VIRGINIA BEACH, Va. (WAVY) - A one percent increase of the hotel tax will be proposed Tuesday to help finance a large arena in Virginia Beach.
According to the presentation, the increase would raise the hotel tax to 14 percent, funding $2.8 million per year toward to project.
Another suggestion is adding a $2 fee to each future ticket to help pay off debt incurred.
Last week, Beach Mayor Will Sessoms announced he will be asking the state for $150 million to fund the arena, $70 million of which which would go toward initial construction costs and $80 million of which would go toward moving a professional sports team to the Beach. Gov. Bob McDonnell has met with an owner of the Sacramento Kings, who are also looking at relocating to Kansas City or Seattle, among other options.
Comcast-Spectacor, a Philadelphia-based company anchoring the project, announced in August it would operate the arena for 25 years and that it is committed to finding a professional sports team to utilize the arena.
Tuesday, they will announced they are "actively pursuing" finding a sports franchise to anchor the arena and that they are requesting $35 million in arena capital costs. The city's contribution to the arena is now slated to be more than $240 million, the state's $150 million and Comcast-Spectacor's $35 million.
According to the presentation, city council is expected to respond to Tuesday's financial presentation by Dec. 11.
Stay with WAVY on air and online for more on this developing story.
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