Shockoe ballpark reliant on sales taxes
The developers who want to bring minor-league baseball back to Richmond are proposing to finance a new ballpark in Shockoe Bottom with state sales taxes generated by the stadium and other new buildings.
With the General Assembly starting its 2009 session today, Del. G. Manoli Loupassi, R-Richmond, has proposed a bill that would divert the tax revenues to finance the $60 million ballpark.
The proposal would apply only to the state's 4 percent portion of sales taxes generated by the stadium and structures associated with it, potentially hotels and retail and office space.
It was unclear yesterday exactly how much money might be available and what would happen if revenues aren't sufficient to cover bond payments. Officials with Richmond Baseball Club LC, a group led by Highwoods Properties, said they would elaborate today.
Loupassi said his bill and a similar one expected to be introduced in the Senate would provide critical financing for the $363 million Shockoe Center, which would need additional approval from Mayor Dwight C. Jones and the City Council.
"Whether or not it has the support of the state, it has to have the support of the city," said Loupassi, a former Richmond councilman.
Project officials have said they need preliminary approval from the city administration by March 1 to remain on their schedule to buy a minor-league team that would begin playing in Richmond in 2010, initially at The Diamond on North Boulevard.
Loupassi said his proposal would come at no cost to the state because the mostly vacant ballpark site in Shockoe Bottom currently is not producing sales taxes.
But Church Hill resident Randolph Bell, who opposes a ballpark in historic Shockoe, said Loupassi's proposal undercuts claims by backers that the project can be financed with limited public funds. He further argued that it's wrong to characterize the financing as without an impact on state revenues because the property could be developed and tax-generating without the ballpark.
"If you divert a revenue stream . . . to other purposes, that effectively costs the public," he said.
Richmond Baseball Club has referenced in promotional materials the possibility of using state taxes generated by the development, but details weren't disclosed until Loupassi's bill was filed for the legislative session.
The funding scenario was approved by the General Assembly when groups in Northern Virginia and Hampton Roads were considering ways to finance a ballpark while pursuing a major-league franchise, said Ralph "Bill" L. Axselle Jr., an attorney for Richmond Baseball Club.
Meanwhile, the development group has enlisted a powerful ally for their negotiations with the city -- state Sen. Henry L. Marsh III, D-Richmond, a former Richmond mayor. He was retained after the November election to provide "government advocacy" with the city, project officials said.
Marsh, who did not return two messages left yesterday at his law and legislative offices, is a close friend of Jones and well-respected by City Council members.
Council President Kathy C. Graziano had no comment, saying she was unaware of Marsh's role. She said she supports Loupassi's bill because it allows the proposal to be considered.
The Jones administration had no immediate comment when asked about Loupassi's bill and Marsh's ties to the developers.
Contact Will Jones at (804) 649-6911 or
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Reader Reactions
Out of left field your points are valid. I don’t care if they build a new stadium or where they build it as long as there are no tax monies involved in financing it.
If baseball is so important to fans then they should be willing to pay for it not expect that they can transfer the cost to taxpayers with voodoo financing schemes. I don’t believe for one minute that a sales tax would come even close to paying the cost. That should be easy to figure. How much income from sales taxes was generated at the Diamond with the Braves? So if there were a shortfall then who would pay for it? The city? You can bet the developers won’t take any hits as they will have themselves well protected from any loss. In the end the taxpayers will be the ones who lose.
There is plenty of big private money in Richmond. Use it to build the stadium if it’s so vital for baseball fans.
I really wish Richmond would be a little more open-minded when it comes to bringing baseball back. The city wants it, there are people who want it, and even if you don’t consider yourself a “baseball fan”, the minor leagues are a fun time for everyone. Because the tickets are so affordable, and because the new ballparks these days are incredible, everyone will find a reason to spend at least an afternoon in the new stadium (NOT just the same “5000 fans” every time - truthfully, I would expect more in the neighborhood of 6500 for a AA team). Whether it be a corporate event, a little league team, a bar night at the ballpark, or a theme-night with which you can identify, minor league baseball brings communities together.
There ARE leagues interested in Richmond. They know it has hosted baseball for decades, and they know the demand is there. They also know that the Diamond is not only a dilapidated stadium, but is in an economically poor area. I see either AA or low-A ball coming. I, for one, would love a AA team - its where all the great talent is.
As for the complaints about the area chosen - beggers can’t be choosers. This is the area where developers AND teams want the stadium built. Any other site outside of the city begins to favor one suburban community over another. Its not just one invisionary picking this site, they’ve been in talks with different leagues about which sites would be favorable for an MiLB team. Renovation and redevelopment in this area has already begun - its advantageous to let this growth beget new growth. Let the city be reborn. History is important, but not when it keeps a city and its economy from moving forward. Furthermore, these developers have a mind to keep the history intact - we’ll be lucky to find others so eager to preserve historically valuable real estate.
As far as spending public money - they are doing their best to work with the city to provide a reasonable solution to both. The truth of the matter is that much of the construction will refurbish the infrastructure (LIKE the roads) of our tired city - something that public funds should go towards. Secondly, revenue will be generated from all facets of the plan; the stadium, apartments/condos, retail, etc. These items create revenue for the city to spend money on things like schools and restoring other historical areas, and even street cleaning.
