“Insufficient due diligence,” turnover in management and “inadequate in-house real estate expertise” were contributing factors to VCU Health’s costly exit from an ill-fated downtown development, according to a third-party review presented Wednesday.
The report from the law firm that conducted a monthslong review found that the health system’s handling of the proposed redevelopment of the city’s Public Safety Building “followed a pattern of prioritizing mission, vision and values over financial terms.”
That was among other findings presented to the boards for the health system and Virginia Commonwealth University in a closed meeting Wednesday that stretched four hours. A joint task force of both boards voted to release the presentation from national law firm Saul Ewing to the public, Richmond BizSense reports.
The review represents the first accounting of the aborted project that has cost VCU Health at least $80 million, including a $73 million payment to exit the deal. Read more.
