NORFOLK
Ken Kaufhold looked past his empty bar Thursday to the smattering of people sitting in Waterside’s food court.
This, he said, is typical for the downtown festival marketplace. There are fewer customers. Less business. Lower profits.
“It’s been painful,” said Kaufhold, who has owned Pastaria, a restaurant and bar inside Waterside, for nearly two years.
Waterside was once seen as the catalyst for downtown redevelopment, a riverfront magnet drawing tourists and locals to Norfolk.
But as redevelopment has swept through most of downtown – creating more upscale restaurants and entertainment spots – Waterside’s traffic has dwindled. City leaders say they need to examine the marketplace’s future, whether that be renovation, refocusing its purpose or tearing it down and doing something completely different.
“We kind of need to reinvent it,” City Councilman Barclay C. Winn said. “Downtown’s changed, and we need to adapt to that change.”
When Waterside was built in 1983, it was a haven for small shops and vendors. Boosted by the state’s blue laws that closed other stores on Sundays, the marketplace thrived in its early years.
But by the mid-1990s, it was no longer profitable, and the kiosk-and-storefront idea had become stale.
City leaders lured restaurants and nightclubs, reinventing Waterside as an entertainment and dining hot spot with national chains such as Jillian’s, Hooters and Outback Steakhouse.
The city’s housing authority bought the marketplace from its private owner in early 1999. At the time, Norfolk leaders said they planned to eventually find a private owner and get out of the landlord business.
Nearly 10 years later, the city still owns Waterside, which has become less of a boon to municipal coffers.
It brought in roughly $2.2 million in revenue from real estate, food, beverage and admission taxes last year. That’s a $300,000 drop in annual tax revenue since 2004.
Leases in recent years haven’t covered the marketplace’s operating costs and debt payments. The city has subsidized the facility with $850,000 annually. This year, Norfolk will have to find an additional $250,000 before the end of June to make up for additional lease shortfalls.
That, combined with what business owners and officials say has been a slowdown in business over the last few months, has sparked cries for studying the marketplace.
“Practically everything is on the table at the moment,” said Lane Brown, Waterside’s general manager. “It’s 25 years old and it looks like it’s 25 years old.”
Brown said the mall’s larger tenants – the chain restaurants and nightclubs – are still profitable. Because they fill much of Waterside’s space, only 3 percent of the retail square footage is vacant at the moment.
But to visitors earlier this week – conventioneers with their name tags flapping, families enjoying spring break, businesspeople stepping off the ferry – Waterside may not have looked as successful.
A few vacant stalls dotted the food court, and the carpeted stage just outside Kaufhold’s stand was empty. Upstairs, Sharon Hogan tended to a handful of customers at Erin’s Treasures, an Irish imports shop, but the two storefronts nearby were both bare.
Hogan has been at Waterside since its first Christmas in 1983. She bought the shop in 1985 and has watched Waterside’s fortunes wax and wane several times.
“Those of us who are here now have been here a long time,” she said. “It has slowed a little. There aren’t stores like myself still in here.”
With its questionable future, one of the biggest challenges is getting people to sign new leases, said John Kownack, an assistant executive director for Norfolk’s Redevelopment and Housing Authority. Some business owners shy away from leasing and making upgrades to spaces that they may have for only a couple of years, he said.
Brown said he lost several prospective tenants recently for that reason. “In at least a few of those cases, they would have been great additions,” he said.
To help tenants who are struggling, store owners often offer to reduce lease rates, Kownack said.
“We don’t want to see places go dark,” he said. “We’re doing everything we can to help those businesses to be successful, or be less unsuccessful.”
As he surveyed the scene inside Waterside’s food court Thursday, Kaufhold said he was looking to get out.
Not long ago, he was close to selling the business to a potential buyer who got skittish because of lease issues.
“It’s a shame at such a beautiful location that there’s not a lot of people patronizing this building,” he said.
Meghan Hoyer, (757) 446-2293, meghan.hoyer@pilotonline.com
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I'll stop after this, I promise ...
I'll stop after this, I promise. Since we are at location "Mile Marker Zero," why doesn't Portsmouth and Norfolk develop this area tooting "ZERO BOAT TAX at Mile Marker Zero"? Look at Solomon's Island. It's lovely.
One more thought, if i may?
