A conceptual rendering shows the arena in relation to other buildings in the proposed GreenCity mixed-use development. (BizSense file)
Fallout from the stalled GreenCity development is continuing for the project’s now-former developers.
ASM Global, which had signed on to develop and manage the massive mixed-use development’s anchor arena, earlier this month entered a filing in Henrico Circuit Court seeking to collect more than $1.5 million it says it is owed from Green City Development Corp., an entity led by developers Susan Eastridge and Michael Hallmark.
The Los Angeles-based venue management company filed a confession of judgment April 11 that stems from an August 2023 promissory note between GCDC and ASM, through which ASM lent the developers $995,000 after signing onto the project earlier that year.
The filing includes an affidavit by Tim Lamoriello, general counsel of ASM Global, stating that GCDC promised to repay the amount with interest on or before the note’s maturity date but has paid no part of it and is therefore in “continuing default.” The note’s terms required full payment no later than Dec. 31, 2023.
The $1.5 million consists of the $995,000 principal amount, plus about $117,200 in first-year interest, $110,600 in second-year interest pro rata, and $305,700 in attorneys’ fees representing 25% of the outstanding principal. According to the affidavit, the initial interest amount was due Aug. 8, 2024, and the year-two interest was due April 3 of this year.
The document notes that interest continues to accrue at a rate of $457 per day, and fees are accruing at about $114 per day.
Also filed April 11 was a suggested garnishment summons for the $1.5 million to be served to the Henrico Economic Development Authority as the suggested garnishee. The summons states that the garnishment is against “debt due or property” of GCDC relating specifically to “money obtained for the purchase of real property” for the project.
GCDC had made two $500,000 payments toward its planned purchase of the project site before Henrico declared the developers to be in default of project agreements earlier this year. The combined $1 million was part of a three-year payment plan that required a final $5.2 million payment, which was due in February but was not paid.
The former Best Products headquarters building. (Henrico County photo)
The county has since initiated a process to take back the 93-acre former Best Products property that makes up about half of the larger GreenCity site, the rest of which is being developed for residential uses by local firm Markel | Eagle.
The process could involve a repurchase option in which Henrico would essentially pay back to GCDC the $1 million they have put toward the purchase, though the repurchase amount is said to be negotiable.
Eastridge and Hallmark formed GCDC as the land ownership entity for their development group for the project, Green City Partners. Eastridge is CEO of Fairfax-based development firm Concord Eastridge, and Hallmark is a principal with Richmond-based design firm Future Cities.
Because ASM was brought into the project by Green City Partners, ASM’s involvement in GreenCity ends with the developers, Henrico County Manager John Vithoulkas has said. While the developers and the county agreed to mutually part ways, Vithoulkas has said Henrico would welcome ASM’s participation going forward.
An aerial rendering of the proposed $2.3 billion GreenCity development.
The county is preparing to issue a request for interest from other developers interested in picking up GreenCity. It was targeting to put out that RFI by the end of this month. The project has been planned to include a 17,000-seat arena, two hotels, retail, green space and office buildings, including a rehab of the former Best Products headquarters building.
ASM’s garnishment summons lists a hearing date of May 2. It was filed for ASM by attorney Richard Brand, managing partner and sports industry group co-leader for ArentFox Schiff in San Francisco. Attempts to reach Brand Wednesday afternoon were unsuccessful.
The confession of judgment filing lists another attorney, Bruce Hanson, who was general counsel at ASM until last September and is now with another company.
No responses to the filings had been made with the court as of Wednesday. Eastridge did not return a call from BizSense seeking comment.
A conceptual rendering shows the arena in relation to other buildings in the proposed GreenCity mixed-use development. (BizSense file)
Fallout from the stalled GreenCity development is continuing for the project’s now-former developers.
ASM Global, which had signed on to develop and manage the massive mixed-use development’s anchor arena, earlier this month entered a filing in Henrico Circuit Court seeking to collect more than $1.5 million it says it is owed from Green City Development Corp., an entity led by developers Susan Eastridge and Michael Hallmark.
The Los Angeles-based venue management company filed a confession of judgment April 11 that stems from an August 2023 promissory note between GCDC and ASM, through which ASM lent the developers $995,000 after signing onto the project earlier that year.
The filing includes an affidavit by Tim Lamoriello, general counsel of ASM Global, stating that GCDC promised to repay the amount with interest on or before the note’s maturity date but has paid no part of it and is therefore in “continuing default.” The note’s terms required full payment no later than Dec. 31, 2023.
The $1.5 million consists of the $995,000 principal amount, plus about $117,200 in first-year interest, $110,600 in second-year interest pro rata, and $305,700 in attorneys’ fees representing 25% of the outstanding principal. According to the affidavit, the initial interest amount was due Aug. 8, 2024, and the year-two interest was due April 3 of this year.
The document notes that interest continues to accrue at a rate of $457 per day, and fees are accruing at about $114 per day.
