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 .