VIRGINIA BEACH, Va. (WAVY) — Virginia Beach City Council has set aside $75,000 to study a proposal that would create a mixed use sports and convention district around the Virginia Beach Convention Center and Virginia Beach Sports Center at 19th Street.
Council’s vote Tuesday night was 7-4 after a lengthy discussion, with members Chris Taylor, Barbara Henley, Sabrina Wooten and Jennifer Rouse voting no against the resolution requested by Mayor Bobby Dyer.
Tuesday’s resolution sets aside about $25,000 for additional information on the economic impact the project could have, including the return on any potential investments the city makes. $50,000 will go toward an infrastructure analysis, including how much it could cost for public improvements such as utilities, parking, etc.
In August 2022, it was revealed that Maryland-based Capstone Development was the only developer to respond to a request for information (RFI) from the city to develop 13 acres of parking lot between Virginia Beach Boulevard and 19th Street in front of the Virginia Beach Convention Center.
Capstone is proposing more than 900 new apartments with first floor retail, 3,500 new parking spots and a at least 300 room Convention Center Hotel.
At Tuesday’s meeting, Taylor, who spoke at length about the matter, called the resolution a “delay tactic … being strategically done to deter the Capstone proposal.”
Taylor pointed out a previously scheduled meeting for April 2023 between Norm Jenkins of Capstone and city council was canceled by Mayor Dyer.
Taylor went on to suggest that local developer Bruce Thompson had an apparent hand in this latest delay.
“If you need further evidence that some stakeholders’ voices are louder than others, we received an email Monday to the city council by a developer named Bruce Thompson applauding the city for slowing down ‘and looking deeper into the economic impact and economic feasibility of the existing proposal.'”
Taylor before voting no also pointed out that the study, which would be the 7th of its kind paid for by the city in the last 19 years.
“The previous six have concluded the convention center needs a headquarters hotel and ‘a bigger mixed-use project.’ Please citizens, go and read the RASAP Plan that was adopted by the previous body,” Taylor said.
In response to Taylor, Mayor Dyer explained why he called for that “strategic delay” in April 2023.
“At the time we were anticipating the Atlantic Park project be closed, come to fruition, and then we can move on,” Dyer said.
But Dyer implied that complications with Atlantic Park, which had a “significant ask” around that time to keep the project going, had an impact on him going to Jenkins and recommending a delay.
“The concerning thing here is due to the property transfer, a super majority was going to be required to make the deal go forward, so I floated the option, and I did go to Mr. Jenkins with this, that given the high threshold it would be better to delay and come in in a better economic climate.”
Since April, Capstone did end up making a presentation to council at its informal meeting on Oct. 3, 2023.
Ultimately, Dyer said he wants to make sure it’s the right move in the long run.
“We’re going into a budget cycle that going to be very challenging … we’ve to got to figure out where it sits and what’s important,” said Dyer in advocating for the additional study. “What we’re asking for now is the ability to figure out what the true and actual costs are going to be, what the ramifications are gonna be, what the displacement costs are going to be … and [say] ‘OK public, this what we have. What do you think?'”
Meanwhile the initial proposal from Capstone calls for a 300-key hotel across from the convention center, more than 900 residential units and an increase of nearly 3,000 parking spaces in a four-block area.
You can see the full plan from Capstone here.
