Construction is currently in full swing at CarMax Park, which is set to replace the long-standing Diamond. (Skyshots Photography) This is the second part of a two-part series; the first part can be accessed here. The project has been a complex web of negotiations and developments, with various parties involved and tensions at times.

Key Players and Initial Challenges

After the city's communication terminating negotiations on the Diamond District, an attorney for RVA Diamond Partners sought to salvage a deal. Republic Properties had pulled out, leaving the city to figure out how to move forward. Thalhimer and Loop continued to work with the Flying Squirrels ballclub, while Machete Group became the stadium consultant.The 67-acre Diamond District site presented numerous challenges. With Republic off the project and no formal agreement with RVA Diamond Partners, there was uncertainty about the future. Emails showed the tension between parties as they navigated through the design and cost management processes.

Soft Cost Budget Disputes

In late June last year, there was a dispute over the stadium's soft cost budget. Jason Guillot, representing Thalhimer, declined a request from David Carlock and Larry Botel for a look at the budget. He emphasized the city's set budget and the open-book process.Carlock countered, highlighting the need to understand cost allocations. Botel pleaded for cooperation, stating that the process was not as transparent as claimed. He expressed concerns about the underfunded predevelopment process and the lack of information about water table and soil conditions.

Balancing Act and Partnership Changes

Guillot described working with both the city and the Squirrels as a delicate balancing act. He had to manage relationships while dealing with limitations in spending design fees without a contract.Through 2023, Thalhimer and Loop sought a new partner to replace Republic. They engaged Lincoln Property Co. but ultimately changed course and raised additional capital. Machete Group also explored potential involvement.In May, a new deal was worked out with Diamond District Partners, changing the project's scope and financing approach. The city took on debt for the ballpark and infrastructure improvements.However, soon after, Loop began to back away, leaving Thalhimer to lead. Republic then sued Thalhimer and Loop, alleging a breach of the venture partnership.

Current Progress and Agreements

Despite the lawsuit, work on CarMax Park is now underway. Under lease and development agreements between the city and the Squirrels, the ballclub will pay $3.2 million in annual rent for the first 10 years of a 30-year lease.The rent commitments were part of a deal where the ballclub agreed to cover cost overages, made possible by CarMax's naming rights commitment. Terms of the deal have not been disclosed.At the naming rights announcement and groundbreaking ceremony in September, those involved acknowledged the challenges they faced. DiBella expressed gratitude and emphasized the teamwork that got them to this point.Mayor Levar Stoney and Council members also recognized the tough times but reiterated their commitment to getting the new ballpark built.