VIRGINIA BEACH, Va. (AP) - Virginia Beach will provide $18 million for the renovation of the 86-year-old Cavalier Hotel.
The funding includes an $8.2 million economic development grant to developer Bruce Thompson. The hotel's renovation is part of a $259 million development project that Thompson has proposed for the site.
Thompson also will receive $5 million in real estate tax rebates over time.
The city also plans to spend more than $2 million to acquire public easements on the lawn and entrance to the hotel to protect it from development.
Media outlets report that City Council approved the funding Tuesday.
Councilman Bob Dyer was the only council member who opposed the financial package. He cited a longstanding opposition to public-private partnerships.
Mayor Will Sessoms says the Cavalier is a city icon.