VIRGINIA BEACH, Va. — The highly anticipated surf and entertainment park in Virginia Beach could cost the city much more than what it originally anticipated.
Staff working on the Atlantic Park project approached Virginia Beach City Council on Tuesday asking for an additional $12.5 million.
"I'm not making excuses but I'm citing reality, you know, the challenges that we've had with COVID and with inflation and everything are changing the numbers. It was a very unsteady playing field," said Mayor Bobby Dyer.
Venture Realty Group announced in March that it had closed on developing the $335 million surf park and entertainment venue backed by Virginia Beach native and Grammy award winner Pharrell Williams.
Virginia Beach is also taking part in building the venue, pledging $140 million dollars toward completing the project. However as construction has started, the costs have apparently gone upwards: the number is now closer to $152.6 million.
"In terms of Atlantic Park, I agree in terms of transparency: we need to see if the citizens, what their feedback is putting this in the reconciliation process," said Sabrina Wooten, District 7 Council member.
Virginia Beach City Council members appeared split on the decision. If approved, the money would come from the tourism investment program. This is tax money generated by people who eat, shop, and sleep in Virginia Beach.
13News Now asked a few residents what they thought, and received mixed opinions.
"I think it's great, everybody likes getting in the water year-round, and I think people would come here just for that," said one man.
"We are talking millions of dollars. Why can't that go to education or feeding the hungry?" questioned one woman.
The increased costs would not impact Virginia Beach's general fund or real estate taxes. The $12.5 million could be used for underground utility work and general interior finishes.
Virginia Beach's City Council is set to vote on the proposed budget by next Tuesday.