Virginia Beach, Va. - The City of Virginia Beach and developer Bruce Thompson have announced the terms of an agreement about the preservation of the Cavalier Hotel.
The sale of the Cavalier Hotel and surrounding property to Thompson was approved Monday.
The city has pledged $18 million to the hotel's preservation. Thompson will put in a total of $259 million, which includes the $35 million purchase price.
The hotel will be redone, with 100 or so cottages or small homes placed around the facility.
Additionally, the famed front lawn of the hotel will be preserved and will not be allowed to have any further development placed on it.
Mayor Will Sessoms anticipates upwards of $6-$7 million in tax revenue generated annually once the hotel is up and running.
This would ensure that the city's $18 million pledge will be paid off quickly.
Thompson is working to get the property placed on state and national lists for historic preservation.
However, they will have to carefully balance the modernization of the property while keeping its historical semblance preserved before that can happen.
Approximately 300-500 jobs are anticipated to be associated with the project.