The city of Virginia Beach "will move forward with building" an 18,000 seat multipurpose entertainment and sports arena after "a unanimous vote by the council Tuesday night," according to Kathy Hieatt of the Norfolk VIRGINIAN-PILOT. The vote was to "approve a nonbinding term sheet outlining what the city is willing to provide in exchange" for local developer United States Management to build the $200M facility. USM can now "move forward with private financing for the project." Construction "could begin next fall." The city would pay between $53-79M for "infrastructure improvements around the arena site." It also would "lease the 5-acre site to USM for $1 a year for 40 years and contribute a portion of the hotel tax to help the developer pay its debt service." USM would "receive all the other tax revenue generated on-site." It would "be responsible for operating the venue, including costs associated with police and emergency medical services during events." The city "eventually will own the arena." USM and the city will now "draft a binding development agreement for consideration next year." Approval is "also needed from the Navy and Federal Aviation Administration" (Norfolk VIRGINIAN-PILOT, 12/11).
