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To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a Performance Agreement between the City of Richmond, VPM Media Corporation, and the Economic Development Authority of the City of Richmond for the purpose of providing performance grants to VPM Media Corporation to establish, equip, and operate a new headquarters located at 13 East Broad Street in the city of Richmond. (2nd District)
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That the Chief Administrative Officer, for and on behalf of the City of Richmond, be and is hereby authorized to execute a Performance Agreement between the City of Richmond, VPM Media Corporation, and the Economic Development Authority of the City of Richmond for the purpose of providing performance grants to VPM Media Corporation to establish, equip, and operate a new headquarters located at 13 East Broad Street in the city of Richmond. The Performance Agreement shall be approved as to form by the City Attorney and shall be substantially in the form of the document attached to this ordinance.
§ 2. This ordinance shall be in force and effect upon adoption.
City of Richmond
Intracity Correspondence
DATE: March 19, 2025
TO: The Honorable Members of City Council
THROUGH: The Honorable Dr. Danny Avula, Mayor
THROUGH: Sabrina Joy-Hogg, Interim Chief Administrative Officer
THROUGH: Sheila White, Director of Finance
THROUGH: Meghan Brown, Director of Budget and Strategic Planning
THROUGH: Sharon Ebert, Deputy Chief Administrative Officer
FROM: Katie McConnell, Deputy Director, Department of Economic Development
RE: VPM Economic Development Performance Agreement
ORD. OR RES. No.
PURPOSE: To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a Performance Agreement between the City of Richmond, VPM Media Corporation, and the Economic Development Authority of the City of Richmond for the purpose of providing performance grants to VPM Media Corporation to establish, equip, and operate a new headquarters at 13 East Broad Street in the city of Richmond.
BACKGROUND: In June 2023, VPM, Virginia’s home for public media, announced that it chose downtown Richmond to build its new headquarters. The project broke ground in August 2024, and when complete, it will bring several economic and community development benefits to the City. The project will:
• Create at least 70 new jobs;
• Involve at least $65 million in capital investment to build the five-story, 53,700 square feet headquarters on a parcel that was formerly a surface parking lot;
• Feature a state-of-the-art, street-level studio and new storefront-style space fronting Grace Street that will provide street-level activation and placemaking benefits along a key commercial corridor; and
• Serve as a venue for cultural, historical, and educational events in the City in cooperation with city-based organizations.
To encourage VPM’s investment in downtown Richmond, the City, through the Economic Development Authority, offered an annual economic development performance grant equal to VPM’s annual business tangible personal property tax levy for a grant period of up to 20 years. To receive full payment of its annual grant, VPM must make complete and timely payment of its tangible personal property tax levy and have achieved its capital investment and new job targets, as laid out in the performance agreement.
STRATEGIC INITATIVES AND OTHER GOVERNMENTAL: The attraction of a corporate headquarters and the redevelopment of underutilized commercial property aligns with the initiatives laid out in the City’s adopted Strategic Plan for Equitable Economic Development (SPEED). The development of high-quality commercial space, with street-level activation, in Downtown Richmond aligns with the Richmond 300.
FISCAL IMPACT: The incentive leverages a portion of new, incremental taxes and does not involve any existing city revenue. The actual grant payment is dependent on the company’s annual business tangible personal property taxes. The first-year grant is estimated to be between $270,000-$300,000 and is anticipated to be disbursed in FY27. After taking into account grant disbursements, the project is projected to generate an estimated $2.5 million in net new direct revenue over 10 years.
DESIRED EFFECTIVE DATE: Upon Adoption.
REQUESTED INTRODUCTION DATE: June 23, 2025
CITY COUNCIL PUBLIC HEARING DATE: July 28, 2025
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance and Economic Development Standing Committee
AFFECTED AGENCIES: Department of Economic Development, the Department of Budget and Strategic Planning, and the Department of Finance
ATTACHMENTS: Performance Agreement
STAFF: Matthew Welch, Acting Director, Department of Economic Development
Katie McConnell, Senior Deputy Director, Department of Economic Development