One more thought, if I may? I just remembered the new upscale supermarket built near there - is it in Ghent? Good grief, I'd SOOO rather be there than in Portsmouth because of how we are viewed (taking a "free ride"). Go figure.
All the restaurants, the Arts, Theater, the Mall, etc. All nearby.
But, not if there is an unfair boat tax. Boaters do not put any drain on services; I don't understand the "If you tax me, tax them!" mentality. I pay taxes in my own state. I just spend money here. (Is that a free ride, Councilman Moody?)
Waterside
Remember when "Phillips" was there? And they had the piano player on the patio outdoors? That was so nice. I don't know what happened. It's sad.
I agree with the comment to build a large marina there. I know of a whole boating community that would jump ship from Portsmouth and cross on over in a heartbeat! Boaters spend a WHOLE lot of money.
And, we are not welcome in Portsmouth - Councilman Moody said we are taking a "free ride." Huh? I sure wish I could vote in Portsmouth.
Oh, the good ole days. (sigh)
Waterside died
Waterside died, long before MacArthur Mall arrived.
Interesting fact about Waterside
I neglected to mention in my previous comment that Waterside was built by the Rouse Company. Ironically, this is the same company that built HarborPlace at the Inner Harbor in Baltimore as well as a similiar pavilion setting in Boston, MA. Both of those are wildly successful. So what is Norfolk NOT doing? It could be so much better on the waterfront in Norfolk. I'm sure Mr. Rouse envisioned it to be as touristy and popular there as it is in those bigger cities.
Nice Marina
Waterside has a nice marina. Not too many folks know that. I am a member of a boat club, we would go to Waterside by boat there for lunch, but the type of people that Waterside attracts is a turn off. I do not feel comfortable leaving my boat unattended while "troublemakers" roam the area.
Waterside needs to attract more upscale business, lose the meat market bars, and give the upscale spender a reason to go to Waterside. City needs to clean up the parking garage. Ever been there? Bunch of "odd" people hanging around there. I won't go back there!!!!!
Jacksonville Fla has their own "Waterside" called the Jacksonville Landing. Place is FUN. People having fun, socializing, shopping, etc. No gangs, No fights, No trouble makers . . . . look into what makes the Jacksonville Landing & Baltimore "Waterside" successful.
Let's face it
Downtown Norfolk is boring! There is absolutely nothing to bring tourist to the area even with the cruise ship terminal, and it will be cutting back in 2009. I have said before and will continue to say our Mayor and City Council memebers do NOT have the creativity, educational background, foreseight, or general knowhow to move Norfolk forward. We need more tourism, but we have to give them a reason to come here. They go to VA Beach, but they have no need to venture into Norfolk. Our tourist center, does little to nothing to advertise the Chrysler Museum, Harrison Opera House or even the 100's of antique shops. Going to see a ship is one of those things if you've done it once you won't do it again. That was a dumb idea to begin with. Even Nauticus isn't meeting expectations. The 7 acres of Townpoint park are to be re-done at the tune of $7 Million. That's $1 million per acre. Unbelievable!
It Serves ONE Good Purpose
Keep it there. If they get rid of it, then all the criminals there will have to come down the road to Va Beach. But if is does go, I like the idea of turning it into a jail annex.
ESBAR Comment
Thats an outstanding idea. Very well then.
Market!
This is the perfect opportunity for one of my big ideas to come to fruition! I have long thought that the first floor (and perhaps second) should become a market, much like Chelsea Market in NYC, just on a smaller Norfolk-sized scale. We need to have FRESH Seafood and Meat markets, FRESH Produce markets, international food vendors (the real thing... not like what's there now), Italian bakeries, seafood joints (where you can get a decent crabcake for $7). If we reinvent Waterside into something that is unique for the area and would attract visitors from the regions other touristy areas, it would very nicely coincide with the $11 million renovation of Town Point Park (including an amphitheater), the Half Moone Cruise Center, and Nauticus' 5-10 year plans to completely overhaul their facility (including adding destination restaurants and shopping). Sounds pretty awesome, eh?
How about...
making it an annex for the city jail....the only people hanging around down there are criminals....
