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A proposed hotel tax hike in Virginia Beach is up in the air, and so is a decision to build a sports stadium, which is what those extra tax dollars might fund.
The tax increase is included in a draft report that is expected to be presented to the City Council Tuesday. With it, hotel tax would be increased by 1 percentage point to 14 percent.
That could help lessen the financial burden of building an 18,000-seat arena near the oceanfront. Though lawmakers are hoping for a return on their investment that the stadium would attract an NBA or NHL team to town.
Sports and entertainment company Comcast-Spectacor has agreed to pay $35 million toward the arena's construction costs.