Norfolk to start cleaning up site of stalled Granby Tower

Posted to: Business Norfolk Real Estate News

NORFOLK

Nearly a year after work halted on Granby Tower, the city is finally moving to clean up the construction site, which some officials describe as an eyesore.

Surrounded by chain-link fence, the corner of Granby Street and Brambleton Avenue is stark. There are deep holes filled with water, piles of discarded wood and steel and weeds growing 6 feet high amid rubble.

Cement pilings meant as the foundation for the 34-story, $180 million condominium project lay discarded. An earth mover and mobile crane rust in the sun. Nearby Bute and York streets have been torn up and closed.

The man behind the project, developer Buddy Gadams, lost his financing last September amid the meltdown of the credit markets, and has been pursuing new investors ever since. City officials have been steadfastly supportive.

However, Mayor Paul Fraim took the first step toward cleaning up the site earlier this summer when he insisted that Gadams’ Marathon Development move barriers blocking 14 spaces along Granby Street in front of the federal courthouse. Gadams complied. By the middle of the summer, city officials began telling Gadams to do more.

“The time is growing closer where the city will have to take some affirmative steps to reclaim the street, if Buddy hasn’t made real progress,” Fraim said.

Assistant City Manager Stanley A. Stein said Marathon has agreed to reopen one lane of traffic on Bute Street. The chain-link fence there will be replaced with a wooden fence. Stein said local artists, perhaps schoolchildren, will be asked to decorate the fence.

Gadams said Marathon, and not the city, will pay for the repairs.

City officials may also soon decide to repair sidewalks demolished along Granby Street and Brambleton Avenue.

City officials say that cleaning up the site is necessary for the survival of businesses operating in the area.

Keith Large and Richard Grether, owners of the Oasis restaurant at York and Boush streets, say their business has dropped 40 percent since construction for Granby Tower blocked York Street. Large said a plea he made to Fraim that a walkway be constructed along the closed section of York Street has gone unanswered.

Officials also want the site cleaned for aesthetic reasons – they say it is a blot in a portion of downtown that is booming. “We need to figure out a way to make it less objectionable looking and more functional,” Councilman Barclay C. Winn said.

Nearby, cranes are working on the Wachovia Center office tower, Residence Inn by Marriott Hotel and Belmont at Freemason apartment complex. Combined, those projects will bring more than $200 million of investment to that area.

E-mails from between Gadams and city officials, obtained through the Freedom of Information Act, indicate Gadams has been busy trying to lure financiers. Leucadia National, a diversified firm that is involved in mining, manufacturing and banking; National City Corporation, primarily a mortgage firm; a Canadian group that is unnamed and investors from Dubai in the United Arab Emirates have all been courted, according to e-mails.

Roderick Woolard, the city’s director of economic development, forwarded an e-mail to Gadams from city officials in April asking that on-street parking along Granby Street be restored. “Hold them off. We are making progress,” Gadams responded.

On June 17, in an e-mail sent to Woolard and Vincent J. Mastracco, Jr., Marathon’s attorney, Gadams said he was close to cutting a deal with the Middle East investors. “We are going to get this deal done,” he wrote.

A week later, Woolard informed Gadams that “based upon the mayor’s instructions last night, he wants the barricades moved now” on Granby Street.

Responding by e-mail, Gadams said Tuesday he continues to pursue financing.

“We are working very closely with a lender and are working hard to close the loan as quickly as possible,” he wrote. “I’m optimistic that we will get the funding closed soon.”

If it hasn’t happened by the end of this month, the City Council may take stronger action. Members indicated that Granby Tower will be added the agenda for their retreat Sept. 29-30 in Smithfield.

“At some point we’ve got to say, you’ve got 30 days to get your financing, or we’re going to take all of the barricades down,” Councilman Don Williams said.

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

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feds

What if the goal was never to build a tower, just to sell the property to the feds at a new higher value.

Business

If Norfolk City Council ran a business instead of a city, it would be OUT OF BUSINESS. As it stands, they are trying really hard to put the city out of business. Time to quit rolling the dice so much and make educated decisions. Maybe start with new city planners and leaders.

George K;

George K; Kindly go back and read back to when this project began. Nothing could be further from the truth insofar as blaming the Feds for this failure. Kindly read from beginning and you will see the would be federal courthouse was not the issue here. When you realize the truth you will want to scrutinize your city council and their developer cronies more thoughoughly. Excuses or blaming the federal government do not make up for this debacle and the failure rests squarely on the old boys network, Council / Mayor and a press that will not print facts of which they are well aware. The Pilot has become entrenched in the idea of selling the city over reporting the full fledged details

Performance Grant is not a subsidy.

Before one goes off on the assumption that the City of Norfolk has given away $22 million of local tax dollars, please be aware that this money has not been handed over to the developers or invested into the site. It is not a subsidy. It is not $22 million of existing tax money that is given to the developer. This $22 million is future tax money the City of Norfolk would have been earned from the direct investment of the site - had the project been fully realized, the City would have repaid $22 million worth of taxes generated by Granby Tower back to the developer over an extended period of time. This is how the performance grant works.

cmon George....

...laught with me here!...we all know about the Feds and the damaged they caused...but m i l l i o n s of unrecoupable taxpayer dollars were spent prior to that...dollars which could help lift up areas like Wards Corner and the Pretty lake side of East OV!...ps...let the gangs TAG the new wooden fence ...then downtowners will see how it feels to live in the HOOD!....we should have had our ducks in a row with this project...and we did not!!!

The Feds killed this project.

Rant all you want about city leaders, but it was federal interference that stopped this project and by the time they got out of the way it was too late.

Downtown Site

It appears that the City of Norfolk now has a site available for a new library downtown maybe with a nice outdoor park area. Anyway by the time the financing has been gotten for the condo project the cost to build it will be extremely higher than originally projected. Fill the hole and start anew.

Uh drew?

Drew, why would you say now is the time to buy, when we still face such a large number of bank failures, pull back in lending, and still a *huge* number of loans that will adjust to levels that will result in foreclosure?
We are exiting the subprime loan reset phase and moving into the alt-a and prime loan reset phase. Just because someone qualified for prime rated loan doesn't mean they can actually pay it when the teaser rate is up.

Just Keep Repeating about Funding

How is "Buddy" going to get financing from the Arabs in a timely manner when our own Banks i.e. Merrill, Citi, and others are courting the Arabs to keep our American Banks afloat!?!?!?! This is and has always been a mess. Fraim, is he finally seeing the light on this project and not repeating the same "We are confident that this project will be successfully built!"

I'm thinking....

...since there will be NO Tower of Babble...we should construct a NEW chamber for City Council...along the lines of the Taj Mahal...OMG!!!...better yet....an urban Neverneverland...complete with theme park for our beloved council members and thier croonies to make merry and frolic!!!...we can stand on the outside (as we are accustomed) and wish we were one of them...WARNING...please DO NOT feed the animals!!

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