VIRGINIA BEACH, Va. (WAVY) — The Virginia Beach City Council is set to get an update on the Sports Center project before its upcoming vote on the terms of agreement with the facility’s operator.
The multi-million dollar deal was approved back in the summer, and it’s not expected to open until 2020.
On Tuesday, the city council will get more information about the deal during a presentation.
The city said a new center will attract outside visitors and help fuel the economy.
A company called Eastern Sports Management will be responsible for operating the center and it won’t come cheap.
According to the deal, the city will pay a management fee to Eastern Sports Management before the facility is even finished.
During the first year of construction, the fee is $15,000 a month.
After a year, the fee bumps up to $20,000 a month, and once the center is open, the management fee will be $30,000 a month.
There’s also a fluctuating incentive fee based on gross revenue, but the city will get some of that money back depending on how much the center brings in.
Officials are confident the center will put Virginia Beach on the map in the sports industry, and that means looking the part.
Eastern Sports Management will spend an estimated $4.2 million for furniture, fixtures, athletic equipment and audio equipment.
10 On Your Side was told there will be 12 basketball courts, which can be converted for NCAA tournaments, 24 volleyball courts, and 9 indoor field hockey courts.
The final proposal also includes an indoor track and seating for 5,000 spectators.
Eastern Sports Management estimates the city will receive about $56,000,000 over 20 years for their initial investment.
If approved, the agreement can be extended up to 10 more years.
City council will vote on this next week at their December 4 meeting.
To see a summary of the terms, click here.