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Tag: development

Parking repeal gives developers space

Opening a small business is never easy, but for many Richmond entrepreneurs, the city’s previous minimum parking requirements added extra hassle.

Two years ago, when restaurant Africanne on Main relocated from its longtime downtown location to a spot near Virginia Commonwealth University’s Monroe Park Campus, city parking regulations stalled the move for weeks, recalls co-owner and chef Ida MaMusu. She had to scramble to find two additional parking spaces to rent to meet the city’s then-minimum requirement of five spaces for her business.

“Now things [are] slow, prices [are] going up in food, and we still got this huge parking bill,” MaMusu says.

Stories like this from local businesses are part of the reason City Council repealed the requirements on April 24.

The parking minimums had mostly restricted small businesses and developers, rather than larger operations with bank financing that typically require a certain amount of parking regardless of local regulations, says Richmond Association of Realtors Vice President of Government Affairs Joh Gehlbach. “Our hope is that this will add units to the market because we are in a housing crisis right now,” Gehlbach says.

Councilman Andreas Addison, who introduced the repeal, says the former requirements represented an outdated, car-centric mindset that complicated the city’s goals to develop a more walkable and accessible urban landscape.

“When you put parking as a requirement in a spot located for a development, that doesn’t mean it’s the best place for parking to be in general for public use,” Addison says.

Given that half of Richmond’s buildings were constructed before 1947 (city parking requirements were first instituted in 1943), the repeal impacts a wide range of properties, says Kevin Vonck, director of the city’s Department of Planning and Development Review. He hopes it will give developers options to share existing parking spaces and opportunities to repurpose unused lots. 

Brian Revere, president of Breeden Construction LLC, says that the flexibility the repeal will grant developers is a net positive, but it still won’t remove the need for parking altogether.

“Most of us still see this market as requiring some level of regular commuting outside of the city limits,” Revere says, “and the public transportation infrastructure is not here to support not having a vehicle.”  

Developer rejuvenates Colonial Beach

Richmond developer Duke Dodson fondly remembers spending summer days as a child at Colonial Beach, a Northern Neck beach town bordering Maryland on the Potomac River. So, when the town listed 12 parcels of land for sale in 2020, he jumped at the opportunity.

“My grandparents went to Colonial Beach back in the day to eat, drink and dance,” Dodson recalls. “It was booming in the ’50s — like a mini-Atlantic City.” Then legal in Maryland, casinos with slot machines were built atop piers in the river, reachable from Colonial Beach. But “laws changed, the casinos closed, and the town struggled a little bit.”

When complete, Dodson Development Group’s $25 million CoBe on the Potomac development will include 35 housing units, restaurants, coworking space and a gourmet shop. Dodson’s development vision persuaded the town to sell him the land for $2.7 million, says Colonial Beach Economic Development Manager Kelly Evko.

“CoBe on the Potomac is giving the town the momentum it needs,” Evko says. “Duke Dodson has been really engaged with our citizens and stakeholders and has family ties here. We’re working together to honor the town’s history and culture while we evolve and grow our tax base.”

The project’s first phase, School Hill Townes, opened in October 2022 with 13 town homes, a putting green and swimming pool. For the second phase, completed in June, Dodson transformed three 100-plus-year-old buildings to accommodate two vacation rental apartments and two commercial tenants: Circa1892 wine and cheese shop, named for Colonial Beach’s origins as a Victorian-era steamboat summer resort town for D.C. residents, and CoBe Workspaces, a coworking space with an old bank vault serving as a conference room.

“Our favorite thing is seeing people enjoy spaces that were once blighted buildings,” says Dodson. “We like [developing] a cluster of projects together that help a neighborhood come back to life.”

CoBe’s third phase, scheduled for an October opening, includes two restaurants, Drift and Muse. Above the restaurants will be Osprey Flats, a community of nine condos named for the town’s prominent bird population. CoBe’s fourth phase calls for a waterfront boutique hotel, but plans aren’t complete.

Partners for CoBe on the Potomac include Richmond-area firms Campfire, Dana Hennesey Designs, Fultz & Singh Architects, Timmons Group, and THS Construction. Dodson estimates the project has created 260 construction jobs and 50 permanent jobs.

Richmond riverfront amphitheater gets green light

Construction could begin this summer on a $30 million, 7,500-person amphitheater overlooking the James River. On June 12, Richmond City Council approved a 20-year performance grant that gives Red Light Ventures LLC the green light to build its proposed amphitheater on four acres of land it will rent from NewMarket Corp. behind the American Civil War Museum at the historic Tredegar Iron Works.

