Plan in place for overhaul in Norfolk's Wards Corner

NORFOLK

City leaders are close to luring a Harris Teeter grocery store and Urban Outfitters, a hip merchandise store for younger customers, into two areas that officials have wanted to revitalize for years.

Developer Chris Perry, part of the family that founded the Dollar Tree store chain, plans to begin demolishing a dilapidated shopping area in Wards Corner within six months. He would replace it with a shopping center anchored by Harris Teeter, located on the southeast corner of the intersection of Granby Street and Little Creek Road.

Businessman Bobby Wright is negotiating to bring Urban Outfitters, a Philadelphia-based chain, to a three-story, downtown building at 271 Granby St. City officials say it would be the largest retailer on Granby, which is largely populated with restaurants, nightclubs and empty storefronts.

If the deals are finalized, both retailers would receive city subsidies. City leaders declined on Wednesday to say how much.

According to documents obtained from city officials, Norfolk has discussed but not yet offered an $880,000 performance grant to attract Urban Outfitters. The grant would give the store a rebate on a percentage of city taxes that it would pay over the first 10 years. Norfolk has used the incentive to attract other businesses, including Dominion Enterprises and the Fort Norfolk medical office tower.

Assistant City Manager Darrell Hill said no incentives have been offered for the Wards Corner project, but the city is in negotiations with Perry.

"If we share the specifics... before a deal is signed, it could be counterproductive," Hill said.

Most City Council members said they were unfamiliar with the Urban Outfitters negotiations, but some expressed support.

"It is essential to the future of downtown," Vice Mayor Anthony L. Burfoot said.

The store would displace the Time Lounge nightclub and a camera shop and be within sight of the Monticello Avenue entrance to MacArthur Center. It would occupy 15,000 square feet on three floors.

Chris Malendoski, a broker for Wright, declined comment. A call to Urban Outfitters' headquarters Wednesday was not returned.

Businesses downtown along Granby Street are hurting, and the city needs to assist redevelopment there, according to correspondence from Malendoski to city officials that was provided to The Virginian-Pilot.

"Granby Street has been in a slow state of decline," the broker wrote to the city in July.

Kevin Murphy, president of the Downtown Civic League, said "Urban Outfitters would be the most important thing to happen downtown in many years."

At Wards Corner, civic and business leaders have long pushed for redeveloping the once-thriving retail area. The city responded last month by purchasing seven apartment buildings for $2.7 million in the nearby Denby Park neighborhood. The purchases were made to reduce density, and, city officials hope, reduce crime.

Perry did not return a phone call, and Catherine Reuhl, a Harris Teeter spokeswoman, declined comment by email Wednesday. But two tenants of Perry's shopping center, who spoke on the condition that they not be identified, said they have been told that they need to get out within six months and that the shopping center will be demolished. It now features a Dollar Tree, barber shop, Radio Shack and A.J. Gator's restaurant and contains 125,000 square feet of space.

Council members Barclay C. Winn and Andy Protogyrou said many tenants would move to vacant storefronts in the area. Perry has told city officials that his new shopping center would also include the region's largest Dollar Tree store. The company's first store was located at Wards Corner.

Tim Fox, president of the Suburban Acres Civic League, announced the impending demolition of the shopping center at a civic league meeting earlier this week.

"It's the best news we've heard in the Wards Corner area in many years," he said.

Harry Minium, (757) 446-2371, harry.minium@pilotonline.com