THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, July 12, 1995 TAG: 9507120416
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
LENGTH: Short : 45 lines
The city of Norfolk has purchased two downtown buildings that are slated to become part of the proposed MacArthur Center shopping mall, officials said Tuesday.
The city paid $885,000 for the office buildings, said Bernard Pishko, a deputy city attorney.
Norfolk officials and the property owner, a Crestar Bank subsidiary, had previously been unable to strike a deal in exclusive negotiations. A sticking point had been persuading some tenants, particularly MCI Communications Corp., to relocate.
Crestar in June decided to offer to all bidders the 64,000-square-foot Maritime Tower and a neighboring, 27,000-square-foot structure on Monticello Avenue for $1.5 million.
But the city in June resumed negotiations, which culminated in the agreement to buy the properties.
``I don't know why'' the city changed its mind, said William B.Corbin, vice president of Crestar Bank and subsidiary Eastern REFG Inc. ``I didn't ask. They said they wanted to buy it. I said, `OK, I'll sell it.' ''
City Attorney Phil Trapani said the city wanted to ensure that the mall's developer, Taubman Co., had enough real estate to build the shopping center.
MCI hasn't agreed to move, but Norfolk officials said they will continue discussing the matter with the company.
With the purchase, the city will own the entire Systems Management American complex. The SMA complex also includes a building that once housed J.C. Penney.
The city needed to own the entire complex to make room for the upscale MacArthur Center. Norfolk officials have discussed using part or all of the SMA complex for a hotel or parking lot to complement the shopping center.
``Control of the entire block is very important in their (Taubman Co.'s )perspective,'' Trapani said. by CNB