With plans to host up to 35 major acts annually, Red Light Ventures says the amphitheater could be open in time for the 2025 outdoor concert season. The project was initially pitched in summer 2022 by Charlottesville-based music industry executive Coran Capshaw, founder of Red Light Management, through which he has managed the careers of Dave Matthews Band and hundreds of other major music performers. Concerts at the amphitheater will be arranged via Starr Hill Presents, Capshaw’s Charlottesville-based concert promotion company. Capshaw also developed and operates Charlottesville’s Ting Pavilion and co-partnered with concert promoter Live Nation on Ascend Amphitheater in Nashville, Tennessee.

The performance grant is based on incremental new real estate and admissions taxes on the venue to offset the project’s cost. The performance grant is capped at $37 million, Richmond Economic Development Director Leonard Sledge has said, adding that financial models estimate that grant’s total at $26.4 million.

As part of the deal, the development team will stage a benefit concert during the amphitheater’s first year in operation, with proceeds to be donated to a nonprofit that will address community needs. The amphitheater will also be available to the city and nonprofit groups for civic events.

The new venue fulfills goals laid out in Richmond’s growth plan about developing tourism attractions to elevate the city’s image and to “continue to delight existing and future residents, employers and visitors,” Sledge adds.

Grant Lyman, Southeast region president for Live Nation, a partner in the project, says the new amphitheater will fill a void for touring artists between Washington, D.C., and the Carolinas, and puts Richmond on the radar of more performing acts.

“The fan and artist’s experience here in Richmond will be world-class, bringing fans downtown to the riverfront with a background that showcases the city’s urban growth,” Lyman says. “Richmond can often be overlooked by big-name artists who are looking for a venue that’s large enough to meet the demand of their fan base, as well as capable of supporting their production needs.”  

Norfolk purchases struggling MacArthur Center

In early June, Norfolk City Council members approved plans for the city to purchase the struggling MacArthur Center downtown mall for up to $18 million.

The 23-acre mall is owned by Wells Fargo & Co., which holds the mall following a loan default by MacArthur Center’s previous owner, Connecticut-based Starwood Property Trust. 

MacArthur Center was listed for sale in January by JLL, though no price was listed at the time. The mall includes 914,751 square feet of leasable area. Current anchors are Dillard’s Inc., with 253,616 square feet, and Regal Cinemas, with 80,210 square feet. Another 160,000-square-foot anchor spot is vacant. The property also has a 4,000-space, multistory parking garage.

In recent years, the mall has lost major tenants such as Nordstrom, in April 2019, the Apple Store, in 2021, and restaurants Texas de Brazil and California Pizza Kitchen.

The city will now own everything at MacArthur Center except for the Dillard’s building, which is owned by the retailer.

Norfolk Mayor Kenneth Cooper Alexander says that buying the mall would enable the city to “play an active and strategic role” in the property’s future. In the short term, the city plans to continue operating MacArthur Center as a mall and planned to hold discussions with mall tenants in what Alexander said in early June was to be a “seamless” transition. The city did not initially release any long-term plans for the mall.

The mall’s most recent assessment was nearly $25 million — $20.7 million in land value and $4.2 million in improvement value. That’s down significantly from its
July 2022 assessment, when it was valued at $51.8 million, including $24.8 million for the land, city records show.

According to the purchase agreement, the city was to pay $11.05 million for the mall, with the rest of the city allocation going to cover consulting, legal and other fees. The deal was expected to close by August.

The mall is now more than half vacant, according to JLL. Starwood Property Trust bought the mall in 2014 for $265.5 million from Michigan-based Taubman Centers Inc., as part of the $1.4 billion purchase of seven shopping malls. However, Starwood defaulted on a $750 million loan in 2019, and MacArthur Center is now owned by Wells Fargo and managed by Syracuse, New York-based Spinoso Real Estate Group. 

Luxury RV park sets sights on Danville

Danville visitors could soon be setting up camp at the area’s first luxury RV park if City Council approves a special use permit for The Palace Resort, a project that could generate $1.3 million in annual city tax revenue.

The matter was set to go before Danville City Council on June 20, following the planning commission’s May 8 recommendation that Florida developer Joe Cubas be allowed to develop the 46-acre RV park near the North Carolina border. However, in response to neighboring residents’ concerns, City Council has tabled a decision on the RV park until a traffic impact study can be completed, which could take up to a year.

