A recently-submitted funding plan for a Virginia Beach arena would not require a city vote, if it meets a certain criteria.
Earlier this week, United States Management (USM) submitted a new funding plan for a proposed arena in Virginia Beach. The loan commitment for the project was delivered on Tuesday, one day before USM’s deadline to present a plan.
The proposal still requires vetting from the city, but officials are saying that it may move forward without a vote. That, however, will be dependent upon whether it aligns with a previously-approved plan. More from The Virginian Pilot:
The terms of the latest deal to build an Oceanfront sports and entertainment venue include a $150 million loan and $70 million in equity from the developers, according to a city official who has seen the documents but asked not to be identified because of the sensitivity of negotiations. The two banks involved have not been publicly disclosed.
The city declined The Pilot’s request for a copy of the commitment letter.
Because the agreement is similar to the one approved by the council in December 2015, which included $170 million in debt and $40 million in equity from United States Management and its financiers, it may not require a vote by council members.
If City Attorney Mark Stiles determines the new deal meets the terms of the agreement from more than a year ago, no vote would be needed, according to Councilman John Moss.
“If it is substantially in compliance with the debt and equity of the previous agreement, if they are substantially the same, there then is no vote to be taken,” he said.
If the proposal moves forward, the arena would be constructed near the Virginia Beach Convention Center. Plans call for it to seat 15,000, with a capacity of upwards of 18,000 for large-scale events.
The city is expected to discuss the proposal during an executive session on Tuesday, according to The Pilot.