Court Avenue Development Efforts

[DMRyan]

Development of some kind on Court Avenue is finally coming together rather quickly. After the large entertainment complex idea tanked a few years ago, a different approach was sought. The new approach includes more residential with smaller scale street level retail/dining/entertainment.

Court Avenue Partners LP is the developer behind the city and state subsidized project. Here's a look at the most current proposal to go before the DSM City Council:
-The Spaghetti Works building will have its upper floors renovated into 52-60 apartment units. (this portion is definite)
-On the surface lot just to the west of this building, a 4-5 story building featuring 120 market rate condos would be built, complete with street level retail spaces open on the 1st level.
-Upon release of tax credits, an addtional building of the same scale would likely be built on the west side of 4th and Court Avenue, near the Rock Island Train Station.

Spaghetti Works Building:


Terrible Conceptual Rendering of Proposed Residential to be built


And for what it's worth, this interesting blurb from one of the weekly alternative papers:
The Jim Hubbell/Harry Bookey deal for Court Avenue is on, definitely, we're told - set to happen in the Spaghetti Works space and down to the east side of Fourth. As Pointblank reported, Mike Whalen's hotel project likely will happen, too, probably on the west side of Fourth Street. Also, look for the Rumley building to be sold soon and developed into housing, and the planned garage for the Science Center of Iowa to add a floor to handle parking for residents of these new projects.

The Rumley Building, nestled between Court Avenue and the new Science Center is the most likely of all buildings downtown to soon go residential.



***
I'll be happy to see something, anything of appropriate design fill in the holes on Court Avenue. 4th Street is shining bright right now, but Court Avenue needs a big pickme up. While I think the days of Court Ave. becoming a wild clubbing/nightlife spot are past us, the street will evolve into a much tamer mix of uses if all this residential is added.
There's still plenty of nooks south of Court Avenue that a raw bar/club district can built in.
It'll be nice to see a new hotel built on Court Avenue too. I think the location will be the site of the old Norwest bank just to the east of the courthouse.

[DMRyan]

Small rendering of the orginal proposal.

We'll likely only see one of the two buildings built right now. The site of the building at the right would be the site of the proposed hotel project.

[NOG]

Ryan,

I thought I heard on the news the other night that since the developers have taken so long to get this project started that the city council has to reopen the bidding process. Do you have any information on this? Maybe we could get some other developers in here to fill in the pieces that Hubble and Bookey have dropped from their plan.

I know that one of the groups who originally bidded on this is the same group that is building the Vine Streets Lofts and Water Street Brownstones. I wonder if they would still be interested in contributed to this project?

[DMRyan]

Yes, the city has to send out for new bids on several parcels that Hubbell-Bookey were supposed to build on. From the way I understand it, they still intend on renovating the Spaghetti Works building and constructing a smaller 60-unit condo building directly to the east of this building. Other wise, all the other parcels along 4th Street and Court Avenue will be rebid. I really think Bookey and Hubbell would like to have a bigger impact on the area than what they're currently proposing to the council, but their hands are tied until the new wave of tax credits are issued next spring.


And it was true that Lander-Sherman (Vine Street Lofts Developers) had orginally submitted a proposal to the city previously. I've heard no word, but I'd bet they would still be interested in making something work down there. I think once a developer actually gets something built to fill in the holes on Court Avenue, the entire area will pop. The Riverwalk, the Science Center, MLK and possible Rumley Building Conversion could be enough to tip the development scales in this area that's needed it for so long.

Now if they would only renovate the Randolph Hotel property into something besides very low income transitional housing.

[DMRyan]

Anyone heard any talk of when they plan on converting Court Avenue back to a two-way street? I know it's in the district master plans, but I haven't heard much about it in years.

[ShermanHill1980]

I'm not sure about the two way street idea, which would be great. I also saw in a Register article that Lander & Associates were still interested in developing along Court Avenue. I wonder what would have happened if the City Council would have followed the P & Z Commissions recommendation and went with the Lander plan in the first place. Didn't the P & Z recommend a combination of two or something. I know the City Council wanted to go with local people, but it seems like the Lander people really know what they are doing with this type of development.

Can anyone dig up the plans the Lander group proposed or does anyone remember what it looked like?

[DMRyan]

The Downtown Community Alliance and the people in charge of the Court Avenue Housing Fund made the recommendation to allow Lander-Sherman to be the lead developer in the project. But the city council fell in love with the Court Avenue Partners Development Group's proposal because they were a prominent local pair and had way more ambitious plans to develop entertainment along with the new housing units.