If approved, construction of the RV resort would take about six or seven months. Cubas, manager of J. Cubas Holdings LLC, had said in May that he had hoped to have the resort operating by late 2024, when the permanent Caesars Virginia resort casino in Danville is also expected to open.

The year-round RV park would have 333 RV sites, some with outdoor kitchens/gazebos, known as casitas. Other planned amenities include pools, spas, restaurants, a clubhouse, a gym, and tennis and pickle-ball courts. Shuttles would transport guests to the casino, as well as to downtown Danville, Martinsville Speedway, Virginia International Raceway and other destinations.

Cubas originally wanted to build The Palace Resort in Pittsylvania County, but its board of supervisors unanimously rejected the project last fall after residents voiced concerns about property values and the resort’s impact on nearby churches. Danville City Councilman Lee Vogler encouraged Cubas to seek a site in the city.

“I convinced him to give us a try,” Vogler says. “City Council is proactive in saying yes to things that bring in tourism and grow
our city.”

Danville’s location near the state line puts the region in good stead to tap into the booming RV industry, which has an annual economic impact of $2 billion in Virginia and $3 billion in North Carolina, according to the Herndon-based RV Industry Association.

“A number of our visitors travel by recreational vehicle,” Danville Economic Development Director Corrie Bobe says, noting that the planned RV park “will allow space for them to lodge and have quick access to tourism assets.”

The Palace Resort is another sign that Danville is successfully shedding its image as a fading textile town, Vogler says: “This is a big win for us and the region. It ties in with everything we’re doing to grow the economy.”  

Riverdale project could be ‘transformative’

Partnering with the city of Roanoke, developer Ed Walker started redevelopment of 100 acres encompassing the sprawling, former campus of American Viscose, a rayon plant that closed in 1958. 

“This is a chance we have as a community to really do something transformative,” Roanoke Economic Development Director Marc Nelson says.

Located in the city’s southeast quadrant and dubbed Riverdale after the historic name of the neighborhood, the project will include both historic rehab and new construction.

As part of his agreement with the city, Walker will invest at least $50 million over the next 17 years. Walker says it will be the last project of his career.

“These projects take a decade — and this one will take longer — so this is it,” he says. “If I’m lucky, I’ll live long enough to see it somewhat complete. It’s the kind of place that’s never finished. It’s so large and complex.” 

Before Walker’s company purchased the property, a group of investors operated it for decades as the Roanoke Industrial Center. Walker hopes to retain many of the businesses currently located there.

By 2043, he hopes the Riverdale neighborhood will offer “everything a great place has — lots of different kinds of people creating a diverse experience that’s enjoyable, safe, affordable, creative, economically powerful, experiential and healthy.” Specifically, he expects it will offer residences, offices, retailers and eateries as well as art studios and outdoors-focused programming.

Riverdale’s first phase, which could be completed by 2029, will include 375 apartments and at least one 3,000-square-foot commercial building.

In January, Roanoke City Council approved a $10 million loan to Walker’s company, Riverdale Southeast LLC, to cover property acquisition and site remediation. If developers invest at least $50 million over 17 years, the loan will be forgiven, according to a performance agreement. Additionally, the developer will receive a real estate tax rebate for 17 years. Currently, the property generates about $100,000 annually, according to Roanoke City Manager Bob Cowell.

A master plan for the project will be put together this year, factoring in input from area residents, city planners, leaders in outdoor sports and national consultants.

Richmond-based Chmura Economics & Analytics looked at the projected impact of Riverdale on construction, commercial operations and household spending in the city of Roanoke from 2023 to 2040 and estimated the initial development plan will have a cumulative economic impact of more than $326 million.

Remembering Harvey Lindsay Jr.

Harvey L. Lindsay Jr., chairman of Harvey Lindsay Commercial Real Estate, died April 19 at the age of 93. In addition to his nearly 70-year career in real estate, Lindsay was a Korean War veteran, an active volunteer in Hampton Roads civic organizations and an early civil rights activist.

“Harvey was an eternal optimist and a true servant leader who believed in empowering individuals to take care of their neighbors,” says Robert M. King, one of Lindsay’s sons and now chairman and president of the Norfolk real estate firm, which was started by Harvey Lindsay Sr. “Throughout his career, my dad believed that what was good for people was good for business. His solid, unyielding values are embedded in the culture of our company.”

