NORFOLK — Over a year since the city announced it was in talks with Pharrell Williams and others for a $1.1 billion redevelopment of Military Circle, only preliminary demolition of outlier parcels has taken place.
And no binding deal has been reached, according to a city statement.
“Conversations involving the redevelopment of the Military Circle mall property is ongoing,” the Friday statement said. “We are always striving to ensure the site is put to its best use for residents and taxpayers and this VA proposal is worth exploring given its potential impact on the region and city.”
Spokespersons for some of Wellness Circle’s backers, including Williams, Armada Hoffler and Westdale did not respond to emails this week asking for confirmation the project was still being considered.
“Currently, the site is not slated for any developers, nor has it previously been slated for any specific developers,” the city said. “Conversations are ongoing and nothing has been finalized at the present time.”
And the city is not looking back at either of the other proposals for the site “at the current time” as talks with Wellness Circle continue, according to the statement.
The proposed development backed by Williams and partners, one of three the city received, includes 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.
Norfolk chose to begin talks with Wellness Circle developers behind closed doors — opting not to use the typical proposal grading process, according to December reporting by The Virginian-Pilot.
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In other news on the Military Circle redevelopment:
The developers behind the other two original proposals for the site remain dedicated to their own ideas for how to reshape the land.
The Crossroads Partnership development team is looking forward to hearing about next steps from the city, according to a spokesperson for the proposal.
Crossroads Partnership’s $925.5 million proposal includes a 15,000-seat arena, bike path, 987 multi-family housing units, a 128-room Hyatt hotel, Sentara offices and more.
The other proposal from Norfolk MC Associates, called The Well, would include 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. Developers involved in the proposal include Bruce Thompson’s Gold Key/PHR and The Franklin Johnston Group.
Thompson said he is not interested in a “blue sky proposal that includes an arena.”
He said his team’s plan is sustainable and financeable.
“Pharrell sold the city a pipe dream,” Thompson said by text.
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Potential VA medical facility
A draft option for a Veterans Affairs medical facility at the site was approved by the city’s Economic Development Authority this month.
“Responses to the VA’s Request for Lease Proposal (RLP) are due August 31st, and they are required to demonstrate potential site control,” the city statement said. “As a result, the EDA Board approved a draft option agreement at the August EDA Board meeting to enable the developers to submit as a requirement for the RLP package.”
The VA is not one of the listed partners for Wellness Circle in the proposal. The land set aside for the option overlaps with land proposed in the Wellness Circle plans for the arena, light rail station, parks and plazas, according to EDA documents.
“The EDA was notified by credible federal facility developers regarding their interest in a 24-acre portion of Military Circle Mall, to potentially develop a new Veteran’s Outpatient Clinic,” the statement from the city said.
The option includes 26 acres on the southern part of the site between Polar Hall Drive and North Military Highway, according to EDA documents.
Recent documents and statements by the VA have identified a need for more VA care options on the Southside due to veteran population growth. The largest growth is expected in number of veterans living in Chesapeake, which is expected to grow by nearly 49% over the next 20 years while, while growing 34% in Portsmouth, 31% in Virginia Beach and 25% in Norfolk compared with 17% on the Peninsula.
The VA released a study in 2022 about its nationwide health care system and found roughly 50,000 of the veterans served by the VA Hampton Medical Center must cross either the Monitor-Merrimac or Hampton Roads bridge-tunnels to get there.
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Demolition
Though some demolition of smaller properties at the site has already happened, the lion’s share has yet to begin.
The first demolition permit for Military Circle was given on May 1 with two others dated June 5 and June 30, according to city documents.
North Carolina-based East Coast Demolition and Abatement has done preliminary demolition on land valued at a combined $165,000, according to demolition permits.
“When the initial demolition process of the entire 72-acre site began, it was quickly discovered that the demolition of the main mall within the interior ring road would require additional analysis of project architects and engineers,” the city’s statement said. “As a result, the decision was made to begin the demolition of the outparcels in accordance with the EDA’s original timeline.”
The request for proposal for the demolition of the main Military Circle property has not been released yet, though it is slated for early fall, according to the city.
Ian Munro, 757-447-4097, ian.munro@virginiamedia.com, @iamIanMunro
