City of Virginia Beach accused of breaching arena agreement

VIRGINIA BEACH, Va. - Mid-Atlantic Arena LLC says the City of Virginia Beach was in breach of its agreement with the developer when it ended a deal to build an arena near the Oceanfront.

Last week, the Virginia Beach City Council voted to terminate the deal, saying Mid-Atlantic Arena LLC had failed to close on its loan to begin building the arena.

News 3 received copies of a letter sent from the developer's attorney and a letter City Attorney Mark Stiles sent in response.

In his letter sent November 7, attorney Samuel Meekins says Mid-Atlantic Arena LLC had in fact "closed the construction loan in accordance with the Development Agreement", adding the city chose to ignore its contractual obligations.

Meekins also said the developer stands to lose millions of dollars because of the vote to terminate the deal and would "exercise all of its rights" in response.

Letter from developer's attorney

 

 

Response letter from City Attorney Mark Stiles