Virginia Beach leaders push pause on private operation of aquarium — for now

VIRGINIA BEACH — City leaders have agreed to stop exploring the option of turning over the Virginia Aquarium to a private entity for now, according to Vice Mayor Rosemary Wilson, who with Mayor Bobby Dyer met with aquarium foundation members last week.

“We’re going to put it on pause right now and try to work together,” said Wilson.

Wilson and Councilman Worth Remick, serving as liaisons to the aquarium foundation, will ask their colleagues to support their recommendation when they reconvene later this summer.

The City Council decided last year to explore the option of private ownership of the aquarium after learning the tanks that hold the animals are deteriorating and will cost millions to repair. Two private entities, the owners of Ripley’s Believe It or Not! and Dollywood, expressed interest.

The city’s consideration of alternative facility ownership or operators created turmoil among aquarium staff and members of the Virginia Aquarium Foundation, which owns the animals. Foundation Chair Dan Peterson said in March that several employees have left the aquarium due to the uncertainty of its future. He wrote to the council asking members to “not take any direction towards possible privatization” until hearing from stakeholders.

“They want the community to have a voice in this, not just to be a council decision,” said Virginia Beach communication specialist Joel Rubin, who is working with the foundation.

Rubin was not at last week’s meeting but said a foundation board member informed him of what took place.

“Out of that meeting, it was ‘Let’s slow this down,’ ” he said Wednesday. “They’re trying to come to grips with the political implication of outsourcing the attraction or at least the management of it. My sense is that things have stopped at least, and that the manager is going to give some guidance to the City Council on how to move forward, and the foundation will be more engaged in this conversation.”

Virginia Aquarium, which opened in 1986, is the third-most visited attraction in the state behind Kings Dominion and Busch Gardens theme parks. It holds 650,000 gallons of water in exhibits and has more than 250 species — including mammals, fish, birds, and reptiles.

Rubin also confirmed what several other sources have told The Virginian-Pilot — that a letter on the outcome of the meeting is forthcoming from the city manager to the City Council. It’s unclear if that letter will outline a plan to shore up the aquarium’s financial needs.

The city and foundation recently invested $47.9 million for three aquarium projects, however major renovations and an expansion of the main building are needed, with cost estimates between $50 to $200 million depending on the scope of work. Meanwhile, it costs more to operate the facility than it brings in. The city allocates roughly $2 million each fiscal year for aquarium capital improvements and subsidizes operations with roughly $7.4 million a year.

The city is working with a consultant to create a baseline financial model for the aquarium and to hold one-on-one-discussions with potential operating partners. An update is planned at the end of the summer.

The City Council is on summer recess for the next several weeks, and will reconvene in mid-August.

“That’s when a decision would have to be made,” City Manager Patrick Duhaney said Wednesday. “The council will definitely have to have a public discussion and say they acquiesce to the recommendations of the liaisons or say no, they don’t.”

The city owns and maintains the aquarium’s buildings and grounds and provides administrative support for the facility’s accounting and human resources divisions. The foundation procures and maintains the aquarium’s collections.

“The aquarium is an incredible and valuable educational and community asset, and we want to continue to support it and celebrate it,” said Councilman Michael Berlucchi. “We have to find ways to deal with the financial and capital needs that exist while continuing to provide the services that Virginia Beach citizens rely upon and to maintain affordability for Virginia Beach residents.”

In March, Duhaney recommended the city continue engaging the interested firms to figure out what kind of offer can be brought forward while communicating with the foundation; the council agreed.

In a letter to the council in June, Peterson reiterated the foundation’s concerns stating that the process was being “rushed” and has affected trust between his group and city leaders.

Stacy Parker, 757-222-5125, stacy.parker@pilotonline.com