Dominion Resources: New High-rise Building Planned for Downtown

[Hike]

Was downtown Monday, went by Dominion and was reminded when I saw the fenced in hole in the ground that there's supposed to be a building, wondered what's going on there now.  Then, the next day, saw that Tom Farrell is retiring from the Altria board. He's certainly moving out of some important positions, having also stepped down as CEO of Dominion. My thoughts are, with him no longer in the thick of it all, I can't help but feel that building #2 is over. So there it sits, a perfect prime spot for the next big project, what now, who's leading the charge for Dominion on this, if anyone.  We'll have to wait and see, but what a shame, it's just a hole in the ground for the unforeseeable future.   It could just sell, that could also happen...

[eandslee]

25 minutes ago, Hike said:

Was downtown Monday, went by Dominion and was reminded when I saw the fenced in hole in the ground that there's supposed to be a building, wondered what's going on there now.  Then, the next day, saw that Tom Farrell is retiring from the Altria board. He's certainly moving out of some important positions, having also stepped down as CEO of Dominion. My thoughts are, with him no longer in the thick of it all, I can't help but feel that building #2 is over. So there it sits, a perfect prime spot for the next big project, what now, who's leading the charge for Dominion on this, if anyone.  We'll have to wait and see, but what a shame, it's just a hole in the ground for the unforeseeable future.   It could just sell, that could also happen...

If Dominion Energy is not gong to pursue their second tower, then this might be a good thing.  It really is a prime place to put a signature tower.  Who knows, they might sell it to a developer who can build something taller than what Dominion Energy was planning!  I'm just not sure Dominion is going to abandon their second tower just yet.  They spent a lot of cash to develop the design, etc.  Seems like that would be throwing money away if they abandoned it.  It may be that the tower is just delayed...significantly.

[Icetera]

9 minutes ago, eandslee said:

I'm just not sure Dominion is going to abandon their second tower just yet.  They spent a lot of cash to develop the design, etc.  Seems like that would be throwing money away if they abandoned it.  It may be that the tower is just delayed...significantly.

This is my bet.  They invested a lot in the design of the second tower and engineered the current with connection in mind.  I think we may be enjoying "Crater Park" for a while. 

[wrldcoupe4]

I'm sure they are trying to figure out their post-covid workplace strategy like every single company in the world. It will sit idle longer because of that. 

[Hike]

4 hours ago, Icetera said:

This is my bet.  They invested a lot in the design of the second tower and engineered the current with connection in mind.  I think we may be enjoying "Crater Park" for a while. 

Dominion spent hundreds of millions (billions?) on a pipeline that will not be built,  a hole in the ground and some plans wasted is nothing. 

Edited March 25, 2021 by Hike

[Icetera]

9 minutes ago, Hike said:

Dominion spent hundreds of millions (billions?) on a pipeline that will not be built,  a hole in the ground and some plans wasted is nothing. 

They also rushed demolition for what I assume was to save $500k/year in improved property taxes so I doubt they will be letting the property go anytime soon.  At least with the cancellation of the pipeline they no longer need to invest in converting the coal plants to gas.

[Hike]

Sad news. 

https://richmond.com/business/tom-farrell-dies-at-66-the-day-after-stepping-down-as-leader-of-dominion-energy/article_dc46ce28-2cac-5f8b-a5ef-9e2136d75392.html?utm_medium=social&utm_source=email&utm_campaign=user-share

[eandslee]

Wow...so sudden!  Can’t believe it. He had great vision for Richmond. Sad indeed. 

[Hike]

7 hours ago, eandslee said:

Wow...so sudden!  Can’t believe it. He had great vision for Richmond. Sad indeed. 

His leaving boards, stepping down, etc. wasn't for what I thought it was,  thought boards, executives were distancing themselves from him, but not at all...also, it's pretty amazing that word never leaked of his illness.  

Edited April 3, 2021 by Hike

[Icetera]

1 hour ago, Hike said:

His leaving boards, stepping down, etc. wasn't for what I thought it was,  thought boards, executives were distancing themselves from him, but not at all...also, it's pretty amazing that word never leaked of his illness.  

Brings a whole new meaning to the Dominion Energy towers and Navy Hill.  Whether support or not, these were to be his legacy.

[flaneur]

Bad news, I just heard that Dominion won't build the second tower due to several business needs changes stemming from the sale of the natural gas part of the company and the pandemic telework/flex situation. They plan to fill the hole and later figure out what to do with the property.

