NORFOLK, Va. — The City of Norfolk plans to begin demolishing most of Military Circle mall by early fall, though an ongoing lease dispute with Ross Dress for Less will leave that store standing along with a Sentara-owned facility.
Monday night, neighbors on the city's east side met with Councilman Carlos Clanton to discuss the future of several announced projects, including the 74-acre Military Circle property, which has sat mostly empty and fenced off for three years.
"That eastside, we were kind of a big question mark here. And that was the purpose of this meeting was to get some of those questions answered…about Military Circle," Eastside Civic League Vice President Kathy O'Hara said.
Norfolk Director of Economic Development Sean Washington spoke with News 3 anchor Anthony Sabella this week about the demolition plans.
"We’re probably gonna have a request for bid for a demolition contractor on the street…we’re pushing for the end of May," Washington said.
While numerous redevelopment plans for the mostly city-owned property not having materialized over the years, an old, but active lease with Ross Dress for Less continues to be a major roadblock for complete demolition.
"That has been the hold up as it relates to demolition, really from day one, Anthony. Their lease goes out to 2036," Washington said.
Buying out the lease would be costly. During Monday night's meeting, an audience member told Clanton he'd heard it was $16 million, which seemingly Clanton confirmed.
"$16 million. So you just want me to throw $16 million of your dollars away?" Clanton said.
Washington would not confirm the exact number but said it is substantial. He noted it is much more than the $1.5 million the city is paying H&M to end its lease at the closing MacArthur Center downtown.
"And that’s just due to negotiations and partnerships. And [H&M] potentially wants to come back. In contrast, unfortunately, negotiating with Ross has been a lot more challenging," Washington said.
As discussions with the retailer continue, Washington said demolition will move forward where it can to prepare the property for eventual redevelopment.
"The goal. We’ll say kind of early in the fall there," Washington said.
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