Dominion News Releases

January 25, 1999

Dominion Lands Announces Agreement to Sell Historic Riverfront Property

Brown’s Island Site to Become Retail, Commercial, Residential Anchor for Downtown Riverfront Development

RICHMOND, Va. - Dominion Lands Inc. announced today that it has signed an agreement with Post Properties Inc. (NYSE: PPS) to sell for an undisclosed sum a portion of historic Brown’s Island along the James River in downtown Richmond. The site will become part of the city’s riverfront development and canal restoration project managed by Richmond Riverfront Development Corporation.

The property includes approximately four acres on the eastern end of Brown’s Island between South 10th and South 12th Streets and is the site of two decommissioned power stations once owned by Virginia Power. Brown’s Island is an approximately 23-acre island between the James River and the historic Haxall Canal in downtown Richmond.

Plans call for the portion of the island under contract to Post Properties to be converted to a mixed-use development, which will include retail, commercial and residential space. The proposed sale is conditional on the satisfactory resolution of a number of diligence items.

Dominion Lands is the real estate development unit of Dominion Capital Inc. Dominion Capital is the financial services and real estate subsidiary of Dominion Resources Inc. (NYSE: D), an $18 billion holding company also active in domestic and international electric power and natural gas development. Dominion Resources is the parent company of Virginia Power.

David L. Heavenridge, president and chief executive officer of Dominion Capital, said:

"We’re pleased that we’re able to reposition this unique piece of property with a company that will use it to promote the economic vitality of our city. The Richmond Riverfront Development Corporation represents an extraordinary public/private partnership among city government, business and the non-profit sector. Their plans for creative, responsible development of the James River’s unique history and resources deserve our support."

In November, Dominion Resources relocated its headquarters to a 12-acre riverfront site on Tredegar Street in downtown Richmond. Dominion Capital will relocate its headquarters to the site in March.

Conversion of Dominion Lands’ site on Brown’s Island is part of a $52 million project to develop 32 acres of riverfront property stretching east from the historic Tredegar Iron Works site at 5th Street to 17th Street. Construction activities include restoration of the James River & Kanawha Canal and the Haxall Canal, with adjacent canal walks, and development of retail, restaurant, entertainment, office, residential and recreational space.

Richmond Riverfront Development Corporation was formed in 1991 as a private, non-profit corporation to facilitate the redevelopment project. Brenton S. Halsey, president of Richmond Riverfront Development Corporation, said:

"We’re pleased to welcome to Richmond’s riverfront one of the South’s preeminent real estate developers. Post Properties has a sterling reputation for its ability to construct successful, quality mixed-use developments in harmony with an historic urban setting. Their plans for the Brown’s Island site will help anchor the entire range of development activities planned for the 32-acre riverfront project."

Timothy M. Kaine, mayor of the City of Richmond, said:

"The proposed Post Properties development is a tremendous boost to Richmond’s historic canal project. It highlights the attractiveness of our city and is a tribute to the partnership of business and local government that had the sense to reclaim our riverfront."

The historic significance of the development area dates to 1784 when George Washington received a charter to build an extensive network of canals along the James River.

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