For those hoping that someday, somehow there would be professional basketball in Coastal Virginia, forget about it…at least for now. Tuesday, the Virginia Beach city council voted to terminate the arena project at the oceanfront.
According to VB city council, the developer, Mid-Atlantic Arena LLC failed to secure a necessary $150 million loan.
In a press release, Virginia Beach stated, “While the developer, Mid-Atlantic Arena LLC, 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.”
The project was going to cost $67 million in infrastructure improvements.
City officials claim the developer failed to execute all loan documents or secure the required equity by the midnight deadline. Those terms were defined when the project was discussed two years ago.
Mid-Atlantic Arena LLC spokesperson Andrea Kilmer said the developer had delivered all documents needed to close on the arena earlier that day.
“We have JPMorgan, the United State’s largest bank ready, willing and able to close this evening. They are ready to do this project,” Kilmer said. “We need direction from the council. We have worked diligently to be in compliance to bring the loan to the table.”
Virginia Beach city council voted 9-to-1 to kill the arena deal.