THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, December 21, 1995 TAG: 9512210395
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
LENGTH: Medium: 77 lines
The developer of MacArthur Center, the upscale mall planned for downtown Norfolk, said Wednesday it has chosen Chesapeake-based Armada/Hoffler Construction Co. and an Alabama company to build the shopping center.
``It will be a joint venture between Armada/Hoffler and Hoar Construction,'' said Steve Kieras, development director for The Taubman Co., the Bloomfield Hills, Mich.-based developer. ``They will split duties, not necessarily on even lines.''
Kieras did not say which company - Hoar or Armada/Hoffler - would have the lead contracting duties. The city and officials from the two companies would not elaborate. A formal announcement of the contract awards is scheduled for 11 a.m. today at City Hall Avenue and Bank Street.
City leaders, Taubman and construction officials plan to announce the names of the project's general contractor and architect. They also plan to announce Taubman's final approval of its $200 million investment in MacArthur Center.
``We're prepared to move forward, and the developer is moving forward with the project,'' said Robert S. Smithwick, director of Norfolk's Department of Development.
Armada/Hoffler and Hoar Construction, both privately owned, are among the nation's largest construction contractors. Hoar Construction, based in Birmingham, Ala., has built more than 100 shopping centers and 200 department stores.
Armada/Hoffler, the biggest commercial builder based in Virginia, has created everything from jails to schools to shopping centers. One of its highest profile projects in Hampton Roads is the Norfolk Waterside Marriott and Convention Center, which is a few blocks from the site of the three-story MacArthur Center.
``It's a wonderful project that will be great for the city of Norfolk and we're proud to be part of it,'' said Daniel A. Hoffler, chairman of Armada/Hoffler Construction.
City officials have said they hope to break ground on the 1.2 million-square-foot mall next month and complete the project by 1998.
MacArthur Center will be anchored by Seattle-based Nordstrom, an upscale department store chain. A second anchor - Little Rock, Ark.-based Dillard - signed on after R.H. Macy & Co. dropped out of the project. Economic development officials were still looking for a third anchor.
Taubman Co. will put up $200 million of the project's total cost. The city will pitch in the remaining $100 million, mostly in loans that are expected to be repaid with parking fees and mall-generated revenues.
City officials hope MacArthur Center will generate millions of dollars in revenue for the city and boost the revitalization of Norfolk's downtown.
While the city and the developer are confident the mall will be able to draw enough shoppers to be successful, at least one retail expert says that will be difficult.
``After numerous delays, it seems like they're getting close to making it happen,'' said Lawrence Ring, a professor at the College of William & Mary and a retail expert. ``I don't have any doubts about them building it. The question is, after they build it, will people come?''
If city officials are correct, there will be more tax revenue and spinoff growth in Norfolk, Ring said. Shoppers would spend money in Norfolk instead of Virginia Beach or Chesapeake, he said. And others might not leave the region for Richmond or Northern Virginia malls, Ring said.
``If the mall proves to be successful, it will draw a lot of people downtown,'' he said. ``There will be spinoff tax effects . . . and services to go along with that.'' by CNB