Roanoke City Council Confronts Berglund Center Casino Proposal as Developer Identity Remains Concealed by NDA

Roanoke city officials held a public hearing on August 17 to discuss converting the Berglund Center into an entertainment district featuring a casino and hotel. An unidentified developer first approached the Virginia city last October with the concept. The Roanoke City Council has signed a nondisclosure agreement with the firm, which paid the city $75,000, and has declined to name the company or disclose specifics of the arrangement, according to reporting by Casino.org.

More than $31 million in deferred maintenance on the city-owned, 10,500-seat arena has added urgency to the talks. The proposal would require the developer to fund repairs and build a parking garage, hotel, and public greenspace while the city retains ownership of most of the facility.

Projected Returns and Local Support Levels

Marc Nelson, Roanoke’s economic development director, presented forecasts for a casino hotel requiring a minimum $300 million investment. Nelson projects annual gross gaming revenue of $135 million to $180 million, which would produce $15 million to $25 million in local gaming taxes for the city. The project is expected to generate 800 to 1,000 permanent jobs with average annual wages of $55,000.

City Councilor Phazhon Nash, who leads the entertainment district task force, reported survey results showing 36% of residents support a casino to preserve the Berglund Center, 27% oppose the idea, and 36% are unsure. “We have the opportunity to determine the future of the Berglund Center,” Nash said.

Critical Maintenance Demands at the Arena

Robyn Schon, Berglund Center general manager, told the council that replacing 28 original air-handling units would cost $9 million and cannot be phased incrementally. The units date to the arena’s opening in the early 1970s and were made by a now-defunct manufacturer, leaving no replacement parts available. “This equipment has to be replaced sometime soon. I don’t know that we can wait another three to five years,” said Schon.

Further needs total $5 million for the main electrical panel, $3.6 million for the roof, $2 million for a boiler, and $2 million for repaving. The developer would handle these upgrades to position the venue for national tours.

The NDA-driven secrecy limits public scrutiny of a project that hinges on local tax revenue and facility ownership. Roanoke must still secure state legislative approval for casino authorization. How the council navigates disclosure constraints while addressing the $31 million repair backlog will shape whether the proposal advances with credible community backing.

Reporting: Casino.org News

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