VIRGINIA BEACH — Several residents asked the City Council at a public hearing on Tuesday to delay its decision on selling a revered public golf course to study it further and consider other options.
The council is poised to vote next Tuesday on the sale of the Virginia Beach National Club property to Dragas Cos. It’s unclear whether the council would defer the vote, though Councilwoman Barbara Henley, who represents the district that includes the land, said she wants time to review the sale term sheet.
“There’s no way in the world we’re going to be able to deal with this next Tuesday,” Henley said at the end of the hearing, adding that she wants to see all of the responses to the city’s request for proposals for the Virginia Beach National property.
The sale of roughly 300 acres at 2500 Tournament Drive to Dragas will require a super-majority vote, or nine affirmatives, of the City Council.
The Virginia Beach-based real estate developer plans to invest $38 million to renovate and reconfigure portions of the Pete Dye-designed course and to build 659 townhomes. More than half of the future Princess Anne Landing residences would be considered affordable or priced at or below 120% area median income, which for Virginia Beach is considered $129,240 for a four-person family. The proposal also includes a childcare facility and preserves 45 acres of wooded land.
“Local golfers deserve to have their Pete Dye golf course restored to world-class status,” said Helen Dragas, president and CEO of Dragas Cos., who was among 42 speakers at the hearing.
Dragas Cos.’ total investment includes the $17.9 million purchase price, plus an additional $18.4 million from the developer, and $1.8 million from the Development Authority, which was set aside for golf course improvements.
The city would also be responsible for an additional $4.3 million for infrastructure to support the project, and up to an additional $3.6 million for contingency cost overruns associated with the infrastructure elements. Dragas would be responsible for all other cost overruns, but could recoup up to a maximum of $10.2 million from the city from tax revenues generated by the project.
The project is expected to generate $3.4 million in annual real tax revenue.
The land sale is contingent on a rezoning approval for the residential aspect and other design authorizations, which could take a year, said Emily Archer, acting director of economic development.
City economic development officials began confidential discussion with Dragas‘ representatives in 2024, The Virginian-Pilot first reported. Some of the speakers at Tuesday’s hearing questioned the city process, including issues of transparency and whether Dragas got a competitive advantage.
Before the hearing began, City Attorney Mark Stiles attempted to quell the concerns that have been aired on social media in recent weeks.
“It’s not uncommon for the city to receive inquiries regarding the purchase of publicly-owned property,” and the city is not required to issue a request for proposals, Stiles said.
After a 2023 city audit determined that Virginia Beach National needed millions of dollars of work on the clubhouse and lakes, two development companies — Dragas Cos. and LM Sandler & Sons Inc. — sought publicly-available information from the city and submitted unsolicited proposals to purchase the land, he said.
The city entered into a nondisclosure agreement with Dragas in 2024, Stiles said, to protect confidential records “authorized in the City Council policy for evaluation of investment partnerships for economic development.” Any party interested in acquiring the golf course could have sought and obtain the exact same information that was provided to the Dragas Co., he said.
In 2025, the City Council then directed city staff to issue a formal request for proposal to gauge the interest of other potential bidders, he said.
The city received nine responses. Four included a residential aspect and five involved golf course operation only. Stiles said most of the respondents wanted the city to reinvest the purchase price in restoring the course or asked for significant city contributions.
The Virginian-Pilot obtained copies of all nine proposals through a Freedom of Information Act request. Portions of the documents related to contract negotiations from the four short-listed respondents were redacted because a contract has not been awarded yet, according to the city’s FOIA office.
The respondents included: L.M. Sandler & Sons; Commonwealth Golf Partners with Chesapeake Homes and Wakefield Development; Ishwarz LLC; Link Golf; Dragas Cos.; Riverland Golf Club with Franklin Group; Bishard Homes; Virginia Beach Golf Partners with Marc Leishman and advisers Jane Batten, Cheryl McLeskey and former Gov. Bob McDonnell; and Virginia Beach Golf Club, the current operators of Virginia Beach National.
Several speakers asked the City Council to slow down the sale and defer a vote on it.
Venkat Eleswarapu requested the city conduct an independent cost analysis of additional city services that will come with adding hundreds of new homes.
“Why the rush?” Eleswarapu said.
Robert Valentine said the land contains bald eagle nests that need to be protected before construction begins.
“The process should be slowed down,” Valentine said.
Several speakers were in support of the proposed plans.
“The project checks a lot of boxes,” Brad Martin said.
Carrie Lauck, an event planner, said she liked the proposal because it would enhance the club house and golf course, making Virginia Beach National a more desirable space to rent for weddings.
Dragas brought several representatives who would be involved in the project, including the course architect Tim Liddy and Century Golf Partners, the operators, to speak in favor of the plans.
The YMCA of South Hampton Roads is in talks with Dragas about partnering on the new childcare center, according to Executive Vice President Adam Kahrl. The city is also in the process of transferring the adjacent First Tee youth golf training facility to the YMCA.
Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com