Navy Hill developers propose new $350M downtown Richmond project

Richmond

RICHMOND, Va. (WRIC) — The developers behind Navy Hill are looking to propose a new project in downtown Richmond.

The news comes months after Richmond City Council voted “no” to the Navy Hill Project.

Capital City Partners (CCP) has proposed to purchase the Public Safety Building site from the City of Richmond for new development. The proposed project would include new facilities for two of Richmond’s leading non-profits, The Doorways and Ronald McDonald House Charities, as well as needed office and support space for VCU HealthSystem, new child development space, and new ‘spec’ class-A office space designed to attract new business to downtown Richmond.

As a private development, the site would pay full property and other taxes to the City. The site today generates no revenue for the City.

The plan of development includes demolition of the Public Safety Building and rebuilding Clay Street between 9th and 10th Street, opening up access to historic Court End.

The parcel area that exists today is 3.01 acres. To allow for the alignment of a new Clay Street, the development will reconfigure the site to its traditional block size of 2.27 acres. The remaining property on the southern end of the site will be used for the redevelopment of Clay Street with excess land available to be added to the Department of Social Services (DSS) site to the south, returning the site to its traditional block dimension.

The proposed development is fully compatible with previous City master plans that encourage mixed-use development, density, and walkable streets. It has a positive impact to adjacent properties as it lifts up the quality of buildings, public space and area infrastructure.

USES

The proposed development is 545,000 square feet, which includes:

• 150,000 square feet for VCU Health
• 150,000 square feet of Class A office space
• 35,000 square feet of VCU Health System Child Care
• 125,000 square feet for the Doorways
• 65,000 square feet for Ronald McDonald House Charities
• 20,000 square feet of ground level retail
• 1,900 parking spaces

Office Tower: 150,000 square feet VCU Health System; 150,000 Class A Office Space

The primary office tower within the project will comprise approximately 300,000 square feet – 150,000 square feet dedicated to ‘spec’ Class-A office space, and 150,000 square feet programmed to VCUHS administrative space, physician offices and other program spaces designed to support the new VCU Health System Adult Outpatient Pavilion, Children’s Hospital Pavilion and other programs. New retail space will provide products and services that are currently missing in the community, including a street level pharmacy.

The Doorways: 125,000 square feet; 145 guest beds

The Doorways is currently operating in an aging 117-room former hotel adjacent to the Blues Armory at 7th and Marshall Streets. They are typically lodging 150 children and adults who depend on this organization to access lifesaving or specialty medical care in Richmond. Most guests have been referred to The Doorways by VCU Health System, their largest and most significant hospital partner.

The Doorways currently provides over 50,000 nights of lodging, transportation and meals to over 9,700 individuals and their families or caregivers seeking primary care, diagnostic tests, treatments and surgeries. Nearly 50% of the length of stays are one month or longer. Over 11% of the guests are Veterans or families of Veterans. At least 66% of Doorways guests are at or below the Federal Poverty Guidelines making access to resources critical to their recovery process.

Ronald McDonald House Charities Richmond: 65,000 square feet, 60 guest rooms

RMHC presently has only nine guestrooms at its current location on Monument Avenue, which is over two miles from the closest hospital. These rooms have shared bathrooms, are not ADA accessible, and have limited play space and parking. RMHC serves families from five countries, 21 different states, and 72 Virginia counties who rely on lodging, transportation to and from to the hospital, and meals. Family stays range from one night to five months. In 2020, an estimated 48 rooms are needed daily to serve the present population, far more than can be accommodated.

VCU Health System Child Care: 35,000 square feet

The existing child care center at VCU Health System has a waiting list of over 250 families in the Richmond community The unmet demand will be absorbed (along with many others not on the waitlist) within the 35,000 square feet of new programmed childcare space, which includes dedicated outdoor green space.

The proposed child care center will support the families at the Doorways and Ronald McDonald House as well as the Richmond community’s essential employees and residents in the broader Richmond community.

Proposal Details:

• $3.175 million cash price for purchase and acquisition of the site; CCP has deposited 10 percent as good faith into escrow
• Price was based on an appraisal performed by CBRE

Development Details:

• Over $350 million in private investment
• Does not rely on city dollars or tax-increment financing models
• Completed late 2023
• CCP would pay for rebuilding and reconnecting Clay Street and other public infrastructure improvements
• $60 million in new city tax revenue over 20 years

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