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The Ripple Effect: Moving Flood Protection Forward

HRMessenger Staff , , , , , ,

Windsor Woods, Princess Anne Plaza and The Lakes Mega Bundle reach a milestone.

Virginia Beach City Council received an update on Nov. 25 from the Departments of Public Works and Budget & Management Services on the future funding of a key part of the Flood Protection Program — Windsor Woods, Princess Anne Plaza and The Lakes Mega Bundle.

What is the Mega Bundle? 

The Mega Bundle brings together seven large-scale flood protection sub-projects in three neighborhoods that experienced severe flooding during Hurricane Matthew in 2016. The projects include new tide gates, flood barriers, and pump stations to better manage stormwater and reduce the flooding risk for thousands of residents.  

Keeping the Projects on Track 

The Mega Bundle is moving forward with a progressive design-build contract, which means work can kick off sooner and wrap up faster since design and construction activities can overlap. A Guaranteed Maximum Price (GMP) of about $488.9 million is being finalized with the contractor for the Mega Bundle. With a GMP, the contractor agrees to complete the project for a set price, absorbing any excess expenses, helping cut down the chances of change orders or budget overruns. 
 
The original estimate was developed before the COVID-19 pandemic, but rising construction, materials and labor costs have significantly increased the overall price of the projects. With $85.3 million in funding available for the projects, the Mega Bundle faces a shortfall of $403.6 million.  
 
To keep the projects on track, City staff outlined a financial strategy that bridges the gap, reallocating available funds from other flood protection projects and adding new appropriations. This move ensures the contract can be executed and that bond funding approved in the 2021 referendum can be issued on schedule. In the upcoming fiscal year 2026–27 Capital Improvement Program (CIP), Budget and Management Services will work to restore funding to the projects as much as possible based on overall debt limits, available funding and each project’s schedule of activities. 

What’s Next?  

According to State Code, an ordinance is needed to transfer the funds from other Flood Protection Program projects and to appropriate new funds to the Mega Bundle. A public hearing on these amendments to the CIP will be held at 6 p.m. on Dec. 2, at the City Council meeting. 
 
Residents wishing to make comments in person during the public hearing must register with the City Clerk’s Office by calling 757-385-4303 prior to 5 p.m., Dec. 2. Residents can speak for up to three minutes and are asked to follow the speaker policy.

It is also possible to speak virtually, using WebEx, if you have a good Internet connection and a device with a working microphone. To do so:  

  • Register for the WebEx Meeting. 
  • Register with the City Clerk’s Office by calling 757-385-4303 before 5 p.m., Dec. 2.