Norfolk plans another study on Military Circle development with interest in sports tourism

It’s been more than four years since the Norfolk Economic Development Authority approved a plan for the city to purchase the languishing Military Circle Mall.

Now, after one lengthy search process for a developer ended with a scrapped development proposal , the city is paying a consultant to study the highest and best use of the mall site. However, top city officials have expressed interest in a development that centers on sports tourism.

The city has chosen Washington-based architecture consulting firm Gensler to conduct a market analysis and feasibility study for Military Circle, which will take up to 10-12 weeks, Mayor Kenny Alexander told attendees at a Downtown Norfolk Council event Wednesday.

“We envision Military Circle as a mixed-use hub that will integrate community sports, retail, residential options and modern, creative office space,” Alexander said.

Sports tourism and youth sports have become development goals for several cities in the region. Virginia Beach opened its $68 million Virginia Beach Sports Center in late 2020. That facility, which opened during the height of the pandemic, is fueling tourism but operating at a loss , according to a two-year audit released in 2023. Williamsburg-area officials have also approved financing plans to construct a $80 million, 200,000-square-foot facility .

The idea of a sports-and-wellness-focused development also works for stakeholder Sentara Healthcare, which owns several acres of the Military Circle property and whose insurance arm has offices in the former JCPenney location, said Norfolk Director of Economic Development Sean Washington.

“We want to make sure that we continue to do that work with them together as we go into this next phase,” Washington said.

As anchor stores such as Macy’s, Sears and JCPenney exited the mall, Norfolk commissioned a 2017 study funded by the state that said the property could accommodate 6,000 housing units and 16 million square feet of non-residential development.

In 2020, the city purchased the part of the property not owned by Sentara and issued a request for redevelopment proposals. Three finalists were selected , including Wellness Circle, a $1.1 billion bid by Virginia Beach native and music star Pharrell Williams and others to build an arena, hotel, housing and more.

Norfolk’s City Council then began negotiations with Williams’ group in 2022, in a closed-door process that deviated from its own selection guidelines. After months of negotiations, the city announced that the proposal had been shelved during a November City Council retreat.

During a Norfolk Economic Development Authority meeting this month, board chair Jeffrey Brooke criticized how the approach took place in the past and hoped that his body is included in further discussions. He said he was concerned the process might commit past sins and come out looking silly.

Asked to explain those remarks, Brooke said in a later interview that the previous process created the feeling that City Council would make the final decision on the development, and he hoped for more collaboration going forward. He noted that the EDA held the title to the mall property, while City Council possessed the taxing authority and potential public funding.

“I just want to make sure that we are fully involved, and I think we have no reason to believe that we will not be included in those discussions,” Brooke said.

Gensler is the same firm the city commissioned to conduct a similar market analysis for MacArthur Center redevelopment. While Gensler has submitted a report and analysis on that project, the city declined to make those documents public, citing business-related exemptions in Virginia public records law.

Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com