Richmond council clears way for $325M VCU Health project
City to sell Public Safety Building for $3.5M
Richmond City Council approved the sale of the city’s Public Safety Building on Monday, clearing the way for a $325 million VCU Health System medical office tower and multi-use project downtown.
Council members unanimously approved the 3-acre property’s $3.5 million sale to Capital City Partners LLC, a collaboration between Michael Hallmark of Los Angeles-based Future Cities LLC and Susan Eastridge of Fairfax-based Concord Eastridge Inc. Hallmark and Eastridge were part of the failed Navy Hill project last year and made an unsolicited offer last May for the aging Public Safety Building on 10th Street near City Hall. In the plan, the building will be demolished.
The $325 million mixed-use development would include an office tower with space for VCU Health System administrators and physicians, Class A office space and ground-level retail space, as well as new facilities for The Doorways and Ronald McDonald House Charities, which both provide housing and support for families of hospital patients, and a child care center. The project also would include reconstruction of Clay Street between 9th and 10th streets. According to the mayor’s office, the project is estimated to generate $55.9 million in real estate tax revenue for the city’s general fund over the next 25 years.
“VCU and VCU Health are strongly committed to the redevelopment of this area. The Public Safety Building project, along with the current construction of our new children’s inpatient hospital and Adult Outpatient Pavilion, will play a critical role in supporting a thriving urban center,” Michael Rao, president of VCU and VCU Health System, said in a statement.
“The sale and redevelopment of the Public Safety Building site is a critical first step to improving downtown,” Richmond Mayor Levar Stoney said in a statement. “My administration was glad to work with City Council and Capital City Partners LLC to create this great win for Richmond. The project will aid minority businesses, create child care slots for Richmond families, fund scholarships for graduates of Richmond Public Schools, and generate nearly $56 million in new revenue for the city’s General Fund over the first 25 years. We can, and we will, continue to grow Richmond by redeveloping underutilized city-owned property.”
The developers, who also are behind the proposed GreenCity project in Henrico County, have pledged to create a $500,000 fund to help offset costs of small businesses to lease office or retail space at the development, as well as funding organizations that support small businesses. The fund also would assist Richmond Public School graduates with scholarships.