Mum's the word: Petersburg officials silent on why plug was pulled on Sycamore Grove

Yahoo

18-06-2025

The future of a multi-use development that was supposed to make a dent in Petersburg's 'food desert' is uncertain after City Council voted last month to rescind agreements with the consortium developing it, citing unfulfilled deadlines and other 'infrastructure issues.'
The question of Sycamore Grove's viability could be answered when City Council convenes for its first meeting of the month June 3. In the meantime, Petersburg refuses to say for the record if the project that was a cornerstone of Gov. Glenn Youngkin's 'Partnership for Petersburg' initiative is just delayed or done for good.
Petersburg spokesperson Joanne Williams says the city will not comment beyond the May 20 resolution that junked the agreements. A spokesperson for Youngkin said his office will continue to monitor the project but hopes council will have something to announce Tuesday afternoon.
The Virginia Development Consortium, which was spearheading Sycamore Grove and its affiliated Adams North development in Old Towne Petersburg, told The Progress-Index the deal was 'abruptly' pulled, and it lamented the decision
'It is deeply unfortunate that Virginia Development Consortium is no longer being allowed to stand with the Petersburg community and Governor's office as a committed partner in delivering a quality grocer, attainable housing, well-paying employment opportunities, and economic development investments that would have directly addressed multiple real and urgent needs of residents,' Marvin Lyman, development director for the consortium, said in an email.
Sycamore Grove was set to occupy the former Southside Regional Medical Center's vacant site with a combination of retail and residential spaces. It was to be anchored by Grants Supermarket, a Bluefield, West Virginia-based grocery chain with a handful of stores in southwestern Virginia.
Adams North was going to be a development around Bank, Adams and Sycamore streets in Old Towne.
While ground was broken last October on the Sycamore Grove development, nothing has occurred since then.
That is, until City Council met on May 20. Councilors emerged from a closed session to pass a resolution terminating the agreements with the Virginia Development Consortium. The measure passed with little discussion about the resolution's content.
The Progress-Index requested a copy of the resolution. It was sent by Williams with the remark, 'Council rescinded this ordinance. No other comment on the action at this time.'
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The resolution itself was long on details about the creation of a 'Master Development Agreement' between City Council and the Virginia Development Consortium to develop both the old SRMC and the Bank-Adams-Sycamore site. In addition, Petersburg submitted an application for state Industrial Revitalization Fund grants to help finance Sycamore Grove.
However, the resolution, while long on development details, was short on why Petersburg wanted to pull the plug.
First, Petersburg said the VDC had 'failed to secure a satisfactory grocer' even though Grants was on hand for the groundbreaking to offer details about the Petersburg store. It also claimed VDC 'did not engage in successful negotiations' to add any more retail clients to the development.
Second, Petersburg reportedly 'discovered significant infrastructure issues which contributed to the decision of Council not to proceed further with these projects.' Those issues were never spelled out in the resolution – and no one has come forward to answer The Progress-Index's questions about what those issues were. But the resolution added that the infrastructure issues 'may render the projects cost prohibitive.'
Third, most agreements between the city and VDC had expired 'with no development having been performed on the sites.' The timeline to receive IRL grants is conditional to Petersburg transferring possession of the sites to VDC ... which now will apparently not happen.
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With the agreements now rescinded, the focus now turns to the future of Sycamore Grove and Adams North, and whether either will become a reality. The short answer as of now is, if anyone knows, they have not said anything yet.
The Progress-Index sent several requests for comment to city spokesperson Joanne Williams and Petersburg Mayor Sam Parham. In a text on May 27, we point-blank asked Williams, the Petersburg spokesperson who said the city was not going to comment beyond the resolution, whether Sycamore Grove was simply delayed or permanently off the table. That message remains unanswered.
Youngkin spokesperson Peter Finocchio sent the following: 'The Administration and City of Petersburg continue to work in partnership on the housing and commercial development projects moving through the process with the City. We continue to support the City through the numerous growth opportunities before them which will be part of the agenda at their June council meeting.'
The governor gets regular updates on progress in the Partnership for Petersburg initiative, but it was not immediately clear if he had been briefed on the latest developments.
Grant's Supermarket was set to become the anchor of Sycamore Grove and make a dent in Petersburg's status as a 'food desert,' meaning it does not have significant access to major supermarkets. Only Food Lion and Walmart have stores within the city limits, and both are in southern Petersburg and not considered centrally located.
Ron Martin, co-owner of the Grants chain, told The Progress-Index that he was 'unaware' that there were any issues with the contracts for Sycamore Grove.
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Bill Atkinson (he/him/his) is an award-winning journalist who covers breaking news, government and politics. Reach him at [e-mail] or on X (formerly known as Twitter) at @BAtkinson_PI.
This article originally appeared on The Progress-Index: Future of Sycamore Grove unclear after agreements were rescinded