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Norfolk mayor says apartments, hotel could replace MacArthur Center

MacArthur Center mall in downtown Norfolk is expected to be replaced by a major mixed-use development, which could be called “The Anchorage,” featuring a 400-room, military-themed hotel and 518,000 square feet of high-rise residential space, Norfolk Mayor Kenny Alexander announced April 12 during his State of the City speech.

“MacArthur Mall demands a bold vision that celebrates our culture, reconnects our city, attracts tourists and ensures economic vitality,” Alexander told a crowd of 1,200 business leaders. “Let’s envision a vibrant mixed-used destination. … By optimizing existing assets, we aim to solidify Norfolk as a premier home for business, living, hospitality, tourism, elevating our city’s appeal to residents and visitors alike.”

The development would have a 518,000-square-foot high-rise residential tower — with possibly 400 to 600 units — with rental and ownership options, plus 47,000 square feet of “luxury amenities” and active ground-floor leases. There would also be a 2-acre pedestrian-oriented promenade with more than 170,000 square feet of retail space. The new development would completely replace the existing mall, except for the parking garages.

MacArthur Center mall was built in 1999. Photo courtesy Norfolk Convention & Visitors Bureau Offices

Last summer, Norfolk purchased the 23-acre struggling MacArthur Center mall for $18 million, including consulting and legal fees. At the time, Alexander said that buying the mall would enable the city to “play an active and strategic role” in the property’s future.

Earlier this year, Norfolk hired architectural consulting firm Gensler to conduct a study on the mall and what action the city should take with it. Norfolk asked Gensler to examine the feasibility of replacing the mall convention center, as well as other adaptive reuses of the mall and parking structures.

The resulting recommendation from Gensler’s study is the plan Alexander presented in his State of the City speech.

Sean Washington, the city’s economic development director, and a representative from Gensler met with each Norfolk City Council member individually to present the findings. The council had not seen the plan collectively until the SOTC event.

The development would be a public-private partnership, Alexander told Virginia Business, with most of the cost being paid through private investment, he noted.

“If an unsolicited proposal falls on my desk and it meets everything that the council is seeking, … I don’t see why that wouldn’t be considered,” Alexander said.

Washington told Virginia Business the next step is the financial side — looking at what the city is comfortable spending and determining the project’s budget.

“We really have to start with a master developer,” he said. “At that point, you’re identifying the best developer and the components of the project you want to see come to fruition.”

No timeline has yet been established for the project, he said.

 

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.

Washington

“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. 

Norfolk makes economic development head permanent

The City of Norfolk will keep Sean Washington as its director of economic development permanently after serving as interim director since August 2022, the city announced Tuesday.

His appointment was effective Nov. 6. Before serving as interim director, Washington was assistant director from November 2020 through August 2022, but he’d worked in the department since June 2017 as a business development manager and became secretary-treasurer of the Norfolk Economic Development Authority in October 2017. Washington became the interim head of the department when Jared Chalk left to take a job with the Hampton Roads Alliance.

As secretary-treasurer for the EDA, Washington managed the financial position of the EDA to include overall assets of about $29 million and $4.4 million in cash and equivalents. When he was business development manager for the city, he administered five small business programs, resulting in $4.5 million in grants being awarded to Norfolk businesses.

“Norfolk is a thriving community today thanks in large part to economic development efforts that have already occurred. We’ve worked hard to secure new businesses, additional jobs and the benefits such investment bring to our residents and visitors,” Norfolk City Manager Pat Roberts said in a statement. “Looking forward, Sean’s business acumen, expertise and familiarity with all of the advantages Norfolk offers to both incumbent and prospective business partners uniquely position him to help us author the next chapters in Norfolk’s economic success story. I can’t wait to see what comes next from Sean and his team.”

Before he worked for the city, Washington was an assistant vice president for BB&T for seven years, where he managed a $34.5 million deposit portfolio and $15 million lending portfolio.

Washington attended Hampton University, where he earned a business degree, according to his LinkedIn page.