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Council hears proposal to build city‑owned parking garage at 30 Fifth Street; cost estimate $12.35 million to city
Summary
City staff presented a proposal on June 10 for a public parking garage at 30 Fifth Street in the resort area that would add 200 public spaces. The developer, Suburban Capital, would convey the land and the city would pay up to $12,350,000 from the resort parking CIP to construct the public portion of a 348‑space garage.
Kathy Warren, a city staff member presenting a resort-area parking update on June 10, told the Virginia Beach City Council that Suburban Capital has offered to convey a 0.666-acre parcel at 30 Fifth Street to the city as part of a partnership to build a parking garage.
Warren said the current proposal calls for a 348-space garage: 148 spaces to serve the developer’s hotel and 200 spaces designated as public. She said the developer would transfer the land to the city, and the city would pay construction costs not to exceed $11,200,000 plus soft costs and developer fees for a total not to exceed $12,350,000. Council staff noted that the resort parking capital improvement fund (CIP) currently has a balance of approximately $26,000,000.
Warren told council the project was first discussed in 2021, when the council adopted an ordinance directing $7,000,000 from the resort parking CIP toward development of public parking; construction pricing escalations since then delayed the project. She noted that the city currently has no public parking north of 30 First Street and that the resort area strategic action plan and a 2013 Kimley‑Horn parking strategy support more distributed public parking.
Council members asked for clarifications about carrying costs, utility relocations and financing options. Warren said the developer would initially borrow for construction and the city would pay the developer later; carrying costs (interest during construction) are not included in the $12.35 million estimate and would be additional. She said the city and developer have discussed options and are awaiting a cost estimate from Dominion Power for relocation or modification of overhead lines that must be kept at least 10 feet from the garage structure.
Council members also discussed pay‑as‑you‑go options versus a lump‑sum payment at the end of construction, the potential for shared, gateless systems to allow flexible use of spaces, and the difference between precast and cast‑in‑place construction in per‑space pricing. No formal council vote or ordinance modification occurred at the June 10 briefing; staff noted that council could modify the 2021 ordinance to raise the council-directed contribution from $7,000,000 to the proposed $12,350,000 if it wishes to proceed.
