Dear colleagues, 

Earlier this year, VCU Health administration made the tough, but prudent, decision to exit the project known as the Clay Street Project (the site of the old Public Safety building at 10th and Clay Streets in downtown Richmond).

The original project plans were developed before the pandemic. While they were well intentioned, by late 2021 construction and other challenges made it simply impossible to build the original project.

Moving forward today would cause dire long-term financial repercussions. With that in mind, VCU Health was forced to make a difficult, but also prudent, decision to exit the original project.

To end obligations on the site, VCU Health was required to make a one-time payment of $72.9 million. This was funded by VCU Health System operating funds; it represents less than 2.5 percent of our annual operating budget.

Making this one-time payment means avoiding far greater financial obligations and problems in the future.

The university is working in partnership with the Commonwealth and City of Richmond to develop new plans that will benefit students, patients, our communities and Virginia. The property is envisioned as a signature development for VCU and Richmond with potentially a new facility for VCU’s School of Dentistry as the centerpiece.

Sincerely, 

Marlon Levy, M.D., interim CEO of VCU Health