Updated September 18 at 10 AM and 3:16 PM
By James C. Sherlock
Atlantic Park is under construction as a massive new entertainment district near the oceanfront in Virginia Beachโs resort area. The centerpiece, a surf park, will be surrounded a 3,500-seat concert hall, shops, restaurants, offices, and apartments.
If it succeeds, Atlantic Park will transform the resort district of Virginia Beach and generate additional tax revenues for the city.
But the City Council early on rejected a plea from the city manager to be able to โtell them it will pay for itselfโ and never looked back. Council never asked for a city business plan, perhaps because it would have served as a rebuke as spending on the project spiraled out of control.
In 2023 city officials were forced by SEC requirements for a city bond issue to publicly acknowledge the manifest economic risks to Atlantic Park, but did so only buried in a 900+ page bond prospectus. Those risks, which led a report in Bloomberg in review of that bond issue to call Atlantic Park a โspeculative bet,โ would have ruined the story.
Here are two views of city spending. First, a slide presented to city council on May 28 of this year.

But the city borrowed the money.
A second slide below is compiled by the author from the documentation of three series of bonds issued in 2023 and 2024 which city bond authorities must repay through providing money from revenues for city appropriations:

That view shows the city at over $300 million in equity and debt for what the council slide called $153 million in city contributions.
Expensively improved city land worth $40 million is leased to the developer at a dollar a year for up to 100 years. Four hundred parking spaces that cost $30,000 each to build are also leased to the developer for a dollar a year plus contributions to a maintenance fund.
This series will tell the story of how we did it, but not why.
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