On Tuesday, the Virginia Beach City Council voted to grant what it says will be its final extension to a developer seeking to build a new arena in the city.
The Virginia Beach arena project has had some ups and downs over the past year. In October, the city council voted against a modified funding plan from United States Management, but opted in November to grant USM more time to rework the funding model for the development.
That 60-day extension was approved on October 31. Now, the council has opted to grant another extension, but is indicating that this will be the last. USM officials said that they continue to work on the proposal. More from The Virginian Pilot:
United States Management decided last summer to work with a Chicago investment bank, which would require it to take on more debt and reduce the developer’s contribution.
Valerie Wilkinson, chief financial officer for United States Management, told council members Tuesday that the company is working with a major U.S. investment bank lender that she said has experience with arenas and a strong relationship with the chosen arena venue manager, AEG. She also said the company has moved away from seeking bonds to finance the project and is instead opting for a traditional loan structure.
The extension is valid through March 8.
