VIRGINIA BEACH, Va. — In a Tuesday evening vote, Virginia Beach City Council members voted to chop ties with the corporate managing the Virginia Beach Sports Center. 

All however council member Sabrina Wooten voted in favor of terminating the town’s contract with Eastern Sports Management, the operators of the sports activities heart.

“The ordinance to appropriate fund balance of the tourism investment program, the TIP fund and authorize the city manager to execute the settlement transition and termination agreement for the Virginia Bay Sports Center,” stated Vice Mayor Rosemary Wilson.

Now, the town is on the hook for greater than $6 million. It may even take over the power on November 30. 

The determination got here after a briefing with members final week that went via an audit carried out in February. It revealed how a lot cash the venue has made since opening. 

RELATED: City Council members could vote to end contract with Virginia Beach Sports Center management, would cost $6M+

The $68 million facility opened on the Oceanfront in 2020.

Now, shifting ahead, the town will use cash from the Tourism Investment Program to allocate cash. More than $4.6 million to pay for furnishings, fixtures and pay-off gear on the heart. 

$1.5 million will go in the direction of accrued bills, corresponding to administration charges, money advances, accounts payable, and unpaid gate receipts. 

The metropolis additionally used funds from TIP to finish the acquisition. 

During the briefing on Tuesday, metropolis directors stated they really useful members vote to finish the contract with Eastern Sports Management. They mentioned the audit that reported operational losses and points with the corporate’s monetary statements, amongst different issues.

Convention and Visitor’s Bureau Director Nancy Helman stated due to points — such because the COVID-19 pandemic, underperforming programming and gross sales, rental waivers, and different money movement issues — the operator stated it might not transfer ahead beneath the present working and administration settlement.

With Virginia Beach formally taking on the sports activities heart in lower than two weeks, City Manager Patrick Duhaney stated they’d search for an interim operator after which begin the formal request for proposals course of.