NORFOLK, Va. (WAVY) — Efforts to revitalize the old Tidewater Gardens neighborhood in Norfolk are one step closer, as crews broke ground Thursday on Phase 3 of the St. Paul’s Transformation Project.

Now named Kindred, Tidewater Gardens became the first of the city’s three public housing neighborhoods downtown (Tidewater Gardens, Young Terrace and Calvert Square) to be demolished as part of the initiative.

The area will soon be home to Kinship at Kindred, a new mixed-income based housing development. The $85 million project will bring nearly 200 housing units to what was once the Tidewater Gardens public housing complex.

“Today is a continuation of the commitment that we made to the residents when we first started this work two years ago, that we would always put people first,” said Norfolk Mayor Kenny Alexander, “and that the residents would have a right to return. And we’re very happy and proud that that is true.”

Located just steps from a Hampton Roads Transit bus stop, the development was designed with accessibility in mind — aiming to better connect residents with jobs, schools and services across the city.

Kinship at Kindred will offer 191 total units, including 73 replacement homes for former Tidewater Gardens families.

“Every block of this neighborhood will have some type of amenity,” said Susan Perry, director of housing and community development for the city of Norfolk. “So whether it be a community garden, whether it be access to transportation, a playground, the ground floor commercial and retail opportunities, there will be lots of amenities in this community that allow folks to access everything that they need in their daily life.”

But amid the celebration lies some concern.

The groundbreaking comes as the city and the Norfolk Redevelopment and Housing Authority reached a key settlement more than three years ago concerning the displacement of residents.

“All residents have a guaranteed right to return, codified in both agreements with the housing authority and with the city,” said Norfolk Redevelopment and Housing Authority Executive Director Nathan Simms. “And through our People First program, we stay connected with residents, providing support services all along the way and helping them move back into the new community.”

As part of the settlement, there will be an increase in voucher-supported units along with enforced protections against income-based housing discrimination. Vouchers are available for those who qualify.

“It’s a mixed-income community,” Alexander said. “A third of the families are returning. A third are those who are looking for market housing. And a third of those who are here are being subsidized, so we’re very proud of that model.”

The city says the Kinship at Kindred project is expected to be completed in December 2026.

For more information on the transformation efforts, visit this link.