Richmond Economic Development Director unveils transformation strategies and project updates

Richmond City is poised for significant economic growth following a comprehensive presentation by Acting Director of Economic Development, Matt Welch, during the Finance & Economic Development Standing Committee Meeting on May 21, 2025. The meeting highlighted key developments and strategies aimed at diversifying the city’s revenue sources and enhancing its economic landscape.

Welch emphasized the momentum generated since the adoption of the city’s speed plan in fiscal year 2022, showcasing major projects like the CoStar development, which is expected to create nearly 2,000 jobs and contribute $460 million to the local economy. The upcoming amphitheater, set to open in just two weeks, is also anticipated to activate the riverfront and boost tourism.

Despite the positive outlook, Welch acknowledged the challenges posed by economic unpredictability, including the lingering effects of the pandemic and current market uncertainties. He reported a notable recovery in private sector employment, surpassing pre-pandemic levels, and a 25% increase in average weekly wages. However, he cautioned that Richmond faces a shortage of quality office space and industrial sites, which could hinder future growth.

The presentation also addressed the city’s economic development performance grants, which leverage state funding to support larger projects. Welch noted that while these grants have yielded significant returns—$9.7 million in incremental real estate taxes from $2 million in incentives—there is a need for better outreach to ensure that smaller businesses can also benefit from available programs.

Looking ahead, the city plans to enhance its marketing efforts to attract businesses and improve its corridors, particularly through partnerships with local organizations. The focus will be on revitalizing historic neighborhoods and ensuring that economic development efforts reach all corners of the community.

As Richmond navigates these developments, the city remains committed to diversifying its revenue streams beyond residential real estate taxes, aiming for a more resilient economic future. The next steps include ongoing assessments of available sites and potential projects, with a clear goal of fostering a thriving business environment that benefits all residents.