The 67-acre Diamond District site is bordered by Arthur Ashe Boulevard, Hermitage Road, the interstate and the railroad tracks. (BizSense file)
The $40 million legal squabble surrounding Richmond’s ballpark-anchored Diamond District development is back for another at-bat.
Republic Properties filed an amended lawsuit against its former teammates on the project, Thalhimer Realty Partners and Loop Capital, which it now argues they breached a business “venture” when they continued with the project without Republic.
D.C.-based Republic, which led an earlier iteration of the Diamond District development group before withdrawing from participating in the project, had previously argued in its original lawsuit that Thalhimer and Loop had breached a business “partnership” that was formed through their pursuit and award of the project.
But last month, Richmond Circuit Judge Bradley Cavedo rejected that argument and tossed out the lawsuit, though Republic was allowed to amend and refile it. In his ruling, Cavedo said Republic failed to establish that a partnership between the parties existed, and that he “finds a distinction between pursuing a contract and carrying on as co-owners of a business.”
The amended suit, which was filed last week, argues instead that the three parties created a business venture to respond to the city’s solicitation for the project, entered into “a special combination” to profit and benefit from it “without any formal partnership or corporate designation,” and later drafted a venture agreement that was signed by Republic and Thalhimer, though not Loop.
Specifically, the venture agreement – which was included and referred to in the original suit – was signed by Republic principal Jordan Kramer and Thalhimer principal Jason Guillot on behalf of LLCs that the companies had each formed for that purpose: Republic Projects LLC, which is the official plaintiff in the lawsuit; and Thalhimer’s entity, called Richmond RVADP LLC.
Republic Projects LLC is tied to Republic Properties’ parent company, Connecticut-based Republic Holdings Corp. The suit alleges that the “Republic/Thalhimer/Loop business venture constitutes a partnership or joint venture under Virginia law.”
A rendering of the ballpark-anchored Diamond District development along Arthur Ashe Boulevard.
The original development group had vied for the Diamond District project under a separate LLC called RVA Diamond Partners, beating out 14 other teams that competed for the $2.4 billion public-private project. Republic had assembled the group and formed the RVA Diamond Partners LLC, but Thalhimer and Loop argue that the parties never came to terms on or signed an operating agreement for the LLC.
Thalhimer later formed a new entity – Diamond District Partners LLC – and entered into a revised development agreement with the city, after Republic refused to sign off on an earlier development agreement and withdrew from participating in the project. Thalhimer has said Republic notified it in writing that Republic was bowing out of the project.
Republic argued in the original suit, which it filed last July, that Thalhimer and Loop struck out on their own without first dissolving their alleged partnership. Thalhimer and Loop countered that Republic’s argument failed because they never executed an agreement, and that Republic waived any rights it may have had against them when it refused to sign off on the earlier development agreement.
Chicago-based Loop, which has also since bowed out of the project as an investor, has asked to be dropped from the suit, contending that it never signed on to be part of either LLC and has no interest or involvement in the Diamond District project.
The amended suit still names Loop as a defendant along with locally based Thalhimer and Diamond District Partners LLC. It does not include Guillot, Loop CEO James Reynolds and two other Loop associates who were defendants in the original suit.
The City of Richmond is not a defendant in either suit.
Republic still seeks $40 million it says it stands to lose from the project. It now alleges 10 counts including fraud and conspiracy, neither of which were alleged in the original suit.
The amended suit also alleges breach of contract, unjust enrichment, breach of duty of loyalty, improper exclusion from joint venture, and usurpation of joint venture opportunity.
Republic is represented by Offit Kurman attorney Edward Tolchin and Christian & Barton attorneys W. David Harless and Roman Lifson.
Harold Johnson with Williams Mullen is representing Thalhimer and Diamond District Partners in the case. Doug Pittman and Daniel Herbst with Reed Smith are representing Loop.
The team change was made as the city pivoted its financing approach for the project that includes a new baseball stadium to replace The Diamond. Diamond District Partners, now led by Thalhimer solo, is signed on to develop a 30-acre first phase of the 67-acre mixed-use development, while development of the anchor ballpark is being managed separately by the Richmond Flying Squirrels and paid for by city bonds.
Construction on the ballpark is underway and targeted for completion by spring 2026. Construction has yet to start on the rest of the development but has been targeted to begin later this year.
