Virginia Beach City Council members voted Tuesday night to terminate its agreement with developer Mid-Atlantic Arena, LLC, to build an 18,000-seat, $220 million sports and entertainment venue at the Oceanfront on 19th Street across from the city's convention center.
While the developer and its lenders executed some documents last night, the city maintains that there has been no loan closing, as defined by the Development Agreement, because a number of the conditions necessary to satisfy the terms of that agreement were not accomplished, including: the city had not received all of the necessary loan documents it was entitled to review and approve; not all of the loan documents were executed; the required equity had not been committed; and even if a partial closing has occurred, there are still many contingencies to be satisfied before the bank is obligated to fund the loan to build the project.
The Virginia Beach-based developer, Mid-Atlantic Arena, disagrees with the city's findings.
Because the loan has not closed and the deadline for closing has passed, and pursuant to the City Council resolution adopted last night, the City delivered the termination letter to the developer this morning.
The vote was 9-1, with Councilmember Rosemary Wilson voting against ending the agreement.
Councilmember Jessica Abbott was absent.