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Wellness Circle, LLCCITY OF NORFOLKProposal for theMilitary Circle RedevelopmentMay 14, 2021
Growth without limitsfor the people andCity of Norfolk.2Wellness Circle City of Norfolk3
A.LETTER OF TRANSMITTALMay 14, 2021Jared ChalkDirector of Economic Development, City of Norfolk999 Waterside Dr.Norfolk, VA 235120Re: Response to Military Circle RFPDear Mr. Chalk,Wellness Circle, LLC is pleased to present the following proposal for our vision of the redevelopment andrevitalization of Military Circle. We remain aligned with the City’s vision to “transform an underperforming andaging Norfolk landmark into a holistic and vibrant wellness-centered community.”“Wellness” is the central theme of our proposal and is weaved throughout every project component—mostnotably the “Wellness Loop.” The “Wellness Loop” is a one-mile trail that re-imagines the suburban Ring Road as abeautifully landscaped multipurpose trail, providing access and connectivity throughout the entire development.Another aspect of “wellness” is a focus on building human and social capital - not simply financial capital. Qualityof life in the community will result from a dense, vibrant, inclusive, and walkable open and green urban core withample community and public spaces. Our objective is to maximize both quality of life and economic impact.Other project components include over 4.6 million SF of mixed use development, including office, residential,education, retail, food and beverage, community, arena, hotel, and ample public space. We truly believe thateach of these pieces will harmonize to form a highly active mixed-use and mixed-income community centeredon health and wellness, cultural enrichment, and social inclusion. We truly believe that each of these pieces willharmonize to form a highly active mixed-use and mixed-income community centered on health and wellness,cultural enrichment, and social inclusion.We are honored to have the opportunity to expand our team to include The Miles Agency, Drs. Vinod Agarwaland Robert McNab with the Department of Economics at Old Dominion University, JLL Capital Markets, TerrenceThornton, Real Property Research Group, S.L. Nusbaum Realty Co., Stone Planning, and the YMCA of South HamptonRoads, who have all come together to help further our initial vision and create the enclosed proposal.Please allow this letter to serve as confirmation that Wellness Circle, LLC is a registered legal entity authorizedto do business in the Commonwealth of Virginia by the State Corporation Commission. This proposal is genuineand without collusion in all respects. It will remain valid for 180 days from the date hereof, unless withdrawn byWellness Circle, LLC, as permitted in the City of Norfolk Military Circle Redevelopment Request for Proposals (RFP)dated April 2, 2021.Should you have any questions or need any further clarification of anything contained in this Proposal, pleasecontact Donna MacMillan-Whitaker (1081 19th Street, Suite 202, Virginia Beach, VA 23451 757.620.0606 donna@venturerealtygroup.com), who is authorized to act on behalf of Wellness Circle, LLC.We would like to thank the City of Norfolk for the opportunity to present our vision. It is our hope that the City willallow this project and the private and public investments to set a new standard and definition of community. Thisproject isn’t simply about real estate – it is about humanity.Sincerely,PHARRELL WILLIAMSLIVE NATIONPIPER SANDLER4Letter of TransmittalADJAYE ASSOCIATESHARLO CAPITAL / WESTDALE REAL ESTATEVENTURE REALTY GROUPRAYMOND JUNGLES, INC.YMCA OF SOUTH HAMPTON ROADSDR. VINOD AGARWAL & DR. ROBERT MCNABOAK VIEW GROUPROCKWELL GROUPTERRENCE THORNTONREAL PROPERTY RESEARCH GROUPARMADA HOFFLER PROPERTIESGENSLERKIMLEY-HORNTHE MILES AGENCYPACIFIC RETAILYELLOWINTERFACEJLL CAPITAL MARKETSS.L. NUSBAUM REALTY CO.STONE PLANNING
When we think without boundaries, we can create growth for human beings, families, and our cities. The northstar for our vision of a new and remarkable place here in Norfolk is the well-being of our community. Everythingwe have imagined, everything we’ve planned prioritizes wellness and inclusiveness, whether through the lensesof housing, health, education, enjoyment, or the public realm.“I believe this unlimited thinking will leadto an extraordinary outcome: a wellnesscentered and resilient community with thepurpose to improve the lives of all people.”-Pharrell Williams, Lead Developer6LetterIntroductionof TransmittalWellness Circle City of Norfolk7
CExecutiveSummary10Executive SummaryWellness Circle City of Norfolk11
