As a crucial deadline approaches, the developer of a Virginia Beach arena says it is prepared to fulfill its financing plan.
Mid-Atlantic Arena has been planning to move forward with the construction of a new arena in Virginia Beach. For the proposal to progress from here, the developer must meet its deadline of November 7 to complete a financing plan. The current framework calls for the developer to raise $70 million in private equity, and obtain a $150 million loan from JPMorgan Chase.
The developer initially had a deadline in September to complete the financing, but more time was granted earlier this year, effectively giving it until November. Some city officials are warning that an additional extension is not on the table, but Mid-Atlantic Arena is confident that it will meet the November 7 deadline. More from The Virginian Pilot:
Andrea Kilmer, president of Mid-Atlantic Arena LLC said her team is finishing up paperwork and needs to wire $70 million into an escrow account to assure the bank of its private investment in the project. Once that’s done, she said JPMorgan Chase will close on a $150 million loan.
“We are pretty psyched about it,” Kilmer said Thursday. “I don’t know of anything that should stop us from having everything accomplished by Tuesday.”
Two years ago, United States Management, which is now Mid-Atlantic Arena, entered into an agreement with the city to build an 18,000-seat sports and entertainment venue.
The arena would be privately owned and operated, but built on city land near the Virginia Beach Convention Center off 19th Street and North Birdneck Road.
Under the terms of the agreement, the city is to contribute taxes generated by the arena and one percentage point of taxes from hotels to help pay off the project.
