City Council to be briefed on $210M arena financing

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An artist’s rendering of the proposed sports and entertainment arena in Virginia Beach. (Photo courtesy City of Virginia Beach)

An artist’s rendering of the proposed sports and entertainment arena in Virginia Beach. (Photo courtesy City of Virginia Beach)

City Council will have a closed session meeting Tuesday covering updates on negotiations for the $210 million Oceanfront arena project.

In July, council set forth contingencies that the developer, United States Management LLC, had to meet in order for its finance plan to be approved. USM’s finance plan requires the Virginia Beach Development Authority to serve as a conduit issuer of bonds USM would use to finance construction. City Finance Director Patti Phillips said in a phone interview in July that council’s approval of the development agreement, including the finance plan, is contingent upon results of a revenue feasibility study and bond rating study.

Deputy City Manager Doug Smith will update City Council in a closed session Tuesday on how USM is meeting the requirements. City Council will host a public hearing on the transfer of public land to the Economic Development Authority for the project during its 6 p.m. meeting, at 2401 Courthouse Dr.

Earlier this month, Smith said that he and Patti Phillips, the city’s finance director, had seen copies of the feasibility study, which he said was right on the mark. He expected to receive the bond rating letter later that week, he said.

Andrea Kilmer, president of USM, said in late July the feasibility study and bond rating letter would be provided in the next couple of weeks.

City Council has not yet received the bond rating letter, according to Julie Hill, the city’s communications administrator.

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