A Future Shaped by WellnessThe Wellness Circle is a redevelopmentplan shaped entirely by wellnesscentered urban planning, inspiringdesign, and highly curated amenities;all focused on dramatically improvingthe quality of life for a diverse communityand the City of Norfolk. We see this as aresilient model community of the future,purposefully designed for the wellbeingof all who live, work and visit here.The team behind the Wellness Circleis a collective who understand theenormous long-term communitybuilding and financial potential ofan immersive wellness-centeredcommunity. We believe that everynew development is an opportunityfor a city to define itself and convey amessage to the world about its values.While this development centerson the Military Circle site, we seeit as an opportunity for the City ofNorfolk to set a new standard forthoughtful and intentional broadcommunity-based design.12Executive SummaryThe Future of Norfolk is TheFuture of the RegionLike many urban centers, DowntownNorfolk emerged at the waterfrontbecause of the maritime and shippingindustries. It’s time to establish anupland economic center for emerginghealth and technology industriesto not only provide economicdevelopment, but also to enhancethe quality of life of our residents.Wellness Circle can provide theeconomic development anchor ourregion has been missing for decades. Itscommitment to attracting healthcarecompanies will help the region stakea new regional wellness mission andidentity. Its central geographic location,size, scope, and intentional designwill provide benefit for all surroundingcommunities in Hampton Roads andwill signal to the Commonwealth, thecountry and world at large that Norfolkis a place building its future today.Wellness Circle City of Norfolk13
Tenets of the Wellness CircleCommunityat the CoreLevel the playing field fordisadvantaged communitieswith a place of belongingrooted in community needsand programs that makeabundant opportunities for all.Housing for AllDiverse residential: market-basedmultifamily, age-focused,lower-income interwoven withinclusive, community-oriented spirit .EducationThroughoutInnovative educationprograms in a holistic andexperiential environment,including K-12 and medical .ResilientEnvironmentA green, inclusive, and connectedactive public realm made tostimulate growth. A commitment toresource stewardship and resilientecology for the site, infrastructure,and built environment.Health &WellbeingCentered on holistic principles ofhealth/wellbeing for all residents, visitors,and businesses. A walkable and safeneighborhood with community clinic,food accessibility, and healthyindoor/outdoor environments.14Executive SummaryEmployment& WorkplaceIntentional commitment toattracting like-mindedtenants/investors who believe inwellness, diversity, and growinglocally-based employment.Entertainment & Pla yA community-based entertainment and sportsarena, ample active recreation and sportsvenues, interwoven retail and F&B, playgrounds,and playful landscapes infused throughoutWellness Circle City of Norfolk15
IntroductionThe Wellness Circle is about peopleand community. Great neighborhoodsmean great communities: a sense ofunity and a feeling of fellowship withothers. While the Wellness Circle will beengaging and experiential with a richand diverse mix of uses , the glue thatwill hold it together is a sense of inclusionand belonging. As Pharrell notes, ourpublic spaces must be welcoming to all.Our plan is also conceived to addressthe objectives of the City: to createa thriving, transit-oriented mixeduse development with great publicspaces; to conceive a holistic, walkablewellness community grounded inresilience and inclusivity that growsemployment opportunities for all; toestablish a sound fiscal plan optimizingprivate investment, increasing taxrevenue, and minimizing public risk; toenhance city life overall; and to meetor exceed the City’s Resilience Goals.This project will challenge the balancebetween urban development andsocial inclusion, with a focus oncommunity spaces, mixed-incomehousing, diverse retail and commercialopportunities dedicated to supportinginclusion and authenticity.The development has been designedto promote and attract businessesand tenants who have adopted highsustainability goals and are rooted in theideas of “community” and “wellness.”Two thirds of the project will bededicated to public uses, includingpublicly owned facilities, greenspace, and public infrastructure.Land assembly, planning, andpermitting will begin in the 4thquarter of 2021 with an anticipatedphased 7 to 8 year full build out.Total project investment will beapproximately 1.1 billion, whichOverviewwill include private investment ofapproximately 853 million funded byWellness Circle is intended to be theinstitutional lending and other federalfirst East Coast “Wellness Community”programs, and public investmentdevelopment. Located in the City ofof approximately 332 million forNorfolk, Virginia, the Wellness Circleinfrastructure ( 63 million), parking ( 50will include 89 acres located on the sitemillion), and arena ( 219 million), fundedcurrently known as Military Circle Mall.by project revenues and creation of aThis urban revitalization development will CDA which will issue private bonds.encompass mixed-income, mixed-use(commercial and residential), transitoriented infrastructure, and a stateof the art 15,400-16,500-seat arena.16Executive SummaryProject Highlights4.63 million SF on 89 acres, which includes: Office: 1,000,000 SF, which includes medical office campus Residential: 1,253,488 SF, which includes 708 units of market-ratemultifamily, 288 units of LIHTC housing, and 147 for sale townhomes Retail: 143,000 SF Food & Beverage: 80,000 SF Arena/Entertainment: 489,000 SF, which includes a 15,400-16,500 seatarena for, concerts, family shows, sporting, and other events. Wellpositioned access to I-64 and I-264 Community Space: 54,700 SF, which includes YMCA community facility Hotel: 210,000 SF 200-room hotel, operated by the team behind thegoodtime hotel in Miami, FL Education: 94,000 SF, which includes the innovative YELLOW School aswell medical learning facility/clinic Wellness Loop: 1-mile multipurpose pedestrian trail replacing Ring Roadwith existing natural resources and enhanced outdoor featuresWellness Circle City of Norfolk17
