VIRGINIA BEACH, Va. (WAVY) — The developer behind a proposed arena at the Oceanfront delivered a letter to Virginia Beach city officials Tuesday outlining a plan on funding for the project.
United States Management (USM) says the letter given to officials contains a “comprehensive and detailed loan commitment for financing” the arena.
USM must secure financing comprised of $40 million in equity and $170 million in loans. The deadline is Wednesday. Virginia Beach City Council has approved two extensions for USM to find and secure funding.
A 10 On Your Side investigation into the economics behind arenas revealed that the proposal is more risky than it seems.
The 18,500 seat arena, proposed for 19th Street, has been a topic of discussion for the city for three years.
“I want it really badly,” Mayor Will Sessoms told WAVY News. “I think that it’s something that our city and region are starving for.”
City staff will now evaluate the letter before the mayor and city council review it at a special meeting on Tuesday, March 14. Depending on direction from council, there will be further public comment after that.
This is a developing story. Stay with WAVY.com for the latest updates.