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Virginia Beach arena update
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ODU1986 Offline
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Post: #31
Virginia Beach arena update
So this arena is largely privately funded with the developer putting in $ 40 million of equity. If the arena fails, that $40 million is lost.

My understanding is that the developer will get some very sweet tax advantages to make the deal work, but he will still need significant revenues to cover debt and operating expenses. And i would say the projected revenue streams look suspect without a major long term tenant.

So what conclusion might you come to in that scenario?


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(This post was last modified: 05-07-2017 09:37 AM by ODU1986.)
05-07-2017 09:34 AM
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AdoptedMonarch Offline
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Post: #32
RE: Virginia Beach arena update
(05-07-2017 09:34 AM)ODU1986 Wrote:  So this arena is largely privately funded with the developer putting in $ 40 million of equity. If the arena fails, that $40 million is lost.

My understanding is that the developer will get some very sweet tax advantages to make the deal work, but he will still need significant revenues to cover debt and operating expenses. And i would say the projected revenue streams look suspect without a major long term tenant.

So what conclusion might you come to in that scenario?


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That some bankruptcy lawyers will be busy sometime in the foreseeable future? And that some taxpayers will be given the opportunity to "invest" in this dream of an east coast sports Mecca sometime in the slightly more distant future?
05-07-2017 09:56 AM
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ODU1986 Offline
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Post: #33
Virginia Beach arena update
Tells me the developer is confidant he's not going to lose his $40 million. There's more in play here than what it appears.


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(This post was last modified: 05-07-2017 10:08 AM by ODU1986.)
05-07-2017 10:08 AM
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BigBlue23 Offline
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Post: #34
RE: Virginia Beach arena update
Tells me some people refuse to take risks. The amphitheater was a project people opposed. Said it would t work. People opposed the Hilton at 31st street. Thy said "save the park". This tells me that people quickly forget that anything of note carries varying degrees of risk with it.

I for one am glad that it is coming and I expect success.
05-07-2017 10:28 AM
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AdoptedMonarch Offline
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Post: #35
RE: Virginia Beach arena update
Or, as HeadsetGuy pointed out in post #28, there were far better ways to go about it -- better placement options, better traffic options, the lost opportunity of light rail, the need for better community buy-in,etc.

I don't deny that are many smart and wealthy people with a true vision for what will work in our community. There also are any number of people with grandiose ideas that never should be given the chance to undertake foolish development, which necessarily will displace other, better options.

I don't pretend to know on which side of that ledger the V.B. Arena will ultimately land. I hope it is a success, and look forward to one day attending an NCAA regional event (even if I didn't care about a single one of the teams). But what I've seen recently (risk-averse guy that I am) is a number of political, financial and public-relations missteps that are making success much more of a challenge.
05-07-2017 12:08 PM
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Monarchblue Offline
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Post: #36
RE: Virginia Beach arena update
(05-07-2017 10:28 AM)BigBlue23 Wrote:  Tells me some people refuse to take risks. The amphitheater was a project people opposed. Said it would t work. People opposed the Hilton at 31st street. Thy said "save the park". This tells me that people quickly forget that anything of note carries varying degrees of risk with it.

I for one am glad that it is coming and I expect success.
People are so negative about any new project. For those negative Nacys, What is the last major project to fail in VB? The Sportsplex, 25 years ago? Since then they have had huge successes like Town Center, 35th Street, Amphitheatre... The arena will be fine.

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05-07-2017 12:12 PM
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Monarchblue Offline
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Post: #37
RE: Virginia Beach arena update
Not sure why everyone wants to tell the private developer that is made up of some of the smartest arena companies in the business where they should have chosen to build their stadium. They had other options and chose the Ocean Front. Those who would have put the thing somewhere Central like the **** hole that is Military Circle, or rural Chesapeake are the ones who are wrong.

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05-07-2017 12:50 PM
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Monarch Blue Offline
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Post: #38
RE: Virginia Beach arena update
(05-07-2017 12:50 PM)Monarchblue Wrote:  Not sure why everyone wants to tell the private developer that is made up of some of the smartest arena companies in the business where they should have chosen to build their stadium. They had other options and chose the Ocean Front. Those who would have put the thing somewhere Central like the **** hole that is Military Circle, or rural Chesapeake are the ones who are wrong.

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Not necessarily. Virginia Beach hired the developer to build an arena in VB not in Norfolk. The developer would have been crazy to tell his client they'd prefer to build it at Military Circle. Look at it this way. If you hired a contractor to put an addition on your house, and he said I hear ya, but I think the addition would be better on your neighbor's house you'd think he'd lost his mind.
05-07-2017 01:14 PM
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bit_9 Online
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Post: #39
RE: Virginia Beach arena update
If vb hadn't made it happen I would have put money on it being at military circle.

Posted from mobile device. Hopefully it's coherent.
05-07-2017 06:06 PM
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BigBlue23 Offline
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Post: #40
RE: Virginia Beach arena update
so multiple municipalities would have maybe been in play if Vb had fallen Through? I know this is speculation and it based on ga t, but the deal couldnt be but so risky if the common train of thought was other cities would have been on board.

I am so dumbfounded by the nay Sayers in this case.
05-07-2017 06:20 PM
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