Key Components of theWellness Circle1.THE WELLNESS LOOPThe plan replaces the mall’s RingRoad with a highly activated greenpath that encircles the communityto promote walking, exercise, andsocial engagement. At the centerof the Loop is an urban park called“Trident Park” that provides aninspiring focal point and anchor topromote redevelopment. Where theLoop and park intersect, the projectteam envisions a large sculpture– sure to become a Norfolk icon –that welcomes the visitors to theWellness Circle. As the planningprocess unfolds, we welcomecommunity engagement on helpingto shape the Loop’s programming,design, and cultural spaces.2. THE PROGRAMMINGThe plan includes over 4.6 millionSF of development designed tocreate positive outcomes for itsresidents, guests and customers—and a seismic economic impact onthe City of Norfolk and beyond: 18MEDICALThe community is anchored byover 500,000 SF of health careoffices and medical servicespace that not only ground theproject in “wellness” and healthequity, but also create a criticalmass of employment andcommerce. We intend to partnerwith this community anchor andcollaborate in the ultimate visionand final agreed-upon master planwith the City and would requirea successful negotiation for theacquisition and relocation of theexisting Sentara/Optima facility.Executive Summary EDUCATIONAnother cornerstone of theproject is education, includinga potential medical collegeand the YELLOW School — thenonprofit private school model isdesigned for the next generationof innovators and entrepreneurs,supported by Amazon, Geico,Adidas, Warby Parker, and theWalton Family Foundation. RESIDENTIALThe plan envisions 708 multifamilyunits, 147 townhome units, 288low income housing tax creditunits, and an approximately 200key hotel. Housing options will beavailable to a diverse group ofresidents and incomes. All housingwill be designed with a high-designaesthetic to inspire visitors andresidents creatively and sociallyas well as promote conversationsabout the development. COMMERCIALThe commercial plan includesover 1 million SF of office space(including medical facilities),and 200,000 SF of retail andrestaurants. Retail users willprovide needed food, servicesand amenities to the community. ENTERTAINMENTThe plan provides the optionfor an 15,400-16,500 seat arena,providing a world-class regionaldestination for culture, sportsand civic engagement. COMMUNITYWe are intending to build aninclusive place of belonging rootedin community needs where thediversity of the city is welcomeand opportunities for education,Wellness Circle City of Norfolk19
play, youth development, andpersonal growth are abundant.This commitment is realizedthrough our partnershipwith the YMCA, provisions forample community recreationspace, community farming,affordable housing, and jobs. of African American History.Accompanying Sir Adjaye is globalarchitectural firm Gensler andacclaimed landscape architectRaymond Jungles. Each has beencharged to deliver art-inspired designelements to each component ofthe project, with a focus on equalityof design in all levels of housing.INFRASTRUCTUREThe stakeholders are aware of the5. THE TRANSFORMATIONALsite’s substantial parking, transit,DEVELOPMENT PLANutility and stormwater needs.Traditional suburban shoppingThe master plan anticipates overmalls are intended to be convenient,4,500 structured parking and ataccessible, and utilitarian. One of agrade spaces located throughoutsuburban mall’s most distinguishingthe walkable street grid. The planfeatures is the Ring Road thatproposes integration of future lightencircles its indistinct retail boxesrail development while providingand acres of parking. The architectconvenient automobile accessof the modern shopping mall, Victorand pedestrian circulation.Gruen, intended the Ring Road toserve as a “Ringstrasse”, like the grand3. RESILIENCE AND SUSTAINABILITYmalls of his native Vienna. TheseWith the significant addition of greenroads contained wide sidewalks andspace to the site and this project’sgardens that encouraged walking,scale and community impact,exercise, and gardens—not prowlingthe project team has elevated theminivans stalking parking spaces.concept of resource stewardship andcommunity resilience throughoutThe Wellness Circle reclaims thethe planning and design process. Weubiquitous suburban Ring Road forare targeting 85% water reductionits original intent: to bring peopleand 40% energy efficiency reductiontogether in a civic space whereover business as usual constructingwalking is encouraged, and design isutilizing a wide range of strategies.inspiring. Our proposed