by Jon Baliles
The unravelling saga of a failed development proposal downtown a block from City Hall that was supposed to rise out of the ashes of the failed Navy Hill project is still smoldering. The failed deal has come with a price tag of about $80 million so far (and growing) for VCU Health. They were supposed to be the main tenant of the project and, by all accounts, approved and signed a deal in July 2021 in which VCU accepted heavily one-sided terms that have become so expensive it could still ripple throughout the city, the university, and the state.
Eric Kolenich has peeled back the latest layer of the onion in an eye-popping article in the Times-Dispatch this week, with emails that revealed grave concerns with the deal that would leave VCU Health holding the bag, and also emails that showed more concern to close the deal than what was in it. The emails show both bad communication and miscommunication among those at top levels of VCUโs administration at both the Monroe Park campus and the medical campus. They were sent in a flurry in the weeks leading up to VCU inking and approving the deal, and ignored warnings that were raised in favor of a closer analysis or alternative parachutes that would offer a way out.
After the Navy Hill project failed in early 2020, Capital City Partners, the developers who led that attempt, returned to the city with a proposal for a development for the cityโs dilapidated old Public Safety Building at 500 N. 10th Street (aka the Clay Street Project because it is at 10th & Clay Streets). The proposal was for a 17-20 story building that would be leased by VCU Health for office use. They would pay $650 million in rent over 25 years that would produce close to $60 million in tax revenue for the city.
VCU would have to pay rent starting in 2024, whether or not the building was completed, as well as pay for repairs and maintenance. If the project faced cost overruns, VCU would also be on the hook for those.ย And strangely, since it was office space, it would not generate any revenue for VCU Health like other facilities they had recently built (e.g. the Childrenโs Hospital). (more…)


Kingsolver, Barbara. Demon Copperhead.ย Harper, 2022


by Jeanine Martin




