The VCU agreement remains unsigned. The deadline was extended. Now one of Richmond’s supposed “partners” is suing the City. This isn’t normal friction. It’s a management failure.
Richmond spent years selling the Diamond District as a carefully constructed public-private partnership.
Now one of those partners has sued Richmond.
The owners of the Richmond Flying Squirrels filed a new lawsuit against the City of Richmond and the Diamond District developer, alleging breaches connected to delays in the redevelopment.
Those allegations will have to be tested in court, but the lawsuit itself represents a stunning escalation in a project already showing serious cracks. (Richmond.com)
Because the lawsuit isn't happening in isolation.
The VCU deal still isn't finished.
VCU and the Flying Squirrels still haven't completed the separate agreement necessary for VCU baseball to use CarMax Park as envisioned.
September 1 was the outside date written into VCU's lease.
September 1 came.
No deal.
Instead, the Richmond Economic Development Authority amended the lease and pushed that date to December 31, specifically "to allow more time for the execution of the use agreement." (Virginia Business)
So let's stop pretending everything is fine.
Richmond now has an unsigned VCU agreement, a missed deadline, an extended deadline, separate litigation involving Squirrels owner Lou DiBella and the Diamond District developer, and now a new lawsuit against the City itself.
At what point does City Hall admit this isn't normal negotiating friction?
RICHMOND CELEBRATED BEFORE THE DEAL WAS DONE
This may be the most troubling part.
In October 2025, Richmond, VCU and Flying Squirrels officials held a ceremony celebrating commitments involving VCU's future use of CarMax Park and Richmond's purchase of the Sports Backers Stadium property.
Officials expected the agreements to be completed by the end of 2025.
They weren't.
The EDA eventually completed its $25 million purchase of VCU's Sports Backers Stadium property. The EDA paid approximately $3,790,000.00/acre for roughly 6.6 acres.
Read that again - $3,790,000.00/acre for roughly 6.6 acres.
VCU and the Squirrels still haven't completed their separate use agreement. (Virginia Business)
Richmond got the land it needed.
The larger Diamond District redevelopment moved forward.
CarMax Park was built and opened.
But one of the agreements necessary to make the stadium arrangement work as publicly envisioned remains unfinished.
And the EDA says it isn't even a party to the negotiations between VCU and the Squirrels. (Virginia Business)
That raises the question City Hall should have been answering months ago:
Why did Richmond move forward before all of these interdependent agreements were locked down?
EVERYBODY HAS LEVERAGE
Look at the structure Richmond created.
Richmond needed VCU's land.
The developer needed that land for the larger redevelopment.
VCU needed a baseball home.
The EDA owns CarMax Park.
The Flying Squirrels operate there.
And Richmond taxpayers financed the publicly owned stadium, whose reported cost is at least $130 million. (Virginia Business)
Everybody needs something from everybody else.
That arrangement works when everybody cooperates.
They aren't.
VCU and the Squirrels can't finish their agreement.
DiBella and the developer are already fighting in federal court.
Now the Squirrels' ownership is suing Richmond and the developer over alleged Diamond District delays. (Richmond.com)
This isn't simply a baseball dispute anymore.
It's a governance problem.
THE LAWSUIT CHANGES EVERYTHING
A sophisticated development agreement should be designed for the day when everybody doesn't get along.
That's the test.
Anybody can announce a partnership when executives are smiling for photographs and politicians are cutting ribbons.
The contracts matter when relationships deteriorate.
And Richmond has reached that moment.
The VCU agreement hasn't been completed.
The deadline had to be extended four months.
The Squirrels' owner is already pursuing separate litigation against Thalhimer Realty Partners and principal Jason Guillot. That case is scheduled for a March 2027 jury trial, while the defendants dispute the allegations and have sought dismissal. (Virginia Business)
And now the Squirrels' ownership has taken the extraordinary step of suing the City.
These are Richmond's Diamond District partners.
They're no longer just negotiating.
They're lawyering up.
THIS IS ABOUT MANAGEMENT
Forget whether you like VCU.
Forget whether you like the Squirrels.
Forget Lou DiBella, Thalhimer or anybody's personality.
The real issue is Richmond's management of a massive redevelopment involving public money, public property and a publicly owned stadium.
VCU's responsibility is to protect VCU.
The Squirrels' responsibility is to protect their organization.
The developer's responsibility is to protect its investment.
Richmond's responsibility was to protect Richmond.
That meant anticipating disputes before committing public resources.
It meant making sure the agreements fit together.
It meant understanding what happened if VCU and the Squirrels couldn't agree.
And it meant making sure Richmond wasn't left dependent upon parties it couldn't force to cooperate.
Instead, September 1 arrived without a VCU deal.
Richmond moved the deadline.
Now Richmond has been sued.
ENOUGH RIBBON CUTTINGS. SHOW US THE CONTRACTS.
Richmond taxpayers deserve answers.
Why wasn't the VCU-Squirrels agreement completed before the project moved forward?
Why was the arrangement publicly celebrated before every critical agreement was signed?
What happens if December 31 arrives without a deal?
What exactly do the Squirrels contend Richmond failed to deliver?
Could the lawsuit delay the larger Diamond District redevelopment?
And what financial exposure does Richmond face?
Those aren't anti-development questions.
They're accountability questions.
The Diamond District may ultimately succeed.
But success tomorrow doesn't excuse poor management today.
Richmond celebrated.
Richmond spent.
Richmond acquired the land.
Richmond built the stadium.
The VCU agreement still isn't finished.
And now the Squirrels are suing Richmond.
VCU protected VCU.
The Squirrels protected the Squirrels.
The developer protected the developer.
Who protected the taxpayers?
Because after today's lawsuit, the question hanging over the Diamond District is no longer simply whether the project will work.
IT'S WHO THE HELL WAS IN CHARGE IN THE FIRST PLACE?
Brian K. Telfair
Publisher & Editor | The Richmond Chronicle
Independent commentary and investigative analysis on Richmond government, public spending, economic development, and the decisions shaping the city’s future.
The Richmond Chronicle
Asking the questions City Hall would rather not answer.
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