Ahead of its August recess, Richmond City Council on Monday effectively banned new smoke and vape shops in most of the city and set stricter residency rules for top officials.

Councilors also directed Richmond City Attorney Laura Drewry to send a letter telling the Richmond Redevelopment and Housing Authority a deal for Gilpin Court’s redevelopment “violates Virginia law.”

These moves, and others, came during the council’s last official meeting until September and as Mayor Danny Avula marks nearly seven months in office.

Some, like the new vape shop restrictions and offering tax breaks to VPM for its new downtown Richmond headquarters, came without much debate.

But the discussion over RRHA’s agreement raised questions about who has the final say on such decisions — drawing sharp criticisms from councilors and pushback from the public housing authority.

Vape shop rules

The new zoning rules prohibit shops that sell tobacco and smokeable hemp within 1,000 feet of residential districts, K–12 schools, places of worship, child day care centers, parks, public libraries — and existing tobacco and vape shops. The ordinance would only leave a few small pockets in the city where new smoke shops could be built.

Other local governments in the region passed regulations aimed at reining in smoke shops; Hanover County’s planning commission voted earlier this month to refer a similar zoning update to its board of supervisors.

Council Vice President Katherine Jordan (2nd District) said council needs more regulatory control over existing smoke shops, but that state lawmakers would have to act first.

“This does not impact existing vape stores. It only allows us to influence where they’re located going forward,” she said Monday. “So, General Assembly, hope you’re listening. We need your continued help on this.”

Avula, a doctor with a background in pediatrics and public health, said the new rules would help build a healthier Richmond for the city’s youngest generation.

“Studies show that the proximity of tobacco retailers around schools is associated with a greater number of adolescents who smoke,” Avula said in a statement.

RRHA deal for Gilpin project

On May 20, RRHA CEO Steven Nesmith signed a master development agreement with New Orleans-based developer HRI Communities LLC to redevelop the city’s oldest public housing complex.

Councilor Kenya Gibson (3rd District), who represents Gilpin, said Nesmith needed RRHA board and council approval first. Drewry agreed, crafting a letter to him that council voted unanimously to send.

“The absence of RRHA Board authorization and City Council approval, combined with ongoing community engagement, violates Virginia law, and undermines public trust in the redevelopment process,” Drewry wrote.

The state law Gibson referenced states: “An authority shall not implement any redevelopment plan under this law until the governing body of the locality has approved the redevelopment plan.”

“The law is very clear that before the RRHA has the authority to be able to go into an agreement…our body needed to vote in support of that and that did not happen,” Gibson said Monday.

But last week, before Drewry’s letter, Nesmith wrote to council leaders that the law Gibson cites does not apply to Gilpin. Nesmith wrote that the authority’s legal counsel advised that it would only need council approval if it wanted to create a “redevelopment area” — a specific designation under state law that indicates that an area is blighted.

“An authority is not required to adopt a redevelopment area for all development activities that an authority engages in,” Nesmith wrote.

In a statement, RRHA spokesperson Angela Fountain said that the authority’s nine-person board of commissioners has the sole authority to authorize redevelopment agreements.

She noted an Oct. 3, 2023, vote from RRHA’s board to allow Nesmith to enter a master development agreement for the project.

“Given that City Council has never before been involved in the approval or execution of an MDA by RRHA, we are puzzled as to why this concern is being raised now,” Fountain added.

Monday’s meeting sparked discussion about the council’s authority over RRHA. The vote to send Nesmith the letter was unanimous, but Council President Cynthia Newbille (7th District) cautioned that council and RRHA should work to get on the same page.

City Councilor Stephanie Lynch (5th District) gave a scathing rebuke of RRHA: “They have historically left their assets in despair, blamed the residents and left vacant units on line in those communities at a time when we have an extreme affordable housing crisis and homeless families who are sleeping in cars, on the street and in motels.”

Fountain called Lynch’s assessment “inaccurate and misleading,” saying that “the reality is far more complex and tied to decades of declining federal investment in public housing.”

Lynch also accused RRHA of leaving Gilpin units vacant to keep a certain percentage empty to help apply for federal neighborhood choice grants.

“To be clear, RRHA does NOT benefit from leaving units vacant. However, in some instances, vacant units are part of a strategic effort to meet the eligibility criteria for federal revitalization grants—such as the Choice Neighborhoods Initiative (CNI)—which can bring hundreds of millions of dollars to Richmond to build new, high-quality, affordable housing,” Fountain said in response.

She added: “In the case of Gilpin Court, certain levels of vacancy are necessary to qualify for this highly competitive HUD grant. This is not a tactic of neglect, but rather a long-term investment strategy designed to improve conditions and expand housing opportunities for more families.”

Other council moves

Council also voted to require more top officials to live within city limits — including department heads, the city auditor and inspector general.

Avula initially opposed the effort, with administration officials calling it “inappropriate and counterproductive” in a June memo to City Council.

But the proposal changed to include a waiver option if moving to the city would be “unfeasible” or cause an “undue burden.”

Another proposal that passed was a tax incentive in the form of performance grants to VPM Media Corporation for its upcoming Richmond headquarters.

The city offered VPM a grant equal to its annual business tangible personal property tax — expected to be between $270,000 and $300,000 in the first year — for up to 20 years.

To receive a full payment each year, VPM must pay the property tax and reach capital investment and new job targets (at least $65 million in investment and 70 new jobs).

VPM will not receive any tax breaks tied to real estate taxes, which city staff conservatively estimates will generate $2.5 million over the first 10 years.

Disclosure: VPM Media Corp. is the FCC license holder of VPM News, which operates as 88.9 FM in Richmond, 89.1 FM in the Northern Neck (Heathsville) and 90.1 FM in Southside Virginia (Chase City).

As a newsroom, VPM News maintains editorial independence — this article went through our usual fact-checking and editing process. Station leadership did not view this article prior to publication.

Questions about this article and VPM News’ overall editorial policy should be directed to Managing Editor Dawnthea M. Price Lisco and News Director Elliott Robinson.