Virginia Beach Arena (Cancelled)

[vdogg]

They've got until midnight. This is stressing me out. 

http://www.13newsnow.com/news/local/mycity/virginia-beach/midnight-deadline-for-arena-financing/489804878

In reality, I'd say they have until 5 pm, when the banks close.

[vdogg]

https://pilotonline.com/news/government/local/with-hours-left-before-its-deadline-the-developer-of-the/article_32c3c1c2-e254-553c-aca6-69e73483e797.html

If we can't even get this off the ground, I don't know what it says about Va. Beach...

"With hours left before its deadline, the developer of the Virginia Beach arena is still furiously working to close on a loan, Mayor Will Sessoms said on Monday.

If Mid-Atlantic Arena, LLC., doesn’t get the financing together, the City Council could vote on Tuesday night to void its agreement, which was approved two years ago. The developer has until midnight."

"On Monday afternoon, Sessoms said the developer still had not placed all of the private investment money needed into a bank account to lock down the loan, though he was told there was “a substantial amount” there.

“I know for a fact that papers are flying in each and every direction,” Sessoms said. “They are still trying to get it done.”"

[HRVT]

6 minutes ago, vdogg said:

They've got until midnight. This is stressing me out. 

http://www.13newsnow.com/news/local/mycity/virginia-beach/midnight-deadline-for-arena-financing/489804878

In reality, I'd say they have until 5 pm, when the banks close.

From the Pilot article...

"On Monday afternoon, Sessoms said the developer still had not placed all of the private investment money needed into a bank account to lock down the loan, though he was told there was “a substantial amount” there."

So one day before the deadline (after an extension) two years after the agreement was made, the holdup is that the investment money has not been placed in the bank account? Ummmm.... why not? Did they actually get the money and now they're holding onto it for some reason? Or did some of the private investment pledges not come through? I'm guessing the latter.  Also, I love the vague "a substantial amount" statement. $20 million would be a substantial amount of money, but would be nowhere even close to the $70 million needed to close. Frankly, even if they ARE "close" at about $60 million, it's not like coming up with the remaining $10 million is a cakewalk.

Yet, despite all the talk, why do I still see the arena developers getting an extension? Or a "come back to us once you've closed and we'll move forward".  

As I've said before, this has had almost half a decade to come together and the agreement has been in place for two years. If this hasn't been sewn up, it isn't going to be.

https://pilotonline.com/news/government/local/with-hours-left-before-its-deadline-the-developer-of-the/article_32c3c1c2-e254-553c-aca6-69e73483e797.html

[vdogg]

Honestly, they're the only game in town. IF the developer does have $60 million in the account and that can be verified, the city loses nothing by giving them a short extension to get the remaining 10 million. No need to throw the baby out with the bathwater.

Tonight's council meeting will be interesting, I will be watching it live. I am far more interested in this than the election. 

[BFG]

I'm with HRVT. The Sacramento Kings rumor dropped in summer 2012. Governor McDonnell wouldn't approve arena funding because he didn't have enough details and it was too much too soon. Understandable.

In the five years since, there's been numerous potential lenders, and they still haven't gotten the first shovel in the ground. Now you're literally working on an 11th Hour deal. This is a major infrastructure project, and they're treating it like it's the last hundred dollars for the rent or car payment. That's amateur.

They can't blame Norfolk for stealing their thunder on this one, although I'm sure Norfolk now has even more incentive to upgrade Scope. USM has had five years to flesh this out. Even if they had started in mid-2015 - the halfway point of this entire ordeal - this could've been a done deal.

[HRVT]

1 hour ago, vdogg said:

Honestly, they're the only game in town. IF the developer does have $60 million in the account and that can be verified, the city loses nothing by giving them a short extension to get the remaining 10 million. No need to throw the baby out with the bathwater.

Tonight's council meeting will be interesting, I will be watching it live. I am far more interested in this than the election. 

I wouldn't disagree with that. If they truly are that close that is. However, I suspect "substantial" is a literal word here to describe that they have a lot of money in the account (but not necessarily anywhere near enough).  $20 million is a substantial amount of money. It's also less then 1/3 of what is needed to move this project forward. Even $45 million or so would be a substantial amount AND a substantial percentage, but would be nowhere close to to actually moving forward. Plus, in these kinds of large-scale projects, the last third is much harder to tie up than the first 2/3s. 

Get your popcorn ready.

Edited November 7, 2017 by HRVT

[urbanvb]

Anyone else waiting for the rug to be pulled out from under you? It seems to always come down to the last minute. At least this time I’m more prepared to “jump ship”.  

 

[BFG]

3 minutes ago, urbanvb said:

Anyone else waiting for the rug to be pulled out from under you? It seems to always come down to the last minute. At least this time I’m more prepared to “jump ship”.  

I've shifted focus to Norfolk and the Scope upgrades. I know USM once said that if this falls through in VB, they'll try another city. But, they have to find out why they keep having to get extension after extension after extension. I'd love to be proven wrong, but at this point, I don't even want another extension. If this falls through, that's it for VB.

In the time since the Kings rumor started, Sacramento found the money to build a new arena and keep the team there. I don't know what USM is doing wrong, but five years and no loan is a problem.

[vdogg]

There really is no reason to be at this point. She said they have all the investors needed and they just need to sign documents. At this point, the only possible explanation is that one of their investors got cold feet. Mr. Ballard said that the primary investors would cover any shortfall. They could've done that yesterday...

