Developers put Fort Monroe marina redevelopment on indefinite hold

The redevelopment of Old Point Comfort Marina at Fort Monroe has been put on hold due to rising costs, with no timeline specified for when it could occur.

Instead of negotiating a long-term development agreement, the Fort Monroe Authority (FMA) and Smithfield-based hospitality management company Pack Brothers Hospitality (PBH) are now discussing a revised management agreement, the authority announced this week. PBH had been planning to invest $45 million to build a marina, renovate two existing historic buildings into conference space and a restaurant and hotel over the water, akin to its Smithfield Station development, in a development called 37 North at Fort Monroe.

The FMA’s long-term goal is to redevelop the marina, but rising construction costs and high-interest rates “have impacted the financial feasibility for PBH” to lead the renovation and reconstruction of the marina and portions of new construction for the restaurant, according to a news release. The marina can currently accommodate more than 300 boats that are up to 50 feet in length.

“The FMA does not have a timeline for the redevelopment of the marina,” FMA Executive Director Glenn Oder said in a statement to Virginia Business. “Our goal is to ensure the marina remains operational and the tenants as well as the public experience no change in the operating status of the marina.”

The original redevelopment plan was to start construction in fall 2024, with the marina and restaurant opening in fall 2025. The proposed hotel and conference center were planned to be completed 12 to 18 months later.

PBH is currently managing the marina under the terms of a revised letter agreement effective Dec. 29, 2023. The two parties have begun working on the terms of a longer-term marina management agreement that they aim to complete by Feb. 29, which would be “an annual arrangement that allows the management of the marina to continue while also still being nimble for future opportunities,” according to Oder.

“PBH looks forward to continuing its relationship with the Fort Monroe Authority and welcomes the opportunity to advance the initiatives of the FMA through this marina management agreement,” Randy Pack, PBH president and managing partner, said in a statement.

Leaseholders of the marina, including the Deadrise restaurant, are unaffected by the announcement, according to a news release.

The FMA oversees Fort Monroe, a national historic landmark in Hampton. The authority has more than $100 million in projected investment in the next two to five years, including public and private investment in preservation, renovation and utility projects.