By Jason Skog - The Virginian-Pilot
July 3, 2001
Developer Bruce L. Thompson said Monday he will go to the city this spring with plans for a $60 million resort
complex, one of the largest private developments at the Oceanfront in decades.
"We're looking at a mixed-use project encompassing a hotel, retail, restaurant, time-share and possibly residential
units," Thompson said.
Background coverage: Beach council gives nod to 31st St. project
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The yet-unnamed development is the latest in a series of high-profile Oceanfront projects for Thompson and his
business partner, Edmund C. Ruffin, who are teaming up with the city of Virginia Beach to build a $50 million,
300-room luxury hotel/restaurant/retail complex at 31st Street.
The developers also broke ground five days ago on a $17 million hotel/time-share resort at 16th Street.
For the newest project, Thompson said he and Ruffin have spent three years and $10 million to assemble a parcel
of land between 33rd and 35th streets from Pacific Avenue to the Oceanfront. They will not seek government financial
assistance in the construction, he said.
The recent purchase of the Budget Lodge at 34th Street was the final piece, Thompson said. The Thunderbird Moter
Lodge and a vacant piece of property already have been purchased. Captain John's Crab House and the Mayflower Seaside
Apartments will be unaffected, he said.
Robert J. Scott, the Beach's planning director, stopped short of declaring the planned 34th Street project the
resort area's largest private development, but it would be close.
"I think that level of investment is certainly exciting and the kind of thing we would want to hear,"
Scott said.
Thompson's announcement is evidence that projects like the 31st Street development raise the bar for future improvements
in the Beach's aging resort area, Scott said.
"Our theory is investment begets investment," he said. "When people see signs of optimism and see
more of that is on the way, it stimulates the propensity to invest further, and I think that's what we're seeing
here."
The news of the proposed hotel project comes just one day before the Virginia Beach City Council is scheduled to
review proposed final revisions to the 31st Street agreement between the city and the developers. The council is
expected to vote on the agreement July 10.
The city already has agreed to spend up to $20 million on the 31st Street project for land acquisition and construction
of an 850-space parking garage, a portion of which will be leased to the hotel; the rest will be for public use.
Construction is scheduled to begin by Sept. 1, 2002.
The city will sell land for the hotel at Atlantic Avenue and 31st Street to Thompson and Ruffin for $3.5 million.
Originally, the city would have leased the property to them.
City Manager James K. Spore said Thompson never approached the city about public financing for the 16th Street
time-shares.
"It's a different kind of development," Spore said. "Usually when we consider a public-private partnership
it's to accomplish some objectives we can't meet independently."
Spore said the city's Investment Partnership Policy states there must be an identifiable public benefit from the
partnership.
In the case of 31st Street, the city was aiming to raise the quality of hotels along the Oceanfront, preserve open
space and increase public parking, Spore said.
The 16th Street project probably wouldn't have met those objectives, Spore said.
Thompson notes that city economic development officials initiated the 31st Street project, and the economic development
authority had spent years buying property.
"The first thing you have to realize is that the city went out looking for bids to build a four-star, first-quality
hotel to be built on the Oceanfront," he said. "So we responded to that. Initially we had envisioned
building a 168-room hotel, which would not have required nearly the public participation the project now requires."
To Spore, there are pros and cons to public-private partnerships.
"With private investment we typically can get a higher-quality project than otherwise," Spore said.
Control is another upside.
"When the public's a partner, you get approval on design, and the public has greater control over what the
project looks like and how it turns out," Spore said.
But there is a downside. Private developments are generally completed faster than those involving public money,
Spore said.
Thompson said that is true with his 16th Street project.
"It'll all be done in 12 months," he said. "From financing to opening will take 18 months.
"We built Turtle Cay (a time-shares resort) and will start and complete 16th Street in less time than it took
to negotiate and start 31st Street," Thompson said.
The $18 million Turtle Cay time-shares at 6th Street opened in 1997. The developers also own the Ramada Inn, Clarion
Resort, Best Western, Dolphin Inn, Newcastle and Comfort Inn in Virginia Beach's resort area.
Thompson and Ruffin's Gold Key/Professional Hospitality Resources Inc. has 1,600 employees and generates $65 million
in annual revenues.
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