The Richmond City Council voted Monday to approve a 352-unit apartment complex in Northside, overruling a planning staff recommendation that warned against converting 23 acres of industrial land for housing purposes.

The new, income-based apartments would be available to households earning 60% of the area median income, which was a little under $63,000 per household according to 2023 U.S. Census data.

Backers of the 2811 Rady Street project — including the Elmington real estate company that’s behind the proposal slated for the Magnolia Industrial Center area near Highland Park  — say it’s the type of dense construction that can help alleviate Richmond’s housing affordability problems.

However, the city’s planning staff noted there’s a downside for Richmond giving up too much land for housing uses at the expense of more business-focused development. Having land zoned for industrial use, the staff wrote, is “necessary for a thriving urban economy” and job creation.

The four-building apartment complex will have a swimming pool, clubhouse, an amenity area and bicycle storage.

The city previously approved a performance grant for the project that allows the developer to avoid paying some real estate taxes for the property while committing to make the apartments available to lower-income residents for at least 30 years. According to city documents, the project is expected to generate almost $950,000 per year in tax revenue. That could translate to grant payments to the developer worth about $67,000 in the first year, but that number would fluctuate based on changes in property values.

According to the developer’s timeline, construction on the project could start in early 2026 and be completed in 2027.

The project was approved as part of the council’s consent agenda, meaning it had unanimous support and passed without debate or discussion.

Apart from a few land-use decisions, the council had a light agenda for Monday’s meeting.

Of the 16 items listed on the published agenda, 13 were pushed to future meetings. Many of those delays were caused by the cancellation of a committee meeting last week due to snow.

A divide on council appointments

One of the more interesting exchanges at Monday’s meeting came as the council was voting on typically routine appointments to local boards and commissions.

Councilor Kenya Gibson (3rd District) spoke up to say she was opposing two appointees. She was against putting Dominion Energy employee Jared Loiben on the board of the Richmond Economic Development Authority, saying she feels the company already has “outsized influence” in the city.

She also said she was opposing the reappointment of Richmond Redevelopment and Housing Authority Commissioner Harold Parker Jr. because Parker had not given her a commitment that he would support a one-to-one replacement policy ensuring that a new public housing unit is built for each one lost through redevelopment.

“I did want to make it clear to the public why I was voting no on this matter,” said Gibson, one of three new members who joined the council this year.

Two other members — Councilors Sarah Abubaker (4th District) and Stephanie Lynch (5th District) — abstained from the vote. But the appointment resolution passed with the support of the council’s six other members.

After the vote, Council President Cynthia Newbille (7th District) seemed to dispute Gibson’s concerns on both fronts.

The concerns about having a Dominion employee involved in economic development, Newbille said, had been raised with the city attorney’s office and deemed not to be an inherent conflict of interest as long as Loiben didn’t participate in matters directly involving Dominion.

“We’re satisfied with the feedback that there would be the standard abstention,” Newbille said.

Avula says city has already spent $5 million in water plant repairs and upgrades

Mayor Danny Avula attended the council meeting and gave a brief update on the city’s efforts to recover from last month’s water crisis, revealing that the city has already spent around $5 million on equipment at the city’s water treatment plant.

The mayor didn’t give a detailed breakdown of those expenses, but officials said it reflects the cost of repairs and steps taken to implement recommendations included in a hired consultant’s initial report on the water issue.

Wrapping up his second month in office, Avula also gave the council a rundown of his vision for the city. With widespread uncertainty about federal funding and programs after a series of directives from President Donald Trump, Avula said, Richmond has to act with “urgency and creativity and vision.”

Avula said his goals will continue to include supporting schools and safe communities, helping families and children, pursuing inclusive economic development, telling a fuller story of Richmond’s history and protecting the rights of immigrants and LGBTQ people who may feel under threat.

“While we can’t control the uncertainty that’s going on in Washington, I think we can absolutely recognize and respect the humanity and value of all Richmonders,” Avula said.

Several council members thanked Avula for his willingness to engage with the legislative body, but some also pressed for specific steps to increase accountability.

Gibson noted that the initial water report contained no information about why the plant wasn’t switched to backup generators, which was one of many questions council members submitted to the Avula administration about the water facility.

“I think it’s important to ensure that those questions that are still relevant are all answered very clearly in the final report that comes out,” Gibson said.