Wellmark's New Downtown Headquarters

[DMRyan]

^
Or the State Legislature can amend the eminent domain laws to make it easier for cities to acquire land that is slated for redevelopment projects.

We're seeing the effects of the eminent domain law changes right here people.

[IntraIowa]

I completely agree. The eminent domain laws are diminishing inner-city revitalization and are accelerating farm-to-urban conversion. The eminent domain laws need to be changed. Unscrupulous land owners can end urban revitalization projects for various small-minded reasons. Also, the Iowa Department of Economic Development should not be providing equal incentives for urban and greenfield locations. IDED should have a base incentive and offer a higher incentives for companies that are locating within an enterprise or urban zone. Why have enterprise zones if companies do not receive economic incentives for locating within them? We need incentive packages that make farmland conversion a last resort and not the first choice. The actions taken by the State of Iowa are putting Iowa’s inner cities at a considerable disadvantage and destroying our most valuable natural resource.

[DMRyan]

If Wellmark chooses WDSM over DSM then Des Moines proper will know what it has to do to keep bringing large employers downtown: 'Make it less espensive.'

Bottom line is, the city of Des Moines is WAY too expensive to build in for a city it's size. Some will be willing to pay the costs, but some also won't and for good reason.

What costs are speaking of? Naturally, land costs will be much more expensive, permits costs may be very marginally more expensive. Site demolition--you won't have that on a cornfield. These are all items that put every downtown in the nation at a disadvantage, it's the very nature of urban vs. suburban development.

By the time the City gets done paying for any acquisitions of smaller properties, public incentives, tax relief, assistance with paying for parking or any other incentive in the bag, what can be done? Des Moines is willing to virtually pull out all of the stops to land this, just short of not making what they deem as a prudent investment to the taxpayers.

[DMRyan]

Today is the day.

[Norwalker]

Today is the day.

Based on the Wellmark memo, or do you know of an announcement?

[GoVerticalDSM]

Hope it's really tall!!!

[DMRyan]

Today is the day.

Based on the Wellmark memo, or do you know of an announcement?

Sorry to get the blood pressures up. No, this is based on the memo and what Wellmark has publicly said their date for announcement was (actually the 15th of September is what I think was said).

More delays in store if it doesn't happen this afternoon or this weekend?

[Ingersoll1978]

YEY! WELLMARK STAYS DOWNTOWN!!!!!!!!
http://www.dmregister.com/apps/pbcs.dll ... 001&lead=1

From the Register:

Wellmark to build downtown
$175 million headquarters planned; incentives lead company to reject W.D.M. site

BY S.P. DINNEN AND DAVID ELBERT
REGISTER BUSINESS WRITERS


September 15, 2007
Add comment



COPYRIGHT 2007, Des Moines Register and Tribune Company

Wellmark Blue Cross and Blue Shield will build a new $175 million headquarters in downtown Des Moines, rejecting a suburban location, executives said Friday.

Group Vice President Cliff Gold said the health insurer signed a deal Friday to gain control of 6.5 acres on the north side of Grand Avenue between 11th and 14th streets, most from Iowa Health-Des Moines.

The project includes a 2,000-car parking garage between 11th and 12th streets, and a 500,000-square-foot headquarters in either one or two buildings between 12th and 14th streets.

Wellmark wrestled for months over whether to remain downtown or move to West Des Moines with its 1,600 workers. The company purchased 66 acres of land there early this summer, but in the end decided to stay downtown.

"We have gone through a rigorous selection process, weighed all the options and determined that remaining in downtown Des Moines made the best sense," said John Forsyth, Wellmark's chairman and chief executive.

City and state government units still need to approve zoning and incentive packages. And the site needs clearance from environmental regulators before construction can begin in the spring of 2008.

Des Moines will provide a number of incentives consistent with what the city did for Wells Fargo Financial and Allied Insurance when they built new headquarters in recent years, said City Manager Rick Clark.

He declined to put a dollar amount on the incentives before the actual package is presented to the City Council at a Sept. 24 meeting, but Gold said the combination of state and local incentives is more than $10 million.

He said that, with the incentives, the cost differential between downtown and West Des Moines was "about a wash."

The city's incentives will be in four areas, Clark said.

- The city will shoulder the burden of straightening out High Street to provide a little more room for the project.

