NORFOLK, Va. — City of Norfolk leaders decided to pay H&M $1.5 million for the fast fashion store to terminate their lease early in anticipation of the MacArthur Center's June 30 closure.
H&M's initial lease included renewal options through 2043, according to a resolution in the city council's agenda. The approved resolution will reschedule H&M's lease termination date to Sept. 30, 2026.
Either party can end the lease early if written notice is given 60 days prior to termination, starting May 1.
Watch previous coverage: Norfolk leaders to consider buying out H&M’s lease at MacArther Center for $1.5M
The MacArthur Center will close this summer to allow the city to redevelop the center.
This redevelopment is meant to prepare the site for its next phase by including new market-rate homes, additional hotel rooms, street-level retail and neighborhood street networks connected by open spaces.
"This vision reflects adopted downtown planning goals and the City's broader commitment to a walkable, active and connected urban core," the city wrote in a press release.
MacArthur Center has faced dwindling patronage over the years, with more and more stores leaving the once-popular downtown mall. The 1.1 million square-foot mall opened in 1999 with space for more than 100 stores and shops.
