THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, September 24, 1994 TAG: 9409240235
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 94 lines
Since the announcement of Norfolk's latest $270 million project - the much-heralded 17-acre downtown mall to be dubbed MacArthur Center - people have wondered what effect the mall will have on the local economy.
Foremost on locals' minds is jobs. Norfolk residents have asked city officials and themselves who will benefit from the mall.
Under the city's financing scheme for the mall, about $33 million would come from U.S. Department of Housing and Urban Development grants. HUD money is generally used for urban renewal and housing projects aimed at benefiting low- and moderate-income city dwellers.
Black community leaders and residents have speculated about how many of the mall's proposed 3,000 jobs will go to minorities. Some have gone so far as to ask that a percentage of the jobs be reserved for minorities that live in Norfolk, in the inner city, perhaps from the very neighborhoods next to the planned shopping center.
Representatives from Nordstrom, the Seattle-based retailer who committed to anchoring the mall, tried on Friday to answer some of those questions and allay some fears.
``Our mission, our goal, is to be one of the top companies in minority hiring in the country,'' said Charles Dudley, Nordstrom vice president of human resources, who flew in to Norfolk from Seattle for a meeting Friday with city officials and black community leaders. ``It means that you're inclusive; you try to be part of the total community. Our goal is to be a good corporate citizen.''
Nordstrom trotted out its track record in hiring minorities. About 31 percent of all Nordstrom's employees nationwide are minorities, well above the 20.8 percent hired in the national retail labor market. Nearly 20 percent of Nordstrom's managers are minorities compared to 13.3 percent minority managers in the national retail market.
Almost all the employees and managers for the downtown Nordstrom's store will be hired locally, said Marty Wikstrom, a vice president and Nordstrom's regional manager for the capital region. Only 50 people will relocate to Hampton Roads to help set up the store, but 350 employees will be hired for the remaining positions, she said.
``We're not looking at education or for a retailer background,'' she said. ``We're looking for nice people who like to interact with people. We do all the training.''
In addition to its statistics on minority employment and management, Nordstrom offers several programs geared toward community outreach, minority recruitment and training. Nordstrom's minority- and women-owned business development program tries to build ties with those minorities who can offer products or services like construction to its stores or customers.
``We don't have to have this program,'' Dudley said. ``We do it because it's good business. It shows our commitment.''
Nordstrom awarded $235 million through its minority business development program last year, which almost doubled the amount awarded in 1992.
When asked by some of the black leaders, Nordstrom's executives would not commit to guaranteeing a percentage of the store's jobs or contracts to minorities from Norfolk.
Linda Byrd-Harden, state NAACP secretary, questioned whether 51 percent of the mall's jobs would be reserved for people of low to moderate income. She asked that someone be held accountable for ensuring that some of the contracting work in the mall's development, as well as retail jobs, be given to minorities because HUD grants are being used in the mall's development.
Robert B. Smithwick, Norfolk economic development director, said that Byrd-Harden's concern would be addressed after a general contractor had been signed. ILLUSTRATION: Color graphic
MacArthur Center Update
The mall's developer has not announced a general contractor, said
Robert B. Smithwick, Norfolk economic development director.
Smithwick said the developer, Alexius C. Conroy, has narrowed down
his choices but has not completed the deal.
The city of Norfolk has not named a third anchor for the mall,
but the choices have been narrowed, Smithwick said. Actual
groundbreaking construction on the mall, which had been planned for
December, has been pushed back to spring 1995. Next month, the city
will start clearing the mall site and preparing it for
construction.
The issue of Macy's involvement in MacArthur Center has been
settled since the announcement of the retailer's merger with
Federated Department Stores Inc. ``There is no reason this (merger)
will impinge or impact our commitment to Norfolk,'' Macy's
spokeswoman Laura Melillo said. ``We think it's an excellent
opportunity and great for the company.''
by CNB