THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, May 4, 1995 TAG: 9505040361
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: BY ALEX MARSHALL, STAFF WRITER
LENGTH: Medium: 73 lines
Macy's is probably out, but one of the largest mall developers in the country says it will help build Norfolk's MacArthur Center.
The Taubman Co. has agreed to back the $270 million downtown project, city officials announced Wednesday, putting the mall's financing on sounder footing and making it more attractive to other top-end retailers.
Taubman's decision softens the blow of Macy's decision to bow out as the No. 2 anchor. Even so, the chain's withdrawal may hurt the project in the short term because a second anchor is needed before construction can begin.
Seattle-based Nordstrom Inc., the mall's premier retailer, remains committed, city officials said. The luxury department store is coveted by cities all over the country as a symbol of class and wealth. Nordstrom's commitment allowed the city to seek top developers and other retailers.
Michigan-based Taubman has formed a partnership with the mall's current developer, Alexius C. Conroy of Connecticut. Taubman has built upscale malls in 20 cities including Los Angeles, Phoenix and Denver.
When built, the MacArthur Center is expected to be three levels and have 1.2 million square feet of retail space, about the size of Lynnhaven Mall in Virginia Beach.
Federated Department Stores Inc. said it is still too involved handling last year's acquisition of Macy's to commit to a new project in Norfolk, according to city officials.
Macy's could still become part of the project, but the city was not guaranteeing the company space. If, after a second and third anchor were signed to the project, Macy's wanted to become part of the mall, the project could be enlarged to include a fourth anchor store, city officials said.
``We are aggressively moving forward to proceed with construction as soon as possible,'' Fraim said, flanked by Development Director Robert B. Smithwick in council chambers at City Hall. ``We'd like to have Macy's commitment. But we're going to push the project forward.''
The announcements by Fraim and Smithwick on Wednesday morning came almost a year to the day after Smithwick stood in the same chambers and jubilantly announced that construction of the mall was ``a fait accompli.''
``This is now a done deal,'' Smithwick said last year, when he also set a fall 1996 opening date for the center.
Despite Macy's formal postponement, Smithwick said Wednesday the city still hoped to meet an opening date of early 1997.
Last year, Federated Department Stores of Cincinnati acquired Macy's, which had taken on too much debt in the 1980s and declared bankruptcy. The city pushed back the 1994 ground-breaking to March of this year. This schedule was pushed back again as Federated continued to review the project.
The mall is planned for 17 acres between Scope and the Kirn Memorial Library. The project, which the city is supporting with $100 million in loans and infrastructure, is expected to create 3,000 jobs. The city has created a training program to help poorer, downtown-area residents get hired.
``This is the largest single economic development stroke in the city's history,'' Fraim said. ILLUSTRATION: Color photos of other Taubman Projects
Stamford Town Center, Stamford, Conn.
Beverly Center, Los Angeles
Cherry Creek, Denver
Columbus City Center, Columbus, Ohio
Color map
KEYWORDS: MACARTHUR CENTER NORFOLK DOWNTOWN DEVELOPMENT by CNB