The Virginian-Pilot
©
NORFOLK
The long-dormant Granby Tower site has some new interest from a longtime suitor: the federal government.
City officials and an attorney for developer Buddy Gadams confirmed that Gadams has been approached by the General Services Administration about purchasing the property, which the government has long coveted for an expansion of the federal courthouse.
About 15 men and women who identified themselves as employees of the GSA toured the site at the corner of Granby Street and Brambleton Avenue on Wednesday, taking photographs and looking at surveys of the property.
They declined further comment. Later, they toured the Hoffman federal courthouse building across Granby Street.
Granby Tower was to be a $180 million, 34-story condominium project that would have been the city's tallest building. It would have had 302 units ranging in price from $270,000 to $1 million.
Although the tower was announced in 2004, threats from the federal government to take the Granby Tower site delayed the project for nearly a year. By the time the issue was settled and construction began, the credit markets had begun to crumble.
Gadams lost his financing and halted work on the project in September 2007, two months after Turner Construction began driving hundreds of pilings into the ground.
He has been awash in lawsuits ever since. People who placed deposits to hold condos have sued to get their money back. Turner Construction and subcontractors are seeking more than $20 million in payment for construction costs.
Jonathan Hauser, a Virginia Beach attorney who represents Gadams, said neither he nor Gadams were aware that GSA officials would inspect the site Wednesday. He said Gadams has spoken with the GSA, but would not characterize talks as negotiations, and added that Gadams is still seeking financing to complete the project.
"These are very challenging times, but he's been relentless when it comes to" seeking new financing, Hauser said.
He added that the GSA "has been interested in that property for at least a decade. Maybe they'll buy it. Maybe they will condemn it."
Mayor Paul Fraim said he also was aware the GSA had expressed an interest in the Granby Tower site.
"I'm not aware of the probability of a sale in the near future," he said. "Anything is possible. I think the GSA would like to control the property. They don't have the money to develop the site, but they may have the money to purchase it."
A GSA purchase would make the land nontaxable. That irked Vice Mayor Anthony L. Burfoot, who said he hopes it remains in private hands. Burfoot has suggested that Norfolk buy it to eventually sell to another developer.
"If the federal government occupies that land, it produces no revenue for the city," he said. "If we have the opportunity to purchase that land, we should do it."
The site is overgrown with weeds, littered with pilings and contains two large bodies of water. Fraim said Gadams has agreed to begin cleaning up the site and do mosquito prevention there. Gadams will put up a new fence with a dark cover to hide most of the property.
"It is the gateway to downtown," Fraim said. "It needs to look better."
In what was most certainly an April Fool's Day joke, someone put a sign that said "Future Home of Wal-Mart" on the fence that surrounds the property on Tuesday.
Pilot writer Lauren King contributed to this report.
Harry Minium, (757) 446-2371, harry.minium@pilotonline.com

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When did the properties burn down?
Would you like to give full details as to when the retail shops? I will leave that to you.
Sir, the issue is whether the intention was in line to use the property for the courthouse. Just because the city says they want to use it for this does not change what the intention is. Anyone who works for or works with the federal government on development knows how slow the process is. Your point is that because the city and their cronies wanted to do something now with the property makes less valid the clear notification of the long range intention does not mean I have to get my facts straight. It means that you can discount because it serves interest to do so. I think what we are taking about here now is entitlement. That is not an argument of facts but of what you feel is of greater priority. And where is your interest in avoiding the history that has taken place? Tisk Tisk... Vested interest
The city did approach the feds first.
Documented in the VPLS, get your facts straight. The retail shops on the property burned down. The city approached the FEDS to use the property., they wouldn't even talk about it at the time. Norfolk officials then moved on to explore other possibilities, such as private development.
I suggest you give Harry Minium a call and get straightened out on this issue.
Do not sell!
Do not sell this hole, it will save the tax payers millions if we already have a place to dispose of all the light rail cars in a few years!
Blaming the Feds is just bunk
To respond to what makes no sense given the timeline. Marathon and city just used the feds as a scapegoat.
That is it; check the timeline given the other points well known
Notification was given to the prior owner of the land that the Feds had all intention that the courthouse was to be expanded on this property. That property owner had to give notice to Marathon and Gaddams and did so. With that being said now take the timeline and a little something called deductive reasoning given the fact that financing was not secure. No need for suspicion with this in mind and I have not even stated everything you already know in the course of this debacle. The favouritism and tax incentives given by the city lead us further to this reasoning. George K, you have been on these boards as much as anyone so you indeed have followed the saga; No?
or, a time line!
Something other than your suspicions.
asnerj, which facts are wrong?
Show me a documented time lime to the contrary.
Moose has it right
The lines are blurred, repubcrat or democan, it's the same mission. Bigger government, more control over our daily lives and a slippery slope towards socialism or even communism soviet style. At the very least it starting to feel like an oligarchy. The Kennedys, the Bushs, the Clintons...it's happening.
We need less government. A government's core mission should be to protect citizens and borders.
Check the history of the entire project
George K …. Your facts are wrong pleae do some research before you speak on things merely on face value as the project can be easily seen as suspicious if you look to history … Ethan; the sales office did not go up until after the feds walked away and then Marathon sweated that it might actually have to build the project. Appearances Appearance
However, whatever the case I just have to speak to the inept comments of Burfoot.
There seems no thought by our elected officials to the businesses that have long suffered by this farce of a project. Burfoot says that no tax revenues will be gained by the city. What about meals taxes and other taxes associated with stimulation by a larger work-force in that area from this expansion of the courthouse? I’m quite sure that other land owners down as well s business owners there would look forward to this property being salvaged by the feds. If you go back and look to the fact that if the feds had begun this project as they intended and Gaddams, Mayor Fraim and others, it is easy to see how the revitalization would have benefited by it. It is pretty audacious that Burfoot makes these statements after all that has occurred with this prope
how in the world...
would Norfolk's purchase of this generate any tax revenue?
And Burfoot's second in command in the City Treasurer's office, right?