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Council approves $14.7 million contingency transfer to close Diamond District parcel purchase, 8-1
Summary
The council approved ordinance 20-26-041 to advance $14.7 million (plus $700,000 carrying charges) via a short-term promissory structure to the Economic Development Authority so it can complete purchase of the Sports Backer Stadium parcel; the vote passed 8-1 with Council member Gibson dissenting.
The City Council voted to approve ordinance 20-26-041, a fiscal action that transfers $14.7 million from the contingency reserve via a short-term promissory arrangement to the Economic Development Authority (EDA) so the EDA can acquire a 6.6-acre Sports Backer Stadium parcel from VCU and allow the Diamond District project to proceed.
Sharon Ebert, deputy chief administrative officer for planning and economic development, told council the parcel purchase price is $25 million; the EDA already holds approximately $11 million from prior land sales and needs the remainder to complete the acquisition. The $14.7 million request covers the gap; the package also includes $700,000 in carrying charges.
Jason Guillot of Diamond District Partners described immediate momentum: permits for a 276-unit apartment building are filed and financing is lined up, a 161-unit affordable-housing component would average 60% AMI with some 30% AMI units reserved for RHA voucher holders, and commercial leases are in discussion. "We are about to break ground," Guillot said.
Council members pressed administration on the choice of funding tool. Council member Gibson said the city code limits contingency-reserve appropriations to catastrophic, unforeseen or unavoidable events and said she could not support the use of contingency for a planned redevelopment. "Why are we raiding the reserve?" she asked. Finance staff (Michael Wynne) explained the transaction converts cash to a promissory note that remains an asset on the fund balance and said the contingency balance would not be depleted by the transaction; administrators framed the move as an investment-like structure intended to preserve the fund's rating and liquidity in the short term.
After deliberation the roll call recorded eight ayes and one no: Mister Breton (Aye), Miss Gibson (No), Miss Jones (Aye), Miss Robertson (Aye), Miss Lynch (Aye), Miss Trammell (Aye), Miss Abu Bakr (Aye), Vice President Jurden (Aye) and President Newbill (Aye). The ordinance passed.
Administration and developers said repayment is expected from future land-sale proceeds from subsequent Diamond District phases within a multi-year window; finance staff described options for liquidation if contingency-cash needs arise. Council requested continuing transparency and periodic reporting on the loan promissory note and project finances.
