VIRGINIA BEACH, Va. (WAVY) — Virginia Beach taxpayers will not have to foot any part of the bill to bring a 500,000 square foot arena to the Oceanfront. That announcement came out of a news conference Thursday in the resort city.
Leaders in Virginia Beach say the $200 million entertainment and sports facility would be built entirely with private funds. The city needs to provide $53 million for parking, a plaza and utilities. Councilman John Uhrin said taxpayers won’t have to foot that bill.
“We’re going to be using new taxes generated by the facility to pay for it in addition to a portion of the hotel tax to pay for a component of that,” Uhrin said.
The developer, United States Management, will operate the facility and receive an eighth of existing hotel tax as well as arena admissions and concession tax revenues. View the full updated proposal here.
The arena would be built across 19th Street from the Convention Center. It would seat 16,500 people, expandable to 18,000.
City Council has not decided how it is moving forward with the plans. They will be briefed on the plans next Tuesday and there is a tentative council vote to be held Dec. 9. That will be a vote on the proposed term sheet, which is a non-binding agreement between the city and the developer, according to Marc Davis with the city. The city staff will them work with the developer to create a final development agreement, he said.
On Dec. 3, a Town Hall meeting will be held, where concerned citizens can hear the latest updates on the proposed Oceanfront arena, and express their opinions to city leaders.