The 67-acre Diamond District site is bordered by Arthur Ashe Boulevard, Hermitage Road, the interstate and the railroad tracks. (BizSense file)
The $40 million legal squabble surrounding Richmond’s ballpark-anchored Diamond District development is back for another at-bat.
Republic Properties filed an amended lawsuit against its former teammates on the project, Thalhimer Realty Partners and Loop Capital, which it now argues they breached a business “venture” when they continued with the project without Republic.
D.C.-based Republic, which led an earlier iteration of the Diamond District development group before withdrawing from participating in the project, had previously argued in its original lawsuit that Thalhimer and Loop had breached a business “partnership” that was formed through their pursuit and award of the project.
But last month, Richmond Circuit Judge Bradley Cavedo rejected that argument and tossed out the lawsuit, though Republic was allowed to amend and refile it. In his ruling, Cavedo said Republic failed to establish that a partnership between the parties existed, and that he “finds a distinction between pursuing a contract and carrying on as co-owners of a business.”
The amended suit, which was filed last week, argues instead that the three parties created a business venture to respond to the city’s solicitation for the project, entered into “a special combination” to profit and benefit from it “without any formal partnership or corporate designation,” and later drafted a venture agreement that was signed by Republic and Thalhimer, though not Loop.
Specifically, the venture agreement – which was included and referred to in the original suit – was signed by Republic principal Jordan Kramer and Thalhimer principal Jason Guillot on behalf of LLCs that the companies had each formed for that purpose: Republic Projects LLC, which is the official plaintiff in the lawsuit; and Thalhimer’s entity, called Richmond RVADP LLC.
Republic Projects LLC is tied to Republic Properties’ parent company, Connecticut-based Republic Holdings Corp. The suit alleges that the “Republic/Thalhimer/Loop business venture constitutes a partnership or joint venture under Virginia law.”
A rendering of the ballpark-anchored Diamond District development along Arthur Ashe Boulevard.
The original development group had vied for the Diamond District project under a separate LLC called RVA Diamond Partners, beating out 14 other teams that competed for the $2.4 billion public-private project. Republic had assembled the group and formed the RVA Diamond Partners LLC, but Thalhimer and Loop argue that the parties never came to terms on or signed an operating agreement for the LLC.
Thalhimer later formed a new entity – Diamond District Partners LLC – and entered into a revised development agreement with the city, after Republic refused to sign off on an earlier development agreement and withdrew from participating in the project. Thalhimer has said Republic notified it in writing that Republic was bowing out of the project.
Republic argued in the original suit, which it filed last July, that Thalhimer and Loop struck out on their own without first dissolving their alleged partnership. Thalhimer and Loop countered that Republic’s argument failed because they never executed an agreement, and that Republic waived any rights it may have had against them when it refused to sign off on the earlier development agreement.
Chicago-based Loop, which has also since bowed out of the project as an investor, has asked to be dropped from the suit, contending that it never signed on to be part of either LLC and has no interest or involvement in the Diamond District project.
The amended suit still names Loop as a defendant along with locally based Thalhimer and Diamond District Partners LLC. It does not include Guillot, Loop CEO James Reynolds and two other Loop associates who were defendants in the original suit.
The City of Richmond is not a defendant in either suit.
Republic still seeks $40 million it says it stands to lose from the project. It now alleges 10 counts including fraud and conspiracy, neither of which were alleged in the original suit.
The amended suit also alleges breach of contract, unjust enrichment, breach of duty of loyalty, improper exclusion from joint venture, and usurpation of joint venture opportunity.
Republic is represented by Offit Kurman attorney Edward Tolchin and Christian & Barton attorneys W. David Harless and Roman Lifson.
Harold Johnson with Williams Mullen is representing Thalhimer and Diamond District Partners in the case. Doug Pittman and Daniel Herbst with Reed Smith are representing Loop.
The team change was made as the city pivoted its financing approach for the project that includes a new baseball stadium to replace The Diamond. Diamond District Partners, now led by Thalhimer solo, is signed on to develop a 30-acre first phase of the 67-acre mixed-use development, while development of the anchor ballpark is being managed separately by the Richmond Flying Squirrels and paid for by city bonds.
Construction on the ballpark is underway and targeted for completion by spring 2026. Construction has yet to start on the rest of the development but has been targeted to begin later this year.
