VIRGINIA BEACH — The City Council on Tuesday agreed to provide $24 million for two public parking garages on the former Pembroke Mall property.
The garages will cost $22 million plus an additional $2 million to cover interest on the construction loan.
Councilman Chris Taylor was the lone “no” vote. Councilwoman Sabrina Wooten abstained due to a conflict of interest with TowneBank being a service provider for the project. Wooten has business dealings with the local bank, according to her written disclosure.
Pembroke Square Associates, the development company led by the Olivieri and Napolitano families, is transforming the mall property across the street from Town Center into a mixed-use project dubbed Pembroke Square. It will feature a hotel, a senior living complex and apartments. Several existing anchor retailers currently operate on the property and will remain.
Virginia Beach will pay for a total of 745 parking spaces at a cost of $32,750 per space. The city’s Development Authority will own the garages when completed. Parking will be free for the public.
Bonds will be issued to pay for the parking decks, and money from the General Fund will pay the debt service.
Pembroke Square will become a special service district to help pay for the garage construction and maintenance, with property owners paying an additional surcharge of 45 cents per $100 of assessed value on top of the standard citywide real estate tax, which will take effect in July 2025.
In 20 years, when the debt is paid off, the project will have generated $7 million in tax revenue, according to the city.
Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com
