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Norfolk — Less than a week after buying Military Circle mall, Norfolk’s Economic Development Authority announced it had also bought the former DoubleTree Hotel next door, giving the city near-total control of an area it’s long eyed as a focus for future development.
The hotel closed in 2009, and the building changed hands in 2010, but a plan to revamp and reopen it never panned out. It’s been listed for sale for almost a year, with an advertised price tag of $3 million.
Norfolk’s EDA paid $2.4 million, according to an announcement Thursday, on the property assessed at $2.1 million.
[ Previous coverage: Norfolk buys Military Circle mall for $11 million ]
This announcement comes a week after the city’s economic development arm bought the rest of the neighboring mall for $11 million. The EDA had already purchased the J.C. Penney’s building at the mall in 2014 and spent $18 million to renovate it into an office building.
The pair of purchases in the past week represent a massive step forward for the city’s plan to totally overhaul an area that has foundered in recent years as major retailers have exited the mall.
The ultimate vision, according to a 2017 plan, is a huge mixed use development. Officials have also floated the idea of putting a major sports arena in that area.
City planners have long talked about pushing new development inland as a way to help combat future impacts of sea level rise, with the Military Circle area — which sits on what officials have called a spine of relatively high ground — being the main target.
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Mayor Kenny Alexander said there’s been a desire to control the area for years, even before he was elected to lead the city, but said a recent citizen push to increase development on Norfolk’s east side helped push forward these recent deals.
“After speaking with residents on the east side, we decided to bring it to fruition much sooner than we had originally planned to do," Alexander said.
He said there was also some strategic thought given to the timing due to the coronavirus.
“Post-COVID 19, all cities will be looking for ways to grow their tax base," Alexander said. “People say ‘Mayor, you’ve got to be crazy to invest at this time,’ but this is the time you need to invest in those properties and activities, enterprises that will give you that return on your investment.”
Alexander said there were no immediate plans for development or deals with developers for the property.
“This is the first step — control of the property. We’re in the infancy,” the mayor said.
Ryan Murphy, 757-739-8582, ryan.murphy@pilotonline.com