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Just stop it. Go away. FOMO much? You voluntarily backed out and now you regret your decision. Everyone just wants this built for the betterment of all. Changing language from a “Venture” to a “Special Combination” makes it sound like you’re picking 3 menu items from Applebee’s 3 for $15 menu. I wish I could hang out with the cool kids, than take my toys and leave in anger, call them all dorks and than expect to hang with them a week later. Complaining to their mom isn’t going to help.
Weird that so many people seem to like this comment. Republic may or may not have an argument, but we should all keep in mind that the city awarded the project to RVA Diamond Partners – not Thalhimer. Thalhimer would have never won the original RFP without Republic (Thalhimer doesn’t have the experience alone to compete against the other teams). Yet somehow Thalhimer ends up with the whole thing by themselves when the ballpark financing goes south? I don’t really care if Republic has a case or not, but I am curious why the city didn’t issue a new RFP… Read more »
I’ll be interested to see if anything has started outside of the publicly funded ballpark before opening day next year. Amazing how much public money, lack of private development, and lawsuits between the original firms have plagued this nothing could go wrong, easy money for taxpayers, no downside project for the public has gone so far.
This is getting pathetic. I hope Thalhimer files a frivolous lawsuit counterclaim for a bajillion dollars.
This just teaches people not to do business with City Hall — just buy some brownfield in Manchester or Henrico, tear down little commericial buildings, build whatever the market wants —- easy-peasey.
TF the City have to do with it? Republic withdrew from the agreement. They bailed then when they saw that Thalhimer was ok without them they sued them for doing what they refused to do. If there’s one abiding principle in the Bizsense comments its that people want to blame “the city” for every problem that’s ever happened or that they imagine could happen.
The lawsuits will play out in court. More importantly, every time I look at the rendering, I simply don’t understand how parking will work for the ballpark, the hotel, the residential units or anything else that’s built. Has anyone paid attention to ingress and egress, from the ballpark, or from the Diamond District? It won’t matter for the first couple of years because ground level parking will still be available at its current location, however, when buildout begins in the area of the current Diamond it appears to me that it will be a disaster, for any future residents, fans… Read more »
Uh oh….. you said “parking” Downvotes from armchair planners incoming!!!!
As is now the case in both Manchester and Scotts Addition, as well as at the Publix in Carytown one would expect vacant land will be displaced by structured parking as the build-out moves forward.
Come on Brian. You know you’re supposed to bike in from the outlying counties to the game. j/k Yeah I agree that once that area is built out I’m a little concerned about the traffic flow with games and possibly even without games depending on how densely the area fills out.
Problem solved,just ride your bike or invest in a little scooter.
Brian, they’ve always said parking will be part of the development and obviously the renderings we see are not what it’ll look like at the end. Just like how Rockett’s Landing in Henrico ended up looking wildly different than the renderings we all saw at the start (it ended up far less dense). You know that’s how this always plays out.
doesn’t make as good of a woe is me, sky is falling comment though if he acknowledges that.
After the hoopla dies down, and people experience the nonevent of bottom division baseball, played in what amounts to a Costco warehouse, in stifling heat, there will be 3k tops in attendance on average.
Dude you’re such a hater. You were on here hating on youth soccer a couple weeks ago. Now minor league baseball. Give it a rest.
You realize the Squirrels have always been at the top of their league in attendance, right? I don’t go often but games there are fun
pesky facts: in 2024, the Flying Squirrels’s attendance was 435,295. That’s the third consecutive season they had the highest attendance in Double-A. Even peskier – AA is not “bottom division” baseball. Single A rookie league is the lowest minors division. Plus, many teams now stack their future stars in AA and use AAA for older veterans they can call up to fill injury holes. Google can give you a list of the MLB players who played here.
Brian is right. One must look at the underlying zoning and exceptions and restrictions allowed by the planning commissions. For an example of what not to do take a look at Scott’s Addition. Impractical sidewalks and setbacks are limiting public space as is grossly insufficient parking enabled by poor planning and trendy logic. Don’t let the density blind you to proper planning for impressive spaces. Don’t let expediency drive RVA’s legacy. Commercial structures in the Diamond District should be required to have underground parking – not surface or pedestal. Yeah, it cost more, but are we building a city, or… Read more »
Is no one concerned that Thalhimer has zero experience with a project of this scale?
Republic may not have a case, but people should be asking the city a lot of questions.