The landmark Hippodrome Theater in Richmond's Jackson Ward neighborhood could be turned into a blues club similar to venues named after guitarist B.B. King.

Walker Row Partnership, which owns the theater and a former Elks lodge next door, is negotiating to bring the club and two restaurants to North Second Street, City Council President William J. Pantele said.

Second Street -- a block west of the Greater Richmond Convention Center -- served as the center of African-American nightlife and entertainment in segregated Richmond.

City leaders working to revitalize Second Street have looked to Beale Street in Memphis, Tenn., as a model. That's where one of four blues clubs named after B.B. King is located, with the others in Nashville, Tenn.; Orlando, Fla.; and New York City.

Pantele said he's seen a letter of intent to put a blues club in the Hippodrome -- a potential investment of more than $5 million. He said it's unclear whether the venue would carry the B.B. King name.

Based on the letter, Pantele asked the City Council this week to include $600,000 in the proposed five-year Capital Improvement Plan to bridge a gap in financing for the project. The plan would provide $300,000 in fiscal 2009-10 and $300,000 in fiscal 2010-11.

"The Hippodrome and the adjacent Elks lodge, for years, have been identified as important, historic structures," said Pantele, whose 2nd District includes part of Jackson Ward. "There's been an effort over the past several years to jump-start Second Street by redeveloping those properties into music and entertainment venues."

In 2004, the City Council committed $800,000 and authorized then-City Manager Calvin D. Jamison to enter into a development agreement to turn the Hippodrome and Elks lodge into a live-music club and audio-video production facility similar to the Apollo Theater in New York's Harlem.

But the deal between the city, Walker Row Partnership and actor Tim Reid and his New Millennium Studios in Petersburg never materialized.

"Because I've seen the signed letter of intent, to me, that's the sign that we should get back on board," Pantele said. "I'm anxious to see us get along with it."

In an interview Tuesday, Ronald Stallings, president of Walker Row Partnership, declined to discuss plans for the theater but said he was pleased to hear the City Council was moving to set aside money. The company's Web site says it's looking to renovate the Hippodrome and Elks lodge into an entertainment venue with seating arrangements ranging from 450 to 1,000.

"All I can say is we're working on it," Stallings said. "I don't want to do anything until everything is there."

Linwood Norman, spokesman for Mayor L. Douglas Wilder, declined to comment and referred questions to Stallings.

Richmond has offered financial incentives to spur development and reinvestment, from grants in the thousands of dollars to rehabilitate buildings and improve facades to subsidies in the millions for such projects as MeadWestvaco's headquarters, Riverside on the James, Richmond CenTerStage, and Stony Point Fashion Park.

The Hippodrome, which is vacant but functional, is among dozens of properties in Jackson Ward that Stallings' family has owned for years. Since 2000, Walker Row Partnership has developed 53 properties into 83 new or renovated housing units, according to the company.

If a blues club comes to Jackson Ward, it would be the third major live-music venue added to Richmond's nighttime scene since last summer.

Toad's Place Richmond opened in late June in the renovated Lady Byrd Hat Factory building on Virginia Street along the Canal Walk. The National opened in February in a renovated vaudeville and movie theater at East Broad and North Seventh streets.

Contact Will Jones at (804) 649-6911 or wjones@timesdispatch.com.