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Virginia Beach council previews sale terms for VB National golf course; public hearing set
Summary
City staff briefed council on a top-ranked proposal for the Virginia Beach National Golf Course that would keep an 18‑hole public course, invest an estimated $38 million in renovations, add housing and child care, and ask the city for up to $4.3 million in infrastructure funds and a $3.6M contingency cap; council scheduled a public hearing for July 7.
Emily Archer, the city’s economic development director, told the Virginia Beach City Council that the city received nine responses to a public RFP and negotiated a term sheet with the top-ranked respondent, the Draggas Companies, that would retain a public 18‑hole Virginia Beach National Golf Course and fund substantial renovations.
The developer’s proposal calls for a $17.9 million purchase price, $1.88 million from the Virginia Beach Development Authority (VBDA), and roughly $18.4 million in private investment to produce about $38 million of total course improvements, Archer said. The plan would preserve key features (including the first tee) and give the city a 99‑year repurchase option if the course ceases being used as a public course for more than two years.
Archer also described the site history: a 2023 audit and subsequent VBDA facility condition assessment identified about $7.7 million in needed capital repairs. Under the current operations agreement, only a limited portion of receipts are available for capital work; Archer said “VBDA’s portion of the capital maintenance receipts is not adequate for the current level of maintenance needed.”
The term sheet presented to council would also allow a southern area development with up to 659 mixed housing units, including a substantial share proposed at or below 120% area median income, and a new child care facility. Archer said the developer intends no homes on fairways or greens and that “a vastly improved public golf course will be provided.” She estimated the proposal could generate roughly $3.4 million in new annual real estate tax revenue when stabilized.
On financing, Archer said the developer would undertake most private investment and requested a city contribution of $4.3 million for public infrastructure (roadway turn lanes, utility relocations and sewer) plus a contingency cap of $3.6 million. Archer described a contingency reimbursement grant mechanism tied to future realized taxes and said the developer’s reimbursement amount would be capped (the presentation listed a $10.2 million cap in cumulative future tax‑supported reimbursements).
Council members offered a mix of praise and caution. Council member Rosemary said the proposal "checks so many boxes" and called it "a real legacy project" that would restore the course and broaden housing options. Council member Jennifer Cash Barber and others praised affordability commitments and the proposed child care amenity.
Other councilors pressed staff on impacts and scope. Council member Barbara said she was "a long ways away" from supporting a plan that would add 659 units on about 40 acres, raising questions about traffic, stormwater and whether the site is appropriate for that scale of residential development. Archer repeatedly noted that any residential component would require conditional rezoning, public hearings and full traffic and stormwater review through the ordinary development review process.
Council directed staff to hold a public hearing on the proposed sale July 7 and scheduled council consideration for July 14. The briefing will now move into public review and the formal planning and rezoning steps required before any sale or residential approvals.
What’s next: public hearing July 7; council consideration July 14. Staff alerted the public to a project page and materials on the city website for further detail.
