Stoney administration introduces ordinances to redevelop public safety building
The Stoney Administration will be introducing the ordinances and legal documents to City Council for the sale and redevelopment of the Public Safety Building today, during its February 8, 2021 formal meeting.
On May 1, 2020, the city received an unsolicited offer from Capital City Partners, LLC for the Public Safety Building. City Council declared the property to be surplus real estate on June 22, 2020, and city officials recommended that the city negotiate with Capital City Partners, LLC on its unsolicited offer to purchase and redevelop the property. A purchase price of $3,520,456 was negotiated between the city and developer. As part of the negotiated agreement, Capital City Partners, LLC is responsible for the demolition of the Public Safety Building and construction of new public infrastructure that includes reconnecting East Clay Street.
The $325 million mixed-use redevelopment will provide new Class-A office space for VCU Health, new facilities for The Doorways and Ronald McDonald House Charities, a child care center, ground level retail, and speculative Class-A office space. The project is estimated to generate $55.9 million in new General Fund Real Estate Tax revenue over the next 25 years.
“Redeveloping the old Public Safety Building will generate much needed tax revenue for affordable housing, schools and our neighborhoods while creating opportunities for minority businesses,” said Mayor Levar Stoney. “My administration proactively worked with City Council to make this long overdue improvement to the city’s healthcare infrastructure a win for Richmond.”
Community benefits negotiated in the development agreement include a goal of 40% MBE participation; child care slots for Richmond families; and the creation of a $500,000 fund to support small businesses leasing space in the project, funding for organizations in the city that support the start-up and growth of micro or small businesses, and to fund scholarships for graduates of Richmond Public Schools who reside in public housing to attend a trade/technical school, community college, or college/university to pursue a post-secondary credential.
Built in 1954, the Public Safety Building houses offices and operations for the Department of Justice Services, the Adult Drug Court, and the Department of Public Works. The building has a “Critical” facility condition rating, accounts for approximately $389,000 in annual operating expenses, has $20.9 million in immediate, deferred maintenance needs, and does not produce General Fund Real Estate Tax revenue for the City. Details to relocate city services currently housed in the Public Safety Building are being finalized.
“Redeveloping the Public Safety Building site is long overdue,” said Director of Economic Development Leonard Sledge. “This is the first of several projects needed to get higher and better uses on underutilized city property in Downtown.”
The ordinances will be introduced during the February 8, 2021 City Council meeting.