- Eventually, the city will help extend the downtown skywalk to the building. That may take some time because the nearest connection now is at Ninth Street and Grand Avenue.

- Some type of mass transit encouragement for Wellmark employees to take the bus will be included.

- Tax increment financing will be use to rebate some property tax money to Wellmark. Clark declined to say how much TIF money might be involved.

Among other things, he said, TIF money will be used to make the new building LEED certified, a designation for buildings that are energy-efficient and use environmentally friendly building technology.

The city could also use TIF money to pay some of the cost of removing chemicals from the property now occupied by a dry cleaner.

The city will work with businesses located in the area to find new locations within the city, Clark said. City officials also helped negotiate the sale of parcels of land on the building site not owned by Iowa Health Systems.

Clark described the Wellmark decision as "an extraordinary deal," because of the number of landowners involved and the fact that Iowa Health Systems had at one time planned to use the land for its own expansion.

"This is a home run," Des Moines City Councilman Chris Coleman said. "This is a homegrown corporation that is one of the most prestigious in the country, and they have a vision for downtown development that is green and has healthy lifestyles."

Wellmark's decision puts Des Moines at 1-1 this summer on retaining insurance company head offices. Aviva USA decided last month to leave Des Moines in favor of a 71-acre tract of land in West Des Moines. The annuities and life insurance company said it selected West Des Moines in part because it needs land flexibility as it bumps its employee count from 800 to perhaps 1,200.

Wellmark has more modest growth plans - perhaps as many as 100 new employees in the next few years, according to Gold. But just like Aviva, it was operating from several buildings and wanted to consolidate operations.

Siting a 21st-century office proved to be as difficult as designing one. As employees were asked about how they would lay out their work space, they also were quizzed on a preferred location. Two-thirds of them voted for downtown.

Advantages to a downtown site include a central location, access to transportation and sticking to a 68-year history with the central business district, Gold said. But it costs more to build downtown, and it's tougher to assemble needed land, he said.

Iowa Health-Des Moines came through with property that it has been acquiring south of Iowa Methodist Medical Center. It and Wellmark reached a deal on Friday for the land.

Gold said that Wellmark has adequate resources to pay for constructing the building and equipping it.

"We don't think we'll need to borrow," he said. The insurer won't expect customers to pay any extra for the building, and he said Wellmark is merely swapping rented space in five buildings for purchased space.

RDG in Des Moines and HOK in Kansas City will design the project, Gold said.

RDG is the architect for another major downtown project, the Davis Brown Tower, a 13-story mixed-use building now under construction on 10th Street across from the Hotel Fort Des Moines.

HOK is the firm that designed downtown's 801 Grand, Iowa's tallest building.

[hawk61401]

A big thank you to the city leaders of 15 years ago who first adopted the concept of the Western Gateway. If the Gateway didn't exist today, Wellmark wouldn't have located to an area which overlooked blocks of run-down buildings.

Kudos to the employees who voted to stay downtown and to Wellmark for their loyalty to downtown. The Gateway will become even more the envy of any city. This is exactly what the area north of the park needed. The new Wellmark Building will attract more high value development.

What a way to start the weekend!

[DMRyan]

Whew, a collective sigh of relief from us city development nerds!

Were you waiting up all night for that news Ingersoll?

After a full summer of twists and turns on this, it's too early to begin complaining that the building won't be tall. It's a LEED certified building with a great team of architects, some I'm sure it will be beautiful. $175 million for 500,000 sq. ft. will be a show piece building, materials wise. Hopefully the parking garage does not immediately front the Western Gateway Park.

[Norwalker]

Cool, I'd basically given up on this happening downtown. This might make up a lot for a rough afternoon later on .

Anyone remember this song from Ren & Stimpy?

Happy, happy, joy, joy,
Happy, happy, joy, joy,
Happy, happy, joy, joy,
Happy, happy, joy, joy,
Happy, happy, joy, joy,
Happy, happy, joy, joy,
Happy, happy, joy, joy, joy!

[wmjindsm]

Looks finally like the demise of that condo (flats) (I can't remember the name of it) at the corner of 14th & High. They had always seemed to have problems. And also is this the end of Lucky's bar? Isee there is also the former Boomer's restaurant that is now a Chinese take-out place. The only thing I worry about is the Quik Trip right next to it. I hate going there most of the time because it is so hard to get in to and out of that place. Now there are thousand of people going to work right next door. YIKES! OK I'm a downer.

