What's the future of Waterside? Norfolk ponders its fate.

NORFOLK

Working largely behind the scenes, Rick Henn has played a major role in some of the city's biggest economic development successes, from luring USAA Insurance to the many restaurants along Granby Street.

But recently, the 60-year-old Henn was assigned to a more high-profile responsibility. On July 1, the city is taking control of the troubled Waterside marketplace from the Norfolk Redevelopment and Housing Authority. Henn, who works for the city's economic development department, will manage the facility and try to fill its many vacant spaces.

"It will be the most difficult challenge I've ever faced," he said.

Two of the facility's largest tenants, Bar Norfolk and Have a Nice Day Cafe, were kicked out of Waterside last year because the city said they drew troublesome crowds and management refused to obey rules.

Earlier this month, Jillian's restaurant, Waterside's largest tenant, moved to Greenbrier Mall in

Chesapeake. Jillian's was on Waterside's second floor, along with the two other nightclubs. Jillian's officials said that when the other clubs closed, their business declined.

T he second floor now is vacant, except for two small tenants. The first floor also has many vacancies.

The future of Waterside, which opened as a public-private partnership in 1983, remains in limbo. It

opened as a festival marketplace but was transformed into a retail outlet a decade later, and then into a center for restaurants and nightclubs.

Waterside's initial success was a catalyst that helped lead to the revitalization of downtown.

"In that sense, Waterside was a huge success," Councilman Don Williams said.

Yet like most of the festival marketplaces that opened around the country in the 1980s, Waterside is on life support, and some council members have called for it to be razed.

The council probably won't decide until next winter what to do with Waterside. In the meantime, Henn has been told not to sign any long-term tenants.

He'll try to fill the food court, which has just two tenants, Burger Works and Mongolian Express.

City Manager Regina V.K. Williams said "we need to keep patrons coming to the building," and that's difficult with just two food-court vendors.

Last week, Assistant City Manager Stanley A. Stein told the council that the city will spend $1.35 million to support operations and pay for debt service for the fiscal year that begins July 1. The city still has $5.1 million in debt from an expansion of Waterside. Another $1.9 million will be spent in the next year to subsidize the facility. Fixing leaks in the roof alone will cost $763,000, Stein said.

Council members Theresa Whibley and Paul R. Riddick lamented spending that much, especially, Whibley said, "when we don't know what's going to become of Waterside. What if we tear it down?"

Regina Williams responded: "If you decided to tear down the building today, it would be three years before we could do that. The investments we're making are very modest."

Mayor Paul Fraim said what Williams proposed is just enough "to keep the lights on." Most council members agreed.

Henn said his first order of business is to talk to the

current tenants "and do what we can to make them happy."

Henn said Waterside, with unrestricted views of the Elizabeth River, remains a "priceless" venue. Thousands of potential customers stay in nearby hotels and attend festivals at Town Point Park.

"We want those people to know that we're open," he said. "One thing I've learned is that people go where they are invited and stay where they feel welcome.

"We're going to make sure they feel welcome."

Harry Minium, (757) 446-2371, harry.minium@pilotonline.com Norfolk will spend $1.35 million to support operations and pay for debt service for the next year. The city still has $5.1 million in debt from an expansion. Another $1.9 million will be spent to subsidize the facility.