Norfolk casino will likely be built in one phase; newly obtained letters shed light

NORFOLK — The developers of the planned HeadWaters Resort and Casino said they received contradictory guidance from Norfolk officials on plans to move forward with the project, leading them to pull a development application from city review last month.

Newly obtained letters sent by Norfolk officials to the casino applicants detail what the city said about the two-phase construction approach the developer publicly announced in June. A March 1 letter shows the city laying out an approval process for a two-phase construction approach, while a July 14 letter says the current agreement would not allow for such a plan.

A Friday statement from a Norfolk city spokesperson said though there have been talks about an amendment to the original plan to allow a phased approach, the council would have needed to approve it and nothing was ever amended or finalized. But HeadWaters released a statement in July explaining the two letters resulted in conflicting expectations and created confusion about what the city wants from the applicants.

In the March 1 letter, then-City Manager Larry “Chip” Filer laid out a “proposed sequence of actions” which could lead to the sale of the necessary land by Harbor Park baseball stadium for the new casino. The letter, obtained through a Freedom of Information Act request, provides a roadmap for the potential approval of a two-phased project.

A general timeline also was suggested, indicating if by April 10 the casino applicants could provide architectural renderings, a site layout and building elevations for the first phase and concepts of what the second phase of construction would look like, the plans could be reviewed by Planning Commission at the May 25 meeting.

“On this schedule, I believe Council could vote as early as June on the disposition of property with closing in July,” Filer wrote in the letter.

In mid-June, HeadWaters released new renderings outlining plans to build the casino and resort complex in two phases. The first phase would consist of a 90,000 square-foot “initial facility,” with a 45,000 square-foot casino floor, complete with a sports bar, restaurant and lobby, as well as a parking deck with 1,200 parking spaces. Phase two would consist of the hotel, pool, spa, entertainment venue and other resort amenities. The proposal, which scrapped two previous plans to operate a temporary casino while the permanent structure was built, was presented July 10 to the Architectural Review Board.

The city sent another letter July 14, this time by new City Manager Patrick Roberts, who was appointed after Filer’s sudden retirement. He emphasized the current impossibility a two-phased development approach.

“While we acknowledge prior communication which contemplated a phased design approval process, we have no such amendments to our agreements which would allow for this,” Roberts wrote.

“Further, the city will not consider amendments to our agreements that would risk the final project being anything less than what was agreed upon in 2020. If you wish to proceed to closing, you must work toward obtaining the city’s approval of the entire project that complies with the requirements of our agreements.”

The casino plans had been set for a second review by the Architectural Review Board on July 24 and the Planning Commission July 27. However, on July 24, the developers withdrew their development application from review at the behest of the city. Casino and city representatives instead met July 25.

Few details about the meeting have been released by either the city or the casino developer, including a list of meeting attendees.

The city and HeadWaters issued a joint statement the day of the meeting calling the meeting “productive,” stating that both sides “will work diligently together in the weeks ahead to lay out a plan and schedule to develop the project as quickly as possible.” It also included comments about both groups’ dedication to the project from MayorKenny Alexander and Robert Gray, Chief of the Pamunkey Indian Tribe.

Also in the July 14 city letter, Roberts requested a written update from the tribe on its gaming operator application with the Virginia Lottery.

A spokesperson for the Lottery said the agency does not release information about application materials from casinos.

Ian Munro, 757-447-4097, [email protected], @iamIanMunro

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