Virginia Beach Arena (Cancelled)

[vdogg]

My, my, my... What is this? It looks like actual....progress. It looks like something you'd do when you're actually getting ready to build something. Could good news be around the corner? I'm really pulling for this project. We've got to get something big off the ground.

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Record 2017-ZVER-00120: 

Zoning Verification

Record Status: Submitted

 

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0 19TH ST

 

 

 

Record Details

Applicant:   United States  Phone 1: 000-000-0000 NA	Project Description:   ZL - 19TH STREET ZONING LETTER FOR VIRGINIA BEACH ARENA (19TH STREET & JEFFERSON AVENUE)
Owner:   CITY OF VIRGINIA BEACH 2401 COURTHOUSE DR VIRGINIA BEACH VA 234569120

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This was submitted last Tuesday.

[urbanvb]

Very interesting.. could it be?

[baobabs727]

Inching closer...?

https://pilotonline.com/news/government/local/mayor-says-arena-investors-are-still-raising-money-project-s/article_fe3e090b-f5c6-53cd-bcd1-46164719fbd6.html

Edited October 6, 2017 by baobabs727

[vdogg]

This sounds good-ish? I remain cautious, not quite optimistic, but maybe.... Just maybe, we'll pull this off.

[baobabs727]

I'm cautiously optimistic. And excited. Although  Barbara Henley doesn't seem to  be all that happy about it. But that's OK.

Anyway, also of interest to some would be the fact that this arena absolutely crushes  anything that Richmond has even dreamed of proposing so far, judging by their latest renderings and specs. (My apologies in advance for potentially violating the 11th commandment of these boards , but it seems to me that Richmond is far enough away from Hampton Roads that I don't need to be so diplomatic and deferential! LOL) 

Edited October 13, 2017 by baobabs727

[Virginia City]

Everybody knows that VB and the HR area as a whole was the second and then the third largest city without a major league sports team behind Vegas and then Austin (who passed us in size a few years ago. With Vegas getting an NHL team and NFL team VB moved back up to second. Well word on the street is MLS's Columbus Crew might be moving to Austin. Virginia Beach is have the top stop soon it looks like.

[BFG]

Hampton Roads was actually #1 back in the late-90s/early-2000s. I remember it always being mentioned when a few teams considered coming here. So, I guess if this is true, we'll be back to that top spot (deeply sarcastic yay ). Technically, with Vegas getting NHL and NFL, we're already the largest market without a "Big 4" team.

Edited October 17, 2017 by BFG

[baobabs727]

19 days left....

[baobabs727]

12....

[vdogg]

Less than a week out folks...

[BFG]

Fingers crossed. A lot rides on this. 

[baobabs727]

As of tomorrow there will be four days left. Why, oh why, does it always have to come down to the last freaking minute?! Ugh. 

[HRVT]

3 hours ago, baobabs727 said:

As of tomorrow there will be four days left. Why, oh why, does it always have to come down to the last freaking minute?! Ugh. 

Unfortunately, the obvious answer is probably the correct answer. Nothing is going to materialize, but they're riding it out anyway. But if this were such a sure thing, I don't understand why an extension was needed. This has been going on for years. If they don't have financing lined up yet, they are not likely to get it.

[Virginia City]

^ I unfortunately agree with this statement.

[BFG]

(sigh)

Hopefully we'll see something about the Scope renovation plans. I can't say I'm surprised...VB has had nearly five years to pull the trigger and keeps pushing the goal line back. I expect another "extension" next week.

[vdogg]

The one thing that gives me hope is this:

“We aren’t calling everybody and begging them for money,” Ballard said. “People are calling us and saying: ‘What is this deal? How does it work? We want to get involved with it.’ ”

Other investors, according to Ballard, include Eddie Garcia, the founder of ESG, and AEG Worldwide, the company that will manage the arena once it’s built.

AEG declined to comment. Kilmer declined to confirm the investors Ballard named.

There isn’t much time left to line up the money. Ballard said the main investors would cover any shortfalls with the equity.

The contract with the city requires the arena to open by October 2019. If that deadline is not met, the city can terminate the agreement.

