there any talks to actually have a multi-use indoor arena within the City (even if a separate project and site) which would include seating capacity adequate to draw big name entertainment options, mainly concerts, to bring that back to RVA? We currently have to go elsewhere in Virginia for those.
Yes and yes, you did miss something. This is a convention center hotel, not a convention center. It is intended to support the center that is in place. As for the event venue, a 7500 person amphitheater is under construction on the riverfront and a large arena is planned for Henrico. So those needs are being addressed, though I’ve seen no news lately regarding the arena.
Yes, amphitheater is getting built. But an indoor venue would attract not just concerts in the winter months, but would also attract other entertainment options like Disney on ice, circuses, etc.
Right, indoor as in, year-round options, maybe even to the extent that it lures sports teams to call it home. The new outdoor amphitheater is coming along nicely as I saw it last week.
7500 seat amphitheater will not draw big name concerts
Not sure what you consider “big name” but the downtown amphitheaters in Charlotte & Raleigh get really great diverse line ups each year. Having Coran Capshaw behind it almost guarantees a great line up – maybe take a look at the roster for Red Light Management.
Big name is not Dwight Yoakam. “Big Name” would be Dave Matthews, Beyonce, Taylor Swift, and such. The City has a letter of intent to buy the Philip Morris land where the casino was going to be built. That is where we could have a coliseum. Plenty of space for it, along with hotels and restaurants….and jobs.
I’ve followed the City Center plan for years and there’s a lot I appreciate about it. The boost of housing downtown will help to activate many of the vacant retail spaces and just make the place livelier in the evenings and on weekends. When I first moved downtown, I found it to be insane that everything closes at like 8pm. It would be nice to actually have a nightlife in the center of the city. I’m also really happy to see green space included. Aside from Abner Clay Park and the Capitol green there really isn’t much space for me… Read more »
Couldn’t agree more, Will. My urban planning professors in undergrad at VCU some 40 years ago preached over and over that what downtown RVA NEEDS is a minimum of 30,000 people LIVING downtown in order for it to be a legitimate 24/7 place filled with vitality. Getting a larger boost in housing in this Phase 1 of the larger overall City Center district (basically the same downtown footprint as the old Navy Hill proposal) will definitely be a step in the right direction toward getting us closer to what urbanists and planners call a “critical mass” of people living, working,… Read more »
I will volunteer to come down there with a hammer and help bring that monstrosity down.
If nothing else, that monstrosity is emblematic of the present mayor’s “legacy,” so it will be nice to have that reminder disappear.
how so? he tried to get it torn down and a new arena built.
To be honest the rendering with the 40-story hotel tower looks WAY better than what Capstone is proposing. Richmond deserves a new tallest signature tower that would put us on the map visually to draw national attention to itself in the ranks with the Raleighs, Nashvilles, and Austins. While it’s great that we’ve begun to embrace more density within the last decade or so, I’m tired of everything new being built in Richmond scale. I think it’s time we break the height barrier significantly with this one! Go BIG or go home!!
Amen and AMEN!
Amen!!! 💯% spot on.
From your keyboard to God’s eyes, my friend. I could not have said it better myself.
Though many of the usual commentators on this site want skyscrapers so that Richmond will have a big city vibe, extremely tall structures look out of place unless they’re clustered together like in Manhattan, Chicago, and many cities throughout Asia and the UAE. It’s like looking at the countryside in NoVA and seeing narrow 4-story townhomes in the middle of farmland, they stick out like a sore thumb visually. Most cities and smaller towns throughout the US and Europe have site lines on a more human scale, supporting sidewalk cafes, etc.. The financial/business districts are where the tallest buildings are… Read more »
I’m not a hospitality industry expert, but I just can’t see how a 40 story hotel there would be sustainable.
Height is not the sole measure of density though. While they are poor comparisons to Richmond, much of Metropolitan tokyo, london, and even new york (historically) weren’t necessarily particularly vertical – just consistently densely built. DC might be a better comparison – somewhat densely built, good historic architecture and some decent new architecture, but no real skyscrapers.
Not saying that a new signature skyline defining tower is bad, but I don’t think it’s a necessity or a panacea either
I do agree that the Coliseum itself as a venue is what is missing. The amphitheater will be great, but I miss the versatility of being able to see an ice hockey game, a Broadway production of CATS, a rodeo, and a Bruce Springsteen concert in the same venue.
Henrico claims to be building an arena near the Parham exit of I-95. Better out there than in the city. The 230K population city of Richmond shouldn’t be responsible for taking all the risk and paying for a multitude entertainment venues for a 1.3M Richmond metro population. These venues rarely pay for themselves in small-to-mid-size cities. The few success stories in markets our size were constructed twenty years ago prior to construction costs vastly accelerating. Financing on a $300 million construction project over 30 years probably comes out to $450+ million in costs. Plus there are operating/maintenance costs no one… Read more »