$600,000 Grants for Millionaire Ronald Stallings' Hippodrome Theater / Taylor Mansion Project / Abolish Admissions Tax Revenue Now?

Here are a couple of recent worthwhile articles on the Hippodrone deal written by Isaac Graves, a former aid to Mayor Douglas Wilder.

Hippodrome deal merits further Council scrutiny as City finances become constrained

Ron Stallings and The Hippodrome; the final act or only intermission in a lengthy play?



At Thursday's Finance Committee meeting, I spoke in opposition to Ordinance 2009-217. It would give a $600,000 grant to millionaire Jackson Ward developer Ronald Stallings' Hippodrone Theater and Kelvin Hanson's Taylor Mansion. By chance, Kelvin Hanson's name was on the agenda, named as a reappointment to the Economic Development Authority. The summary of Ordinance 2009-217 reads, "To authorize the CAO to execute a Development Agreement between the City of Richmond, Virginia and the Economic Development Authority of the City of Richmond, Virginia for the purpose of implementing economic development and HOME grants for a mixed use development..."

Does something sound wrong? Should a developer who is a member of the Economic Development Authority also be a primary developer in a project financed by the Authority?

Part 1A - Marcus Jones on Future Economic Outlook for Richmond @ Finance - Jan. 21, 2010 from Silver Persinger.

Part 1B - Byron Marshall on Budget Process for FY 2011 @ Finance - Jan. 21, 2010 from Silver Persinger.

Finance Committee Discusses $600,000 Grants for Hippodrone Theater - Jan. 21, 2010 from Silver Persinger.

Above, listen to the entire Council discussion of the ordinance. The final vote from the Committee was 2-1 . Mrs. Ellen Robertson [6th District] and Mr. Charles Samuels [2nd District] in the affirmative and Mr. Bruce Tyler [1st District] voted in the negative.

Silver Persinger Speaks Against Exemption from Admission Tax for Business - Jan. 21, 2010 from Silver Persinger.

Ordinance 2009-237 proposes to abolish admissions taxes on complimentary tickets. I spoke in opposition to the paper. This paper was inspired by the Virginia Automotive Dealers Association not being happy to pay the $7000 for handing out 20,000 complimentary tickets. So they sent their representative to their friend Mr. Doug Conner [9th District], a friendly ear in the auto body repair business, himself.

Why should businesses be exempt from paying the same taxes that us regular citizens have to pay? When I buy two tickets, I am paying the admissions tax. This is the cost of doing business. Perhaps there are better ways they can spend their marketing dollars. Corporations and business organizations should not have so much influence creating legislation.

As you can see from the existing legislation, there are already exemptions for children under 12 and for free admission to "museums, botanical gardens, or zoos."

Part 2- Shall Business be Exempted from Tax? Jan. 21, 2010 from Silver Persinger.

Above, watch the entire discussion on abolishing the admission tax on complimentary tickets, the discussion starts around 3 minutes, 30 seconds [3:30].

Part 4 - Consolidation of Departments Discussed / Bond Issuance Rushed to End Meeting Quickly - Jan. 21, 2010 from Silver Persinger.

$600,000 Grant to Ron Stallings?

At Thursday's Finance Committee meeting the committee discussed Ordinance 2008-217 which proposes a grant of $600,000 to help finance the redevelopment of the Hippodrome Theatre. This money would not be paid back to the City but it is expected the City would see a return on its investment through increased assessments, meals and admission taxes, and theoretically the theatre would act as a stimulus to other development on Second Street. The project is being headed by Ron Stallings and another developer Kelvin Hansen. Mr. Hansen owns the property next door, formerly the Elks' Lodge, at 526 N. 2nd Street. The total project is valued at $12.1 million. This discussion follows on the heels of Mayor Jones' announcement this week that the City is expecting to see a projected revenue shortfall of $10 million for FY 2010.

Watch the discussion.

$600,000 Grant for Ron Stallings? from Silver Persinger.

View the original ordinance from 2004 which was patroned by former City Manager Calvin Jamison and proposed to give $800,000 to the developers, Ordinance 2004-246-247.

Mr. Stallings has contributed money to the campaigns of City Council members Bill Pantele [former 2nd District], Chris Hilbert [3rd District], and Ellen Robertson [6th District]. More details here.

This is also interesting to consider: How did Mr. Stallings get The Hippodrome Theatre in 2006 for $0 when it is currently assessed at $520,000?



Also interesting to note, $600,000 is the same amount RRHA is projecting as a shortfall for their Housing Voucher Program. Wouldn't this money be better spent assisting low income folks with housing than helping a developer with his for profit development?