And as far as what I've seen publically, Lander-Sherman has never submitted any site plans or renderings like the current developers have. I know they wanted to build apartments and condos with street level retail, rehab the upper floors of the Spaghetti Works Building, and build a public market on the first floor of the parking garage at 3rd and Court.

[NOG]

At the time the Hubble\Bookey plan was the most impressive. Since then they have dropped many componets that made it the biggest plan. I now wish the city council would have followed the recomendations of the Downtown Community Alliance and the people in charge of the Court Avenue Housing Fund. I think we may have already started to see construction down there if they had.

[NOG]

From the Des Moines Business Record:

Court Avenue housing proposal clears another hurdle

By Jim Pollock
jimpollock@bpcdm.com


Unless another developer unexpectedly enters the fray, Jim Hubbell and Harry Bookey appear to be on track to get city approval of their latest Court Avenue redevelopment proposal. With a minimum of comment, the Des Moines City Council last week directed the city manager?s office to use that plan as the basis for any new proposals and set an Oct. 15 deadline for submitting them.

The plan calls for at least 120 residential units south of Court Avenue along both sides of Fourth Street, with commercial use on the ground floor of a building to be constructed on the southeast corner of Fourth and Court.

Hubbell and Bookey?s joint venture, Court Avenue Partners II L.P., also wants to renovate the upper floors of the Spaghetti Works building at 310 Court Ave. for apartments and create a restaurant/entertainment venue nearby. Those projects are separate from the new construction.

The city plans to provide upfront subsidies of about $5 million toward the new residential buildings ? a commitment that probably would be reduced by money from a federal block grant program -- and $1 million split between the Spaghetti Works project and the restaurant/entertainment project. Ongoing subsidies would total another $2 million, but that money would come from tax dollars generated by the completed projects.

Parking issues could be a sticking point. The city wants to hold on to the vacant area south of the Spaghetti Works and fronting Third Street if the developer proposes surface parking there. That would give the city the option of selling the land for future development.

However, Hubbell said the Court Avenue Partners proposal requires permanent parking on that space.

Council members Archie Brooks and Tom Vlassis passed rather than voting for or against the item at last week?s meeting. Vlassis said during the meeting that a "yes" vote on his part would be in favor of reopening the project for bids but not in favor of Court Avenue Partners? proposal.

Brooks said later, "This project has changed drastically, and if I had this one on the table compared to the one we turned down, I would take the one we turned down," referring to a plan submitted by two Minneapolis companies, The Lander Group Inc. and Sherman Associates Inc. "I wouldn?t mind rebidding the whole thing or going to the next guy in line and asking if he?s still interested," Brooks said.

The city?s proposed schedule calls for the Urban Design Review Board to evaluate Court Avenue Partners? proposal by Sept. 7 and review any competing proposals by Oct. 19.

Developers would have until Oct. 22 to revise their proposals and submit a final plan to the city. The Urban Design Review Board is to recommend one proposal to the City Council at a special session Oct. 25. At that same meeting, the council would approve both an urban renewal agreement and the use of tax increment financing for the project.

[DMRyan]

The Business Record sure is championing this project on almost a weekly basis. Exactly what hurdle did this development clear? Council approval to work with the developer on a project that was reduced in scale by 70 percent?

I'm all for seeing some dumpsters and scaffolding being put up around the Spaghetti Works Building, but I'm hoping that more outside developers (cough..Lander-Sherman) submit bids for the additional parcels. The sad thing is, it's gotten to the point on Court Avenue where the people almost want to see something...anything built, instead of sitting back and doing things the right way this time. Oh well Des Moines, better luck on the next downtown entertainment district. Court Avenue just isn't it, IMO.

[NOG]

Brooks said later, "This project has changed drastically, and if I had this one on the table compared to the one we turned down, I would take the one we turned down," referring to a plan submitted by two Minneapolis companies, The Lander Group Inc. and Sherman Associates Inc. "I wouldn?t mind rebidding the whole thing or going to the next guy in line and asking if he?s still interested," Brooks said.

This sums up my feelings perfectly. I am still holding out hope that they will get some bids to fill in some of the holes in the Bookey\Hubbell project

[Ingersoll1978]

I just hope they realize that what they are building today is what is going to be there for the next 50-100 years. I agree that they should rebid the entire project and see what they get. We've been waiting for SOMETHING for 6 years...another 3 or 4 isn't going to hurt if it means a top quality development. When the riverwalk and science center is done, this area will blossom naturally.

