City Council greenlit selling the Virginia Beach National Golf Club and nearby public land to a developer who would improve the course and build 659 units of for-sale housing.
The sale might take a year to close.
The 9-2 vote on Tuesday came despite Councilmember Barbara Henley's opposition. The course is in Henley's district, and she had moved for a 90-day deferral with the support of Councilmember Worth Remick. Henley said the public raised concerns the city could answer by delaying.
They were outvoted, however, moments before the vote to sell as citizens in the chamber grew upset and interrupted discussion. The sale required a supermajority of the 11-member council, meaning at least nine votes.
Dozens of citizens spoke before the vote, including people who were critical of selling the course and the process that led up to it. Others supported the sale, speaking about the developer’s track record and the need for lower-cost housing.
At times, Mayor Bobby Dyer asked those in a crowded council chamber to be civil.
Council backed a compromise resolution suggested by Councilmember Jennifer Rouse. It would require the developer to commit to the number of affordable housing units their project would include before seeking approvals for housing.
“And I did that in my view as a compromise to try to get some of the feedback that I'd heard about concerns about affordability,” Rouse said. “We want to know what actually will that look like.”
According to the city, Dragas next needs to file a rezoning application for the proposed housing. If they submit the application by Sept. 1, it could be heard by the planning commission in November and council in December.
The city had rescheduled Tuesday’s vote from last month after an error in a public notice that described the properties. A revised summary says 341 acres are being declared surplus.
The Dragas Companies had pursued the property through an unsolicited proposal, but the council last year directed the city to seek other proposals. Earlier this year, the city selected the Dragas Companies and partners following a request for proposals to take over the course. Officials have said Virginia Beach National faces millions of dollars in maintenance.
The Dragas Companies plan would reconfigure part of the 18-hole course with eight new or modified holes. More than half of the housing would be priced for people at or below 120% of the local area median income. A childcare center is also proposed.
The developer would pay $17.9 million for the land, which would be used for course improvements, with another $1.8 million from the Virginia Beach Development Authority and an additional $18.4 million in private investment.
“You would be partnering with a developer with a proven track record of meeting the market where it is,” Helen Dragas, president and CEO of the Dragas Companies, said during the public hearing. “We've delivered thousands of homes to working families for nearly six decades.”
The city would cover $4.3 million for infrastructure, and more money would be planned for contingencies, including $3.6 million from the city.
A group called Friends of VB National has fought the sale. Members gathered last week at Central Library to advocate for delaying or defeating a vote to sell.
Venkat Eleswarapu from the group has criticized the financing, saying the city’s projections don’t take into account the cost of providing services for new development. On Thursday, he also criticized reinvesting the sale proceeds back into the course.
“So the city is not getting anything,” he told WHRO. “The taxpayers are not getting anything. Essentially, they're giving away 350 acres of land for free.”
On Friday, plaintiffs in a federal lawsuit fighting the project sought to block any transfer of the land. Attorney Suzanne Richmond is representing plaintiffs SFF Conservation Initiative and Lisa Clarkson, who sued over the project, alleging the city isn’t complying with the federal Clean Water Act and that two eagles’ nests could be disturbed, among other concerns.
The plaintiffs requested a preliminary injunction, asking a judge to maintain “the status quo” while the case proceeds.
The city on Monday argued in a filing against the request and criticized the plaintiffs’ claims.
“It mischaracterizes the relevant facts and applicable law,” the response said.
As of late Tuesday afternoon, the court had not issued an order.
