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  • Virginia Beach Development Authority will purchase land owned by Norfolk...

    L. Todd Spencer/The Virginian-Pilot

    Virginia Beach Development Authority will purchase land owned by Norfolk Southern that has been used as a Dominion Energy substation off 18th street adjacent to the Dome site development project at the oceanfront. Photo taken Aug. 8, 2020

  • Virginia Beach Development Authority will purchase land owned by Norfolk...

    Stephen M. Katz/The Virginian-Pilot

    Virginia Beach Development Authority will purchase land owned by Norfolk Southern that has been used as a Dominion Energy substation. As seen Wednesday, 12, 2020.

  • An aerial view of Virginia Beach's old Dome site as...

    Stephen M. Katz/The Virginian-Pilot

    An aerial view of Virginia Beach's old Dome site as seen Wednesday, Aug. 12, 2020. The city is under negotiations to purchase the land on the far right that is currently utilized by Dominion Energy for its Atlantic Substation.

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Staff mug of Stacy Parker. As seen Thursday, March 2, 2023.
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Plans to build a surf park and entertainment center on the old dome site at the Oceanfront are on track despite the pandemic — and some concerns on city council.

In an interview this week, the developers said they are finalizing a concept plan.

“We are feeling very positive,” said Mike Culpepper, managing partner of Venture Realty Group, a Virginia Beach-based real estate company that has teamed with music and fashion icon Pharrell Williams on the $325 million project dubbed Atlantic Park.

“By the end of the year, we will be in full design mode.”

Atlantic Park will include apartments, shops, restaurants, offices and parking garages on 10 acres between 18th and 20th Streets in the resort area. The city will invest $95 million from its tourism tax fund for parking, public areas and the entertainment venue.

The developers will lease the land, most of which is currently surface parking lots, for $1 a year from the Development Authority, which owns the property.

The deal is currently reaching the end of the “due diligence” phase, during which the developer must show the Development Authority that it’s been working toward securing financing for the project.

The deadline is Sept. 23. At that time, the city will likely vote to approve the plans or terminate the development agreement — unless both parties agree to an extension.

Councilmen Guy Tower and Louis Jones are liaisons to the project and have been meeting regularly with the developers. Tower, who represents the resort area, said he has had some concerns about the pandemic delaying or otherwise impacting the construction of the entertainment venue. The developers, however, have reassured them that won’t be an issue.

“The live entertainment industry is well-financed and well-funded,” Tower said. “They can weather the storm.”

Deputy City Manager Ron Williams said he anticipates moving into the next phase of advancing construction plans and the budget this fall.

The city is currently negotiating to buy a swath of land on 18th Street between Pacific and Arctic Avenues for the project. The land is owned by Norfolk Southern and used by Dominion Energy for its Atlantic substation.

Virginia Beach Development Authority will purchase land owned by Norfolk Southern that has been used as a Dominion Energy substation. As seen Wednesday, 12, 2020.
Virginia Beach Development Authority will purchase land owned by Norfolk Southern that has been used as a Dominion Energy substation. As seen Wednesday, 12, 2020.

That parcel became a necessary piece of the puzzle last year when the city couldn’t strike a deal with Virginia Beach United Methodist Church to buy some of its land on the east side of Pacific Avenue.

In November, the city council approved using $9 million from the Tourism Improvement Program fund to acquire additional land for Atlantic Park. The city has been negotiating on the substation property for months.

Dominion Energy spokeswoman Bonita Harris said this week that the power company is working with the city to relocate its infrastructure.

A preliminary plan for Atlantic Park shows the $30 million entertainment venue on the south edge of the project area, adjacent to the substation property. It will be owned by the city and operated by Oak View Group of Los Angeles.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com