by James A. Bacon
The City of Richmond’s proposal to build a baseball stadium and slavery museum in Shockoe Bottom is fast becoming a case study in the perils of mixing politics and urban development. Suddenly, Mayor Dwight Jones, once widely regarded as squeaky clean, has become embroiled in secretive dealings and potential conflicts of interest.
Eight days ago, the mayor cut a deal with a skeptical City Council to restore most of the funding for the $80 million re-development plan. But the revised plans issued by the Mayor’s Office left many details unclear. As Times-Dispatch reporter Graham Moomaw wrote last week, “City officials had projected spending $4.4 million for land acquisition, but the tangle of transactions makes it difficult to determine what the actual cost would be.”
One of the buildings that might be acquired in the deal just happens to be the headquarters building for the Democratic Party of Virginia… of which Jones just happens to be chairman this year. It transpires that the DPV is $600,000 in debt and that the building, purchased for $1.15 million in 2008, is in poor condition and non handicapped-accessible. Also, staff is less than happy about neighborhood safety and the scarcity of parking.
Democratic Party officials penned a letter last month formally severing Jones from any decision-making regarding the sale of the building to the city. “This letter confirms that you will not be involved in any approvals regarding the proposed sale of the Democratic Party of Virginia’s office building,” stated a letter signed by DPV senior staff. “Necessary steps will be taken to recuse you from such decisions or approvals.” (So reports the indefatigable Moomaw.)
While the letter insulates Jones from concerns that he might use his dual positions to benefit the City of Richmond at the expense of the DPV, it does nothing to alleviate concerns that he might use his position to benefit the DPV at the expense of the City of Richmond. Little birds whispering in my ear have raised the prospect that the city might pay more than DPV property is assessed for, thus helping to bail the party out of its financial predicament. As of yet, City Hall has made no move to sever Jones from any decisions regarding the acquisition of property.
Meanwhile, other issues have surfaced. Columnist-activist-gadfly Paul Goldman unearthed a clause in the “Stadium South Memorandum of Understanding” specifying a 40% MBE/ESB goal for construction of the project. (MBE = Minority Business Enterprise; ESB = Emerging Small Business).
Also, the document noted that SWA Architects “may be employed to provide A&E services.” SWA Architects is affiliated with the business interests of Lou Salomonsky, owner of real estate in Shockoe Bottom. That would be the same Lou Salomonsky who was sentenced to serve two years in jail in 2003 for trying to bribe a city councilwoman.
Then there’s this from the same document: “With respect to the apartment/residential component of the Project, there shall be a 20 percent MBE/ESB development and ownership of such component.”
Who would that 20% minority owner be? The document does not say. Indeed, it says that the identity shall remain confidential:
The Parties agree that all documents delivered pursuant to his MOU and all subsequent agreements will remain confidential. Except to the extent compelled pursuant to subpoena, summons order or other judicial process, no Party shall disclose such confidential information, without the consent of the other Party.
What the —-?! There is no way the City of Richmond can move forward on this negotiated deal without laying bare all terms and conditions and revealing the identities of all participants. The potential for self-dealing is just too apparent. If Jones entertains any ambitions for statewide office, as he is reputed to, he needs to clean up this mess right now.
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