Waterside Marketplace
When I was born in 1976, Waterside was just a dream to Norfolk's leaders, and there was a ferry terminal in that location. I still remember the Virginian Pilot news article about the grand opening in June of 1983. I was six years old at the time. My family would frequent Waterside when I was younger, and I remember how lively it used to be. In recent years, however, the attitude and atmosphere of the place has changed significantly. I miss the old Waterside, and I wish that Norfolk could bring that spirit back, but that is not likely to happen. If I recall correctly, there was also a television spot with the slogan "Come see all sides of the Waterside". I miss that, too.
REALITY...
MacArthur Mall KILLED Waterside for shopping & now ODU's University Village has KILLED it as an entertainment venue, for its few remaining patrons (students & sailors).
A POOR choice of tenants, OUTRAGEOUS CITY PARKING FEES, & poor security have virtually finished it off.
It's a 'done deal'... 'water under the bridge'... 'a dead horse to whip'... pick your euphemism. I used to go there... a LOT! Lately, I won't even go near the place!
OK... now that we have a MAJOR shopping venue downtown & U. Village, keeping the students (and the sailors) at ODU... what happens to Waterside? (Oh yes... ODU has been THE attraction for sailors, ever since they cleaned up Downtown & destroyed EVERYTHING for them to do on Hampton Blvd., North of Little Creek Rd., in the early 70s. Hampton Blvd., North of Little Creek Rd. STILL looks absolutely LUNAR!)
I think that whatever Waterside might become, it should dovetail with Town Point Park & the Cruise Pier, as an entertainment attraction (only one that's not so CREEPY ). Something open, that allows a wide-open view of the harbor & WON'T provide cover for criminals & bums.
Take a cue from Baltimore's Harborplace
When we first moved to Hampton Roads, upon driving through Norfolk and viewing the Waterside area, from the outside it reminded me a little of Harborplace at the Inner Harbor in Baltimore, MD. Growing up in Maryland, I have been to Harborplace many times and it's always bustling and hectic with tourists and locals alike. We took some visiting family members to Norfolk for a day trip and, upon entering the Waterside Pavilion, were horribly dissapointed by the entire experience. We expected it to be bustling with customers just like the Harborplace pavilions in Baltimore. Perhaps whomever wants to revitalize Norfolk's Waterside and Town Point Park should get in touch with the city of Baltimore and see what kind of advice they can get. All those attractions in that part of Norfolk should sync together but they don't.
rip offs
keithh41833 is right.
I live in STL currently. Norfolk is a little behind STL in sticking it to tax payers, but is making strides in catching up.
STL's new favorite is giving tax money to corporations to build/locate.
I have to be painfully blunt
I have to be painfully blunt here as this has been known but never discussed... waterside has always been a blatant copy of Baltimore's inner harbor area. Baltimore has an aquarium and a sub we have a battleship and something that once was an aquarium which could have been outstanding except the city managed to drive Cousteau away.
Unbelievable!
From The Pilot.."Leases in recent years haven’t covered the marketplace’s operating costs and debt payments. The city has subsidized the facility with $850,000 annually. This year, Norfolk will have to find an additional $250,000 before the end of June to make up for additional lease shortfalls."
This is exactly why that government has absolutely no business being involved in owning shopping malls and market places. This is the reason why Norfolk citizens real estate taxes continue to go through the roof to bail out these sorts of things. This should have stayed in private hands and let private business take the risks. It's no surprise that this has happened.
I remember
I remember thinking it would be cool if the end of the building was redone into a stage for the outdoor music events, instead of the tent. With a real canopy and what not more could be done. Of course all the noise would be directed into the neighborhood behind the Wisconsin and not into the trade center.
The biggest mistake
The biggest mistake is Waterside turned into a big bar. When it first opened it was awesome. Lots of good restaurants, vendors, tons of people and entertainment. It was very exciting and a welcome to downtown. Now, it's simply awful. The cruise ship terminal next to it will be cutting back in 2009. I don't know if you have been on a cruise or not, but when you get to islands you are greated with fun/entertainment, and great shopping. When visitors get to Waterside all they can do is have a drink! Whatever Norfolk decides to do, please God, don't let them build another tower of overprices condo's. There was a time when there was no parking on Granby St downtown that chased every retailer away. Can't wait to see what Norfolk comes up with next to chase visitors away.
The quick fix.
The only thing missing at Waterside is a Bulldozer