Over the past few days, The Virginian-Pilot has reported on changes in two major development projects in downtown Norfolk.
The first involved the building of a $47 million hotel, which will anchor the new convention center. Delays in the start of the project have been frustrating. Earlier this year, the city offered developer RLJ Development a $7.5 million performance grant. Even that was not enough to convince RLJ, which is owned by billionaire BET founder Robert Johnson, to actually build the hotel. Citing turmoils in the credit markets, Johnson bailed and and the project has been turned over to Fulco Development. Fulco is the company of local developer William Fuller, a former NFL star from the area.
I expect three things on this project: more delays, greater participation by the city in the form of additional cash incentives, and it won’t end up being a Hilton.
Today’s Pilot has a story about the oft-delayed Granby Tower. The project’s financier has pulled out and the developer is working on finding new financing. The article says that about half of the 302 units are sold, most of them at the upper end of the $270,000 to $1 million selling price range.
At the time this project was announced three years ago, we were in a different market as far as housing and credit were concerned. Expect the project to be completed but not without additional help from the city.
VIVIAN J. PAIGE | All Politics is Local 
“Today’s Pilot has a story about the oft-delayed Granby Tower. The project’s financier has pulled out and the developer is working on finding new financing. The article says that about half of the 302 units are sold, most of them at the upper end of the $270,000 to $1 million selling price range.
At the time this project was announced three years ago, we were in a different market as far as housing and credit were concerned. Expect the project to be completed but not without additional help from the city.”
Now WHY couldn’t we do the Federal Building expansion on that lot? Oh yeah, because Granby Tower would be a boon to the city. Now it will be a money sucker with half the condos unsold.
What’s next? The Spectrum at Willoughby.
It’s a contentious issue to start with, debating the extent to which, if at all, local governments should be committing taxpayer dollars to prop up such projects when instead these things should be left to the private sector. But since City Hall has been in such a giving mood, I wonder, what if – what if the $22 million was leveraged for redevelopment of critical areas throughout the City, and not solely here. How much lift to could be brought to a host of communities in need, to benefit the many, and not just the few? It’s hard to argue from the counter-factual; so I guess we’ll never know.