Neighbors of The Cavalier property ultimately tipped the scale at Tuesday’s City Council meeting by expressing their support for the project, after a slew of other residents spoke out against it.
The council passed an ordinance to increase gap financing for The Cavalier, and they authorized the city manager to move forward to pursue a grant to reroute Atlantic Avenue around the hotel’s redevelopment.
The Virginia Tourism Corp., a state agency, next will review the financing plan.
Several people stood at the podium and said they were against any more public money funneling back to the project. Cavalier Associates LLC, led by developer Bruce Thompson, is restoring the historic Cavalier Hotel and building two new hotels on the Oceanfront side of the 21-acre property. The company was asking for an additional $6.5 million in gap financing from the project’s sales tax revenue, on top of an already-approved $18 million.