Lindsay, who served as a Marine lieutenant during the Korean War and was a University of Virginia alumnus, joined his father’s company in 1954 and became president of the firm in 1969. He continued as chairman until his death.

Over his career, Lindsay was part of many major projects, including Tidewater Community College and Military Circle Mall. Old Dominion University’s Harvey Lindsay School of Real Estate is named for him. In 2014, LEAD Hampton Roads named him First Citizen of Hampton Roads.

A desegregation advocate, Lindsay chaired a racially mixed committee that pushed to reopen Norfolk public schools, which had closed in 1958 instead of integrating. He later co-founded a precursor to the Urban League of Hampton Roads, serving as its president.

“At a time when taking a bold stance on race relations … was risky, Mr. Lindsay stood for what was right, demonstrating uncommon courage,” says Urban League President and CEO Gilbert T. Bland. “Hampton Roads is a stronger, more inclusive community because of his efforts.”   

Amazon begins HQ2 move-in

Amazon.com Inc. is moving more than 8,000 employees into the first phase of HQ2, its $2.5 billion East Coast headquarters in Arlington’s emerging National Landing area, this week. The e-tailer plans to officially open HQ2’s first phase, Metropolitan Park (Met Park), in June and to complete its move-in by the end of the summer. However, the No. 2-ranked Fortune Global 500 company said in March that it was delaying construction on HQ2’s second phase, PenPlace.

Amazon expects to create 25,000 jobs for the project by 2030 and is eligible for up to $550 million in state grants, should it meet the required annual hiring goals and average annual wages.

“This project is extraordinary in many respects,” Arlington County Board Chair Christian Dorsey said in a statement. “It will bring us significantly closer to fulfilling the community’s vision of Arlington and National Landing as an urban neighborhood with a better balance of office, residential and retail development, more and better public spaces and more and better access for pedestrians and cyclists.”

Met Park consists of 2.1 million square feet of office space and more than 50,000 square feet of retail space housing 14 businesses, as well as a 2.5-acre park. The campus is on park to receive a LEED Platinum certification, the highest LEED certification level.

Met Park’s two 22-story, 327-feet-tall office buildings can house 12,500 employees. One tower is named Jasper, the codename for an Alexa component that provides tools for customer settings. Amazon has named the other tower Merlin, after the codename for Amazon QuickSight, a cloud-based business intelligence service product that can create interactive dashboards. The buildings have a total of 62 elevators.

A street view of Met Park, the first phase of Amazon's HQ2. Photo courtesy Amazon.com Inc.
A street view of Met Park. Photo courtesy Amazon.com
An aerial view of outdoor space within Met Park, the first phase of Amazon's HQ2. Photo courtesy Amazon.com Inc.
An aerial view of outdoor space within Met Park. Photo courtesy Amazon.com Inc.
A terrace in Met Park, the first phase of Amazon's HQ2. Photo courtesy Amazon.com Inc.
A terrace with grills in Met Park. Photo courtesy Amazon.com Inc.
An entrance to the first phase of Amazon's HQ2, Met Park. Photo courtesy Amazon.com Inc.
An entrance to Amazon’s HQ2 offices. Photo courtesy Amazon.com Inc.
A stairwell and escalator inside Met Park, the first phase of Amazon's HQ2. Photo courtesy Amazon.com Inc.
A stairwell and escalator inside Met Park. Photo courtesy Amazon.com Inc.
A reception desk in Amazon.com Inc's HQ2. Photo courtesy Amazon
A reception desk in Amazon.com Inc’s HQ2. Photo courtesy Amazon
An employee gathering space in Met Park, the first phase of Amazon's HQ2. Photo courtesy Amazon.com Inc.
An employee gathering space in Met Park. Photo courtesy Amazon.com Inc.
An outdoor terrace in Met Park, the first phase of Amazon's HQ2. Photo courtesy Amazon.com Inc.
An outdoor terrace in Met Park. Photo courtesy Amazon.com Inc.
Snack and beverage options in Met Park
Snack and beverage options in Met Park. Photo courtesy Amazon.com Inc.
A presentation room inside Met Park, the first phase of Amazon's HQ2. Photo courtesy Amazon.com Inc.
A presentation room inside Met Park. Photo courtesy Amazon.com Inc.
A seating area in Met Park, the first phase of Amazon's HQ2. Photo courtesy Amazon.com Inc.
A seating area in Met Park. Photo courtesy Amazon.com Inc.
A seating area in Met Park. Photo courtesy Amazon.com Inc.
A seating area in Met Park. Photo courtesy Amazon.com Inc.

