Industry Noize: Va. Beach Arena Dreams
The first bid, by the Jordan Group that includes a developer and a former city councilman, relies on the city and state to pony up $300 million, including $10.5 million in annual debt costs for the next 25 years, according to the Hampton Roads Virginian-Pilot.
Under the plan, the city would also be on the hook for shortfalls if the venue doesn’t meet revenue projections.
The other proposal would have United States Management spending $200 million from its own pocket for construction and another $10 million for opening costs, according to the paper.
But the taxpayers would still kick in about $7 million in revenues to pay down debt, and also pay for shortfalls.
Regardless of which bidder gets the project, the arena would be built near the Virginia Beach Convention Center, on the same spot the city hoped to build an arena for the Sacramento Kings last year.
Virginia Beach lost out on that NBA prospect when the league awarded the franchise to a group keeping it in Sacramento. Team or no team, the city didn’t give up on its dream of an 18,000-seat arena, which it hopes can be built and opened by the end of 2016.
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