Levar M. Stoney is the Mayor of Richmond. (Courtesy of the City of Richmond)
By Levar M. Stoney
After a tumultuous 2020 that shook not only the lives of Richmonders but our local economies as well, I hope Richmond recovers from the COVID-19 pandemic. I am hopeful because our recovery has already begun and is focused on economic development to create economic justice.
Our Economic Development Department has been working overtime throughout the pandemic to take advantage of all the opportunities ahead, and there are strong indications that our city’s interest in economic development has not faded.
In an analysis of 38 major metropolitan areas in the US, LinkedIn said Richmond attracted the third largest number of new residents during the pandemic.
The economic development over the past 12 months – and the development forecast for the next 12 months – is evidence that our economic recovery is also in sight, as vaccinations help city dwellers stay healthy and get back to work outside of their homes.
During the height of the pandemic, the city of Richmond distributed more than $ 7 million in CARES Act funds.
However, the main reason for optimism about the city’s economic future is new development projects and business expansions and relocations that create jobs and allow us to leverage assets and increase general fund revenues to continue to support our residents and the local economy.
Earlier this year, CoStar, a Fortune 100 company that recently purchased $ 150 million worth of real estate along the riverbank, announced that it was hiring 200 more people and renting 51,000 square feet of office space at Riverfront Plaza .
Recently, the city council approved the sale and redevelopment of the old public safety building to Capital City Partners, LLC to create a $ 325 million mixed-use development that will generate new tax revenue for its first 25 years of around USD 55 million.
The city has the potential to have a resort casino valued at over $ 500 million that will generate over $ 30 million in new tax revenue annually if approved by city residents in a November referendum .
We are committed to ensuring that these projects, and any future development projects in which the city is involved, have significant community benefits such as job creation, job training, a living wage and significant minority business involvement during and after the project involve construction.
We have also worked closely with our local, regional and state partners to bring additional investment and career opportunities to our city. Here are just a few examples of companies that have chosen to locate and expand in Richmond over the past year:
- • Technology training company Vytal Studies moves from Austin, Texas to Richmond, investing $ 6.8 million and creating 155 new jobs.
- • Babylon Microfarms remote controlled hydroponic grow system company moves from Charlottesville to Richmond, investing $ 140,000 in capital and creating 24 new jobs.
- • Due to the collaboration with Phlow Corp. United States Pharmacopeia expands in Richmond with a capital investment of $ 3.3 million and creates 15 new jobs.
Richmond continues to be a place where entrepreneurs can thrive:
- • Phlow Corp. won a $ 354 million contract, which may increase to $ 812 million, to increase essential drug production in the United States
- • Richmond-based Sassy Jones was ranked 75th on the Inc. 5000 list of the fastest growing private companies in the country.
- • While The Jackson Ward Collective is a new organization in itself, it is a center that connects black business owners with each other and with black business supporters.
- • McKenzie Piper, VCU student and CEO of Tekstyle USA, developed a self-cleaning mask to fight the spread of COVID-19.
In addition, with strong anchors such as VCU Health and the Bio + Tech Park, the life sciences will be an anchor for future development and job creation in the inner city.
Before the end of the year, we anticipate launching a tender for the redevelopment of the city-owned, 60-acre Arthur Ashe Boulevard site. It is part of the Greater Scott’s Addition Small Area Plan, which sets the vision for land use and rehabilitation in the area.
We are also working on a small area plan for the refurbishment of the Colosseum, which is crucial for the revitalization of our inner city.
Our priorities must be to create living jobs and increase city revenues to fund major investments in public education, affordable housing and infrastructure.
The City of Richmond is creating economic justice opportunities through economic development that will ensure we emerge from the pandemic successfully and recover in a way that truly reflects Richmond.
Levar M. Stoney is the Mayor of Richmond City.