CarMax Park’s future uncertain as Flying Squirrels, Richmond leaders clash
VENN
RICHMOND, Va. (WRIC) -- The timely completion of CarMax Park may be in jeopardy due to an ongoing dispute between the Richmond Flying Squirrels and the city of Richmond.
On Thursday, Feb. 26, 8News obtained a letter that a legal firm recently sent to Richmond's Economic Development Authority (EDA) on behalf of the Navigators Baseball, LP, the ownership group behind the Squirrels.
In that 29-page letter, the Navigators threaten legal action against the city based on two issues relating to the financing and operations of the Squirrels' new home, CarMax Park.
Negotiating the construction of this brand-new baseball stadium was essential in keeping the Richmond Flying Squirrels in Richmond. CarMax Park's announcement was seen by many as the end to that uncertainty.
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But now, years later -- and with opening day for the Squirrels' 2026 baseball season just over a month away -- the Navigators are saying that the future of the stadium has been put at "unnecessary risk" by the city.
"We agree that the Navigators and the EDA have a shared objective of timely and successful
delivery of the Stadium, and we also intend this letter to be received in good faith to ensure further alignment with the EDA on the parties’ respective rights and obligations under the Development Agreement and the Stadium Lease," the letter reads. "That alignment cannot occur, however, if the EDA intends to deliberately breach the agreements, renege on its commitments and harm the Navigators’ interests and relationships with other business partners in the greater Richmond community."
Per the letter, the Navigators' concerns amount to not being reimbursed up to $6.5 million in spending on the stadium, as well as recent "shocking" comments made by Sharon L. Ebert -- the city's deputy chief administrative officer for Planning and Economic Development.
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In July 2024, the city sold approximately $130 million in bonds to fund the construction of CarMax Park, which is set to serve as the focal point of the Diamond District redevelopment.
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A stadium development agreement forged in August 2024 outlines the costs associated with the stadium and who is to be responsible for them. This includes the city providing about $117.9 million in bond proceeds for the stadium -- $110 million for construction and $7,942,153.74 for environmental and infrastructure costs.
It was further agreed that, if construction costs exceeded $110 million, the EDA would split up to $5 million in said excess costs with the Navigators, per the agreement. This means that the EDA and the Navigators would pay up to $2.5 million each. Beyond that, the Navigators would be solely responsible for any excess costs -- though they'd be able to get another $5 million back in the form of Diamond District taxes and assessments at a later date.
However, the Navigators' letter provides evidence that the city promised two additional reimbursements totalling up to $6.5 million -- which, per the Navigators, the city has since said it will not pay.
The city reportedly informed the Navigators that it would not make these payments in a Jan. 26 letter.
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The Navigators describe this Jan. 26 letter as one wherein the city "engages in revisionist history by blatantly disregarding repeated, unequivocal assurances made by the City of Richmond and the EDA upon which the Navigators reasonably and detrimentally relied."
Up to $4 million in excess environmental costs under dispute
Of the nearly $8 million in bond funding meant for environmental and infrastructure costs, $4 million was allocated for environmental remediation.
Per email exchanges provided within the letter, city officials agreed that if any of that $4 million was left unused, it would be given to the Navigators to cover other stadium costs.
"I did ask if we do not need all of the funding for environmental remediation can it be used for other Stadium eligible costs and was told yes," Ebert wrote in one such email, dated July 2024.
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However, the Navigators have not received any portion of this $4 million.
Navigators on the hook for $2.5 million VCU Baseball fit-out
Additionally, the Navigators agreed to outfit CarMax Park for Virginia Commonwealth University (VCU) Baseball, which was meant to play at the new stadium at the time. This is a $2.5 million cost listed within the stadium development agreement.
In September 2025, the EDA told the Navigators to proceed with building the fit-out. As they were at a "critical inflection point" regarding VCU Baseball's future at the stadium -- and after being promised "repeatedly and unambiguously" that the EDA would indeed cover the costs -- the Navigators "relied on those assurances" and moved forward with the fit-out.
An attached draft of a lease between VCU and the EDA also includes two references to the city paying this $2.5 million for the VCU fit-out. Not only does the text of the draft state the city would be responsible for "buildout and furniture, fixtures and equipment for VCU's use," but a comment left by VCU states that "The city has agreed to pay for it [the fit-out] per discussions in a call with VCU."
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Though negotiations with VCU Baseball have since fallen through, the Navigators are still out the $2.5 million in costs associated with the fit-out.
"Absent the understanding that the EDA would fund those costs, the Navigators would not have proceeded," the letter reads. "Instead, the Navigators proceeded with that work in reliance on the shared and repeatedly confirmed understanding among the EDA, the Navigators and VCU that the EDA would fund those costs. The EDA cannot now disavow reimbursement obligations it knowingly undertook and confirmed after inducing the Navigators to incur those costs. To do so is not only inequitable but defies all legal principles."
