Photo: City of Des Moines
(Des Moines, IA) -- The Des Moines City Council has set August 7th for a public hearing about $56 million in financing related to the purchase of a former downtown office building. Council members approved the $30 million purchase price in September of 2022. The City plans to use the 360-square foot former Nationwide building at 1200 Mulberry to house five city government departments.
"Tonight, our City Council is taking a major step towards a historic move for the City of Des Moines,” Deputy City Manager Matt Anderson said. “This purchase has the potential to redefine how we serve our residents for generations to come."
“This study showed us that there are multiple layout options for the potential workspace that will foster a welcoming environment for the public and enhance collaboration between departments,” Anderson said. “We believe this is a unique opportunity to replace some of our most aged infrastructure and reinvent our City services in a more efficient way.”
The purchase price for the building comes in at less than $90 per square-foot, below the market rate for new construction of office space in Des Moines which is currently estimated between $300-400 per square-foot. The purchase price for the parking garage is $10.6 million.
“The purchase of this commercial building and parking garage at 1200 Locust is financially beneficial in two ways – first off, we’re acquiring top-grade facilities at a fraction of new construction costs,” Anderson said. “And secondly, the expanded and enhanced work environments will provide new opportunities for cost savings particularly in the areas of law enforcement, information technology and cybersecurity.”
The purchase is expected to eventually lead to the closure of two City buildings, the Headquarters of the Des Moines Police Department and the Argonne Armory which currently houses Neighborhood Services, Development Services, Information Technology and part of the City’s Legal Department.
The acquisition of the former Nationwide building also replaces plans for an Argonne Armory Replacement across the street from City Hall and a new Des Moines Police Headquarters. The plans also pave the way for development of at least three locations on the East side of the Des Moines River.