BizSense featured on WRVA

In case you were busy pressing the snooze button, I appeared this morning on 1140 AM WRVA as a guest of radio host Jimmy Barrett.

I discussed the story that ran earlier today titled Shockoe businesses sue city for $31 million.

WRVA has posted a podcast of the interview which you can download and listen to here: Shockoe Sues City.

Shockoe businesses sue city for $31 million

Time has not healed all wounds.

Within weeks of the five-year anniversary of a flood that ruined dozens of businesses in Shockoe Bottom, several businesses filed a lawsuit against the City of Richmond.

Those proprietors and property owners aren’t blaming Mother Nature for the havoc caused on that rainy August day in 2004, but rather the city for failing to maintain and inspect flood control systems in the Bottom. Read more

Monday Q&A: Frustration floods Shockoe

Sometimes good things don’t come to those who wait. Shockoe Bottom merchants are frustrated that Richmond will not be getting a baseball stadium and more than $300 million in development to potentially help rocket the area into a thriving hub of commerce. That’s because the master developer, Highwoods Properties, has withdrawn its plan. The news release did not make clear exactly why, but several merchants have said it is likely because Highwoods did not get the necessary level of interest from city administrators.

The master plan included condos, retail and a ballpark that would be home to a locally owned AA team. Detractors had said that the city might have ended up paying back the bonds if the stadium and team didn’t thrive as the developers expected and that the project was not worth that risk.

David Napier, president of the Shockoe Bottom Neighborhood Association and owner of the Old City Bar, said that even though all the businesses in the area didn’t necessarily agree on the value of baseball, they all got behind the development to fix the biggest impediment to finally making the district thrive: the risk of flooding.

RBS talked with Napier over the weekend about how the news hit local merchants and why the area can’t seem to catch a break.

Below is an edited transcript.

Richmond BizSense: When did you hear the deal was off?

David Napier: The day it was called off. The developers of ballpark sent the news release to me as president of the neighborhood association. That was two hours before it was on TV.

RBS: Was there any warning that the deal was falling apart?

DN: We knew that the deal wasn’t getting done quickly because the city had to evaluate the direction it was going to take. Obviously, the developer was not getting what it needed. I think our print media did the residents of Richmond a disservice. I feel like print media got caught up in baseball, which was less than 10 percent of this deal, a creative way to fix the flood plain and open up the Boulevard.

Frankly, I’m not a passionate baseball person. I’m a passionate economic development person. This is a historic lost opportunity.

RBS: Why has that part of town been so slow to grow?

DN: Until the city spends many millions to do what the baseball park was going to do with flood plain issues, what you see is what you get. The city has about maxed out on what it can do on its own, until they use city tax dollars or tax incremental financing on other projects. That’s one reason Henrico eats our lunch. And there’s nothing wrong with that – it’s an economic opportunity for Henrico. The city needs to realize that a city that does not invest in itself slowly dies.

RBS: Do you think Highwoods pulling out will hit the local businesses hard, perhaps psychologically?

DN: Zuupa is now leaving the Bottom to go to Rocketts Landing. So we just lost another restaurant. I wouldn’t be surprised if things get worse down here before they get better.

RBS: Do you think the mayor moved too slowly?

DN: He has a lot on his plate, and he has to trust advisers. I think he could have gotten better advice. It’s time now for bold leadership from the mayor. He can’t look back. He has got to think about what can we do.

RBS: You expressed some frustration at the media coverage, and we’ve heard that from other local business people.

DN: When your paper and your weeklies have a position that affects their objective reporting, all citizens as well as mayor get only one side of what’s going on.

RBS: Was that a failure to win the PR battle? Isn’t that a part of any plan, just like hiring engineers or lawyers?

DN: You can talk to newspapers and try to explain your side of story. But if they choose not to print it, there’s nothing you can do. I’m not a PR person. I felt obligated to get the facts.

RBS: Merchants in Shockoe Bottom have complained for years that the gunfire at night scares off consumers. Is there a reason the local police can’t get that under control? I know you have proposed a nightclub permit to help vet club owners.

DN: I’ve been informed that it’s a race issue and that the city will not implement a regulation to help the situation. That the clubs are being “targeted” because they cater to a black clientele. But remember, these clubs are in clear violation of ABC laws and causing problems.

And keep in mind – I love nightclubs. It’s an integrated neighborhood down here. And there are some thriving clubs that cater to black crowds and only a couple bad ones. It’s also not a Shockoe problem. It’s a behavior problem.

RBS: Lots of cities are known for thriving nightlife districts. Why can’t it seem to stick there?

DN: There are a few bad players taking advantage of ABC laws, who don’t care about taking care of the neighborhood. We’ve got to get them to change what they do or change where they do it.

RBS: Moving back to the ballpark, how did the news hit you?

DN: It was very frustrating. I was pretty disappointed. I may have gone to a few games, but the ballpark wasn’t even on top of my radar screen. It was cleaning up this neighborhood. The empty buildings suddenly would have become more attractive. We would have seen an immediate change with excitement.

Sooner or later, we have to take a bold step. Anything is better. I’m at the point where I’d take a Target or a Wal-Mart.

That would be not my first choice, but anything is better than what we’ve got. We’re going downhill. We just lost a great restaurant. I haven’t talked to Zuppa, but I feel sure that if a ballpark were coming, they would not have given up that location.

Aaron Kremer is the BizSense editor. Please send news tips to Editor@richmondbizsense.com.

Highwoods throws in the towel

Maybe Highwoods Properties just lost its patience.

