VIRGINIA BEACH, Va. (WAVY) — The developers behind a failed proposal to build an arena at the Oceanfront are looking to take their case to the Supreme Court of Virginia.
Attorneys for Mid-Atlantic Arena, LLC filed notice with the Virginia Beach Circuit Court Clerk’s office Friday of their intention to appeal a judge’s ruling last month that dismissed their lawsuit against the City of Virginia Beach. The company initially sued the city last January, seeking $165 million in damages to cover the cost of developing and financing the arena, as well as lost future profits.
Back in November 2017, the City Council voted to terminate a deal that would have brought a privately-financed 18,000 seat, $245 million sports and entertainment arena next to the Virginia Beach Convention Center. The city in turn would give over the land for free, provide infrastructure upgrades and give the developer millions in taxes generated by the arena and a portion of the hotel tax for 30 years.
The city claimed Mid-Atlantic had not met all the requirements of the agreement, specifically the financing aspect of the deal.
“The city acted in good faith,” said Judge Thomas Padrick Jr., in his ruling. “Plaintiff did what they could to get this deal closed, but there was just not enough money to close it, according to the terms and conditions contained in the deed.”
The State Supreme Court doesn’t automatically hear all cases. A hearing date has yet to be set.
“The City believes it acted appropriately at all times and that the trial court’s verdict is correct. It is unfortunate that the City will be forced to expend additional time and resources defending this case on appeal,” said Mark D. Stiles, the city attorney.