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To authorize a proposed tourism project at 921 Myers Street pursuant to the Virginia Tourism Authority’s Tourism Development Financing Program in accordance with state law.
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WHEREAS, the General Assembly of Virginia has established a Tourism Development Financing Program under the purview of the Virginia Tourism Authority (the “VTA”), which entitles a tourism project of regional significance to receive certain state and local tax revenues as outlined in the Code of Virginia, Title 58.1, Subtitle III, Chapter 38, Article 10 of the Code of Virginia (1950), as amended (the “Act”), for the purpose of covering debt financing to compensate for a shortfall in project funding between the expected development costs of an authorized tourism project of regional significance and the debt and equity capital provided by the developer of the project (“Gap Financing”); and
WHEREAS, the Act requires that a locality establish a tourism zone, establish a tourism plan, authorize a tourism project of regional significance to meet a deficiency identified in such plan, and designate certain local revenues to the project (the “Local Share”) in order for the project to be entitled to public funds in an amount equal to revenues generated by a one and a half percent (1.5%) state sales and use tax on transactions (the “State Share”) taking place on the premises of the project; and
WHEREAS, pursuant to Section 6-597 of the Code of the City of Richmond (2020), as amended, the Council established the Scott’s Addition Tourism Zone (the “Zone”); and
WHEREAS, the Economic Development Authority of the City of Richmond, Virginia (the “EDA”) has presented to the VTA for preliminary approval a tourism plan, a copy of which is attached hereto as Exhibit “A” (the “Plan”); and
WHEREAS, the Council believes that the Plan identifies a deficiency in that Scott’s Addition currently lacks any hotel entities in the luxury category to accommodate both business and tourism related travelers; and
WHEREAS, the developer, 921 Myers, LLC (the “Developer”), has proposed a tourism project of regional significance to meet a deficiency identified in the Plan (the “Project”), and has proposed spending approximately $109,750,000 to construct a 253-key dual-branded hotel operated by Shamin Hotels, Inc., located at North Arthur Ashe Blvd and Myers Street in the city of Richmond; and
WHEREAS, the Developer has identified a plan of finance for the Project, which
includes private debt and equity financing, along with other funds totaling at least 80 percent (80%) of the cost of the Project, leaving Gap Financing of no more than 20 percent (20%), as required by the Act; and
WHEREAS, upon information and belief of the Council, the Project will enhance the City’s commercial tax base, increase employment, and fill the void of luxury hotel lodging to support the growing need for tourism and business-related lodging in the Zone; and
WHEREAS, under the Act, upon adoption of this ordinance, the Project will be entitled to receive the State Share and Local Share; and
WHEREAS, the Developer will contribute a one and a half percent (1.5%) additional fee for the purpose of paying the principal and interest on the Gap Financing (the “Access Fee”); and
WHEREAS, the State Share, the Local Share, and the Access Fee together will complete the plan of finance for the Project and provide the desired incentive for the full Project implementation; and
WHEREAS, to meet the requirements of the Act, the City, along with the EDA, will be required to enter into a performance agreement with the Developer;
NOW, THEREFORE,
THE CITY COUNCIL OF RICHMOND HEREBY ORDAINS:
§ 1. That the Plan, a copy of which is attached to this ordinance as Exhibit “A,” is hereby adopted.
§ 2. That the Project, as proposed by the Developer for the Zone, is hereby authorized for the purpose of meeting the deficiency identified in the Plan.
§ 3. That, subject to the approval and certification of the State Comptroller of the Commonwealth of Virginia and conditioned upon the execution of a performance agreement between the Developer, the EDA, and the City (the “Performance Agreement”), the Council hereby designates to the Project the Local Share in accordance with the Act. Subject to the appropriation of such funds, the Council directs those funds to the EDA to be applied to the payment of principal and interest on the qualified Gap Financing for the Project for the duration and purposes set forth in the Act.
§ 4. That, upon remittance of the State Share by the Commonwealth and of the Access Fee by the Developer, as required by the Act, the City shall remit such amounts, together with the Local Share, to the EDA in accordance with the terms of the Performance Agreement.