[Ingersoll1978]

Were you waiting up all night for that news Ingersoll?

LOL...I was watching the "Sunset Tan" reality show episodes that were on my computer (so I could remove them)...and then at 4:25...I refreshed the dmregister site...and then I saw that headline!

I'm still in awe on how much this complex is going to cost. It's going to be an awesome building (regardless if it's 7 or 20 stories). I hope they incorporate some type of first floor retail into the building. This is going to have a dramatic affect on the businesses in the area too (coffeeshops, restaurants, etc). This will set up the north area of Gateway West as a premier area of Downtown (hopefully we'll see a hotel or something too).

About the survey-wouldn't you think the Aviva employees would have had a similiar outcome? It's too bad they are leaving...but I'm glad it's them instead of Wellmark (800 employees vs. 1600).

About QT-I rarely have a problem getting in there from Ingersoll or High. The problem I encounter more is the amount of traffic within their pump areas. It's a really busy gas station...and that is a good thing for QT.

[IntraIowa]

What great news. Congratulations Des Moines! Big thanks go to Wellmark for investing in a more exciting urban Iowa and thanks to Iowa Health for selling the land. I hope they show some renderings soon.

[GoVerticalDSM]

If it does go 20 floors, maybe they will put a massive "hat" on it like EMC did with their tower (it is 20 floors too), which would put it over 300 ft.

[Des Moineser]

Assuming 250,000 sq. ft. per building, I tried to do some height calculations, here's what I got:

14th and Grand

~117,262.5 sq. ft. of land

Full Block
2 Stories

260X260 Square
4 Stories

370X135/170X115 L-Shape
4 Stories

---

13th and Grand

~88,106.25 sq. ft. of land
Full Block
3 stories

260X260 Square
4 Stories

260X170/100X170 L-Shape
4 Stories

---

One 260X260
7-8 Stories

One 200X200
13 Stories

One 160X160
20 Stories

By, the way:


I'd love it if somebody would check my math on this.
Personally, I really don't expect anything over twin 10-story towers. Not to be a downer, but this company was looking at building a 65-acre campus, so why would they suddenly want to build a 30-story tower? We'll have to look else where for the next big one. However, every surface lot filled forces density to increase, well see taller buildings sooner rather than later, I suspect.

Is this area zoned as CBD?

[dogbo]

Wellmark to build downtown. The Cyclones win. All is right in the world again.

[Mastermind]

Wellmark to build downtown. The Cyclones win. All is right in the world again.

I just puked in my mouth!

I think we would be lucky to see anything over 5 stories. Just look down 2 bocks to Nationwide/Allied

[hawk61401]

Directly across the street from the library will be a parking ramp. Hopefully, not one of those ramps that look like a World War II bunker.

I'm excited about this project but I wish they had taken a cue from Allied. Just like Allied did, locate the ramp a block or so back from the headquarters building. It makes the Gateway look better if the high quality buildings are at the front door facing the park.

[DMRyan]

Thanks for making the map Des Moineser. To answer your question on zoning, a portion of this site has a zoning height restriction of 75 ft., so a rezoning may be necessary if the planned height of the building substantially exceeds this.

Hawk, I think we're all thinking the same thing in terms of the parking garage. While everyone is probably still glad to have Wellmark make the announcement, some attention to the finer details of good urban design should be brought up soon. Thirteenth Street looks like it may have to close, which obviously further eliminates a grid network of streets. Western Gateway is dangeriously close to becoming nothing more than a office park if continued development here doesn't feature a mix of uses beyond office.

The Murillo Condos (that one condo building with so much promise, but never finished correctly) may give way for this project. I doubt there's too many complaints, but it is a neat old building. I would've loved to have seen a whole neighborhood with that type of apartments back before the wrecking balls roared through downtown in the 1960's.

A look at some of the buildings that could be demo'd for this project:

[dogbo]

I doubt there is any reasonable way to save this, but it does make me a bit sad to see a building like this get torn town. I take note it of anytime I drive by because it stands out on a street without much else to look at. If I'm not mistaken, there is a National Registry of Historic Building's marker on the side of this building. If true, does that make it any harder to condemn and remove?

[dogbo]

I have to believe the city won't allow the ground floor level of the parking ramp to simply be another parking level. At least I'd hope so...

