THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, September 16, 1995 TAG: 9509160287
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 75 lines
Dillard Department Stores Inc. has signed on as the second anchor store for Norfolk's proposed MacArthur Center shopping mall, city officials announced Friday.
Having Dillard's on board greatly increases the likelihood that the $280 million downtown mall will be built. The mall is designed to have three large department stores and needs at least two before ground can be broken.
Little Rock, Ark.,-based Dillard's joins Nordstrom's, one of the nation's leading retailers, which has signed an agreement with the city of Norfolk to be the MacArthur Center's lead anchor.
The signing of Dillard's puts the project back on track. MacArthur Center boosters were dealt a setback four months ago when Macy's bowed out as the second anchor.
The Dillard's announcement could mean that the city will break ground on the mall before a third anchor is signed.
Construction is targeted to begin in the first quarter of 1996. It was originally supposed to have started last March.
``If you're going to raise the level of this city to the heights it can reach, I believe bold actions need to be taken,'' Norfolk Mayor Paul Fraim said.
``Nordstrom's would have to give the OK to break ground,'' Fraim said. ``We believe they're inclined in that direction. But their official position is not to break ground until there's a third anchor.''
Fraim did not say how close the city is to landing a third anchor.
The Taubman Co., one of the project's two principal developers, helped bring Dillard's into the MacArthur Center project and is searching for a third anchor. John Simon, Taubman's senior vice president of development, said five department stores are being considered for the last spot.
In all, the mall will be three floors and contain dozens of smaller retailers. It has been hailed as the centerpiece of Norfolk's downtown revitalization.
Simon declined to discuss the details of Taubman's development agreement with Dillard's or how it would affect construction.
``This means we've made a major step in that direction,'' Simon said. ``The current documents all indicate three department stores as a prerequisite for breaking ground. But we're redesigning the project. We're evaluating this, at this point and time, as an option.''
Taubman, co-developer Conroy Development Co., and Norfolk officials are redesigning the floor plan for the mall. They want two department store anchors located along Monticello Avenue and one along Cumberland Street. Changes to the parking arrangements are also being made.
The MacArthur Center store will be Dillard's first venture into Virginia and the largest department store in Hampton Roads. Preliminary plans call for the Dillard's store to be 240,000 square feet.
The Dillard's store will employ 250 people. Most of the store employees will be hired locally, city officials said.
Simon would not say whether Dillard's plans to build a second store in the region. Nordstrom's signed an agreement with the city not to open another store in this market.
Known as a traditional department store featuring fashion apparel, home furnishings and electronics, Dillard's racked up $5.5 billion in sales in 1994 while opening nine stores. The 232-store chain has outlets in 23 states. This year, it plans to open 11 stores, Fraim said.
``This is clearly a company on the move,'' Fraim said.
Dillard moved into North Carolina in the early '90s and then tried to enter the Hampton Roads market. It considered the former Thalhimer store in Lynnhaven Mall in Virginia Beach but Hecht's, conscious of its competitors' interest, quickly snagged the prime location. ILLUSTRATION: [Color photo]
[Aerial photo of 17 Acres]
by CNB