The Virginia Beach City Council voted this week to terminate the agreement to build an arena on City-owned property across the street from the Virginia Beach Convention Center.
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, 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 developer had requested and been granted all of the extensions contemplated by the development agreement that has been in place since Dec. 11, 2015.
“I am extremely disappointed the terms of the development agreement were not met,” said Mayor William D. Sessoms, Jr.
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 attached termination letter to the developer this morning.