NORFOLK, Va. - — The city council approved purchasing two properties on Tuesday night, including the Dillard's store, giving the city ownership of all of MacArthur Center.
In a 7-1 vote, the council agreed to spend $4.1 million to buy the property. Earlier this summer, the city council authorized $18 million to buy the rest of the mall.
Councilman Tommy Smigiel was the lone vote against the Dillard's purchase Tuesday.
"I respect and understand the control of this," Smigiel said during the meeting. "It's just a lot of money that we're spending on unknowns and it makes me feel really uncomfortable."
News 3 previously spoke with the city's interim economic development director about the mall's future and the Dillard's acquisition.
News
Norfolk city leaders contemplate next moves for MacArthur Center
Sean Washington, who also serves as the executive director of the Economic Development Authority, said Dillard's operating agreement meant the city would have needed the anchor store's permission to redevelop the mall.
The city is still contemplating next steps for the mall.
"The importance of us acquiring the Dillard's is to make sure that there isn't another party or another entity that would stop us from redeveloping to what we think would be the highest and best use of this particular asset," Washington told News 3.
On Tuesday night, the city council also signed off on the purchase of a property owned by the federal government.
The nearly four acre property contains a warehouse for NOAA, which has announced plans to move its operations center out of Norfolk for Rhode Island.
The city is authorizing over $4.5 million for the purchase, which city documents said is "significantly higher" than city projections.
During the meeting, City Manager Patrick Roberts explained the price was dictated in federal legislation authorizing the sale.
In recent years, News 3 has reported on several properties purchased by the city, which have been done for a variety of reasons.
In 2018, the city bought Greenies in Ocean view and then tore it down.
Last year, they bought the Soap N Suds laundromat, which is also now gone.
For now, the city has added beach access around there.
Last week, News 3 reported on the demolition of a shopping center on Granby Street following the city's purchase last year.
News 3 asked a city spokesperson why the city continues to make these purchases and for insight on the strategy.
"The City of Norfolk takes a strategic approach to the acquisition of new properties. The examples you’ve cited were purchased for different reasons at different points in time, each unique to its respective location, associated opportunities as well as the potential community impact," the spokesperson said in a statement. "It’s impossible to give a general answer as to why these or others were purchased because the answer will vary based on the site. The one common them is a goal that they be utilized in a manner that maximizes their long-term value to the City, its residents, visitors and business partners."
In the case of MacArthur Center, Washington has stressed the importance of the city being able to dictate the mall's future.
"A lot of people kind of have this understanding that if you don't get it, there are some developers who will come in to try and actually purchase a mall," said Washington. "They will actually allow it to, we use the term run down itself. We wanted to sure that we play defense a little bit."
