VIRGINIA BEACH(AP) -- Virginia Beach officials are considering increasing the city's hotel tax to help pay for a proposed arena.
The Virginian-Pilot reports that the proposed hotel tax hike is included in a draft report that will be presented to the City Council on Tuesday. The tax would be increased by 1 percentage point to 14 percent.
The city is debating whether to build an 18,500-seat arena near the oceanfront in hopes of attracting an NBA or NHL team to town.
Virginia Beach has been working since August with Philadelphia-based sports and entertainment company Comcast-Spectator on the possibility of relocating a pro franchise. President and CEO Peter Luukko is scheduled to make a formal presentation to the council Tuesday.
Comcast-Spectator has agreed to pay $35 million toward the arena's construction costs.