Should the City Council approve the agreement between Virginia Beach and United States Management to build an arena at the resort? Yes or no. Why or why not?
The Virginia Beach City Council is scheduled to vote on Dec. 8 to approve or reject a proposal to build an arena across from the Virginia Beach Convention Center. The $200 million facility would be privately built, financed and managed by United States Management (USM). The city would provide $76.5 million in infrastructure improvements, including streets, parking and utilities. To see a presentation of the full proposal, as well as summaries and the full text of all seven agreements, visit www.VBgov.com/arena.
Background: In November 2013, a private development company, W.M. Jordan, submitted an unsolicited bid to build an arena at the Virginia Beach resort. Three months later, a development group called United States Management (USM) submitted a competing bid. Ultimately, the City Council agreed to continue discussions with USM.
In December 2014, the City Council approved a non-binding term sheet with USM. Now, the city and USM have reached final agreement on many issues. The City Council was briefed on the agreement on Nov. 10.
The city will provide land, infrastructure and revenue from taxes generated inside the arena to support USM’s debt. These include taxes on real estate, personal property, business license, admissions and sales. The city also will commit part of the current hotel tax (1 cent of the 8-cent tax).
The city will pay for public infrastructure with money from the Tourism Investment Program Fund, or TIP Fund, which includes taxes on discretionary spending such as restaurant meals, theater admissions, hotel stays and cigarettes. Real estate taxes on homes and businesses will NOT be used to pay for the arena infrastructure.
Other Feedback Opportunities: City staff and USM will provide a briefing on the proposal Thursday, Nov. 19, at 6:30 p.m. in Suite 5 of the Virginia Beach Convention Center. The City Council will hold a public hearing Dec. 1 at 6 p.m. in the City Council chamber at City Hall, 2401 Courthouse Drive.
Outcome: Under Review
December 8, 2015
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