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The recent news about the latest failure of the developers behind the ambitious proposed Green City project in Henrico County did not come as a huge surprise, but it has left in limbo the question as to whether this region will see construction of a 15,000 to 20,000 seat arena. It’s not a coincidence the Green City developers (aka Green City Partners) were the same ones behind the Navy Hill arena boondoggle (and botched VCU Health real estate deal that cost the health system $80 million). But it’s not accurate to compare the tale of the two failed arena proposals in the same light because the two deals were structured completely differently — one done smart and still has potential, and one...not so much, with land that still sits underutilized with no visible progress.
One of the two sites remains primed for economic development and is seeing residential development underway; it is also a lesson in how to protect taxpayers and the public treasury. The other site remains underperforming and is still in limbo five years later with a shuttered Coliseum (that should have never been closed until a new one was built). That site remains a prime example and warning of the dangers of using political pressure to ram through a bad deal with voodoo economics that would have only led to fiscal and moral bankruptcy. Getting through these two tales involves a bit of background, but we promise to bring it back full circle in two parts.
Green City Partners originally announced their Green City concept in late 2020 as a $2.3 billion project with a 17,000-seat arena as the centerpiece in Henrico. It would also include 2,400 residences, 2 million square feet of office space, 280,000 square feet of retail, two 300-room hotels and green space. Originally, the goal was to begin construction on 2022 and complete the arena by 2025 or 2026.
The developers would purchase the 93-acre former Best Products headquarters property at Parham Road and Interstate 95 for $6 million, which was the price Henrico County paid more than a decade ago. The developer was supposed to pay $5 million in 2023 and $1.2 million in 2024, but that plan was restructured in 2022 to pay $500,000 in 2023 and again in 2024 and the final $5 million by last month.
That 2022 restructuring was one of the early warning signs, but since the county had not issued debt to pay for the development, it was more a show of good faith. However, Henrico has usually done economic development deals that require proof of performance instead of relying on (or believing) big and oversized promises. By summer of 2024, Henrico notified the developers they owed $75,000 in past due real estate taxes and reminded them the county had spent $400,000 maintaining the property. In a July 2024 letter to the developers, Henrico said, “As a result, [the developers] are significantly behind the development schedule incorporated into the development agreement, and the property remains the same as it was at the time of the
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