[DMRyan]

The Des Moines city council gave a unanimous approval to proceed with this development in a scaled back form. Other development groups have 30 days to submit alternative proposals to the city, or the Hubbell-Bookey plan will move forward. At this point, even the scaled back development will be welcome news. Court Avenue needs some kind of intertia to get everything back on track. Provided everything goes smooth, this latest proposal may be just the ticket. Once again, the latest proposal will immediately include:

-Renovation of the Spaghetti Works Building into 52 apartment units
-Construction of 40 new condominium units north of the baggage claim building (Hessen Haus)
-Construction of 52 apartment units on the SE corner of 4th and Court with street level retail.

The blue parcel will be developed first, with the black lined portion being reserved for surface parking for now. The yellow portion may see a commercial development, possibly a hotel within the coming years. The green portion is reserved for future residential, possibly by another developer.

[NOG]

This is very good to see move forward. At this point I will be happy see anything get built down there. I know I am going out on a limb with this question but has there been a tenative construction date set?

[DMRyan]

You're going out on a limb...

I wouldn't be suprised to see renovation of the Spaghetti Works building start this year yet, but I don't hold my breath with anything on Court Avenue anymore.

[DMRyan]

This development goes in front of the council for final approval on 10/25/04. It looks like no new proposals were submitted, so the Hubbell-Bookey plan will stand.

Once again, it will provide 144 condo and apartment units in 3 buildings (including the Spaghetti Works Building) and street level retail.

This map of the 4th and Court Avenue area shows the location. The blue shaded parcel will be the two new condo/apartment buildings to be built on current surface lots. The city is recommending the yellow shaded parcel be developed as a multistory parking garage wrapped with condos and the green shaded parcel be left for a commercial use. (possibly downtown's next hotel). These parcels will have development proposals resubmitted in the future.


No word on when the project will start though.

[DMRyan]

According to the recent DSM Council meeting, the Spaghetti Works Building will start next spring, the new infill apartments and condos wouldn't begin until next fall and is STILL depdendent on tax credits being awarded at that time. What does it take to get something to be a sure thing on Court Avenue?

[dmluvr]

Good Lord, this is a total joke here.
Time to bring in the big dogs who know what they are doing. It's time for the city to pull it's head out of it's a** with these local peons.

[Ingersoll1978]

I agree with that dsmluver---By the way this is going...it's going to be 20 years before anything happens. This whole thing started in 1997 or 98...well over 5 years ago...and nothing is there. Very dissapointing.

[mistertwister]

It started long before that Ingersoll. I remember the first announcement of renovation on Court Avenue was about 93 just before the floods if memory serves me.

[Ingersoll1978]

Even more so dissapointing...

[dmluvr]

your right mister---it was back in 93...alot of talk was going on, espically when the grand prix thing was happening. AGGGGGhhHH!!! Gosh, this just drive me nuts!! What planet do some of this idiots live on??

[DMRyan]

Project Update from the Register:

Court Avenue: Renovation of the Spaghetti Works building along Court Avenue will begin in the spring and take a year to complete. The work is part of a $36 million complex that will include housing, retail and entertainment. City leaders have approved an agreement with developer Jim Hubbell for 51 apartments on the upper floors of the four-story restaurant building. Hubbell also wants to build a total of 92 apartments and condominiums in two buildings near Court Avenue and Fourth Street. His partner, Harry Bookey, plans to develop a nightclub and restaurant at 319 Court Ave.

[DMRyan]

More bad news for the local cats tonight. The Channel 8 news reported that the project DID NOT receive the housing tax credits for 2005 and will not proceed as planned. The Spaghetti Works renovation is said to still be on, but Court Avenue is dealt another major blow on what has been one long waiting game of failed developments.

It's time for the city to ditch this development agreement and start from scratch. Hopefully, some other development companies will bid on these parcels of land so we can get the ball rolling by 2006, but the Court Avenue vex continues.

Speaking of tax credits, not one downtown DSM project was awarded this year, including the rehab of the Crane Building in western downtown. Here's a list of the projects in the DSM area that were awarded--all in more suburban/not urban locations.

Des Moines (metro area)
Canterbury Park II (925-955 Sherrylynn Boulevard, Pleasant Hill)
? New construction of 49 units
? LIHTC award: $3.07 million

Deer Ridge IV (6009 SW Creston Avenue)
? New construction of 60 units
? LIHTC award: $949,050

Parkside East IV (3560 East Douglas Avenue)
? New construction of 30 units
? LIHTC award: $1.72 million

Windfield West III (125 SE Windfield Parkway, Waukee)
? New construction of 24 units
? LIHTC award: $1.53 million

Here's a list from the Iowa Finance Authority of all Iowa projects funded:

Tax Credits

[Ingersoll1978]

I'm pretty optimistic about this actually. I think they should have scrapped this project after they didn't come through with their original plan. Hopefully the City of Des Moines will FINALLY learn a lesson through all of this. I think it's become quite evident that Des Moines will support housing downtown. We will end up with a better project in the long run...things happen for a reason. The only thing I'm dissapointed about with this is the fact all of the projects that received funding weren't urban projects. But then again, if we want retailers downtown, we need higher incomes.