[hawk61401]

It seems to me that sometimes our city leaders are too timid. Again, I am thrilled that Wellmark is staying downtown. But, the city should have input in regards to the urban design. We're investing 10 million dollars in incentives. We, the taxpayers, have invested millions to help pay for the Gateway.

So, yes, let's have more than just an office park. On the south side of the park we have Allied. It's a monolith of a building, stretching for blocks, and set right up to the sidewalk. Other than being located in the Gateway, there is nothing different about it than most other office buildings in downtown. The front and entire stretch of the building has only one purpose: move pedestrians but don't accomodate pedestrians

The sidewalks in the Gateway should be set back for any new development to encourage street life, night life, benches, kiosks, outside seating for cafes and restaurants, attractive paving materials. Encourage people to stroll and window shop. Make the sidewalks a public space and gathering place for individuals and groups.

We have one chance to get it right. The new buildings and park will be standing long after we are gone.

[Better Life dude]

Even factoring in the 3 blocks Wellmark will use, there is so many surface lots and non-historic older buildings available for further development along the perimeter of the Gateway Park area. I'm not concerned with what Wellmark is doing - except that I would echo the need for first floor retail/ restaurant space on the block with the parking ramp.

I like the fact that Allied and Wellmark along with ING and Meredith are excellent corporate neighbors to the park. With Hatch's development and the Mitchell transmission building and OPUS_1 project, there is a lot of proposed mixed use development in the pipeline for the area. Isn't the street level of the newest piece of the Allied building also for non-office stuff?

So what we're not like Manhattan with museums and upscale housing around the perimeter of Central Park. What we're getting in the Gateway West area is very nice. As time goes by, more and more and more and more people will be using the Gateway Park seven days a week. Just wait till the sculpture shows up there. That area will be rockin'!!!

[Norwalker]

The new Allied building at 1200 Locust is slated to have a 5,700 sq. ft. retail bay in the NW corner at street level., as well as another 3,000 sq. ft. area facing 13th street. This is only a small portion of the building's total footprint, but still significant in my opinion.

I'm not ready yet to get worked up over what design plan Wellmark might follow. It sounds like they have a good architectural team, so I'll be excited to see what they finally come up with.

I still can't help but dwell a little on what this announcement would have been like if Wellmark moved out of downtown. It may just be my perception, but it seemed to me like downtown progress had lost a little momentum recently, dating back to about the time Project Destiny failed to pass (coincidental timing I'm sure -- don't want to rekindle that argument). This decision recaptures some of that good mojo, and will prove to be either good or very good for downtown, but going the other way would have meant a real hit.

[Better Life dude]

Not to get into thread drift her, but I think the recent "slowness" in downtown development is a result of a slowness in the residential condo market. I think that took everyone by surprise this spring and summer after the last two years of building boom. It's certainly lead builders and potential buyers to pause and slow down.

[BriGuy]

This is great news for downtown. In the end, Wellmark came through!

I wonder now if Wellmark already has preliminary designs made up and how soon some drawings are made public. I imagine they will build something on the order of 5-6 stories like Allied but I am hoping for something much taller. With a tall building, they will have plenty of land to add a second buidling when future growth dictates the need to do so.

[hawk61401]

ok, trivia time ... In the Register article, Vice President, Chris Gold says that HOK of Kansas City will design the building. I wonder if he ment to say St Louis.

HOK Sport is headquarted in Kansas City and specializes in the design of sports facilities. Of course, they designed Wells Fargo Arena.

HOK is headquartered in St Louis and the St Louis team designed 801 Grand. I could have sworn that a famous architect from HOK (as having the status of Cesar Pelli who designed the Z building) was the senior architect for 801 Grand but can't find reference to him anywhere.

[doMORE!]

Anyone know any history behind the townhouse that will be torn down? Anyone ever been inside? Is it currently used as a commercial or residential space? I'm all for downtown development, but it makes me really sad to this building go. I'm always intrigued when I drive past it.

[speeder]

Anyone know any history behind the townhouse that will be torn down? Anyone ever been inside? Is it currently used as a commercial or residential space? I'm all for downtown development, but it makes me really sad to this building go. I'm always intrigued when I drive past it.

I've always liked that townhouse building also, reminds me of the movie Batteries Not Included, but come on, it is a no brainer... take a picture and bulldoze it. The Wellmark deal, downtown development, job retention (maybe growth) and tax revenue are too important.