2 days ago
More public parking may be coming to Virginia Beach Oceanfront
VIRGINIA BEACH — The city is poised to partner with a hotel developer on a new parking garage in the resort area's northern end as the need for public parking at the Oceanfront continues to grow.
City Council first considered the project in 2021, but the rising cost of construction at that time put the plans on hold. Now, it's back for consideration and the terms of the deal have changed, according to Kathy Warren, director of planning and community development.
Suburban Capital, a Virginia-Beach-based company that recently developed the Hyatt Place hotel on 36th Street and Atlantic Avenue, would give land to the city to build the garage, Warren told the council on Tuesday.
The .66-acre lot on the west side of Atlantic Avenue at 35th Street is a surface parking lot currently used by Hyatt Place hotel guests. The city assessment of the land is $3.5 million.
Under the 2021 proposal, Suburban Capital would have continued to own the land and some of the parking spaces, and the Virginia Beach Development Authority would own 200 public spaces.
Under the new proposed deal, the Development Authority would own and manage the garage, which would have 348 spaces — 148 spaces for hotel guests and 200 spaces for the public.
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The entire project is expected to cost about $12 million. Suburban Capital would pay $590,000 and obtain a loan to build the garage. The city could also be on the hook for the interest on Suburban Capital's loan and the cost to relocate Dominion Energy power lines — an amount to be determined, Warren said.
Council members Worth Remick and Stacy Cummings said they want to avoid paying interest on the loan and would rather the city make payments while the garage is being constructed.
City Council could vote next month to increase the original $7 million set aside for the project to $12.35 million. The garage construction could begin this fall and be completed by next summer, Warren said.
The city's Capital Improvement Program fund for resort area parking has a $26 million balance, according to the city.
There are no public parking lots or garages north of 31st Street. The city has 358 spaces in surface lots; five garages with 2,613 spaces; and 644 metered street spaces south of 31st Street.
'Our goal is to have public parking every five blocks,' Warren said.
In 2021, the city approached Suburban Capital about partnering in the parking garage on their parcel, and the City Council directed $7 million toward it for 200 public spaces. But construction prices were escalating, and the project was put on hold.
Hyatt Place opened in 2022 and replaced the Belvedere hotel, one of the city's original motor lodges. Suburban Capital, owned by Chris Perry and Tim Stiffler, invested $28 million in Hyatt Place, The Virginian-Pilot has reported.
Proceeds from public parking fees are funneled into a parking enterprise fund which is used to cover the costs of maintaining and improving parking facilities.
'This is almost an obligation,' Mayor Bobby Dyer said. 'Parking is a major problem for us. This is a step in the solution.'
Stacy Parker, 757-222-5125,