The towers include “centers of energy,” Amazon’s term for spaces for employees to gather, including four coffee shops and three all-electric commercial kitchens. The areas are designed to handle 30% of the offices’ employee capacity, an intentional move by the company to encourage employees to “venture out into the neighborhood,” according to a news release.

The 14 ground-floor retailers include a bike shop, a dog day care, a fitness studio, an early childhood education center, a spa, restaurants and the Museum of Contemporary Art (MoCA) Arlington’s Innovation Studio.

The towers have outdoor spaces within their designs: about 2.7 acres of rooftop landscaping, about an acre of green roof with native plants, two event terraces, two café terraces, one garden terrace, an urban farm and outdoor kitchens.

The public park includes walking paths, a dog run and a children’s play area and garden.

For commuting employees, Met Park has 620 bike racks, four levels of below-grade parking with 290 electric vehicle charging stations and pedestrian pathways for employees taking the Metro. On May 19, the Washington Metropolitan Area Transit Authority opened the Potomac Yard-VT station, anchored by Virginia Tech’s $1 billion Innovation Campus and two stops away from HQ2.

Va. Tech names SVP for advancement

Virginia Tech has promoted Charlie Phlegar to senior vice president for advancement, the university announced Thursday.

Phlegar has led efforts in fundraising, alumni relations, communications and marketing since 2015. Under his leadership, Tech’s advancement division has secured record amounts of new gifts and commitments, including $268.5 million in fiscal year 2021-2022. Undergraduate giving has also increased 22% in the most recent fiscal year. Phlegar was previously vice president for advancement.

“Charlie has been able to tap into our alumni’s profound loyalty, affection and desire to support their alma mater because he feels these things as deeply as any Hokie,” Virginia Tech President Tim Sands said in a statement. “The promotion reflects his expanded responsibilities resulting from our new communications and marketing model, and the remarkable impact of his leadership on our advancement division and Virginia Tech’s capacity to achieve our Beyond Boundaries vision for the university. I have great appreciation for his partnership with me over eight years, and look forward to building on our success.”

Phlegar has bachelor’s and master’s degrees from Virginia Tech and was assistant director of athletics for sports marketing and later was assistant director of the alumni association at his alma mater. Then, he was campaign director at East Carolina University, vice president for development at the University of South Carolina, senior associate vice president and interim vice president for development and alumni relations for The Johns Hopkins Institutions and vice president for alumni affairs and development at Cornell University.

“I care a great deal about this university and, since returning, have stressed to our advancement division how important it is to build and nurture a culture of philanthropy and engagement within our worldwide alumni community,” Phlegar said in a statement. “We’ve worked very hard on that, while also looking to help develop partnerships with prominent, non-Hokie partners who share goals of leveraging learning and technology to improve industry and society. President Sands has outlined an ambitious vision of what Virginia Tech can become, and my team and I look forward to doing all we can to help bring that about.”

Demo begins on Military Circle Mall with site’s future uncertain

Norfolk started the first phase of demolition of Military Circle Mall Friday, but the future of the property remains unclear.

Demolition will continue through late June, according to the city. The first phase will start with separate buildings on the property, including China Garden, Martin’s Café, and The Military Circle Shoppes, with additional demolition to follow. Friday’s work included the installation of fencing around those buildings.

The second phase — demolition of the main mall building — is set for late summer.

The aging mall, which closed permanently on Jan. 31,  is being demolished in preparation for new development, but the city has not yet chosen a project team to move forward with.

In November 2022, at the three-day Mighty Dream forum in Norfolk, music superstar Pharrell Williams said he was waiting for Norfolk to officially approve his development team’s Wellness Circle project. At the time, City Manager Larry “Chip” Filer confirmed the city was working with Williams’ team. But no announcement has been made and the city’s economic development department said Friday “the city is continuing to evaluate options.”

Norfolk’s EDA purchased the 75-acre property for $11 million and the nearby DoubleTree Hotel property for $2.4 million in 2020.

The Wellness Circle proposal includes 1 million square feet of office space, a 200-room hotel, 1,100 new housing units and a 15,000-seat arena. The project’s other developers include Virginia Beach-based Venture Realty Group and California arena management company Oak View Group.

Two other development teams, including groups connected with Hampton Roads hotel developer Bruce Thompson and Pro Football Hall of Famer Emmitt Smith of Dallas Cowboys fame, submitted competing proposals for the project.