VIRGINIA BEACH – The City Council was briefed Tuesday on a proposed $62 million apartment and commercial development near Town Center that would require a city investment of $10 million.
The project, called CityView Two, would involve three phases off Constitution Drive, featuring two apartment towers and a parking garage, an office building, and a mixed-use hotel tower. The developer, Ripley Heatwole, would invest $62 million and ask the city to dedicate incremental real estate tax revenues from the project over 25 years that would be capped at $10 million.
Councilwoman Rosemary Wilson said during the briefing that the city should have a policy for projects that receive that type of gap funding. Councilman Bob Dyer also expressed hesitancy about helping finance the private project.
“I just think we have to proceed gingerly with these, and realize we’re setting some precedent that could come back to bite us,” Dyer said.
Councilman John Moss, an opponent of public-private partnerships, was absent.
The first phase of the development consists of a $14 million six-story mixed-use tower with a 13,500 square feet of office space and 64 apartments. A $22 million eight-story apartment tower of 138 units and an $8 million seven-story parking garage are also part of the plan. The garage would hold 481 spaces and be owned by the developer but be available to the public.
The second phase is a $5 million three-story office building with 24,000 square feet. The third phase is a $12.6 million hotel tower with 110-120 rooms and 4,000-5,000 square feet of office space or retail.
Vice Mayor Louis Jones said the development’s residents would spend money at Town Center — generating revenue that could be used to support schools and public safety. Such vertical developments, as opposed to sprawling community developments, are the future of the city’s growth, he said.
“And fortunately, we have a spot right there in Town Center where that can happen,” Jones said.
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