The Richmond City Council on Monday signed off on a plan to refinance the loan the city took out to pay for the construction of the Washington Redskins training camp in 2013, guaranteeing that taxpayers will be on the hook for an additional $750,000 annually for the facility for the next 15 years.
The decision came as city administrators implored council members, considering a 60-day delay on the matter, to vote Monday. Delaying a decision would require Richmond Mayor Levar Stoney to include in his proposed budget to the council next week the full payoff amount — $8.6 million — on the facility, administrators said.
“This is a rock and a hard place,” said Council President Chris Hilbert. “This is a distasteful decision, and we’re going to have to make the best of our ugly options.”
The Stoney administration had asked for council approval to refinance the five-year, $10 million loan the city took out five years ago under then-Mayor Dwight C. Jones to cover construction costs of a training camp facility for the NFL team.
The council voted 6-3 to refinance the loan over the next 15 years and make payments of $750,000 out of the city’s general fund annually.
The annual payment will be on top of the $500,000 in cash, goods and services the city’s Economic Development Authority agreed to give the NFL team each year it practices at the Bon Secours Washington Redskins Training Center, located on West Leigh Street behind the Science Museum of Virginia.
Supporting the vote were Hilbert, Council Vice President Cynthia Newbille of the 7th District, 1st District Councilman Andreas Addison, 4th District Councilwoman Kristen Larson, 6th District Councilwoman Ellen Robertson and 9th District Councilman Michael Jones.
Councilman Parker Agelasto of the 5th District asked for a 60-day continuance on the recommendation from the administration. He argued that the council should explore other options before voting to refinance the loan, a prospect he said may be a necessary last resort but should not be the only option.
The administration told council members earlier this month that the city would default on its loan if the council did not sign off on refinancing by Sept. 1.
The city’s Economic Development Authority, which brokered the deal and oversees the training camp facility, has paid the Redskins $2.4 million in cash and credits for goods and services provided as well as sponsorships sold to local businesses on behalf of the team.
The EDA was expected to be able to pay back the full $10 million loan within five years based on projections presented to the former council by the Jones administration. To date, the authority has made $1.5 million in payments to the city toward the repayment of the $10 million loan — money officials found by drawing from the construction budgets for the city’s school system ($5.6 million) and the city jail ($4 million).
The decision came as city administrators implored council members, considering a 60-day delay on the matter, to vote Monday. Delaying a decision would require Richmond Mayor Levar Stoney to include in his proposed budget to the council next week the full payoff amount — $8.6 million — on the facility, administrators said.
“This is a rock and a hard place,” said Council President Chris Hilbert. “This is a distasteful decision, and we’re going to have to make the best of our ugly options.”
The Stoney administration had asked for council approval to refinance the five-year, $10 million loan the city took out five years ago under then-Mayor Dwight C. Jones to cover construction costs of a training camp facility for the NFL team.
The council voted 6-3 to refinance the loan over the next 15 years and make payments of $750,000 out of the city’s general fund annually.
The annual payment will be on top of the $500,000 in cash, goods and services the city’s Economic Development Authority agreed to give the NFL team each year it practices at the Bon Secours Washington Redskins Training Center, located on West Leigh Street behind the Science Museum of Virginia.
Supporting the vote were Hilbert, Council Vice President Cynthia Newbille of the 7th District, 1st District Councilman Andreas Addison, 4th District Councilwoman Kristen Larson, 6th District Councilwoman Ellen Robertson and 9th District Councilman Michael Jones.
Councilman Parker Agelasto of the 5th District asked for a 60-day continuance on the recommendation from the administration. He argued that the council should explore other options before voting to refinance the loan, a prospect he said may be a necessary last resort but should not be the only option.
“The deal was rushed,” Agelasto said. “The solution should not be rushed as well.”
The administration told council members earlier this month that the city would default on its loan if the council did not sign off on refinancing by Sept. 1.
The city’s Economic Development Authority, which brokered the deal and oversees the training camp facility, has paid the Redskins $2.4 million in cash and credits for goods and services provided as well as sponsorships sold to local businesses on behalf of the team.
The EDA was expected to be able to pay back the full $10 million loan within five years based on projections presented to the former council by the Jones administration. To date, the authority has made $1.5 million in payments to the city toward the repayment of the $10 million loan — money officials found by drawing from the construction budgets for the city’s school system ($5.6 million) and the city jail ($4 million).
To read the full story, visit http://www.richmond.com/news/local/city-of-richmond/richmond-city-council-approves-plans-to-pay-annually-for-redskins/article_156a508d-f78e-5719-a479-398ef7715263.html.