developmentFor stormwater, we are satisfying Cityreimagines contemporary live-workand State requirements for waterplay environments with an emphasisquality control, channel protection,on promoting the physical, social,flood protection, and resilience,emotional, and intellectual needs ofand will provide partial mitigationthe community. This is not a “mixedfor existing downstream flooding.use development” designed arounda retail shopping anchor; rather, it is4. THE DESIGNan inclusive place of belonging thatThe development team includes aaims to improve the quality of lifecast of internationally acclaimedfor a diverse group of people usingprofessionals. Perhaps most notablewellness-centered land planning,is Sir David Adjaye, whose worksinspiring design, and highlyinclude the Smithsonian Museumcurated uses.20Executive SummaryWellness Circle City of Norfolk21
Our plan is sized for growth. Itprovides significant amount ofpublic space, either through outdooramenities, parks, roads, and publicrealm, or through the arena andcommunity uses and buildings. Asthe community grows beyond itsbounds, it promotes the increaseduse and sharing of these publicamenities.As we transform the mall to awellness-centered community, wemove from dependence (one use) tointerdependence (a mix of uses); froman underutilized asset to one withvibrancy and optimized density. Weevolve from an emphasis on cars andasphalt to prioritizing people, parksand healthy outcomes, and createa catalyst for co-development. Assuch, the Wellness Circle will be amodel for community, resilience, andwellness; an anchor and icon for thecity; and a catalyst for neighborhoodregeneration and growth.22Executive Summary6. THE OUTCOMESThe Wellness Circle objectivesinclude tangible health, economic,social, and financial outcomes.With the diverse programming,we are working to facilitateuplifting intersections amongresidents, students, visitors,and employees. For example,if a student sees a healthcareprofessional at work, or on theirway to work, they are more likelyto see healthcare as an attainableprofession. Once developed, theWellness Circle will evaluate theperformance of these outcomesusing metrics determined duringthe development process.7. THE FINANCE STRATEGYThe finance proposal emphasizesoptionality to allow the Citymaximum flexibility in consideringits investment alternatives. Theproposal recommends a highlycreative investment structureincluding TIF, CDA, and otherstructured finance vehicles.Wellness Circle City of Norfolk23
Development Team Membership,Organization and ManagementWellness Circle LLC is a Virginialimited liability company comprisedof the following principalsand business affiliates:1.Pharrell Williams, internationalartist, producer and entrepreneur12. Kimley-Horn, a consultingfirm recognized as a leaderin providing comprehensiveand innovative planning,environmental, transportationplanning and engineering, andcivil and structural services13. Pacific Retail, one of the nation’spremier retail operating groups14. Piper Sandler, a full service2. Harlo Capital / Westdale Real Estate,financial services firmToronto and Texas-based firmsspecializing in a wide range of mixed- 15. Terrence Thornton, ause and residential developmentMusician, Music Executive,throughout United States and CanadaPhilanthropist and Advocate3. Armada Hoffler Properties, a VirginiaBeach-based Real Estate InvestmentTrust trading on the NYSE as AHH16. YMCA of South HamptonRoads, a 501(c)3 FOR IMPACTnonprofit organization4. Venture Realty Group, a localdevelopment leader17. The Miles Agency, a localVirginia Beach Marketingand Public Relations firm5. Live Nation, the world’s leadinglive entertainment company6. Oak View Group, a full-servicevenue management and eventprogramming company7. YELLOW, a non-profit workingto even the odds for all youththrough education8. Adjaye Associates, a multidisciplinarydesign architecture firm9. Gensler, an architecture firm with aphilosophy of value-based designand comprehensive services10. Raymond Jungles, Inc. a landscapedesign firm with a dynamicpractice inspired by the ethicof stewardship of the land11. Rockwell Group, an architecture firmwith roots in theater and set design24Executive Summary18. Dr. Vinod Agarwal & Dr. RobertMcNab, Economic Impact19. JLL Capital Markets, JLL is a truly globalprofessional services and investmentfirm, specializing in real estate20. Real Property Research Group,a multi-disciplinary real estateand economic consulting firm21. S.L. Nusbaum Realty Co., oneof the largest real estatedevelopment companies in thesoutheastern United States22. Stone Planning, a boutique consultingfirm that assists in the planning ofsports, entertainment, and otherpublic-assembly venues and events23. Interface Engineering , a multidiscipline mechanical andelectrical engineering firmWellness Circle City of Norfolk25
"Wellness" is the central theme of our proposal and is weaved throughout every project component—most notably the "Wellness Loop." The "Wellness Loop" is a one-mile trail that re-imagines the suburban Ring Road as a beautifully landscaped multipurpose trail, providing access and connectivity throughout the entire development .
