VIRGINIA BEACH, Va. (WAVY) – Representatives for Cavalier Associates say they need $6.5 million to fill a shortfall due to its expansion of the Cavalier project off Atlantic Avenue.
In 2014, the City approved the application for Tourism Development Financing Program so the project could be built.
Originally, the renovation of the Historic Cavalier and the building of the Marriott Hotel were funded.
Cavalier Associates representatives say they’re hoping to add an Embassy Suites next to Marriott for a resort area that can sponsor conferences.
“It’s meeting a new demand, the Cavalier, because it’s meeting a new demand and because we’re adding a resort. It’s going to be comparable to The Homestead and The Greenbriar.There’s nothing like that in Virginia Beach. Nothing like that in Eastern Virginia,” said RJ Nutter, who is the attorney for Cavalier Associates.
Nutter says the Tourism Development Financing Program is aimed at bringing projects to areas that would fill voids needed and that the resort will fill the need for conference space at hotels by providing 570 rooms and 30,000 square feet of meeting and convention space.
Nutter says in 2014, city council capped spending at $18 million which is about 12.4% of what the project total.
He says now that another hotel will be added and the costs have gone up, they need to extra money to fill that shortfall and that the city would only set aside 1/3 of the 6.5 million needed.
He says the state has already approved their request and now they’ll meet with the Virginia Beach Development Authority on Tuesday to increase the cap limit.
He says the money needed would come from set aside tax dollars generated through the development.
“The City isn’t guaranteed except to forward the taxes for that are generated by the project .These are taxes that wouldn’t be generated unless there’s this project,” Nutter said.
City Council will also be briefed on Tuesday.
Councilman John Moss, who has been against the plan since the beginning says the city shouldn’t get involved.
“We can’t control floods. We can’t do these issues but council can work with these special interest projects?” Moss said.
Moss says the city has already given enough money for the project and thinks it can be completed without the $6.5 million developers are asking for.
“We’re not in the hotel business. We’re in the core services business. It’s as simple as that,” he said.