On the whole, "multiple conversations and negotiations took place" with the city wherein officials confirmed that both the up to $4 million in surplus and the $2.5 million for the VCU fit-out would be paid out, according to the Navigators.
CarMax Park "would not have been constructed had the Navigators not agreed to take over construction when the EDA failed to fulfill its promise to deliver the Stadium," per the letter, which goes on to demand that the city "honor its commitments" -- and quickly.
"The EDA’s failure to fully fund the $6,500,000 will place the timely delivery of the Stadium at unnecessary risk and the Navigators will take all necessary legal action to enforce their contractual rights and the commitments made by the EDA," the letter reads.
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On top of these disputed costs, the Navigators said they were taken aback by statements made by Ebert during a recent meeting of the Richmond City Council.
"The Navigators are aware of recent public comments by Ms. Ebert during a Richmond City Council meeting held on Wednesday, February 18, 2026, which threatened a breach by the EDA of the Stadium Lease," the letter reads. "Needless to say, it is very disturbing that a city official would announce publicly the EDA’s intention to breach the Stadium Lease."
These comments surrounded the future of VCU Baseball at CarMax Park.
Back-and-forth surrounding VCU Baseball playing at CarMax Park
In January, it was announced that VCU Baseball would not be playing at the new stadium after a lengthy period of negotiations came to an end.
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What the Navigators and VCU were negotiating at the time was an operating agreement -- or an agreement made between teams that outlines things like operational rules and revenue-sharing policies.
An operating agreement is separate from a lease, which only the owner of the stadium -- the EDA -- could be responsible for. A lease between the Navigators and the EDA is what allows the Squirrels to play at CarMax Park.
The terms of the Navigators' lease expressly state that the EDA must execute a lease with VCU Baseball before the Navigators can forge an operational agreement with VCU Baseball -- but the EDA has yet to do so.
"Despite the EDA’s and VCU’s failure to execute the VCU Lease, the Navigators — although not obligated to — engaged in extensive, good faith negotiations with VCU in an effort to reach agreement on the anticipated opeating agreement," the letter reads, "Contrary to Ms. Ebert's public comments, after many months of discussions, the parties were unable to reach agreement on several material terms that had signiciant economic repurcussions for the Navigators and it became clear that further negotiations would not be productive."
So what did Ebert say and why was it an issue?
During this Feb. 18 meeting, Ebert stated that, in the wake of these failed negotiations, the EDA may have to create an operating agreement of its own with VCU Baseball to ensure that it could play at CarMax Park.
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"These reckless public comments, which contravene clear contractual requirements, are unacceptable and Ms. Ebert should retract them immediately," the letter reads. "Not only do they suggest the EDA is intent on breaching the Stadium Lease, but they also will only serve to prejudice any future discussions the Navigators may have with its neighbor VCU."
According to the Navigators, Ebert's words are a threat to breach the terms of their lease at CarMax Park. As previously stated, the lease expressly states that the EDA will execute a lease with VCU Baseball and the Navigators will be responsible for the operating agreement.
More than that, the EDA would actually be violating Major League Baseball's (MLB) own rules and regulations if it tried to reach an operating agreement with VCU Baseball.
"Major League Baseball relied upon the Navigators’ rights under the Stadium Lease with respect to VCU’s use of the Stadium in approving the Stadium Lease," the letter reads. "Pursuant to the terms of the Stadium Lease, as amplified by the MLB Letter, no one can play on the field or otherwise use or manage the Stadium facilities other than the Navigators. The EDA simply cannot do an end-run around the Navigators and permit VCU or anyone else to use the Stadium."
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The MLB Letter -- written by MLB secretary Christopher Brumm -- outlines the PDL Rules and Regulations, which state that a PDL Club is not allowed to enter into a lease without the approval of MLB PDL.
"In providing our approval [of the EDA and the Navigators' lease of CarMax Park], we relied upon, among other things, the ability of Navigators Baseball to set out the terms pursuant to which VCU will be able to operate at CarMax Park in order to ensure that no rights are granted to VCU that would cause your PDL Club to be in violation of the PDL Rules and Regulations," Brumm explained.
What comes next in this process?
8News reached out to the city of Richmond for comment on this matter and was told that the city has indeed received the Navigators' letter.
We were also provided the following statement from the city's Chief Administrative Officer (CAO) Odie Donald, II:
"We are incredibly excited about playing ball in the new stadium this spring and are thankful for our partners on Council for their support in making the Sportsbackers Stadium deal possible. Sports has a unique role in unifying communities and providing a vehicle for success for our young athletes. We are committed to working — diligently and transparently — with all of our partners to build a vibrant and thriving Diamond District. While there is still work to do, we’re on the right track."
This is a developing story, stay with 8News for updates.
