A Mediation Letter, Insider Trading, and Inclement Weather Shelter
Cheers RVA!
Today will be partly cloudy with a high of 69. Showers are expected in the evening, with a low of 55.
the juice:
Mayor Stoney and City Council President Kristin Nye have written a letter to the VCU Health System asking for mediation to resolve the refusal of payment in the collapse of a downtown project in 2021.
Capital City Partners LLC had planned to build a 17-story office building on 10th street with VCUHS as its primary tenant, but ultimately the two parties backed out of the project concluding it was not viable.
VCUHS did pay $73 million to exit the deal, but the City has said VCUHS has defaulted on its obligation to pay $56 million over 25 years to replace the property’s real estate tax value.
According to the RTD, the contract called for VCUHS to pay even if the development never occurred, but they have argued they have already paid their fair share.
The letter indicates the City is willing to pursue litigation, but would like to resolve the matter via mediation first:
The City has been proud to partner with VCU, both the University and the Health System, over many years. More than voluntary partnership, the success of each of our
institutions necessarily depends on the success of the other. But the willingness of these institutions to default on their contractual obligations will significantly hamper future collaboration. VCU’s reputational costs may easily translate into ballooning actual costs as the City and other business partners negotiate under the assumption of a greater likelihood of VCUHS defaulting on its contractual obligations.
the pulp:
The local chapter of the NAACP has criticized City Council for approving $2 million for a new animal shelter when there are still “hundreds of children sleeping in cars right now”, via WTVR.
A former Federal Reserve Bank of Richmond employee is facing criminal and civil charges after being accused of illegal insider trading, from Michael Schwartz at Bizsense. In one instance, the man accused purchased 99% of the options trading value of NYCB in a single day, and profited more than $500k two days later when the stock fell 37% after an earnings announcement.
the dive:
Richmond’s inclement weather homeless shelter has opened for the winter, according to VPM.
The shelter will continue to operate at the Salvation Army on Chamberlayne Avenue.
The shelter has 50 year-round beds for men, which are currently full, but will provide 100 more beds, with 60 for men and 40 for women.
The most recent point-in-time count of homeless in Richmond was 585, with 267 unsheltered, which as defined as sleeping outdoors, or in a car or tent.
If shelters in Richmond are at capacity, residents are directed to the Greater Richmond Continuum of Care, which serves the region.
Read more here.
the vibe:
Have a benevolent day RVA!
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