The multimedia company founded by Cathy Hughes and led by Alfred Liggins III also owns the MGM National Harbor hotel and casino in suburban Washington, D.C. And, it wants more — in particular a casino resort in Richmond.
The quest for getting voter approval in the city has been a tough one. But, there’s renewed hope for Urban One. An alternative plan for a site to the south in Petersburg, Va., has fallen flat with Commonwealth of Virginia legislators. That scenario had removed Urban One from involvement in the project.
According to the Washington Business Journal, the Virginia State Senate Finance and Appropriations Committee on Thursday (2/16) rejected a House of Delegates bill that would have placed a casino referendum on Petersburg ballots in November.
Importantly, the proposal sent to the upper body of the Virginia state legislature would have squashed a second voter referendum for City of Richmond ballot holders on a casino within city limits — something in the works for the November 2023 municipal elections.
Now, the window is open for that ballot proposition to come back, bringing a sign of renewed hope to Urban One and partner Churchill Downs Inc.
And, it shows that a June 2022 pledge to get a second voter referendum on the ballot in the City of Richmond is likely a successful one. In January 2022, ahead of the House of Delegate effort to thwart it, the Richmond, Va., City Council voted 8-1 to place a second casino referendum on the November 2023 ballot. In November 2021, a slim election defeat of the original proposal was seen.
Richmond BizSense, the city’s business newspaper, noted in January 2022 that one key difference with the new referendum is “a promise to cut the real estate tax rate as a sweetener.” As the City of Richmond sees it, the benefits from the $565 million proposal are simply too good to pass up.
The project is estimated to cost approximately $563 million and Urban One’s aggregate capital investment in RVA Entertainment Holdings, LLC (RVAEH) is anticipated to be up to approximately $100 million. The company’s investment will be sourced from a combination of cash on Urban One’s balance sheet and/or capacity from the company’s undrawn $50 million revolver. The company also anticipates investment from local investors in the amount of $11.5 million as well as a personal investment by Liggins, Urban One stated in a SEC filing.
