THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, December 6, 1995 TAG: 9512060426
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY ALEX MARSHALL, STAFF WRITER
DATELINE: NORFOLK LENGTH: Medium: 89 lines
Speakers at a sometimes raucous town meeting Tuesday night said they liked the idea of a luxury mall downtown but doubted that the City Council and staff were telling them all the facts.
They worried that possible parking, safety, design, and market pitfalls could sink the mall and that taxpayers would be left to dig out of a financial hole.
``People don't trust the city of Norfolk,'' said Randy Lassiter of Lake Taylor in remarks that drew strong applause.
``Ninety-five percent of the people favor the mall,'' said Clark Olsen. ``But they worry that all the numbers are not being disclosed. How much are the citizens of Norfolk going on the hook for? That's the real question.''
About 150 people showed up for the meeting at Lafayette-Winona Middle School. Councilman W. Randy Wright led the meeting. Mayor Paul D. Fraim and Councilman G. Conoly Phillips sat beside Wright at a small table on the stage of the auditorium.
Representatives with the Norfolk Federation of Business Districts, a citywide merchant organization that has held meetings on the mall, handed out stickers saying ``Stall the mall 'till we know all.''
In a slide show, in spoken remarks and in handouts, the city staff stated the basics of the project's financing: The City Council has committed $97.2 million in spending, most of it in loans for which the taxpayers would not be directly responsible.
In exchange, The Taubman Co., the mall's principal developer, would supply the bulk of the funding on the $300 million project. Once under construction, the new mall is designed to infuse downtown and the city with a new job and tax base.
``These are people who are willing to invest 200 million $1 bills into downtown Norfolk,'' Phillips said, leaning across the table. ``That is very significant.''
But residents worried that Nordstrom, the key anchor, would pull out quickly if business got bad. In reply, Fraim said the store had a 25-year lease, plus a commitment not to build another store within a 50-mile radius.
Speakers differed in their concerns, sometimes in ways that set them against each other.
Joshua Paige, president of the Inner-City Federation of Civic Leagues, wanted assurances on the hiring of low-income and minority residents.
But several speakers worried that the developer's commitment to put a priority on hiring low-income residents, a condition necessary to win low-interest federal loans, could result in a poorly-trained workforce whose level of service might hurt the mall's chances of financial success.
Nordstrom and Taubman have promised to extensively train all of their employees, Fraim said.
``I'm delighted both stores are coming,'' said Encie Teets, president of the Glenwood Civic League. ``But as long as the city continues to charge for parking, I don't believe they will draw the shopping crowd.''
Parking was a concern among several of those at the meeting. The expected rate is $1 per three hours at the mall, Fraim said, a price low enough not to hurt business, he said.
Many speakers wanted more specifics on the contracts between the Norfolk Redevelopment and Housing Authority and the mall developer and anchor tenants.
After insistent questioning by Peggy Bouchard, Deputy City Manager Darlene L. Burcham said that Nordstrom would pay a rent of $200,000 per year to the city plus a percentage based on its sales.
``I also feel that I can't trust you all,'' said Bouchard, who lives in Ghent. ``We played dodge ball when we were kids. We're grown-ups now.''
Fred Bashara of Larchmont said the mall should be dropped and the area refashioned as a mixture of small stores and apartments on traditional city streets.
``I believe we can turn that area back to what it was in the 1950s, an area of mixed residential and small businesses,'' Bashara said.
The decision to build the mall has essentially already been made, and is now in the hands of private developers. The City Council voted in mid-1994 to approve the $97 million spending package that will help fund the mall, city staff reminded the audience.
Phillips conceded that an additional $6.2 million necessary to relocate Fire Station No. 1 should also be added to the publicly stated total cost of the project.
In Tuesday's council meeting, Councilman Mason C. Andrews said the moving of the fire station was finalized only in the last few months when Dillard's was signed as the second department store. The company requested a specific spot on the site, which required redesigning the mall and further squeezing the nearby fire station, Andrews said. by CNB