Richmond Approves Loan for Stadium Purchase
The Richmond City Council has approved a $14.7 million loan to the city's Economic Development Authority (EDA). The funds will be used for the acquisition of the Sports Backers Stadium, though the EDA has not yet disclosed its plans for the property.
- The total purchase price for the Sports Backers Stadium is $25 million, with the seller being Virginia Commonwealth University (VCU). - The $14.7 million loan from the city to the Economic Development Authority (EDA) will be sourced from the city's contingency reserve fund. The remaining $10.3 million for the purchase comes from a prior land sale to Diamond District Partners, the developers of the surrounding area. - This purchase is a key component of the larger "Diamond District" redevelopment project, which includes the new CarMax Park baseball stadium. - The EDA will repay the 10-year loan, which has a 4% interest rate, using proceeds from future land sales within the Diamond District, including selling portions of the Sports Backers Stadium property to developers. - Once the EDA acquires the 6.6-acre property, the stadium, which opened in 1999, is slated for demolition. The land will be used for new roads and infrastructure to support the new development. - VCU plans to use the $25 million from the sale to help fund the first phase of its new Athletic Village, which will house replacement facilities for its track and field and soccer programs. - The current Sports Backers Stadium is home to VCU's men's and women's soccer and track and field teams and has a seating capacity of 3,250. - The approval of the loan was not unanimous, with Councilmember Kenya Gibson opposing the use of contingency reserve funds for this purpose, arguing it did not align with city code for such funds.
