Virginia Beach City Council votes in favor of 60-day extension on arena deal

Posted at 4:57 PM, Nov 01, 2016
and last updated 2016-11-01 23:12:51-04

VIRGINIA BEACH, Va. – City council members voted Nov. 1 about whether to grant an extension on the arena deal.

The council voted 9-1 for a 60-day extension on the arena deal.

The original deal with United States Management, LLC gave the developer until Nov. 8 to secure funding for the project.

"I voted for the extension. I voted for the original terms of the agreement, which are now in place. 170 million of maximum borrowing, 30 million of equity and 10 million of working capital. that`s the agreement I still support," said Councilman John Moss.

In October USM asked to change the terms of the deal. Because the deal involved a land transfer, council needed nine votes, but only eight supported the new terms of the deal in early October. John Moss, Barbara Henley, and Louis Jones all voted against it.

Now, the deal is back to what city council voted for in December and Moss said he's comfortable giving USM more time.

"I find the current agreement, to be an acceptable risk for the city to be a participant in. But that is the limit of the risk I`m willing to accept," said Moss.

Barbara Henley was the only council member voting against the extension. Before the vote, she said she's been against the terms since December.

"They will be in control of a major part of our tourist industry. Just so many things about the deal I could not support," said Henley. She added she's uncomfortable the city will not be in control of the arena. She's also concerned about how Virginia Beach will be responsible for providing parking.

"We are, I think, no where close to really identifying all the costs it'll be to the city," said Henley.

The goal for the proposed 18,000 seat arena is to attract major musical acts during the winter and possibly even a pro sports team.