The proposal for a US$200m (£132m, €189m) multi-use arena in Virginia Beach has moved closer to fruition as council members voted in favour of its construction.

City councillors voted 10-1 for the structure, which is set to be built and operated by private development group United States Management (USM).

As part of the

plans, the city of Virginia Beach has pledged US$76.5m (£50.6m, €72m) from its Tourism Development Program for improving the city’s infrastructure, such as roads, parking, public plaza, lighting, underground utilities and streetscapes.

The project is expected to be completed by 2019, although USM has the ambition to see the arena open for events beginning in Q4 2018.

However, according to local news site, The Virginia Pilot, concerns were raised about how the project is being be financed. A substantial amount of the money is reportedly being loaned by Chinese government arm the Export-Import Bank of China, with the rest being provided through private equity.

"I worry about clauses that the lender might require in their loan agreement or changes they might request in these contracts," said Barbara Henley, the only member of the council to vote against the motion.

Sport architect firm AECOM Sports is designing the 16,500-18,000-capacity arena, which is being built to accommodate basketball and ice hockey.

“The citizen input and business community support has been invaluable,” said USM president and chief executive Andrea Kilmer.