Ballard said it will take 23 months to build the arena, which means construction needs to start by the end of November.

“When people ask me if it is going to work, I tell them, ‘Oh yeah,’” Ballard said. “I have never started a venture I haven’t finished.”

Since Ballard is the one building it, it's a no-brainer for him to cover the rest of the funds. He'll make that back in construction fees alone. I think this will happen, it's just taking longer than I had hoped. I just want to get this thing across the finish line.

[baobabs727]

Andrea Kilmer remains upbeat and confident. Council says it hasn't heard from ESG since September. Totally in the dark.   Sessoms says this is the end of the road ...if they don't close by midnight Tuesday. 

https://pilotonline.com/news/government/local/arena-developer-says-it-will-meet-financial-deadline-mayor-says/article_b6879d08-fe13-5214-b1fc-0f49095bd417.html

Edited November 2, 2017 by baobabs727

[vdogg]

They say they've heard nothing yet in the previous article they said that ESG needed less than $10 million to close. How could they even have this knowledge if they've heard nothing from the developer?

Like, why is this even down to the wire? Who's the holdout. I would think they'd want to wire money by tomorrow just to give them some buffer zone with the deadline. Closing is a long process.

[BFG]

I dunno how it works with 70M on the line, but when I've wired money from one account to another, it usually takes a couple business days. They need to have that taken care of by COB tomorrow...the buffer that you're talking about. This isn't a college essay due tomorrow morning; don't mess this up!

[baobabs727]

At my last real estate closing, I received my wire the same day it was sent. Nevertheless, the point is well taken. I hope there's a sense of urgency.

I don't know, it doesn't look good to me. The whole pleading of ignorance and the noncommittal-nondenial-denials, coupled with the purported deafening silence  from Andrea & ESG...WELL...just doesn't look good.

Seems like last time Steve Ballard may have been speaking for himself. I mean, there wasn't any corroboration. Everyone else (when asked about the specifics) had no comment. So, how did reporters and Council know about the supposed 10 million? I'm guessing it came from Steve Ballard. But can we know for certain that he is a true authority here whose words relative to the specific details of this financing arrangement should be taken with anything more than a grain of salt? I mean, we assume so, yes, because he's a very rich, successful developer who has close ties to the principals.  However, sometimes deals are not particularly transparent--even to people "close" to them. Why do you think lawsuits arise from failed deals....

When you get right down to it, this is between the lender and Andrea Kilmer/ESG. Rest assured that they know everrrryyyything. So make what you will of their alleged silence.

Edited November 2, 2017 by baobabs727

[urbanlife]

On 11/1/2017 at 6:11 PM, HRVT said:

Unfortunately, the obvious answer is probably the correct answer. Nothing is going to materialize, but they're riding it out anyway. But if this were such a sure thing, I don't understand why an extension was needed. This has been going on for years. If they don't have financing lined up yet, they are not likely to get it.

I see this arena the same way I saw the convention center hotel they are building here in Portland, I will believe it when I see it under construction. We are just now getting the convention center hotel after about 15 years worth of talking about it with a number of false proposals. With this arena in VB, I will believe it when it is in the middle of construction.

[HRVT]

8 hours ago, urbanlife said:

I see this arena the same way I saw the convention center hotel they are building here in Portland, I will believe it when I see it under construction. We are just now getting the convention center hotel after about 15 years worth of talking about it with a number of false proposals. With this arena in VB, I will believe it when it is in the middle of construction.

For what it's worth, I do think it's a matter of time before there is a major arena in the arena. Whether that comes by virtue of a major expansion of Scope, one being built in VB... or even on at Military Circle. I just don't think it'll be THIS deal. And like the convention center hotel, it could take a long time. Heck, this proposal has been out there for three or four years. And there was another proposal a couple years before that. And in all likelihood, there will be another proposal in 3-5 years or so. Maybe the next one will work out better. Heck, maybe the current one has a miracle (though I think this one is kind of a bad deal for the city).

[vdogg]

If we haven't heard something by the end of today this isn't happening.

[baobabs727]

Tick Tock

[Urbanlooker]