nationhood ripeness: Ghent project would build retail, medical office space ...

By Jillian Nolin
The Virginian-Pilot
? October 16, 2012

NORFOLK

A failed project that would have brought new medical office space and a grocery store to Ghent is being revived by another development group that also plans a retail and office project.

The Robinson Development Group and Stanton Partners are in talks with Norfolk officials over city-owned property off 21st Street a block west of Colley Avenue. There is no official deal in place, but Bon Secours spokeswoman Lynne Zultanky confirmed that the health company plans to occupy 26,000 square feet of space there.

Six physicians who are housed in tight quarters across the street at Patient Choice would relocate, and the company would add a new physical therapy service, Zultanky said. In addition to Bon Secours, the development group is working with a large retailer, according to Chris Sanders, a vice president with the Robinson Development Group.

The proposal is for two low-rise buildings, but Sanders said the developers are in "ongoing discussions with the city really about all the details."

A new development plan for the site would strengthen the 21st Street corridor, said Jack Plomgren, president of the Ghent Business Association.

"If that area is developed, I think it will be a real positive for Ghent because right now it's kind of no man's land," he said. "It would expand the reach of Ghent down 21st Street."

But Plomgren said he's also learned over the years to temper his enthusiasm until work actually begins.

Cooper Realty attempted to redevelop the site into a 130,000-square-foot development with a Fresh Market, but the project was halted in 2009 because of decreasing demand for office and retail space. Sanders said Friday that "we certainly believe there is current demand for office and retail at this location."

The Robinson Development Group and Stanton Partners aren't the only ones interested in the land. According to an Oct. 10 letter from S.L. Nusbaum Realty Co., it has offered the city $1 million for the property. The letter, which The Virginian-Pilot obtained from a source familiar with the deal, was sent by Joseph Mersel, the company's senior vice president. Sanders did not say how much his group has offered the city for the land.

Mersel wrote in his letter that he would be willing to build retail and medical offices if the city would sell the land.

According to a copy of an email that the newspaper also obtained, Chuck Rigney, the city's interim economic development director, replied to Mersel that "we are currently working with a developer that has made a proposal with two anchor companies we believe would bring about the highest and best use of the property."

The City Council met in a closed meeting last Tuesday to discuss the "disposition of publicly owned real property on 21st Street," but city spokeswoman Lori Crouch said she could not divulge any information "related to a proposed sale of property or plans while under negotiation."

Fresh Market officials would not confirm that a store is planned for Norfolk. The retailer announces new store leases on its website, where it lists only existing stores in Virginia Beach and Newport News.

Pilot reporter Carolyn Shapiro contributed to this story.

Jillian Nolin, 757-446-2326,jillian.nolin@pilotonline.com