New Town Center tenants announced

VIRGINIA BEACH, Va. (WAVY) - A formal proposal of an $89 million 14-story office tower and apartment complex at the Virginia Beach Town Center was presented to city council Tuesday evening.

Hampton University and Clark Nexsen Architecture & Engineering have signed on as tenants to the Fifth Phase of the project.

Hampton University says it will bring 350 students and 55 additional classes along with renting thousands of more square feet than they already do at Town Center. Clark Nexsen will move 350 of 550 jobs from their headquarters in Norfolk to the new office tower. Norfolk Mayor Paul Fraim had no comment regarding Clark Nexsen's move.

The expansion of Town Center includes 267 apartments with 175,000 square feet of office and retail space which is currently home to a large parking lot. It would also include a public parking garage with 850 spots.

Councilman Glen Davis says he supports a plan that would bring jobs to the area.

"We can't stop the military from moving ships out," Davis said. "It is out of our control. The military may be downsizing. What we can do is look for economic opportunities to replace those jobs so the economic impact on our city is minimal."

However, councilman Bob Dyer says there are too many projects that could cost taxpayers millions on the table right now.

"We have so many commitments," Dyer said. "A possible arena, a possible convention center hotel, possible light rail... we have an ambitious agenda without the money to pay for it. We can not afford this type of venture."

The city council also discussed a brochure produced with taxpayer dollars that the city says educates voters about light rail. Following talks, council agreed to continue putting out the brochure, but decided to change some content of it.

Click here to read the proposal.

The cost of the project is $70 million in private money and $19 million in public money. Most of the public money will pay for the garage section of the project and would come from a special taxing district. According to the draft proposal, a public comment meeting is scheduled for September 18.

Council will likely vote on the project in October. If it passes, construction could start as early as February.