Atlantic Park project has ‘made it,’ official reveals
After several years of planning, development finally moving forward
VIRGINIA BEACH — After more than five years of planning and negotiating, with much of it during the pandemic, the city’s largest public/private partnership project is finally going to become a reality.
“We have made it with Atlantic Park,” Taylor Adams, Virginia Beach’s director of economic development, told members of the city’s Development Authority at a meeting Tuesday morning.
No formal announcement has been made yet, but Adams said the financing for the surf park project, of which Pharrell Williams is a partner, is in place and the deal is in the process of closing. An announcement will be made soon, he said.
Adams said “as closings are happening,” he wanted to make sure the Development Authority, which owns the land where the project will be built, was aware.
“I don’t want to get ahead of any announcements that are coming here,” Adams said. “I just want to tell you that it’s an exciting day in the city of Virginia Beach.”
Several city officials and representatives of the developer, Venture Realty Group, did not respond to messages from The Virginian-Pilot on Tuesday. Councilman Worth Remick referred all questions to the developer. Adams declined to comment when approached after the meeting.
Last week Mike Culpepper, a principal of Venture, said the closing was pending the completion of the bond sales.
For 25 years Virginia Beach searched for the right developer to transform the old Dome site at the Oceanfront into a vibrant entertainment hub. Ideas for a dinner theater, an ice skating rink and a Ferris wheel fell to the wayside.
But in 2019, after reviewing several proposals, the City Council inked a development deal with Venture Realty Group for a surf park, a live entertainment venue, restaurants, offices and
apartments on three city blocks in the heart of the resort area.
Williams’ star power and enthusiasm for his hometown undoubtedly played a role. He made a surprise visit at the City Council meeting a week prior, encouraging members to support the agreement.
In the following years the City Council granted the developer several extensions to secure financing. During that time Venture Realty had to wade through the effects of the coronavirus pandemic on construction costs.
The city originally agreed to chip in $100 million toward Atlantic Park. That figure has since grown to nearly $140 million, including nearby land acquisitions.
Virginia Beach is funding 36% of the $342 million project, according to Atlantic Park financial documents.
Venture Realty Group needed to secure private financing for construction, and over the last several weeks the Virginia Small Business Financing Authority and the Atlantic Park Community Development Authority have been selling a combined $121 million in bonds on behalf of the developer.
One of the most anticipated aspects of the project is the surf park, which will feature machine-generated waves that can reach as high as 6 feet. The lagoon will cover about 2.6 acres. Spectators will be able to watch from a beach area, where cabanas can be rented, or from the adjacent commercial building, where retail shops and restaurants will be built. It’s scheduled to be completed by the end of 2024.
Atlantic Park’s entertainment center is another major component. It will be located on Arctic Avenue between 19th and 20th streets. The three-story venue will fit 3,500 people, with an outdoor amphitheater that will accommodate 1,500 people.
The city will own the music hall. Live Nation will operate it.