[DMRyan]

And the Register article about the development: The key portion of this article is at the bottom. The city will likely throw in more money to subsidize the project and with fingers crossed, the ties to this Bookey-Hubbell plan will be cut. It's time to bring in some bigger dogs with deeper pockets.

Court Ave. project again hits obstacle

State won't give developers $3.5 million in financing

By DONNELLE ELLER
REGISTER BUSINESS WRITER
March 3, 2005
The $36 million redevelopment of Court Avenue is again in limbo after developers failed to win $3.5 million in state financing - the project's second rejection.

Developer Jim Hubbell said Wednesday his company is weighing its next step after learning it will not receive $2.7 million in tax credits from the Iowa Finance Authority or $800,000 from the state HOME program.

Both are federally funded programs to encourage development of low-income housing. About $78 million has been doled out through those two programs and one other during the past three days.

Last year, the Hubbell project won $3.7 million in tax credits for redevelopment of the Spaghetti Works building at 302 Court Ave., but lost $5.36 million it sought in tax credits for new apartments.

"We're trying to figure out what went wrong," Hubbell said. "It's hard to know right now what we'll do. . . . We'll regroup."

Hubbell and partner Harry Bookey had planned to redevelop the upper floors of the Spaghetti Works building into 51 apartments, and construct 92 apartments and condominiums in two buildings. The project also includes a nightclub and restaurant at 319 Court Ave.

The developers sought the tax credits for 53 of the apartments.

Monica Fischer, spokes- woman for the Iowa Finance Authority, said the Court Avenue proposal failed to meet cost requirements set by the state. The 53 apartments each averaged about $28,500 more than the cap allowed - a total of $1.51 million.

"It leaves a big hole in the financing for the apartment building," Rick Clark, Des Moines' assistant city manager. "I'm amazed and disappointed the project didn't get the tax credits."

Clark said it's unlikely the city will be able to pick up a larger tab for the project. The city has already increased its contribution to nearly $7 million.

Problems with financing could kill the proposed Hubbell-Bookey deal, but Clark said he believed the Court Avenue project will eventually be completed.

Rick Tollakson , chief executive of Hubbell Realty, said the company will appeal the state's decision.

[NOG]

I am really dissapointed with this. Looking back it seemed that even though the city went against recomendations on which developers to choose, they chose the best project. Since then this project has been scaled back and does not resemble the project the city chose. The city has even kicked in $7 million for this and it is still not getting done. Looking back now I wish they would have chosen the developers that were recomended, the group that included Lander-Sherman.

I can't recall who brought this point up at the YPC event at the Suites after the IEC tour, maybe Dogbo. But in the time that Lander-Sherman built the Water street Brownstones\Vine Street Lofts, then completely rebuilt them from scratch after the fire, we have seen absoulutely no progress on the Court Ave. project. Now its starting to look like Lander-Sherman will have another project completed before we see anything on Court Ave.

I agree with Ryan, its time to start from scratch and rebid this project out. Something that should have been done after they failed to get their tax credits the first time around. The locals just do not have the deep pockets or do not want to dig into them to get these projects done and hopefully the city is starting to realize that.

[Ingersoll1978]

If I remember correctly, the city received 4 proposals for Court Avenue. Of course they took the one with the most units and with a local developer. It's time to scratch this one...

How much money did the city recieve for the Court Avenue Station Ryan? Where did that money go?

[DMRyan]

I'm going off memory here and I certainly don't know the whole situation, but I recall hearing that the city was going to invest $20 million into Court Avenue Station. I don't know if they had $20 million in hand just to give over to the developer, but I think it was the total amount of compensation for demolition and site prep, utilities, parking improvements and a slush fund of incentives to get the $20 million dollar number.

Regardless, there's still millions tucked away in a Court Avenue Redevelopment/Housing Fund (hopefully it's drawing interest too) that could be thrown at projects like this. The Kirkwood Renovation dipped into this pot, I'm not sure if the Water Street Brownstones did.

[DSM celebutante]

Wow what a surprise!!!! Yet again why does the city even deal with these same lame as* local developers year in and year out.

Why dont they get Lander-Sherman or some other company out of Chicago or Vegas to do something with that street.

Well Ryan like a predicted a week ago......you know what they need to do