Norfolk’s Neon District is getting a makeover. Businesses worry they won’t survive the construction.

Big changes are coming to Norfolk’s arts district that will transform three blocks of Granby Street and add a 220-unit apartment complex, but not everyone is looking forward to the overhaul.

The $35 million planned apartment complex will transform the former Greyhound bus station at the corner of Brambleton Avenue and Granby Street. Additionally, a $5.25 million streetscaping and infrastructure project is set to begin construction this summer, which will improve utilities like water and sewer and add a new road and sidewalks.

The investments will breathe new life into the bus station property, which is vacant and surrounded by a fence and “no trespassing” signs — a contrast to the spinning neon sign welcoming visitors to the neighborhood. Murals dot the landscape and plants grow at an outdoor community space, but some buildings sit empty and unleased.

Neon District business owners and general managers say they are currently struggling to attract customers and are worried about the impacts of future construction projects.

Foot traffic has lessened over the years, said business owners, citing the failure of a previous redevelopment project and the city crackdown on nightclubs that led two Neon nightclubs to close.  They are worried the construction will further deter foot traffic.

“It’s been rough,” said Jason Hawkes, Cardinal Skate Shop owner. “I don’t want to close. I’ve got my whole life invested in this.”

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Reimagining the old Greyhound station

A Virginia Beach developer is working with Norfolk to transform the former Greyhound bus station into an apartment complex in an adaptive reuse project.

In April, Norfolk Mayor Kenny Alexander announced the development, called Houndstooth, which will include 220 units, a parking garage and a rooftop deck, among other features.

Developed by The Breeden Co., current design plans also include incorporating a wall of the current Greyhound building into the facade, said Breeden Co. spokesperson Christine Gustafson.

Gustafson described the project, which is being designed by Norfolk’s Work Program Architects, as a gateway to the Neon District.

“There was a lot of heart in our proposed project,” she said.

The project is still early in the design phase, Gustafson said, and details on rent or types of units are not yet available. She did say developers hope to include a workforce housing component to the apartments. Additionally, they hope to build some sort of multi-use collaborative space into the project, tying it in to the Neon District’s arts focus.

The project does not yet have a timeline, but Gustafson said design phases of similar projects can take between 18-24 months to complete.

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Streetscape project

A city-funded streetscape project now includes both improvements to the Granby Street roadway and sidewalks, as well as long-needed infrastructure improvements, according to project spokesperson Ha Koehler.

The project, which includes $5.25 million in city funding, has been in the works for years, and was delayed to coordinate both the street and utility improvements at the same time, Koehler said. The project area is three blocks of Granby Street, from Brambleton Avenue to Virginia Beach Boulevard.

First, crews will replace the water, sewer and stormwater drainage systems along the roadway in phases, Koehler said. Then, they will complete the road improvements, including new sidewalks, road, greenspace, sitting areas, street lighting and electric vehicle charging stations.

After talking to community members, Koehler said the city will be adding around 40 parking spaces along Virginia Beach Boulevard, East Wilson Avenue and Monticello Avenue by mid-June to make up for closures along Granby Street. Additionally, crews will construct a pedestrian walkway so customers will still be able to reach businesses during construction.

Infrastructure construction is expected to begin this summer and continue until winter 2026, Koehler said. The city is still selecting a contractor for the streetscape work, which will last another year until winter 2027.

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Business operator concerns

Even with the expected improvements, some Granby Street business operators say they are concerned about dwindling foot traffic in the wake of a failed development deal and several shuttered nightclubs.

Hawkes, who moved his skate shop to the neighborhood in 2019, said entertainment options have dwindled in the district over the years.