Squirrels, Richmond EDA formally sign lease for new ballpark

A recent rendering of the stadium planned as part of the Diamond District development in Richmond. (BizSense file)

It’s now fully official: the Richmond Flying Squirrels have inked the deal for their long-awaited new ballpark.

The City of Richmond announced on Monday that the Double-A baseball team and the Richmond Economic Development have formally signed the lease and development agreement for a new $117 million stadium to be built just south of The Diamond as the anchor of the overall Diamond District development.

The signing follows last week’s approval by the EDA of the lease and development agreements and precedes an expected ceremonial groundbreaking and stadium naming rights announcements in the weeks to come.

The signed documents include the Squirrels agreeing to a 30-year lease of the 10,000-seat stadium, which will be owned the EDA, managed and operated by the team, and paid for by bonds issued last month by the city.

In its announcement on Monday, the city said the signing marks “a new era for the Squirrels in Richmond and cementing a long-term partnership between the team and the City of Richmond.

“Richmond just hit a home run,” Richmond Mayor Levar Stoney said in the release. “The Squirrels are an institution here in Richmond, and we have come to an agreement that ensures they stay in Richmond for the long haul, bringing much-needed tax revenue to our city and contributing to the city’s quality of life by providing entertainment and activities for all of our families and residents.”

Lou DiBella, the ballclub’s president, said the deal gives the Squirrels the stadium they have been waiting for since first coming to Richmond in 2010.

“Richmond will finally be getting the ballpark it truly deserves, and we could not be more relieved and gratified,” DiBella said in the release. “The people of Richmond have proven their loyalty to the Squirrels repeatedly, with fans packing our antiquated Diamond every night. It’s thrilling to know that the Flying Squirrels and MiLB will continue to entertain Richmond for decades to come.”

Prep work is already well underway at the new stadium site, as seen on Monday. (BizSense file photo)

While some have questioned the wisdom of using municipal bonds to pay for the project, particularly after it was initially proposed that the stadium would be privately funded, City Council President Kristen Nye said the deal was ultimately driven by Richmond citizens.

“City Councilmembers are elected to be the voice for their districts and Richmonders throughout the City were clear – they wanted us to do everything possible to ensure the Squirrels stayed home in our great City,” Nye said in the release.

The lease calls for the Squirrels to pay $3.2 million in rent annually for the first 10 years of the 30-year agreement. The rent will then drop to $1.34 million for the 11th year and rise 3% each year thereafter.

That equates to $66 million paid by the Squirrels over the life of the lease.

Virginia Commonwealth University will also pay a yet-undisclosed amount of rent to the EDA for its baseball team’s use of the new stadium.

Those rents will be used to pay off $40 million in lease revenue bonds that are funding infrastructure improvements for the Thalhimer-led first phase of the overall Diamond District development. The stadium is to be financed using $130 million in general obligation bonds, which are to be paid back using tax revenue generated by the overall 67-acre, $2.4 billion project.

Site work for the new stadium is already well underway, with the Squirrels and consultant Machete Group handling its design and development. The ballpark will rise on 10 acres at 2929 N. Arthur Ashe Blvd., just south of The Diamond in the overall Diamond District’s southwest corner at the boulevard and the train tracks.

Monday’s announcement said the stadium is scheduled to be completed in time for the 2026 baseball season.

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