Rotting Norfolk properties coming back to life
By Tim McGlone, The Virginian-Pilot | |
McClatchy-Tribune Information Services |
But that's almost what it was stuck with because of illegal financial maneuvers between two former top executives at
The buildings have now been freed up and are being redeveloped -- another boost for a corridor that's been a focus of
"I think, as bad as the whole
Gadams and others have scooped up former bank-owned properties downtown that had been used as pawns in a vast conspiracy that led to the collapse of
Former bank president and CEO
A jury found them guilty of conspiring to hide tens of millions of dollars in bank losses from investors, regulators and the bank's board of directors. They did it in part by approving loans to favored customers
Arney, a restaurateur and developer, became such a favored customer that Woodard let him use an office on the third floor of the bank's headquarters on
By 2008, Arney had more than
For example, in
Instead of renovating the buildings, Arney used the money to pay his bills, including other past-due loans. The buildings, meanwhile, continued to decay.
That was the way the bank executives operated through those troubled years in an effort to keep the bank afloat. Loans were approved for building after building with little to no effort made to actually rehab them.
Arney also owned three buildings on
In 2012, Arney had planned to turn that building at
The city was quick to quash the plan. A fire marshal first noticed that Arney had boarded up all the first-floor windows. A closer inspection found that Arney also had sealed off three or four exits and installed 20 surveillance cameras, according to Cynthia Hall, an assistant city attorney who worked to shut down the clubhouse.
Arney and Hall had a long history of unpleasant encounters, and this was no different.
"He refused to cease the unlawful construction activities," she said. "He became rather abusive to city staff."
As the code violations mounted, the city finally labeled the building structurally unsound and ordered everyone involved to stay out. Hall said that by then some Hell's Angels had moved into rooms upstairs and were forced to leave. (One of them sued Arney, and the case was settled out of court.)
The government took that building and many others tied to
Back downtown, Arney's former building at
In the arts district, a
A company affiliated with the Decker family bought
"We have gotten some interest, like for a recording studio and other kinds of startups," said
Movement on the buildings was stalled following the indictment of the executives and loan customers in
The properties had millions in loans outstanding.
Gadams, who had already obtained the
"This will allow those buildings, which weren't really being used for anything, to be put to the highest and best use," Gadams said. "It's getting quite an incredible buzz now," he said of downtown.
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Competition for the former bank buildings was tough in some cases.
The building also had been used as a pawn by the bank's executives.
In 2008, Woodard approved a loan for
That triangle-shaped building, dating to 1910, once housed the first auto dealership in
That's how Glenn found it.
"We got rid of maybe 15 dumpsters full of stuff," he said during a recent tour.
Glenn is sinking an additional
He said he has a waiting list for tenants.
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