Council approves $40K for arena study

VIRGINIA BEACH, Va. (WAVY) - Officials with the City of Virginia Beach have confirmed $40,000 in city money will be spent for an independent analysis of a plan for a proposed arena.

According to Marc Davis with the city, the analysis will check the validity of the economic impact study compiled by an Old Dominion University professor using data given by Comcast-Spectacor, the company pitching the arena project to the city.

In a presentation to city council in August, Comcast-Spectacor's Peter Lukko touted the project could bring more than 1,200 jobs to the area, generate $98 million in revenue during its first year, host 200 events annually and bring 1.4 million visitors to the arena every year. The figures were based off of an economic impact study conducted by ODU economics professor James V. Koch.

Click here to read the study.

Last month, Beach Mayor Will Sessoms announced the city is in no hurry to finalize plans for the 18,500-seat arena. City officials were criticized for approving $900,000 in contracts for research and planning of the arena. The economic development authority has already spent $675,000 of that amount.

According to a city council presentation, the independent analysis would compare the reasonableness of the revenue potential ($98 million) with and without a professional basketball team.