Mayor Will Sessoms confirmed that a deal had been reached with United States Management (USM) to build a $220 million dollar arena in Virginia Beach at the State of The City Address on Wednesday, March 15.

USM is proposing a 18,000-seat arena across from the Convention Center with plans to borrow $150 million and contribute $70 million in equity to pay for the project.

“Picture March Madness two years from now,” Mayor Sessoms said. “Wouldn’t it be amazing to have that happening right across the street at our new Virginia Beach arena?”

Sessoms also made mention at the Address that there is “a real possibility now” of hosting events such as the NCAA basketball tournament, as well as NBA and NHL-ready core features to enable future support of collegiate tournaments and a professional sports franchise.

Councilman Bob Dyer of the Centerville District, along with other council members in attendance, was looking forward to moving on with the Virginia Beach Arena deal.

“This is a tremendous opportunity for not only tourists to come in, but for residents to enjoy a new amenity at the beach,” Councilman Dyer said.