Stadium planners want multiuse park

Developers want to build a $60 million ballpark in Richmond's Shockoe Bottom capable of hosting a variety of events. They detailed yesterday how they believe they can pay for the project without tapping tax revenues that currently flow to the city and state.

The facility annually would host about 30 events in addition to minor-league baseball, including festivals, concerts and high school games, the developers said.

Where will the funding come from?

The group led by Raleigh, N.C.-based Highwoods Properties said it plans to ask the Richmond City Council to establish a nonprofit authority to sell 30-year bonds to finance the ballpark.

Officials emphasized that the deal would be structured so that private investors -- not city taxpayers -- would be on the hook if revenue fails to cover debt payments.

A bill submitted for the current General Assembly session would allow some of the financing to come from the state's 4 percent portion of sales taxes generated by the ballpark and new buildings associated with it.

Details revealed yesterday show that the plan also calls for the city to rebate tax revenues that would be generated by the ballpark and new private development within a defined footprint of Shockoe Center, a proposed $363 million development. Those would include the 1 percent local share of sales taxes, as well as city admissions, meals and real estate taxes.

What are other sources of revenue?

The group also is counting on rental fees for the nonbaseball events at the ballpark, as well as parking fees and a $250,000 annual lease payment from Richmond Baseball Club LC, which would own the minor-league franchise. The costs of operating and maintaining the ballpark would be covered by the team owners, officials said.

In addition, the city would be asked to contribute land and $8 million in infrastructure improvements, including utilities, sidewalks, and other streetscape enhancements.

Projections released for ballpark financing show that all of the taxes and fees would generate nearly $9 million per year to cover annual debt payments estimated at $5.3 million. The projections assume an interest rate of 6.5 percent, which could end up higher, said Ronald L. Tillett, managing director of public finance with Morgan Keegan & Co. and a former state secretary of finance.

Officials said any surpluses would support reserve funds but also could be used to retire debt ahead of schedule or for other public projects, such as development of the Slave Trail and the Lumpkin's slave jail historic site in Shockoe Bottom.

What will the development look like?

The ballpark is envisioned to open by 2012 along with Shockoe Center's hotels, housing, and retail and office space in a largely vacant, flood-prone area of the city.

Paul Kreckman, a vice president with Highwoods Properties, said it's unrealistic to believe the site will develop gradually on its own because of federal limitations related to the area largely being in a floodplain.

He said the ballpark allows the large-scale development to occur by providing green space to meet federal requirements for building in a floodplain and by establishing access from a concourse that would rise above flood level.

Kreckman emphasized that what's planned is a "ballpark" rather than a "stadium." A ballpark is "very fan-friendly, very intimate," he said.

Officials would not release details on the mix of retail space and other uses being considered.

Who's going to play there?

The ballpark would be home to the minor-league franchise as well as Virginia Commonwealth University's baseball team. The facility annually would host about 15 high school baseball games, about six community festivals, about five concerts, and approximately five other events, project developers said.

The ballpark would include a grass playing surface and 7,000 seats (8,500 capacity).

A Double-A baseball franchise appears likely in Richmond's future if an agreement for Shockoe Center can be reached with the city. The team would relocate to Richmond and The Diamond in 2010 and move to Shockoe Center when construction is complete, probably for the 2012 season.

What happens now?

The developers are hoping to get a preliminary approval for the project from the city administration by March 1. Mayor Dwight C. Jones and his administration are reviewing the proposal and have no further comment at this time, city spokesman Michael Wallace said.

Contact Will Jones at (804) 649-6911 or .

Contact John O'Connor at (804) 649-6233 or .