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To amend Ord. No. 2025-057, adopted May 12, 2025, which adopted the Fiscal Year 2025-2026 General Fund Budget and made appropriations thereto, by (i) transferring $14,700,000.00 from the Contingency Reserve; (ii) creating a new line item in the Outside Agencies and Central Appropriations agency entitled “EDA - Diamond District;” and (iii) appropriating such transferred funds to such new line item in the Outside Agencies and Central Appropriations agency, all for the purpose of providing funding to the Economic Development Authority of the City of Richmond for the redevelopment of the area known as the Diamond District.
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That Article I, Section 1 of Ordinance No. 2025-057, adopted May 12, 2025, which adopted a General Fund Budget for the fiscal year commencing July 1, 2025, and ending June 30, 2026, and made appropriations thereto, is hereby amended by:
(a) Transferring funds in the amount of $14,700,000.00 from the Contingency Reserve;
(b) Creating a new line item in the Outside Agencies and Central Appropriations agency entitled “EDA - Diamond District;” and
(c) Appropriating the funds in the amount of $14,700,000.00 transferred by subsection (a) of this section to the new line item in the Outside Agencies and Central Appropriations agency entitled “EDA - Diamond District” created by subsection (b) of this section, all for the purpose of providing funding to the Economic Development Authority of the City of Richmond for the redevelopment of the area known as the Diamond District.
§ 2. This ordinance shall be in force and effect upon adoption.
DATE: January 16, 2026
TO: The Honorable Members of City Council
THROUGH: The Honorable Dr. Danny Avula, Mayor
THROUGH: Odie Donald II, Chief Administrative Officer
THROUGH: Tanikia Jackson, Deputy Chief Administrative Officer (Finance Portfolio)
THROUGH: Letitia Shelton, Director, Department of Finance
THROUGH: Meghan Brown, Director, Department of Budget and Strategic Planning
THROUGH: Sharon Ebert, Deputy Chief Administrative Officer (Econ. Dev. Portfolio)
FROM: Angie Rodgers, Director, Department of Economic Development
RE: Budget Amendment - $14.7M Appropriation to EDA (Loan) for Sports Backers Purchase
ORD. OR RES. No.
PURPOSE: To amend Ord. No. 2025-057, adopted May 12, 2025, which adopted the Fiscal Year 2025-2026 General Fund Budget and made appropriations thereto, by (i) transferring $14,700,000.00 from the Contingency Reserve; (ii) creating a new line item in the Outside Agencies and Central Appropriations agency entitled “EDA - Diamond District;” and (iii) appropriating such transferred funds to such new line item in the Outside Agencies and Central Appropriations agency, all for the purpose of providing funding to the Economic Development Authority of the City of Richmond for the redevelopment of the area known as the Diamond District.
BACKGROUND: This ordinance enables the City to loan $14.7M to the Economic Development Authority of the City of Richmond, Virginia (“EDA”), which will provide the EDA with the remaining funding needed to purchase an approximately 6.6-acre parcel of real estate located at 2911 N. Arthur Ashe Boulevard owned by Virginia Commonwealth University (“VCU”) and referred to as the “Sports Backers Parcel”.
The City, the EDA, and Diamond District Partners, LLC (the “Developer”), entered into a Purchase and Sale and Development Agreement dated May 15, 2024 (the “Development Agreement”), to facilitate redevelopment of the Diamond District. The Development Agreement calls for the Authority to purchase the Sports Backers Parcel from VCU, and to convey a portion thereof to the Developer to enable redevelopment. The City and the EDA also entered into a Cooperation Agreement dated June 1, 2024, which provides that the City will make available to the EDA such funds as may be necessary for the EDA to satisfy its undertakings pursuant to the Development Agreement. Pursuant to the Development Agreement, the EDA intends to purchase the Sports Backers Parcel from VCU for a purchase price of $25,000,000, the funding for which would be comprised of (i) the proceeds received by the EDA from its sale of the Phase 1A Property to the Developer in March 2025 and (ii) $14.7M in funds loaned by the City. The EDA intends to repay the loan funds to the City upon selling the Phase 1B and Phase 1C Property to the Developer pursuant to the Development Agreement.
STRATEGIC INITATIVES AND OTHER GOVERNMENTAL: Diamond District Redevelopment Project
FISCAL IMPACT: Appropriates $14.7M to the EDA to support the purchase, which funds will be repaid to the City.
DESIRED EFFECTIVE DATE: Upon Adoption.
REQUESTED INTRODUCTION DATE: January 26, 2026
CITY COUNCIL PUBLIC HEARING DATE: February 9, 2026
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Organizational Development Standing Committee (Feb. 2)
AFFECTED AGENCIES: Department of Economic Development, Department of Finance; Department of Budget and Strategic Planning; City Attorney’s Office
RELATIONSHIP TO EXISTING ORD. OR RES.: Ordinance No. 2024-112 (Approving the Diamond District Redevelopment Project Purchase and Sale and Development Agreement; Ord. No. 2024-114 (Approving certain Diamond District financing and a City/EDA Diamond District Cooperation Agreement); Res. No. 2024-R042 (Expressing support for conveyance of Sports Backers Parcel to EDA)
ATTACHMENTS: Draft EDA SBS Promissory Note
STAFF: Matt Welch, Department of Economic Development
Michael Ngyuen, Department of Finance