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Tag: state of the city

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.

 

Military contractor to add hundreds of jobs in Norfolk

Fairfax-based military contractor WR Systems will expand its Norfolk campus, Norfolk Mayor Kenneth Cooper Alexander announced at the city’s annual State of the City address on Thursday.

The Norfolk campus currently houses more than 320 employees and will add several hundred jobs, Alexander said.

“In making the decision, they shared that Norfolk’s position as a strategic military and coastal location are critical for their continued express,” Alexander told a crowd of about 900 people at Hilton Norfolk The Main.

Additional details were not available from the company Thursday.

At the annual event highlighting Norfolk’s economic development progress, Alexander talked about several ongoing initiatives but started his speech by noting the recent crime and violence in Hampton Roads, which poses a threat to the city’s tourism, with more than 200 homicides in the region in 2021 and a spate of fatal shootings over the past month.

“We will not tolerate crime in the city of Norfolk and Hampton Roads,” Alexander said. He quickly moved on to highlighting more positives from the year.

The mayor talked about the impact of the military, noting that 72 ships homeport in Norfolk, along with 35 aircraft squadrons and 90,000 active duty military members, which all contribute to nearly $25 billion in defense spending. He also mentioned previously announced multimillion expansions to local shipyards.

Alexander noted the city’s efforts to curb flooding and improve coastal resiliency and announced that the city learned last week that the U.S. Army Corps of Engineers will have another $150 million in funding from President Joe Biden’s bipartisan infrastructure law to support the Coast Storm Risk Management project in the city. In January, the city learned it would get $249 million in funding. The funding will be used for the design and construction of a multiphase coastal storm risk management project, that when completed, will help reduce and manage flooding for portions of the city. It will be done with storm barriers, natural and nature-based features, tidal gates, floodwalls, levees, pump stations and other measures. The total funding is now just under $400 million.

Private investment

First announced earlier this week, Alexander noted the expansion of Norfolk-based Embody, a biotech company that will invest $5 million in a 10,000-square-foot expansion and 92 new jobs, mostly in research and development, manufacturing and sales and marketing positions. The company was started in 2014 and develops collagen-based technologies for soft tissue repair. The expansion will increase product research and development capabilities. “We’re going to continue to essentially scale our commercial operations, treat more patients, support more hospitals,” he said.

Alexander talked about the St. Paul’s area redevelopment project and plans developer Bruce Smith has to build 206 apartments with 4,200 square feet of commercial space and a new city parking garage on Bute Street. The project will replace three public housing neighborhoods downtown.

Alexander said the $500 million Headwaters Resort & Casino is set to break ground this summer and take two years to build. Another project on the horizon is CMA CGM Group’s $36 million expansion in Norfolk, creating 400 jobs.

In October 2021, Norfolk began work on its $2.6 million cruise ship gangway at the Half Moon Conference Center, which will accommodate larger cruise ships, Alexander said. Carnival cruises will start stopping in Norfolk again in May and Norwegian Cruise Lines has 25 ports of call planned. Another tourism accomplishment he noted: Breeze Airways plans to invest about $5 million in a Norfolk-based operations center and add new flights this summer. The airport employs about 17,000 and has a $2 billion economic impact, Alexander said. Another transportation project coming up includes the $3.7 billion passenger rail expansion, which will bring a third passenger train to Norfolk.

Meanwhile, the Patriotic Festival is moving to Norfolk this year for Memorial Day weekend and is expected to have a $23 million economic impact, Alexander noted.

The mayor also talked about the addition of MetroNet, which will bring new internet options to the city, a $90 million investment to build a 100%  fiberoptic network that will be complete in the next few years. He also noted that Cox has $100 million of broadband network enhancements planned for the region and will start the planned work in Norfolk.

City officials are still reviewing three proposals for the redevelopment of Military Circle, a high-profile project that has superstar musician Pharrell Williams, NFL star Emmitt Smith and Gold Key | PHR CEO Bruce Thompson, among others, vying for the opportunity to build a multiuse development.

Action sports festival coming to Va. Beach

One of Canada’s largest action sporting events, the Jackalope Festival, will make its U.S. debut in Virginia Beach in June 2023, Mayor Bobby Dyer announced Wednesday at the annual State of the City address.

“Get ready for Jackalope!” Dyer shouted enthusiastically before a crowd of about 1,000 people gathered at the Virginia Beach Convention Center.

The three-day event next June will include skateboarding, BMX, base jumping, bouldering and other action sports competitions. The announcement comes on the heels of other high-profile events — Something in the Water, the Rock ‘n’ Roll Half Marathon and the Patriotic Festival — ending or leaving the city.

Dyer and City Manager Patrick Duhaney shared the stage Wednesday, sharing the city’s accomplishments over the past year, including a $567 million bond referendum approved by voters in November 2021 that would cover the cost of flood protection programs dealing with stormwater and sea level rise issues, a new local election system, construction of a new city hall and vaccinating hundreds of thousands of city residents against COVID-19.

Wednesday’s event attracted two former governors, Attorney General Jason Miyares, mayors of several other Hampton Roads cities and other local elected officials, as well as state representatives. It’s the first of a series of five state of the city addresses sponsored by the Hampton Roads Chamber. Norfolk, Portsmouth, Suffolk and Chesapeake mayors will each hold their addresses over the next few months in their respective cities.

“Virginia Beach is going to be the epicenter of economic development on the East Coast,” predicts the city’s mayor, Bobby Dyer. Photo by Mark Rhodes
Dyer

During their joint speech, Dyer and Duhaney spotlighted DroneUp LLC, a Virginia Beach-based company that inked a deal with Walmart Inc. in December 2021 to begin offering drone delivery to customers around the country. A drone flew across the ballroom and delivered a package to Dyer.

Dyer recognized and thanked Howard P. Kern, the retiring president and CEO of Sentara Healthcare, for all he did for the city during the pandemic.

The pair highlighted other business expansions in the city, noting more than 50 grand openings in 2021, Virginia Beach-based nonprofit Operation Smile opening an interactive learning center and an economic development deal between the city and Naval Air Station Oceana, would lease land to private businesses on the base.

They also spoke about a new small business capital access program granting $400,000 in loans to city businesses and opening three facilities to support business: The Hive, a small business resource center in Town Center; the Virginia Beach BIO accelerator; and an incubator supporting the development of international businesses looking to come to Virginia Beach.

Dyer said he was looking forward to many of Virginia Beach’s signature events, such as the Shamrock Marathon this weekend, concerts, the Naval Air Station Oceana Air Show and the East Coast Surfing Championship, some of which are returning this year after being canceled during the height of the pandemic.