§ 5. That, in the event that the total amount of the State Share, the Local Share, and the Access Fee exceeds any annual debt service on the Gap Financing, such excess shall be paid to the principal of the loan until the Gap Financing is paid in full.
§ 6. That Chief Administrative Officer is hereby authorized to execute, on behalf of the City, the Performance Agreement and such other documents, all of which must first be approved as to form by the City Attorney, as may be necessary to consummate the undertakings herein and is further authorized and directed to take actions consistent with the intent of this ordinance, without limitation, as required by the Act. The Performance Agreement shall be substantially in the form of the document attached to this ordinance as Exhibit “B.”
§ 7. This ordinance shall be in force and effect upon adoption.
City of Richmond
Intracity Correspondence
O&R Transmittal
DATE: September 10, 2025
TO: The Honorable Members of City Council
THROUGH: The Honorable Dr. Danny Avula, Mayor
THROUGH: Odie Donald II, Chief Administrative Officer
THROUGH: Tanikia Jackson, DCAO, Finance and Administration
THROUGH: Letitia Shelton, Director of Finance
THROUGH: Meghan Brown, Director of Budget and Strategic Planning
THROUGH: Sharon L. Ebert, DCAO, Planning & Economic Development
THROUGH: Angie Rodgers, Director of Economic Development
FROM: DJ Mulkey - Sr. Development Manager, Economic Development
RE: 921 Myers St. - Tourism Finance Development Program Project Ordinance
ORD. OR RES. No.
PURPOSE: To authorize a proposed tourism project at 921 Myers Street pursuant to the Virginia Tourism Authority’s Tourism Development Financing Program in accordance with State law.
RECOMMENDATION: Adoption of the ordinance.
BACKGROUND: Richmond has a documented market deficiency in hotels, which impacts its ability to attract business and leisure tourists, and the related positive fiscal and economic development benefits. In 2016, pursuant to the enabling authority set forth in Va. Code 58.1-3851 et. seq., City Council adopted Ord. No. 2016-144 to establish tourism zones within certain areas of Richmond to attract tourism-related businesses. Scott’s Addition is one of the City's five tourism zones. Qualifying projects within a tourism zone are eligible to apply for the Commonwealth's Tourism Development Financing Program (the "TDFP"), which provides gap financing for hospitality projects that address a market deficiency, such as a shortage of hotels.
The developer of a planned dual-branded AC Hotel by Marriott and Residence Inn by Marriott, located at 921 Myers Street (Parcel ID Number N0001481031), approached the City to partner on applying for TDFP. The development will feature approximately 253 rooms, a ballroom, conference space, a pocket park, and a bar and lounge.
The development has a planned capital investment of $109.8M, which would be classified as a "Tier 2" TDFP project. By statute, TDFP can provide up to 20% of gap financing for a Tier 2 project. The development team is seeking approximately 13% of the project costs from the TDFP and has secured 87% of the total project budget from a combination of debt and equity sources.
Per the performance agreement, the gap financing would be paid through a partnership between the Developer, the City, and the Commonwealth. As a Tier 2 project, every quarter, Richmond and the Commonwealth will each contribute an amount equal to 1.5% of the hotel’s quarterly revenue, and the developer will contribute an amount equal to 3% of the hotel’s quarterly revenue, until the gap financing is repaid.
Adoption of the ordinance will enable the developer to pursue gap financing in accordance with the TDFP and authorize the CAO to execute a performance agreement between the Developer, the City, and the EDA.
FISCAL IMPACT: The 921 Myers project is projected to generate more than $60M in net new City tax revenues over the first 20 years following completion.
REQUESTED INTRODUCTION DATE: October 6, 2025
CITY COUNCIL PUBLIC HEARING DATE: November 10, 2025
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance & Economic Development
AFFECTED AGENCIES: City Attorney’s Office, Economic Development, Finance
RELATIONSHIP TO EXISTING ORD. OR RES.: Ord. No. 2016-144
ATTACHMENTS:
Tourism Development Plan
Performance Agreement
STAFF: Angie Rodgers, Director of Economic Development; DJ Mulkey, DED; Matt Welch, DED