Melissa Savenko's Richmond Real Estate Review

More Issues with the City Jail - A Possible $30M Mistake

Turns out the City of Richmond Jail proposal requires review by the Virginia Department of Corrections before it will have all the required regulatory approvals.  Oops.  Somehow, it seems the City Administration missed that little requirement.  The situation is described here in the Richmond Times-Dispatch article from this morning's front page.

Now, I really don't care about the tit-for-tat on who said what and who shot John.  There is a recorded trasncript, just release the audio and transcribed recording, and that will be that.  I suspect the truth will be somewhere in the middle between each side's claims.

So, I'm not suggesting that there was any intentional malfeasance here, in the jail design/build contract award.  And I don't think anyone would suggest that the City of Richmond is not in desperate need of a new jail facility to replace the current overcrowded - and frankly inhumane - facility.  BUT, it does appear that the City could qualify for a 25% contribution towards the construction budget from the Commonwealth of Virginia, if certain criteria are met.  A 25% contribution amounts to almost $30M on the current jail development contract.  Possibly leaving $30M on the table is a pretty d*mn big "oops!" in my opinion, and doesn't make the Administration look particularly competent.

Here's hoping the City will be eligible for that state contribution money.  We could do a lot with $30M. 

Of Blogging Inconsistency, The Byrd Theatre Foundation, and Summer Breaks

I cannot believe it has been over two months since I wrote a blog post.  Clearly, my adoring fans have not been berating me for this lapse.  [:)]  But I do feel like there are TONS of real-estate-related developments in both national and local arenas that I'd love to comment on, such as:

• The mad rush to build ever-more apartments Downtown, in Shockoe Slip, Shockoe Bottom, Manchester, Carver, and the Fan.  Is this the next real estate bubble?  Some of my colleagues seem to think so.  I agree.
• The wisdom of building apartments north of Interstates 64/95, on the eastern corner of Chamberlayne.
• MORE apartments announced yesterday in Manchester - two different projects!
• The City Jail project - the debate rages on.
• The LACK of a City Stadium project.  I've written on the City Stadium topic before, but the City announced yesterday that it is effectively "too busy" to get its act together and submit a Request for Proposals requesting an analysis of the highest and best use of that parcel;
• The fate of the Diamond.
• What will happen to the old bus barn property?  I've asked this question before also, but there still is no guidance from the City on their development intentions.
• Is condominium development in Richmond dead?
• The impact of the Federal Reserve's announcement of its intent to hold interest rates low until 2013.
• How is the Richmond real estate market different from the national real estate market?
• Justin French, One Year Later - The Fallout.

And much, much more.  BUT, I've been caught up in trying to claw out a living in a less-than-ideal market - my new slogan is "Melissa Savenko, Realtor: Making a Living One $1,000 Commission at a Time!" - and digging out from an oh-too-brief vacation.

Another major time commitment, but a true labor of love, has been my work for the past year on the Board of the Byrd Theatre Foundation (the "BTF" or the "Foundation").  I want to write more and details in a separate post SOON, but the short version about the Foundation is this: 

The Foundation is a nonprofit organization, the mission of which is to restore and preserve the Byrd Theatre building.  The BTF owns the actual building, subject to a sizable mortgage.  What most people do not understand is the movie operations are a separate, for-profit company which provide only a de minimus lease payment to the Foundation. The Foundation's sole other source of income is donations from individuals, corporations, and foundations. 

Short version: The Byrd Theatre Foundation needs to raise $1.5M to complete the purchase of the building, develop design drawings for a full restoration, and fund a capacity building position.  Successful completion of this phase will ensure that the building remains forever a unique historic asset for the benefit of the Richmond community. 

Fun facts: 

• If every individual that purchased a movie ticket in 2010 donated $1, the operating expenses for the entire year would be covered;
• If every individual that purchased a movie ticket in 2010 donated $10, the note on the building could be retired in TWO (2) years; and
• If every individual that purchased a movie ticket in 2010 donated $100, the building would be owned free and clear by the Foundation, the complete restoration would be funded, AND the Foundation could establish a sizable endowment.

So, Richmond, I think you love the Byrd.  Am I right?  Donate just a dollar, $10, $100 to preserve and restore the Byrd Theatre, Richmond's premiere movie palace!  Donate online at Paypal (no Paypal account needed, just a credit card!) or contact us at fundraising@byrdtheatre.com to learn how you can contribute.

Feed the Byrd, Richmond!