NORFOLK, Va. — City leaders will decide on Tuesday whether H&M should be paid around $1.5 million so the store can terminate their lease early in anticipation of the MacArthur Center's June 30 closure.
The fast fashion store is among the handful of businesses still operating in the MacArthur Center Mall. The current Norfolk council agenda indicates that the city owes H&M an early termination fee.
H&M's current lease included renewal options through 2043, according to a resolution in the city council's agenda. The proposed resolution, if passed, would reschedule H&M's lease termination date to Sept. 30, 2026.
Watch previous coverage: MacArthur Center closing in June to make way for city of Norfolk to redevelop
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.
During his 2024 State of the City address, Norfolk Mayor Kenny Alexander outlined his vision for the future of the MacArthur complex: a 400-room hotel, high-rise apartments, a pedestrian promenade, and a new city market with indoor/outdoor space.
"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.
