The city of Richmond’s plan to build a new minor-league baseball stadium has gained a groundswell of support from more than just baseball fans. The plan has found favor with union workers.
The Diamond District project calls for the developers to hire a minimum number of union workers, small businesses and minority-owned businesses to build the $110 million stadium, the infrastructure and the development around it.
Knight Williams, a carpenter’s apprentice from Richmond, said he often leaves the Richmond area to find work. The stadium project gives him an opportunity for a job in his own backyard.
Community benefits such as these are a reason why the project has gained support from residents across the city, even from corners of Richmond less interested in minor-league baseball on Arthur Ashe Boulevard.
The city has called for 40% of the work on the stadium, infrastructure and public park to be completed by minority-owned businesses, small businesses and union workers. There are also goals set for the private development around the stadium, which will include apartments, condominiums, a hotel and commercial space.
The project calls for all new construction laborers hired to be Richmond residents, and developers will set up training programs to upskill new workers. Contractors must pay a minimum wage of at least $16.50.
“This project will be built by a Richmond workforce,” Skelly said.
Because Virginia is a right-to-work state, the city cannot mandate union requirements. But the contract calls for the developers to make a good-faith effort toward them, and Skelly said he believes the goals will be followed. The city hired a local consultant, J&G Workforce, to help the developers achieve the city’s aims.
Williams, 37, says the Diamond District project will bring jobs and middle-class wages to the city. He joined the carpenter’s union three years ago, which he said has given him a skillset and an edge to reach the middle class.
Building the stadium will require $110 million, hundreds of workers and about 18 months. They’ll pour concrete and set steel beams, among other tasks.
Unions exist for ironworkers, boilermakers, carpenters and other trades. When a union worker seeks employment, he or she goes to the union and signs up, Skelly said. The union finds projects in need of workers and negotiates the wage, the health insurance and retirement benefits. It assigns the workers in the order in which they signed up.
A journey-level worker can earn $25-$35 an hour with benefits and retirement. In four to six years, a building trades worker can achieve a middle-class salary.
“It’s a real career,” Skelly said.
Conversely, contractors are increasingly hiring workers through brokers, a system Skelly said is fraught with pitfalls. Workers may be hired as independent contractors without benefits, they may earn a lower wage and they may not receive full overtime payments. Often the workers are undocumented, and the contractor will skip paying worker’s compensation or payroll taxes.
Having labor goals written into a project does make the project more complicated, said Jason Guillot, a developer with Diamond District Partners LLC. But the goals are achievable and don’t necessarily raise the cost. It’s important for developers to have a good plan of action and good communication with the project partners and to break contracts into smaller, manageable pieces, Guillot said.
“It’s a balancing act,” he added. “There are multiple priorities for this project. Clearly, getting the work done at a competitive cost for the taxpayers of Richmond is important. But the goal is to do that while also including minority-owned and union contractors and to hire as many city of Richmond residents as possible who want to work on the project.”
The city also has made requirements that some of the residences be affordable to low-income residents. One in five homes will be designated affordable for households making $65,000 or less per year. The city also will offer vouchers to assist families making $33,000 or less.
The city contracted a developer called Pennrose to insure the affordable housing is built. Patrick Stewart, a vice president for Pennrose, said it’s not often that projects deliberately consider affordable housing as a component.
Cynthia Newbille, a member of Richmond City Council, called the number of affordable units “absolutely noteworthy,” given the region’s housing crisis.
While the Diamond District has received some pushback, residents against it generally oppose the city’s plan to issue general obligation bonds to fund the stadium and infrastructure. If the revenue from the stadium doesn’t materialize, the city would have to pay the bonds’ debt.
City Council will vote on the stadium plans May 8. A majority of the council already has expressed its approval.
The latest plan for the Diamond District includes more homes, a larger footprint for the stadium, more commercial space and more parking. But the park weaving through the neighborhood will shrink from 11 acres to eight.
The city of Richmond plans to start building a new minor-league ballpark this summer, expected to open in 2026. The nearby homes will be built starting next year and will open around 2027.