The Raleigh-based development firm announced Tuesday that it is pulling out of its proposal to develop Shockoe Center, a $350 million retail and residential project that was to be centered around a minor league baseball stadium.

Mayor Dwight Jones was tepid on the plan throughout his campaign and the first few months of his administration, never giving it his blessing, nor striking it down all together.

Much of the land is currently a parking lot. Restaurants and shops in Shockoe generally supported the plan.

It’s unclear how much money the firm spent on legal and engineering work to see it be scrapped.

In a statement released Tuesday, Mayor Jones said, “At this time the situation afford us an avenue to fully reengage our regional partners in the discussion of the direction we as a region wish to move in.”

In a front-page story today, the Times-Dispatch reports that consultants hired to study the plan concluded it would be “highly likely” with credit support from the city but not without it. The Times-Dispatch also reports that Highwoods did not intend to pursue financing in the current market.

However, plenty of municipalities have sold bonds recently at reasonable rates of interest, so that may not have been as big an issue as the press releaseses suggest.

BizSense’s take: Several news stories reported that the potential local ownership group could not close the sale because they couldn’t raise the $15 million needed to buy a Connecticut team. But more likely, the indecision of the Mayor to bless the project probably scared off potential investors. The ownership group assembled by Bryan Bostic wanted to run the team in a new stadium with better amenities and more focus on family entertainment. That was part of their business plan.  And despite a vocal group of opponents, they believed that with the right management and right marketing strategy, the team would draw enough fans to support the business. However, they did not want to run that sort of business in the dilapidated Diamond. So, it stands to reason, that the investors likely didn’t have enough confidence in the City of Richmond to navigate the politically-charged issue and get a stadium deal done. Again, no BizSense reporter was invited to any negotiations, but several sources have suggested that there was too much risk.

Highwoods was handling the commercial and residential component. The baseball stadium was the key part of the Shockoe Center project. Without a team, there was no reason to build the $60 million stadium. And without a stadium, no reason to build more office and retail space.

Aaron Kremer is the BizSense Editor. Please send news tips to Editor@richmondbizsense.com.

Study says city support needed for ballpark

After reviewing the results of a $100,000 economic feasibility study, Mayor Dwight Jones still isn’t quite ready to greenlight a $318 million mixed-use project in Shockoe Bottom. Read more

New lease on life for Cold Storage plant

Things are heating up at the old Richmond Cold Storage complex in Shockoe Bottom.

The first of five turn-of-the-century industrial buildings to be turned into apartments is six weeks away from completion and will soon begin leasing. The development is a $50 million project of Historic Housing, the same group that developed 17th Street Lofts and The Lofts at Canal Walk. Read more

The wrong baseball debate

The debate about bringing baseball back to Richmond somehow got sidetracked into a tangential spin cycle.

Tonight the Times-Dispatch will host a Public Square pitting two proponents of a Shockoe Bottom stadium versus two opponents who say baseball should remain on the Boulevard.

Yankees versus Red Sox this is not.

On one hand there is a group of potential team owners who are willing to buy a team and move it to a new $60 million stadium downtown under the guidance of Bryan Bostic, a businessman who is taking on much of the financial risk. The deal to acquire a Connecticut team may be slower than planned, but, according to sources we’ve talked to, it is moving forward.

Part of the business plan put forth by Bostic and his partners at Highwoods Properties requires a stadium with updated amenities and loads of commercial space (although that seems dubious with vacancy rates skyrocketing across Richmond). They are not proposing a stadium on the Boulevard. They have not said they would buy a team if they had to run the business at the Diamond long-term.

As far as I know, there is no doppelganger for Bryan Bostic, who has assembled some investors and found a team to move from another location to Richmond. If there is, that person should step forward and be at the Times-Dispatch’s forum tonight.

Until then, the real debate should address one central issue: If professional baseball is not a viable business without some government assistance (land, help with bonds … whatever), what price would be reasonable for taxpayers to support such a quality of life improvement? Minor league baseball is a tough business that usually requires some municipal backing. It did at the Diamond, which was owned by the Richmond Metropolitan Authority and operated on behalf of the city and counties. Folks didn’t demand that the stadium be closed because it used public funds. Read more

Bobber Flats coming soon to Shockoe

After four months, the wait is over. A mixed-use development will move ahead on East Main Street in Shockoe Bottom. Read more

Op/Ed The road ahead for Shockoe Bottom

Shockoe Bottom has come a long way since the devastating aftermath of Tropical Depression Gaston in 2004. Crime is at all time lows. We have many new restaurants that complement the traditional charm of the neighborhood, and we remain the fastest growing census tract in the city. Read more

Richmond Baseball Club set to take over Defender’s lease

Last month, Bryan Bostic of Richmond Baseball Club LC announced they planned to buy a AA baseball team in Connecticut to replace the AAA Richmond Braves.

Their plan to buy  the Connecticut  Defenders is closer to becoming a reality, despite no guarantee that the stadium slated for Shockoe Bottom will be built.

According to local newspaper The Day, Norwich City Council will consider a resolution next Monday that would assign the lease of Dodd Stadium to Richmond Baseball Club.

The Defenders’ current owner Lou DiBella said the team could be sold to Richmond by early April, according to The Day.  The sale is still awaiting approval from the Eastern League, which will likely require either a new stadium or an upgraded Diamond as a condition of the sale.

The Times-Dispatch previously reported the expected purchase price will be $15 million.

The Defenders current lease in Norwich ends in 2012, but there is a buyout provision that allows the lease holder to terminate early for a penalty of $140,000.

According to previous statements, the investors would move the team to Richmond for the 2010 season. The team would play at the Diamond until the new stadium is finished in 2011 or 2012.

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