New details emerge for Virginia Beach’s Atlantic Park project: A giant lagoon, bungalows and more

VIRGINIA BEACH — Surf camps. Virtual reality sessions. Cabana rentals. Bungalows for overnight stays.

Those are a few of the experiences to be offered at the forthcoming surf park on 19th Street at the Oceanfront — in addition to on-demand waves as high as 6 feet.

After more than five years of preparation, this surfing paradise is getting closer to becoming reality. Planning documents obtained through public records requests provide new insight on what the development will bring to the Oceanfront.

The sale of $121 million of bonds to help fund the Atlantic Park project — where the surf park will be the centerpiece — is progressing, with the deal between the city and private Virginia Beach development company Venture Realty Group on the cusp of closing.

Mike Culpepper, a principal with Venture Realty Group, said this week that a public announcement is imminent pending the completion of the bond sales.

The bond documents along with a surf park feasibility study, commissioned by the developer, include the financial projections and some of the potential tenants of the adjacent commercial building.

Atlantic Park is the city’s largest public-private partnership to date with Virginia Beach funding 36% of the $342 million project, according to the documents. Grammy-award-winning performer Pharrell Williams is a partner in the project.

“It’s big time,” said Councilman Worth Remick, who represents the Oceanfront district where Atlantic Park will be built. “It’s a real plus to the resort offering.”

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2.6-acre surf lagoon

Atlantic Park will be built on land at the Oceanfront that has sat vacant for nearly 30 years. It was the former home of the city’s civic center dubbed the “dome” that was demolished in 1994. It will feature an entertainment venue, surf park, residential, retail and office space.

An aerial view of Virginia Beach's old Dome site as seen Wednesday, Aug. 12, 2020. The city is under negotiations to purchase the land on the far right that is currently utilized by Dominion Energy for its Atlantic Substation. (Stephen M. Katz/The Virginian-Pilot)

The surf park will consist of the surf lagoon and surrounding beach area on approximately 4.3 acres of land. The lagoon will cover about 2.6 acres. It’s scheduled to be completed by the end of 2024.

The developer has made a down payment and the initial installment payment for the surf park equipment, developed by Wavegarden, according to the bond documents. The parts will be shipped in containers from Spain to Norfolk with the first stage arriving in June.

Approximately 200,000 people are forecast to visit the surf park each year. More than half of them will be spectators. The total surf park revenues are expected to exceed $12 million, according to the project’s feasibility study.

The surf park is expected to be capable of generating up to 900 waves per hour, with heights that can be controlled in real-time and can range as high as 6 feet.

It will be able to accommodate between 20 to 40 surfers at a time, and rates will likely range from $89 per hour to $159 per hour, depending on wave size and season, according to the study.

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Other offerings

Cabanas will be available to rent for the day and bungalows are being designed for overnight lodging. Customers will be able to buy photos and videos of themselves catching waves.

Virginia Beach-based Wave Riding Vehicles surf shop will offer surf lessons and camps as well as rentals, repairs and sales. Owner L.G. Shaw said details are still being worked out, but the plan is for surfers to be able book a session online before arriving.

Shaw is excited about the project moving forward soon.

“It’s the catalyst that we’ve needed for a long time at the Oceanfront,” he said.

Venture Realty Group is currently negotiating tenant contracts for the commercial units that will overlook the entertainment venue and the surf park. A company that provides location-based virtual reality experiences has signed a lease, according to the bond documents.

Other potential tenants include a Mexican restaurant curated by an internationally-recognized culinary director, a high-end modern steakhouse, a local restaurant serving authentic Filipino cuisine and a regional gourmet grocery.

The planned entertainment venue at Atlantic Park will face east and will be located on Arctic Avenue between 19th and 20th streets at the Virginia Beach Oceanfront. (Courtesy of Venture Realty Group)

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Financing details

Financing of Atlantic Park is highlighted in a memo provided by the Virginia Small Business Financing Authority and the city.

The city is contributing more than $122 million, which includes $25 million for offsite improvements, $6 million for streetscape improvements, $44 million for parking garages. An additional $48 million has been allocated for the entertainment venue, according to the city.

Virginia Beach also appropriated $13 million for land acquisitions around the Atlantic Park site.

Additional funding for the project will come from a two-part bond transaction. The Virginia Small Business Financing Authority and the Atlantic Park Community Development Authority are selling a combined $121 million of unrated revenue bonds on behalf of Venture Realty Group. Once the bond sales are complete, and the closing documents are signed, construction will begin.

Live Nation, which will operate the entertainment venue, will contribute $5 million, and banks loans will also help pay for construction.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com