Richmond is buying the former Southside casino site for $5.5M. The plan for it is TBD.
Right before the Richmond City Council voted to buy the large parcel of land in Southside that was previously supposed to hold a casino, Councilor Ellen Robertson (6th District) raised the $5.5 million question.
What, she asked, is the city’s plan for the 96-acre property?
“It’s unclear to me as to what exactly we really are proposing to build,” she said.
The answer from city officials was that the plan is to-be-determined. But it would be better, they said, for the city to buy the Altria-owned property than risk having a private sector buyer get it.
Sharon Ebert, the city’s deputy chief administrative officer, told the council the city felt it had a “very narrow window” to buy the Altria property because “other interested parties” were pursuing it.
She said City Hall was worried the property — which sits near several warehouses and the Port of Richmond and was previously marketed as an “industrial land development opportunity” — would be used for another warehouse.
“There’s a high likelihood that if we don’t get to purchase this, it might be developed as a warehouse,” Ebert said. “And that is not what we think is the highest and best use.”
The council voted to authorize the $5.5 million purchase, and the city is expected to close on the property by the end of the year. And now Richmond residents will have a chance to give input into what happens in an area officials have described as a prime redevelopment opportunity for Southside.
Mayor Levar Stoney’s administration has characterized the purchase as a way to pick up the pieces from the failed casino votes in 2021 and 2023 and deliver something for a lower-income part of town that has long felt it lacks the entertainment options and amenities found north of the James River.
Despite some hesitation by council members on the lack of a clearly defined plan for the property, the council unanimously approved an ordinance allowing the acquisition to move forward. Officials said the city has until Dec. 30 to close on the property under a letter of intent struck with Altria.
Because about half the site consists of unbuildable wetlands, the city intends to use some of it for the park that was previously tied to the casino plan. Securing the land will also allow the city to extend Walmsley Boulevard to connect Richmond Highway and Commerce Road.
But beyond that, officials say it’ll mostly be up to the community to decide what should happen with the Southside site that nearly matches the higher-profile Diamond District in terms of acreage that can be developed.
Christine Gibson, a 65-year-old retiree who lives in Southside, said she wants to see the site used for “enjoyment and employment.” That could mean a family-friendly restaurant or a grocery store, she said, but she feels locals could also benefit from having more government services consolidated in the area instead of making Southsiders cross the river to go to City Hall.
“You have to go downtown,” she said. “Where you can’t find a place to park.”
Whatever happens with the site, the city won’t be re-using the office and laboratory building that previously housed the Philip Morris USA Operations Center, which was built in 1982.
As part of the deal with Altria, the city will have to demolish the structure by the end of next year, officials said. The council approved another $4 million in city funds to pay for demolition.
In an interview, Chief Administrative Officer Lincoln Saunders said Altria had concerns about letting the building continue to sit vacant if the city were to purchase it.
“I really do think it just boils down to liability and fire risk for an unoccupied building,” Saunders said.
Saunders said it would be “very tough” for the city to try to re-use the building due to the potential costs of revamping its sprinkler system and other fire prevention measures.
A prior real estate listing for the property said buyers “may consider demolishing the building,
returning it to active use, or redeveloping the site for adaptive use.”
Stoney and Avula weigh in
Asked why he feels it’s preferable for the city to make a somewhat speculative land purchase instead of allowing private-sector development without the use of at least $9.5 million in city funds, Stoney said it’s “always better” when the city can control the site.
“Because someone can buy a piece of land and then by right they can do whatever they want with the land,” he said. “At least we can provide some requirements on what we want to see and what the community wants to see.”
Stoney said his administration has heard the requests of South Richmond residents and has tried to deliver the type of revitalization the community wants.
“We have tried and tried again and struck out in some cases,” Stoney said, an apparent reference to the failed casino plan. “But you’re seeing more and more investment come to South Richmond.”
The City Council’s vote to buy the land was a major topic of discussion last week at a community meeting held by Councilor Reva Trammell (8th District), who just won another four-year term.
Mayor-elect Danny Avula attended the meeting, and said that — despite the uncertainty about what the purchase will bring — he agrees with the city’s decision to acquire the land.
In front of a crowd of her supporters at the Satellite Restaurant off Richmond Highway, Trammell pressed the next mayor to make a more specific pledge.
“Over and over, we have said in this room that we want entertainment, we want jobs, we want restaurants. We want things like what other parts of the city have,” she said. “That’s what everybody in here has been waiting for you to say. That you’ll work with me.”
Avula promised to work toward “deep partnership” with council members who know the needs of the districts they represent.
“‘We will find every opportunity we can to elevate the community voices, the community priorities,” Avula said. “So that if it is more development, more restaurants, more entertainment — if that’s what we’re hearing resoundingly across the 8th — then those are the things that we’re going to prioritize.”
