Virginia Beach officials have accepted a funding proposal for a new arena across from the city’s convention center.
Earlier this month, United States Management turned in a new proposal for the arena. As part of that funding plan, USM will borrow $150 million while contributing $70 million in equity, terms that were deemed to be in compliance with an agreement that was approved by the city in 2015. JP Morgan is serving as the lead lender.
Moving forward, the main task for USM will be to close on its loan, which USM president Andrea Kilmer believes could happen in a timely fashion. The agreement also calls for the city to contribute infrastructure costs. More from The Virginian Pilot:
USM has until Sept. 7 to close on the loan, but Kilmer said it could be done by late spring.
Although the arena will be privately owned, the developers will receive up to $476 million over 33 years with 1 percentage point of the city’s lodging tax, construction tax incentives and tax revenue generated by the arena. The city will also be shelling out $76.5 million in hotel and discretionary taxes for infrastructure in the area.
[Virginia Beach mayor Will] Sessoms touted the new financial plan and subsequent agreement with the city as “a very good deal.” Other council members agreed.
“This is a tremendous opportunity for not only tourists to come in, but residents to enjoy a new amenity at the beach,” Bobby Dyer said.
Plans call for the arena to have a capacity of as much as 18,000 for major events. That means it is projected to be the largest such venue in Virginia.