…and lots of other public money.
It’s good to know that, with unemployment soaring and millions of people losing their homes, our Federal government could still find the time and benjamins to bail out two of Richmond’s wealthiest families.
Save Richmond has learned that First Market Bank, controlled by Ukrop’s Supermarkets, the Ukrop family, and Markel Corp. has been given $33.9 million from the U.S. Treasury’s Troubled Asset Relief Program (TARP) for struggling financial institutions.
The bank has underperformed of late, absorbing losses on Freddie Mac preferred stock and seeing defaults rise in its loan portfolio. The bank’s September 30, 2008 filing with its federal regulator disclosed the preferred stock losses and that it had raised additional capital. The additional funds allowed the bank to maintain certain measures of its financial strength within proscribed levels for “well capitalized” banks. First Market’s December 31, 2008 filing showed that past due and non-accruing loans had nearly doubled from the previous period (albeit from a relatively low base). Dings and dents are starting to show over at Ukrops Supermarkets, and Markel Corp did not have a banner 2008 either, losing approx. $59 million.
First Market Bank’s Chairman is Jim Ukrop. He is also Chairman of Richmond CenterStage (formerly the Virginia Performing Arts Foundation). As longtime readers of this site know, Richmond CenterStage is a nonprofit that is building a new performing arts center on Grace Street in downtown Richmond. Ukrop is also an owner of the Berry-Burk condominium building close by.
The arts center project has received unprecedented amounts of government funding, nearly $40 million combined (and counting) from the city, state and feds. Additionally, the Broad Street CDA, a public/private partnership “Ukrop Brainchild” has invested approximately $67 million towards improvements in the Broad and Grace corridor. The CDA is currently having trouble making its bond payments and may require a city bailout of its own.
All told it appears that Mr. Ukrop is at the nexus of more than $140 million of public money. Yep, it sure is good to be Jim!