Richmond, Virginia, is nearing final approval to embark on the largest development project in its history: a $2.4 billion initiative that includes a new minor league ballpark, hotels and over 1,000 units of mixed-income housing.

After the city’s planning committee unanimously recommended approval of an agreement between Richmond and its development partner for the project, RVA Diamond Partners, the deal now hinges on a city council vote taking place Monday evening.

Richmond officials say the development, which will be located in the city’s Diamond District, has the potential to revitalize its North Side, deliver a net benefit of approximately $1.1 billion over the 45 year lifespan of the project and secure the future of the Richmond Flying Squirrels’ — a Minor League Baseball affiliate of the San Francisco Giants.

“For years to come this project will bring revenue into the city so that we can continue to invest in our schools and mental health services, and repair our infrastructure,” said Levar Stoney, Richmond’s mayor, in a telephone interview. “It’s not just about building a ballpark, it’s about building an entire neighborhood.”

However, with the city council vote looming and an imminent deadline set by Major League Baseball to complete structural improvements to aging facilities, questions remain about the economic impact and the public dollars required.

Just two weeks before the city council vote, Richmond officials announced amendments to the financing proposal, citing rising interest rates. The announcement brought into question claims made by the city that the project would be entirely self-financed and raised concerns about whether revenues generated within the proposed special taxing district will be enough to cover debt service payments.

Under the new proposal, Richmond intends to cover the costs of infrastructure improvements, an expense the developer had previously agreed to pay for.

“In conjunction with the rapid rise in interest rates, we’ve had to work closely with the city to underwrite a project that meets their goals for affordable housing, a high-quality public park, a new mixed-use development and of course an MLB-compliant ballpark,” said Jason Guillot Principal at Thalhimer Realty Partners, one of the firms that is part of the consortium that makes up RVA Diamond Partners. “Our modified financing structure has the effect of producing tax-exempt bond proceeds, which substantially lowers the annual debt service to the city as compared to higher-interest taxable bonds.”

Further, Richmond is expecting to issue roughly $23 million of capital improvement plan general obligation bonds and expand the special taxing district to include adjacent properties to cover the costs of the project.

Adding to a growing chorus of criticism, the city has yet to release a third-party analysis of the financing plan, a point of contention for financial consultant John Gerner, who served as vice chairman of the Richmond City Council-appointed Navy Hill Development Advisory Commission four years ago. The Navy Hill project, a defunct proposal to replace the Richmond Coliseum — a now abandoned sports and entertainment arena — had a similar financing structure.

“At best, the Diamond District plan presents an opportunity cost and at worst the city’s going to end up having to pay for a substantial amount directly out of its general fund,” Gerner said.

But Richmond officials have not been afforded the luxury of time to wait for a third-party analysis.

The city is facing a 2025 deadline set by MLB to provide the Richmond Flying Squirrels an upgraded ballpark or risk losing its affiliation with the San Francisco Giants. Under the proposal, the stadium won’t open until 2026 at the earliest. Plus, Flying Squirrels owner Lou DiBella has expressed skepticism about the team’s future in Richmond.

DiBella did not respond to requests for an interview.

Richmond has learned from its Navy Hill failure, Mayor Stoney said, and he is confident that the city council will pass the resolution.

“The Navy Hill project failed for a number of reasons, politics being at the center of it,” Stoney said. “We took those lessons seriously when we constructed the Diamond District deal, and on Monday, we will find approval.”

(Updates with comments from Thalhimer Realty in the seventh paragraph.)