Also filed April 11 was a suggested garnishment summons for the $1.5 million to be served to the Henrico Economic Development Authority as the suggested garnishee. The summons states that the garnishment is against “debt due or property” of GCDC relating specifically to “money obtained for the purchase of real property” for the project.
GCDC had made two $500,000 payments toward its planned purchase of the project site before Henrico declared the developers to be in default of project agreements earlier this year. The combined $1 million was part of a three-year payment plan that required a final $5.2 million payment, which was due in February but was not paid.
The former Best Products headquarters building. (Henrico County photo)
The county has since initiated a process to take back the 93-acre former Best Products property that makes up about half of the larger GreenCity site, the rest of which is being developed for residential uses by local firm Markel | Eagle.
The process could involve a repurchase option in which Henrico would essentially pay back to GCDC the $1 million they have put toward the purchase, though the repurchase amount is said to be negotiable.
Eastridge and Hallmark formed GCDC as the land ownership entity for their development group for the project, Green City Partners. Eastridge is CEO of Fairfax-based development firm Concord Eastridge, and Hallmark is a principal with Richmond-based design firm Future Cities.
Because ASM was brought into the project by Green City Partners, ASM’s involvement in GreenCity ends with the developers, Henrico County Manager John Vithoulkas has said. While the developers and the county agreed to mutually part ways, Vithoulkas has said Henrico would welcome ASM’s participation going forward.
An aerial rendering of the proposed $2.3 billion GreenCity development.
The county is preparing to issue a request for interest from other developers interested in picking up GreenCity. It was targeting to put out that RFI by the end of this month. The project has been planned to include a 17,000-seat arena, two hotels, retail, green space and office buildings, including a rehab of the former Best Products headquarters building.
ASM’s garnishment summons lists a hearing date of May 2. It was filed for ASM by attorney Richard Brand, managing partner and sports industry group co-leader for ArentFox Schiff in San Francisco. Attempts to reach Brand Wednesday afternoon were unsuccessful.
The confession of judgment filing lists another attorney, Bruce Hanson, who was general counsel at ASM until last September and is now with another company.
No responses to the filings had been made with the court as of Wednesday. Eastridge did not return a call from BizSense seeking comment.
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Green City just looked and sounded slimy from the start, how was Henrico so easily duped by these two? Guess the city dodged that bullet inadvertently.
I credit the City residents who kept down voting the Navy Hill project.
The County was not “duped” as evident by their ability to claw back the property. Sure it is not getting done by these people, but Henrico smartly set it up in a way that they did not really lose anything other than time.
What about this project sounded “slimy” Derek Woolwine?
David, i agree this seems like a hiccup that wasted the counties time and didn’t have any other impact.
They county believed the HYPE over the facts. Again, a quick GOOGLE search of developer’s website of project and then look at local newspaper, TV and court records around those sites would show never completed projects, lawsuits, and failures with the successful projects ending mid-2010s and the failures from 2018 forward. So why did they enter into an agreement in 2020.
Susan Eastridge and Michael Hallmark.
Wouldn’t a project of this scope, promoted so heavily by the county, be worthy of citizen input? Or do regular people not know enough to be considered? Are we too unenlightened? “The project has been planned to include a 17,000-seat arena, two hotels, retail, green space and office buildings…” OFFICE BUILDINGS?? The current trend for offices is fewer – not more. What am I missing?
You’re missing when the plans started. They started before covid when the office market was much better. But the County smartly put clauses in in case it did not stay good and the project did not happen.
this was kicked off in 2020 when Navy Hill went away. The rezoning was completed in 2021. So this has been out there for a while. Space for office buildings or retail can be flexed to housing, as seen across the region.
So is ASM seeking/considering a creditor’s bill in equity again the property??? In Virginia, a garnishment against a company’s real property can be generally pursued through a creditor’s bill in equity. This involves a separate lawsuit filed in Circuit Court to seek an order for the sale of the company’s property to satisfy a judgment. The creditor must demonstrate the judgment, the company’s ownership of the property, and the inability to collect from other assets. The property is then sold, with proceeds distributed according to legal priorities. If ASM can/does go this route then the County would be paying $1.5M plus for the property… Read more »
The whole concept of leveling down actual “green space” so you can build a “green city” seemed odd to me. There was a beautiful 2 mile jogging/ walking trail there. Henrico should keep it and turn it into a park.
This location is just too good and with too much highway exposure to be relegated to just residential uses but that’s what we see going forward so far. The comment below to turn it into parkland is way premature. The need for Corporate office space in great locations will rebound in some form or fashion. 84% of retail sales still occur in real stores, not on-line. People enjoy shopping and dining out, though the latter is differing from a generational change in tastes. Perhaps, a ten to fifteen year temporary use as a an outdoor entertainment venue surrounded by hotels… Read more »
What I don’t get is why Henrico allowed these so called developers to tie the property up for years and is now willing to buy it back for no loss to them. Why didn’t they make the first two payments non-refundable? That way the county would at least get some money back for its wasted time. Having some skin in the game might have scared off developers with such a poor track record.