VIRGINIA BEACH, Va. (WVEC) -- Virginia Beach officially terminated its agreement with a developer that would have brought an an 18,000-seat arena to the Oceanfront.

The proposed project by United States Management -- now Mid-Atlantic Arena LLC -- was in the works for more than two years. Council members said the developer ran out of time in securing enough money to move forward.

The developer was given a deadline of 11:59 p.m. November 7‬ to come up with the necessary cash, but the city said Mid-Atlantic Arena did not meet that deadline with everything that it needed.

Hours before that, however, Andrea Kilmer, who is with the developer, stood before city council members and said Mid-Atlantic Arena met it requirements, allowing it to build the state-of-the-art arena on city-owned land near the Virginia Beach Convention Center.

"We have JP Morgan -- the United States' largest bank -- that is ready, able, and willing to close this evening with direction from the city," said Kilmer. "We are ready to spend over $250 million in this city."

"I would say that the city would disagree with what she represented to you," said Mayor William Sessoms.

By a vote of 9-to-1, city council decided to terminate the arena development agreement if the developer's loan was not closed by midnight Tuesday. The city sent a letter terminating the agreement Wednesday.

Despite the termination of the agreement, Sessoms told 13News Now on Wednesday there is a possibility the deal could advance at some point if the developer proves that all requirements were met. He said he is willing to work with MId-Atlantic Arena LLC again.

Development Agreement Termination Notice by 13News Now on Scribd