VIRGINIA BEACH, Va. (AP) — A Virginia city has been sued for pulling out of a deal with a developer that wanted to build an 18,000-seat arena near the city's oceanfront boardwalk.

The Virginian-Pilot reports that Mid-Atlantic Arena LLC is seeking $140 million in its lawsuit against Virginia Beach filed Tuesday, claiming the city damaged the developer's reputation.

The Virginia Beach City Council voted in November to end its contract with the developer to build a $220 million sports and entertainment arena near the Virginia Beach Convention Center, citing a failure to provide loan paperwork and secure financing.

Mid-Atlantic contests the council's claim and says it delivered loan documents on time. The developer says it wants to recover its investment and lost future revenue.

Mayor Will Sessoms says he's "disappointed to see the lawsuit."

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Information from: The Virginian-Pilot, http://pilotonline.com