[vdogg]

John Moss posted this yesterday. Quoted in it's entirety:

https://m.facebook.com/story.php?story_fbid=1501805579872500&id=100001292181948

Arena update-

1. Clerk of the Circuit office closed today without the recording of the Arena loan closing per terms of the agreement.  

2. To officially terminate the agreement the City has to notify Mid-Atlantic Arena in writing that the agreement is terminate per the terms of the agreement.

3.  The City Manager could, but likely will not, provide that written notification any time after mid-night on the start of November 7th.

4. First opportunity for City Council to vote to or otherwise direct the City Manager to issue a termination letter is during the formal session of City Council tomorrow night.

5.  Mid-Atlantic Arena effectively has until the City Council convenes and votes to preclude termination of the Arena agreement per its terms.

6. Normally Mid-Atlantic Arena’s ability to meet the terms of the agreement would end at 4:30 pm tomorrow, when the Clerk of Circuit Office’s normally closes. The Clerk of the Circuit Court as special favor to Mid-Atlantic Arena has supposedly agreed to keep her office open as late as possible tomorrow night to support recording the loan closing per terms of the agreement.  If the latter is true, it proves the reach of special interest even undermines the integrity of the  judicial branch of government.

7. I have emailed the City Manager to outline the activities that must be concluded prior to 3:30 pm tomorrow to have a letter ready to be signed and the logistics that need to be in place to then immediately deliver the termination notification should that be Council’s direction.

8.  My desired outcome is for Mid-Atlantic Arena to honor and complete all terms of the agreement to preclude the City Council possessing the ability to direct the agreement’s termination per the terms of the agreement.  Strictly enforce the terms of the agreement independent of the outcome is what I will do, the public expects no less.

[baobabs727]

For me, this has never been about city versus city, as I've had 2 feet planted in both cities at various times in my life and have grown to admire both equally for what they are.  So I have always viewed this matter in terms of which city has the highest chance of actually landing a brand new, large, pro sports-level arena.  Clearly, Norfolk could never afford to build one even if the Council willed it. The Beach actually could afford it, but they don't want to be on the hook for the debt.  But with Virginia Beach's tourism prowess, large population base and readily available land, they are also likely the only local City with the ability to attract a privately-financed project.

So I'm rooting for VB. Big time. And I'm with Vdogg:  If they get the money together fairly soon and want to come back, let them.

[BFG]

59 minutes ago, baobabs727 said:

For me, this has never been about city versus city, as I've had 2 feet planted in both cities at various times in my life and have grown to admire both equally for what they are.  So I have always viewed this matter in terms of which city has the highest chance of actually landing a brand new, large, pro sports-level arena.  Clearly, Norfolk could never afford to build one even if the Council willed it. The Beach actually could afford it, but they don't want to be on the hook for the debt.  But with Virginia Beach's tourism prowess, large population base and readily available land, they are also likely the only local City with the ability to attract a privately-financed project.

So I'm rooting for VB. Big time. And I'm with Vdogg:  If they get the money together fairly soon and want to come back, let them.

This is a good way to look at it. While I'm tired of all the false starts, I admit the rumors about this team, that league, and mock expansions have me anxious. To see this fall short would be a major disappointment.

I'm crossing my fingers that this Election Day won't end in another heartbreak like it did last year. This could be a great step for VB and the region. 

[vdogg]

Informal session starts in 13 minutes. Hopefully we'll get a feel for how things are going to go tonight.

[vdogg]

Started an hour ago, I might have missed it. Phone wouldn't load the video.  I'll keep you posted.

Well, they've gone to closed session. Gotta wait till 6.

[BFG]

This is going to come down to the wire...

 

[vdogg]

Will be interesting to see what happens after closed session. 30 minutes and we'll know. That tweet gives me very little confidence. How do you go from all investors lined up to having no deal a few hours before the deadline? This is just ridiculous. We can't get anything big done in this city.

28 minutes ago, BFG said:

This is going to come down to the wire...

 

Read all her other tweets. They're...illuminating.

[vdogg]

 

[baobabs727]

[vdogg]

Okay, here's my best guess. There will be no formal extension tonight, however there will also be no vote on telling the city manager to terminate the agreement. This will give a de-facto informal extension, probably until the next council meeting.

[BFG]

This is getting crazy.

[vdogg]

Keep in mind it only takes a simple majority of council to table the resolution. One of the guaranteed votes for the resolution is out sick tonight, leaving John Moss by himself. It's hard for me to see them voting to cancel the deal if they are truly close. That is, if what the developer has been saying is truthful.

[baobabs727]

By now, John Moss is probably at about minute 38 of his 45 minute lecture, surely driving the Mayor and City Manager absolutely mad! Lol.

Edited November 7, 2017 by baobabs727

[vdogg]

At this point, the developer needs to come clean. Saying that they have a substantial amount is not enough, they need to provide city council with cold hard figures which are verifiable with the banks themselves. That is the only way that they will get any small extension on the deadline. If they are unwilling to provide those figures, then the deal will be dead.

7 minutes till Formal session...

[vdogg]

We did it!

 

Or not...

 

[baobabs727]

I agree.  Transparency is absolutely key here. 

Was Steve Ballard correct  in all of his assertions ?   Was he privy to ALL of the details?  Remember what I wrote earlier....

What on earth will Andrea Kilmer say relative to her most recent comments that she couldn't see or "think of anything" that would stop the deal?  I mean,  if this thing implodes,  it's going to be difficult for her to explain away such a declarative  statement... especially one made so close to the deadline 

Finally, I don't think that her not being there tonight is necessarily a bad sign.  If had a deal that big going down, I'd want to be @ my office with my team.

UPDATE EDIT:

Say wuhhh?!!?!

Edited November 7, 2017 by baobabs727