Also, as for building outside of the city - what about our last remaining open spaces, the beautiful trees and fall foliage that so many people comment on? Is that that not valuable, too? That cannot be replaced, like old warehouses can. Once a space is bulldozed and developed, it takes MUCH longer to restore what was once there. I’d much rather see us redevelop economically advantageous spaces than destroy what green we have left in the area.
I do like the idea of looking elsewhere in the city, such as south of main street. I agree the bottom is a tight fit, but I think there are those who can make it work. It might even foster better public transportation - something I think our city desperately needs improvement upon, and something our citizens should consider more often.
hjackson, did you read the article? This isn’t a choice between schools or a ballpark. If it were I’d agree with you 100%. This is a matter of whether the City is willing to give the developer a portion of the extra revenue created by the development.
This plan cannot be viable as it depends on tax money for it’s financing. Your description “Extra Revenue”. I am always amazed when some individuals or groups get together and craft a scheme they want and how to get taxpayers to pay for it for them. Like I said in an earlier post. “If you want a baseball stadium pay for it yourself”. Don’t expect to soak taxpayers while you enjoy watching the games.
I grew up watching the Richmond Braves and to say the least, was sad to see them go. I’d love to see another team come to the Richmond area, nevertheless I’m not sure I’m a fan of this new proposal.
First, Shockoe Bottom is not the place to put it. To the unaware reader who previously made a comment—I live in Churchhill and this would tremendously change our entire area. There is so much history and restoration going on in both Churchhill and the bottom that I feel a stadium would completely distract from. Also, we live above Shockoe Bottom, hence all the noise produced there travels directly to my window (Amtrak, I-95, I-195, MCV helicopters, etc.). Do not get me wrong—I think the area definitely needs a change that would draw more people, but I don’t think a crammed in ballpark would do.
Second, doesn’t Richmond have a ton more things it should be spending money on than a brand new stadium? For Pete’s sake, I walk home everyday amidst trashy sidewalks, drive on some of the worst paved streets I’ve ever encountered, and pass more abandoned buildings than any one city has an excuse for. I wouldn’t be caught dead in Shockoe Bottom of all places after dark (2 friends having gotten attacked already there) and the entire Richmond area has a lot of cleaning to do before sports should take #1 on the budget.
Like I said, I love baseball and can’t imagine what a summer of my life will be like without it. Revamping the old stadium however seems like a much better idea in order to pull in a new team, as there’s MUCH more space available there with MUCH less sacrifice of the city’s treasures. Although it will be costly as well, I can’t imagine it being more than the price of starting from scratch, with parking etc considered.
“How about citing the ballpark somewhere south of Main Street, between the downtown and the Jefferson?“, asked deweyed.
Now there’s an idea. That little stretch needs some help, that’s for sure. But somehow I see the same old arguments coming up there too—What about traffic, blah blah blah. (I still haven’t seen a vibrant city that has no traffic—I don’t think that’s possible).
I’m not concerned about the sales tax thing. They take it from me anyway & will do what what they damn well please. Those thinking otherwise are only kidding themselves.
So the pro ballpark contingent in Shockoe Bottom want to raise $60 million on 4% sales tax in the area. I doubt anywhere near that amount would be raised, and even if it was, does anyone really expect this project to be completed for that figure? Every ballpark ever constructed on the taxpayer’s dollar has gone way over budger, witness the new stadium in D.C. Also, the infrastructure does not exist in that area to funnel 5000 or so fans in and out of Shockoe Bottom. Build it where the Diamond is, plenty of space out there.
hjackson, did you read the article? This isn’t a choice between schools or a ballpark. If it were I’d agree with you 100%. This is a matter of whether the City is willing to give the developer a portion of the extra revenue created by the development. The developer simply needs the assurance that they will get back the money that they put up front for this project. If anything it will help further fund schools by increasing revenue for the City. Also, if you look at the actual plans for this development you will see there is far more to it than just baseball.
Here we go again. The 5000 or so baseball fans are still pushing for a new stadium. That’s fine let them pay for it and all other costs associated with it. This should not even be on the agenda for our government except to issue permits if and when the baseball fans come up with the funding. Apparently they are not going to give up until they can sneak it in by hook or crook.
Too bad they don’t get as fired up raising funding for our falling down schools. There are so many critical needs yet they persist in pushing blowing millions on a baseball stadium. Seems to me some priorities have been mixed up. The claimed 65 million cost would build several very nice school buildings.
Can’t we get back to the issue of why the heck it makes sense to cram this stadium down into the Bottom at all? At the very least, it’s going to be a huge traffic disaster. How does it possibly make sense in that spot. If getting empty or underutilized land to generate taxes is important, how about citing the ballpark somewhere south of Main Street, between the downtown and the Jefferson? There are blocks there that are far bigger than the tight spot behind the Farmers Market, the park could be built with a nice river view, and there could be direct access to I-195.
They need to do something downtown. Either a ballpark and entertainment area that has something more to do than the current bars and restaurants. OR beef up the river front. Look at B-more, Savannah, and other cities comparable to Richmond and they all have great River front shops, parks, and activities. The canal walk is okay and there is some river front stuff here, but they could really do much much more with it than the 6 weeks of Friday Cheers and a handful of other things on Browns.
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