NORFOLK — A massive redevelopment plan for the ailing downtown MacArthur Center shopping mall still needs a developer and a financial plan, city economic development officials say.
Mayor Kenny Alexander unveiled an idea for a redevelopment project at the mall site during his annual State of the City address last month. The proposal includes a 400-room military-themed hotel, 518,000 square feet of high-rise apartment space and a 2½-acre pedestrian walkway with more than 172,000 square feet of retail space.
However, the proposal from Washington-based architecture consulting firm Gensler has significant steps to complete, Norfolk Department of Economic Development Director Sean Washington said during a Economic Development Authority meeting Wednesday.
The project would likely be pitched as a private-public partnership, Washington said. But city officials are looking into whether the project would generate enough tax revenue to service debt incurred by public investment, he said.
“Once we get there, we’ll be able to see what those impacts are,” Washington said. “The city needs to make a decision on what’s going to be our public investment into this particular site.”
The city would then look for private development partners, Washington said. Economic Development Authority spokesperson and business development manager Mia Byrd Wilson confirmed the project could take years to complete.
The city has been working with Gensler since September on the mall project, Washington said. The Virginian-Pilot previously reported the consulting firm had floated the idea of a convention center anchoring a redevelopment project during a Norfolk City Council retreat in November.
Since then, Washington said the firm has recommended Norfolk lean into its unique assets when designing the site: the region’s robust military presence, including Naval Station Norfolk and NATO’s headquarters. For example, Washington noted how Nashville has centered a development project around the area’s longtime history with country music.
“That’s what makes it different,” Washington said.
That branding also woukld align with a city push toward attracting more tourists and other new visitors, he added.
Thousands of people live in the downtown area, and the Gensler study notes vacancies are low and demand for more housing is very high.
Alexander said in an interview Friday the consultant formulated the recommendation after conversations with city leaders, military groups, downtown residents and the business and arts communities.
“So, it was very inclusive and what emerged from the data was this mixed-use development,” Alexander said.
Immediately after the State of the City address, Alexander did not conduct interviews with media. A city spokesperson said in an email they had no more information about the MacArthur proposal when asked if there was a developer attached to the proposal or a project timeframe.
MacArthur Center has been declining in value for years while losing major retailers such as Dillard’s, Nordstrom, the Apple store and Barnes & Noble. Norfolk spent $18 million to buy most of MacArthur Center last year and another $4.1 million to buy out Dillard’s remaining lease.
The city has considered redeveloping the property before. In 2021, the economic development department proposed opening the ends of the mall to create office and retail space, reopening Market Street through the mall’s center and demolishing the entire mall to create a new business district.
Current renderings of the Gensler proposal appear to be similar to that second idea, with the pedestrian promenade cutting across the mall property.
Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com
