VIRGINIA BEACH — City council will hear briefings at its informal session Tuesday involving a new proposed hotel in the Cavalier Resort area and a grant that could pay for the recent $2.5 million Atlantic Avenue redesign.
City council will also vote on the recently proposed $150 service charge for residents who call 911 for non-medical emergencies more than five times at its formal session.
New Oceanfront Hotel
Cavalier Associates LLC requested to amend its tourism development financing program to cover the cost of an Embassy Suites to be built on the Cavalier Resort Site on Atlantic Avenue. The original financing program just covered the cost of the Cavalier Hotel and the Oceanfront Marriott, which city council passed in February 2014, according to a letter from city manager Dave Hansen to city council.
This could increase the developer’s investment from $205 million to $346 million, according to a letter from the developer’s chief investment officer Robert Howard to the city attorney.
The amendment could allow for the developer to borrow an additional $6.5 million from a lender, and increase the financing program’s investment eligibility from $145 million to $235 million.
Grant to cover proposed Atlantic Avenue redesign
Reshaping Atlantic Avenue to accommodate and increase in traffic with an active Cavalier Resort’s presence could cost the city about $2.5 million. One way Virginia Beach could pay for that is to apply for a grant.
Cavalier Associates LLC have drafted an application for a Transportation Partnership Opportunity Fund grant for $2,497,000. The Governor awards TPOF grant money to address transportation aspects of economic development opportunities, according to a letter from Hansen to city council.
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