Developers are preparing to begin construction on a massive 5 million-square-foot warehouse project in Suffolk as an opposition group abandons its legal effort.
Maryland developer Matan recently announced plans to partner with Rockefeller Group — the developer of the iconic Rockefeller Center in New York — to construct the 10-building complex called the Port 460 Logistics Center.
The planned development along the intersection of U.S. 460 and 58 has attracted opposition from residents concerned about traffic and environmental impacts.
City Council approved rezoning the property in September 2022, despite a protest from residents.
Jamie Minkler, Matan director of acquisitions, said the project could have a major economic impact on the city. According to Matan, the first phase of the project — five buildings with roughly 2.4 million square feet of space — will cost $300 million to $350 million. According to a Matan-commissioned study, the entire project could create 1,400 jobs during construction and 4,500 once completed.
Additionally, the study estimated the completed project would generate $1.6 million in real estate taxes and $8 million in state income taxes annually.
The warehouse project has been supported by the Port of Virginia, which moved a record-setting amount of cargo in the 2022 fiscal year.
Minkler said Rockefeller Group is handling much of the construction as well as helping capitalize the project. However, he said Matan would still be involved “for many years to come.”
He said Matan had engaged with the community throughout the process, holding several meetings and speaking with officials from the nearby Nansemond-Suffolk Academy. Additionally, he said the company was financing studies to investigate widening U.S. 460 near the site.
After a defeat in court, a local opposition group is moving on from legal appeals and hoping to connect with others in the region concerned about warehouse development.
A group of Suffolk residents formed the nonprofit Citizens Voice after unsuccessfully contesting the city council rezoning decision, spokesperson Denise Murden said. A Suffolk judge dismissed the case in July, saying the citizen plaintiffs lacked standing.
Since then, the group decided not to pursue an appeal, deeming it too costly. Murden noted the lawsuit had been financed by grassroots efforts.
Instead, the group attempted to work with Suffolk officials to create an ordinance for warehouses in the city. The ordinance as passed in September added regulations related to truck routing and noise mitigation.
But Murden said the ordinance didn’t go far enough to regulate warehouses. She said the group wanted more specific setback and noise requirements in addition to health impact and noise report requirements.
Going forward, she said the group plans to monitor future projects as they go before the Planning Commission. Group members also hope to connect with others in Hampton Roads concerned about land use.
“We feel like this is a regional issue,” Murden said.
Port 460 developers plan to submit site plans for the first warehouses shortly and hope to begin construction by the summer of 2024.
Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com
*Correction: Due to reporting and editing errors, the initial version of this story incorrectly reported the location of the planned warehouse complex. It is planned for the intersection of U.S. 460 and 58, not 50, and not in northern Suffolk. The project is about 5 miles from downtown Suffolk.
