The city of Richmond’s frustration with the Virginia Commonwealth University Health System is growing.
Negotiations regarding the failed Public Safety Building redevelopment have dragged on for months. The city says it is owed $56 million as part of a deal between the two. But VCU Health has stopped making payments and says it has no obligation to resume.
Ultimately, Richmond could sue the health system.
Complicating the matter, VCU wants to purchase another expensive property, Altria’s research building, which would deny the city even more revenue. The pending sale raises the stakes and makes the city’s pursuit of compensation more important. A healthy relationship between the city and VCU is pivotal, as they depend on one another for success.
In 2021, VCU Health, the city and a real estate developer formed an agreement to tear down the Public Safety Building at East Clay and North 9th streets and replace it with a $325 million multi-building project. VCU Health would be the …