Edited April 15, 2021 by flaneur

[Hike]

59 minutes ago, flaneur said:

Bad news, I just heard that Dominion won't build the second tower due to several business needs changes stemming from the sale of the natural gas part of the company and the pandemic telework/flex situation. They plan to fill the hole and later figure out what to do with the property.

Thought this may happen.  It's prime land and a good opportunity for someone else, or, if things change, Dominion could still build it in the years to come.  The hole filled in and fence down, green grass (no surface lot please) will look better than it does now.

Edited April 15, 2021 by Hike

[eandslee]

58 minutes ago, flaneur said:

Bad news, I just heard that Dominion won't build the second tower due to several business needs changes stemming from the sale of the natural gas part of the company and the pandemic telework/flex situation. They plan to fill the hole and later figure out what to do with the property.

Well, this might not be all bad news.  Perhaps they will sell to another developer willing to build a taller tower!  That's my hope anyway.

[I miss RVA]

From Richmond BizSense: Confirmation - Dominion has scrapped plans for the second tower - and currently has no plan to sell the property to another developer.

https://richmondbizsense.com/2021/04/19/dominion-energy-pulls-plug-on-second-new-office-tower-downtown/

[RVA-Is-The-Best]

Lol we really ended up with the worst case scenario didn't we. A hole in the skyline with an unforeseeable future and distant timeline for redevelopment. Im not blaming Dominion though, the office market is cratered with the pandemic and it was probably cheaper to just tear it down than to try and rehab the building 

[vaceltic]

3 hours ago, RVA-Is-The-Best said:

Lol we really ended up with the worst case scenario didn't we. A hole in the skyline with an unforeseeable future and distant timeline for redevelopment. Im not blaming Dominion though, the office market is cratered with the pandemic and it was probably cheaper to just tear it down than to try and rehab the building 

Dominion pays way less property tax to Richmond with an unimproved lot versus what was there. I think $500k+ less. The property value went from $55M to $10M with the demolition project.

 

 

Edited April 22, 2021 by vaceltic

[wrldcoupe4]

How much did it cost to tear down?

[Icetera]

3 hours ago, vaceltic said:

Dominion pays way less property tax to Richmond with an unimproved lot versus what was there. I think $500k+ less. The property value went from $55M to $10M with the demolition project.

Yup, I have it estimated at $540k per year in tax savings.  Sadly, it was likely their best move.

1 hour ago, wrldcoupe4 said:

How much did it cost to tear down?

Based on a quick look around, probably a little over $1 mil., so two years of tax savings.

[wrldcoupe4]

If only about a million, which seems a little low, it's a no brainer for them to have done that.

[DowntownCoruscant]

Perfectly timed it so that they clogged up 8th downhill during the last pre-pandemic GA session prepping things to bring it down, then aren’t building the replacement.

[I miss RVA]

I tend to think that, at least around these parts, there was trepidation that the second building would get built anytime in the near future long before Covid hit. And now, well - our worst fears are -- at least for now -- being realized.

[DowntownCoruscant]

My recollection is people were crossing their fingers it would be taller......but yeah.

[Wahoo 07]

I think that this lot will wind up being what was originally proposed.  Instead of a 2023 occupancy, it will be a 2025-2026.  Dominion isn't selling the land and it is fully committed to downtown.  Yes, the temporary gap in the cityscape is unfortunate, but what takes its place will be an improvement and will certain improve the pedestrian experience.   The parcel is perhaps the most visible, prime piece of downtown undeveloped real estate.  It won't be vacant for a decade.

Just my $.02.

[eandslee]

30 minutes ago, Wahoo 07 said:

It won't be vacant for a decade.

I hope you’re right!  Would love to see Dominion modify their design and make this tower taller.  Maybe they can acquire another company and bring the jobs here to fill it up.  A lot can happen with a little bit of time. 

[I miss RVA]

4 hours ago, Wahoo 07 said:

I think that this lot will wind up being what was originally proposed.  Instead of a 2023 occupancy, it will be a 2025-2026.  Dominion isn't selling the land and it is fully committed to downtown.  Yes, the temporary gap in the cityscape is unfortunate, but what takes its place will be an improvement and will certain improve the pedestrian experience.   The parcel is perhaps the most visible, prime piece of downtown undeveloped real estate.  It won't be vacant for a decade.

Just my $.02.

I really hope you're right on this. My only thought, however, is that the timeframe of 2025-26 -- for whatever reason -- seems a little too optimistic. I can't help but feel this site might sit undeveloped for quite a few years, especially as we don't yet know what demand there might be for office space in a fully post-pandemic world where work styles have - for better or for worse - changed.