The developer of a proposed Virginia Beach arena project has been granted an extension by the city, effectively allowing more time to close on a loan.
Earlier this year, Virginia Beach officials signed off on a plan from United States Management to help fund a proposed arena in the city. That plan called for USM to contribute $70 million in equity, while securing a $150 million loan from JPMorgan Chase. The loan had a deadline of September to be closed, with the developer allowed up to two 30-day extensions.
On Tuesday, Virginia Beach officials confirmed that the deadline had been extended to November 6. More from The Virginian Pilot:
In a letter, United States Management – which is now operating as Mid-Atlantic Arena, LLC – requested the full 60 days. The company changed its name at the lender’s request, said Joel Rubin, a spokesman for the developer.
The city has seen “real progress toward the closing of the loan,” City Attorney Mark Stiles said in a statement.
“The need for additional time was contemplated at the time the Development Agreement was executed,” he wrote, “and this request is not surprising given the size and complexity of this transaction.”
[City manager Dave] Hansen granted the developer’s request after council members met in closed session to discuss it.
The Virginia Beach arena has been slated for a capacity of 18,000.