Norfolk looks to renovate Scope, Chrysler Hall instead of building new arena

Norfolk no longer plans to build a new arena after Military Circle Mall is torn down, and instead is seriously considering renovating two city-owned venues downtown: the 53-year-old, 10,000-seat Scope Arena and the nearby 52-year-old Chrysler Hall, a 2,500-seat theater.

“The participation of the public dollar that we would need on the arena is more than anybody anticipated,” Sean Washington, Norfolk’s economic development director, told Virginia Business.

The decision puts to rest the city’s long-delayed plans to choose among three competing development teams to redevelop the Military Circle Mall site into an arena-anchored mixed-use development. The frontrunner among the proposals had been the Wellness Circle project backed by a development team including superstar singer Pharrell Williams, Virginia Beach-based Venture Realty and California-based Oak View Group. Two other development teams, including groups connected with Hampton Roads hotel developer Bruce Thompson and Pro Football Hall of Famer Emmitt Smith of Dallas Cowboys fame, submitted competing proposals.

Despite the city apparently giving up on plans to build a new arena on the former Military Circle Mall site, it is still seeking to redevelop the property. On Feb. 20, the Norfolk Economic Development Authority issued a new request for proposals for an architectural firm to come up with multiple adaptive reuse plans to redevelop the Military Circle Mall property “for office, retail, residential, open space and other public amenities,” with a March 4 deadline for proposals. “The authority intends to award a contract as soon as practicable after receipt and evaluation of vendor’s proposals,” according to the document.

‘A real opportunity’

Norfolk commissioned a study in late 2023 from Richmond-based Moseley Architects to examine possibilities for renovating Scope Arena and Chrysler Hall, with results expected in March. The city had begun looking at potential renovations of Scope Arena and Chrysler Hall in 2019, but paused during the pandemic.  

The major reasons to modernize the Scope Arena would be to create a better experience for guests and touring shows, as well as generate more revenue, city officials said. 

“These buildings are 50 years old, and, boy, they are tired. They need some help,” said Rob Henson, acting director for the city’s Department of Cultural Facilities, Arts and Entertainment. Henson manages SevenVenues, the city entity that runs the Scope Arena and Chrysler Hall, among other city-owned venues. “To fix some things after 50 years is hard work. They’re due for a facelift.” 

Henson added the two venues are “maxed out on our revenue-generating potential. … If we could get another 40% or 50% more than we are getting now, that [would be] huge. That [would be] a total game changer.”

With its 10,000-seat capacity, Scope Arena still has an adequate audience size to attract major touring productions, Henson said, but it needs to be able to generate more revenue to attract better-quality performing acts. A renovated facility would justify higher prices for premium features and greater revenues.

“I see a real opportunity here,” he said. Rather than construct “an expensive new arena,” the city could renovate the existing Scope Arena and add new amenities. “In my business, we have found that patrons want not just to have to buy a ticket to see a show; they want to buy a ticket to have an experience.” 

That means VIP lounge options, premium seats, VIP parking options and exclusive access to certain areas, for example. Those kind of additions, Henson said, account for 80% of revenues and profits, not just at Scope Arena and Chrysler Hall, but every venue in the city. 

Making improvements and creating new revenue-generating opportunities will help Scope Arena and Chrysler Hall continue to be a competitive and attractive touring stop for performing acts traveling between Washington, D.C., and Charlotte, North Carolina, Henson added. “That’s where Norfolk hits its stride,” he said. “That’s where Norfolk is going to win, and it’s going to win every time.”

Proposed changes at Scope Arena — that will be more fleshed out in the study — include projects such as adding amenity space outside the arena, premium seating inside the arena and more bathrooms. Needs for the plaza, the outdoor space between Scope Arena and Chrysler Hall, are the ability to program outdoor events and upgrade parking garages.

Across the plaza from Scope Arena, Chrysler Hall has a logistics issue with the limited capacity of its loading dock. Only one truck can be unloaded at a time at its loading dock, Henson said, and many touring shows require multiple trucks. This can add to labor costs for production companies.

“When you think of a show like ‘Hamilton’ that had 32 semis, imagine how long that took. So we have jerry-rigged, built out a second one so we can unload two at a time,” Henson said. Chrysler Hall needs a bigger loading dock, he added.

Other proposed changes the city is considering at Chrysler Hall include adding a center aisle, expanding the lobby and improving flow, adding more restrooms, catering facilities backstage and other amenities for traveling acts. The city also wants to add to the loading dock capacity and improve sound, lights and acoustics.

But many questions remain to be answered surrounding the costs and timelines for making changes to the venues. 

‘Putting a Band-Aid’ on the problem?

Regarding costs, the city needs to determine if it will seek historic tax credits for each structure and the whole complex. Scope Arena was built in 1971 and Chrysler Hall was built in 1972. As part of a complex, both venues, including the outdoor plaza, are eligible for historic tax credits. While that could save the city money, it may not allow for some cosmetic improvements, though. But if the city doesn’t use the credits, the project would likely cost more.

Another consideration, Washington said, is whether renovations to Scope Arena and Chrysler will be cost-effective as a long-term solution or if it would just be “putting a Band-Aid” on the problem. The city hopes the forthcoming study from Moseley Architects will provide some answers to that.

City staff hope to bring the study before City Council as soon as March and present two proposals for deliberation: one encompassing all potential renovations, and another covering just interior work. City leaders most recently broached the topic of the venue renovations during the council’s November 2023 retreat.

Aside from costs, another big factor for the city to ponder is timing. Touring companies generally plan their schedules about two years out, and the Norfolk Admirals hockey team plays home games at Scope Arena, so logistics and timelines are going to be important.

Both buildings could be renovated at the same time, which could prove to be more cost-effective. With Scope Arena, it could be phased or planned around hockey, but that’s a larger conversation, Washington said. Both he and Henson emphasized the importance of making sure that any renovations of the two facilities are carried out in the best possible way.

“We only get one swipe at this apple,” Henson said.