Oct. 12 Newsletter: Catching up: The Squirrels' legal rodeo

Weather: Rain finally leaves today, setting up a cool week ahead.

On this date in 1818, Elizabeth Van Lew is born into wealth in Church Hill. She later orchestrates a spy network for the Union during the Civil War. (more)

On this holiday Monday, we're catching you up to speed on one of our most regular topics of coverage: The ongoing drama in Richmond's new Diamond District.

The four main parties are the City of Richmond, the Flying Squirrels baseball team, VCU and Thalhimer, the Diamond District's developer. Below, a look at the team's interactions with each over the past year.

VCU vs. the Squirrels

One of the core issues is when VCU's baseball team will be allowed to play at CarMax Park. VCU, city and Squirrels representatives announced in Oct. 2025 that they had reached an agreement allowing that, but the agreement between VCU and the Squirrels still hasn't been signed.

The city's contract with the Squirrels requires "good-faith" negotiations with VCU, the intensity of which is currently the subject of debate.

• On March 12, the city signed its portion of the agreement allowing VCU to play at the stadium.
• In June, the city appeared to set a September deadline for the Squirrels to sign the deal.
• In late August, that deadline was moved to Dec. 31.
• On Sept. 23, the Squirrels were told they had 30 days to begin negotiations, or they would be in default of contract, and could be kicked out of CarMax Park.

Last week, the team's Chief Operating Officer sent an email to employees telling them those threats have "no legal standing." Read more here.

Thalhimer vs. the Squirrels

Flying Squirrels owner Lou DiBella has been the hottest towards the group developing the broader Diamond District, a group led by Thalhimer Realty Partners.

However, Loop Capital quietly left the project during a key phase in 2024, and DiBella has alleged in lawsuits that the city intentionally withheld that information to keep the project moving forward.

• DiBella is also unhappy that Thalhimer is allegedly developing a sports bar on the land directly next to the CarMax Park entrance (photo above), which he says will hurt his concession sales.

Tensions between the two groups boiled over on opening night in a heated exchange that included DiBella's dog biting a Thalhimer official.

The city vs. the Squirrels

Through its Economic Development Authority, Richmond financed the Diamond District development with $130 million in general obligation bonds, meaning if the proposed development doesn't generate the projected returns, taxpayers will be on the hook.

• Delays have produced financial strain on the project. In February, City Council approved a $14.7 million loan to keep the project on track.
• At a Council meeting last week, two members of Council asked about the status of the debt, but CAO Odie Donald II took issue with the line of questioning.
• “What is probably best for us to do is you give us a list of your questions. We’ll respond to those within about 30 days and help you kind of right-size your questions,” Donald said.

In the past month, the city appears to have moved towards a new, tougher negotiating stance with DiBella, in the face of mounting legal threats from his team.

Meanwhile, work continues on the broader Diamond District, including the first apartment building, Dōma, which developers envision as "a retreat from the noise, the grind, the hubbub."

In other news

• After Henrico drops Flock cameras, Avula says Richmond won’t renew contract either
  • Richmond’s Flock contract is set to expire in June of 2027, according to the mayor’s office.
• That's Moore like it: WR's three touchdowns help Benedictine secure needed victory
  • No way was the Benedictine Cadets’ 2-3 start expected or, to them, even close to acceptable.
• DPW skips Newbille's Gov't Rd. meeting, blockades Chimbo's dog park (Church Hill Lookout)
  • It’s the latest neighborhood frustration with DPW over its management of the Government Rd. project, which finally got underway in July 2026 after more than two years of postponements.

The editor's desk

Richmonder reporter Eleanor Shaw walked out of our offices to a (literal) dumpster fire last week. Always good to get practice at covering those.

Michael Phillips, founder
mphillips@richmonder.org

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