NORFOLK — The plans for Military Circle mall’s redevelopment have been “shelved” as the city is turning back the clock on its approach to the site, according to Norfolk Economic Development Authority Director Sean Washington.
The city reviewed three proposals for the site and announced late last summer it was in talks with Virginia Beach native and music star Pharrell Williams and others for a $1.1 billion redevelopment called Wellness Circle.
But since then, only some preliminary demolition has taken place. In August, the city said no binding deal had been reached and conversations were ongoing.
On Monday during a City Council retreat, Washington said the refocus for the future of the site would include an emphasis on a theme of health while the city continues to explore where the market is going and what that means for development of the site with potential private sector partners.
Washington said the city has not confirmed what the next step for the process will look like, and is considering another request for proposal. However, the city is contacting the groups that submitted the original three proposals the city previously reviewed.
“What we want to make sure is that we at least engage with the original three (development proposal groups) to say ‘If we did decide to do this, do you want to be a part of this again?’” Washington said.
The chosen proposed development, backed by Williams and partners, was one of three the city received. The plans for Wellness Circle called for a 16,000-seat arena, 1,100 new housing units and a 200-room hotel across the 72-acre site, according to documents submitted to the city. Spokespeople for some of Wellness Circle’s backers, including Williams, did not respond to email requests for comment.
Norfolk chose to begin talks with Wellness Circle developers behind closed doors, and deviated from guidelines set on how to evaluate and score each proposal, The Virginian-Pilot previously reported.
One of the other proposals from Norfolk MC Associates, called The Well, included a 9-acre lake with an island, a 5,000-seat amphitheater and a lawn space for a further 3,000 guests, 200-room hotel, 864 housing units, over 477,000 square feet of office space and over 159,000 square feet of retail and entertainment space.
Bruce Thompson, whose Gold Key/PHR and another company The Franklin Johnston Group which helped craft the proposal, said he’s disappointed the proposal was not chosen and will continue to seek a site for the proposal.
“I think we offered the city (an) incredible plan that was well-conceived, financeable and would be open today, setting a new standard for sustainable and economic interests (to) work in harmony,” Thompson wrote in a text Tuesday.
The third proposal from Crossroads Partnership came in at $925.5 million and included a 15,000-seat arena, bike path, 987 multifamily housing units, a 128-room Hyatt hotel, Sentara offices and more.
A spokesperson for the third proposal declined to comment.
Ian Munro, 757-447-4097, ian.munro@virginiamedia.com, @iamIanMunro
