VIRGINIA BEACH, Va. (WAVY) — Virginia Beach City Council has voted to spend $6.1 million to buy out the contract to the operator of the city’s Sports Center, after an audit found the facility is struggling financially.
The vote was through the consent agenda Tuesday night, Councilwoman Sabrina Wooten as the lone no vote.
The city will use $6.1 million from the Tourism Investment Program (TIP), which draws from meals, admissions and hotel taxes for the settlement agreement with operator Eastern Sports Management. $4.6 million of that figure will go toward buying all the furniture, fixtures and equipment originally purchased by ESM. The other $1.5 million will be used to pay off management fees, cash advances and unpaid vendors.
The city is also using an additional $500,00 to install an emergency operator for the venue until a permanent manager is selected.
This all comes after an audit earlier this year found the $68 million facility has lost more than $1.3 million annually since it opened back in 2020. And just last week an advisor the city claimed that he told city leaders in 2018 the center was expected to operate at a loss.