Wellmark's New Downtown Headquarters

[hawk61401]

Reading the above posts gave me a flashback to those who wanted to keep the AIB Building and didn't want a new library or Western Gateway.

If they had won, Des Moines might still have an empty AIB, run-down buildings, losses in the multi millions for investment.

[doMORE!]

Easy guys, nowhere does my post say that I'm against the new construction. In fact, my post starts with "I'm all for downtown development". I'm just curious about what's being lost in the process. Am I somehow anti-progress for posing the question? If there's some history or wow factor to the place, I'd like to know about it while it's still standing and there's still a chance to appreciate it.

[DMRyan]

I don't know, I'm as pro-development as it gets and wish they would've kept the AIB Building still. I would like to see Wellmark work around this little gem of a rowhouse if all possible, but that would probably not be reality.

Who knows, it may look out of place like the Arlington Hallet Apartments in the Western Gateway, or it may provide a very cool little contrast between old and new like that small 3 story building just to the west of the EMC Tower on Walnut Street.

[BriGuy]

I'm with DMRyan. If they can work to keep this rowhouse and make it blend and/or contrast nicely with the new headquarters, it might be worth all the while to preserve it. Looks to be a jewel worth saving.

[Better Life dude]

How about moving the rowhouse to Sherman Hill? That's do-able. The trip would only be about ten city blocks to the nearest empty lot. Or make it the first new home on a surface lot in the "Lower Sherman Hill" area along High Street. That a journey of about 5 blocks. The more I think about it, moving it is a great solution. Let the city buy it from it's current owner (that's going to happen anyway) and then sell it for $1 to someone who's willing to pay the cost of moving it to a new foundation.

[tanner]

From this week's Civic Skinny:

“There will no doubt be legislation introduced to reduce state incentives to suburban sites that compete with downtown Des Moines sites. Also, to provide state financial assistance for urban redevelopment, particularly brownfields. Further, the [Legislature’s] Administrative Rules Committee is likely to conduct a special review of IDED’s rules covering when a company expands in a neighboring city or county within the same (metro) area of the state.”

I think this is way, way overdue. The idea of local communities competing with each other is just amazing to me. Greater Des Moines has enough competition from everywhere else on the planet, we don't need to undercut ourselves.

[dogbo]

From this week's Civic Skinny:

“There will no doubt be legislation introduced to reduce state incentives to suburban sites that compete with downtown Des Moines sites. Also, to provide state financial assistance for urban redevelopment, particularly brownfields. Further, the [Legislature’s] Administrative Rules Committee is likely to conduct a special review of IDED’s rules covering when a company expands in a neighboring city or county within the same (metro) area of the state.”

I think this is way, way overdue. The idea of local communities competing with each other is just amazing to me. Greater Des Moines has enough competition from everywhere else on the planet, we don't need to undercut ourselves.

Agree this is way overdue.

BTW...this entire Civic Skinny article is a must read! A lot of good info on both this Wellmark deal as well as future expansion downtown by Methodist/ U of I Clinics.
http://www.dmcityview.com/skinny.shtml

[Better Life dude]

Awesome news from the Civic Skinny. Those of us who live within a few blocks of all this new development appreciate the news that U of Iowa will have a medical building between Wellmark's new campus and Methodist hospital. I feel the area north of Gateway is also a great location for a hotel - especially if all this development is interconnected to the skywalk system. A hotel would be close in to the downtown business community and if built near the Gateway park, would it a draw to tourists. Another reason for a hotel or an extended stay hotel is that Methodist draws a lot of out of town familes needing a place to stay close to family members who are patients at Methodist. Mercy has the Holiday Inn. Methodist could use a hotel also. Currently there are two ugly 1960's era apartment/ dormitory type buildings on the 1300 block of Woodland Ave. across the street from Methodist that gets used by visitors. These could be torn down and redeveloped:
1300 Block of High Street:

1300 Block of Woodland Ave:

[speeder]

From this week's Civic Skinny:

“There will no doubt be legislation introduced to reduce state incentives to suburban sites that compete with downtown Des Moines sites. Also, to provide state financial assistance for urban redevelopment, particularly brownfields. Further, the [Legislature’s] Administrative Rules Committee is likely to conduct a special review of IDED’s rules covering when a company expands in a neighboring city or county within the same (metro) area of the state.”

I think this is way, way overdue. The idea of local communities competing with each other is just amazing to me. Greater Des Moines has enough competition from everywhere else on the planet, we don't need to undercut ourselves.

A. Competition is a good thing.
B. I'll give a nod to brownfield redevelopment over plowing up farms but I question the end goal of modifying legislation to benefit downtowns over suburbs... what kind of a message does this send to businesses that in all honesty, just would not build in a downtown setting... think Pioneer/Du Pont, John Deere... these are huge agriculture businesses that support Iowa and are not going to be in downtowns. Legislation like this should be limited or honed in on specific classes of commercial businesses IMO.

[Norwalker]

From this week's Civic Skinny:

“There will no doubt be legislation introduced to reduce state incentives to suburban sites that compete with downtown Des Moines sites. Also, to provide state financial assistance for urban redevelopment, particularly brownfields. Further, the [Legislature’s] Administrative Rules Committee is likely to conduct a special review of IDED’s rules covering when a company expands in a neighboring city or county within the same (metro) area of the state.”

I think this is way, way overdue. The idea of local communities competing with each other is just amazing to me. Greater Des Moines has enough competition from everywhere else on the planet, we don't need to undercut ourselves.

A. Competition is a good thing.
B. I'll give a nod to brownfield redevelopment over plowing up farms but I question the end goal of modifying legislation to benefit downtowns over suburbs... what kind of a message does this send to businesses that in all honesty, just would not build in a downtown setting... think Pioneer/Du Pont, John Deere... these are huge agriculture businesses that support Iowa and are not going to be in downtowns. Legislation like this should be limited or honed in on specific classes of commercial businesses IMO.

I agree. While this may be well intentioned, the law of unintended consequences should be recognized and respected, too. Hopefully any legislation related to this is carefully thought out.

[hawk61401]

This man deserves a lot of recognition, praise, and an award for the immeasurable contributions that he has made for Des Moines.

John Forsyth left the University of Michigan Health system in 1996 to join Wellmark. The force behind the Wellmark decision to stay in downtown Des Moines was Forsyth's. He worked out a deal with the Iowa Vision Board that provided money for the Science Center, new library, Papajohn Buidling, convention center and arena.

His contributions will be felt for decades and will set off a chain of events for future downtown development.

(circa 1996)

[Better Life dude]

SALUTE!!!

[DMRyan]

John Forsyth for Mayor! (or at least 2nd ward councilman in West Des Moines in case Brad Olson won't make it back).

[GoVerticalDSM]

Ruan's have to be hatin' this news. I wonder how many years it will take before they replace Wellmark in rust bucket 1 and rust bucket jr?

[dmluvr]

good commentary on here--'

while better late than never-- i'm so glad to see the news on here!

ok!

I do have to completely agree that we have to quickly turn our focus and make sure that good designs in dense urban setting are followed out here.
While a 4 story lame feature will probably be on the way--- it's at least downtown and will add density(really though--who else is over these 4 story square blocks?)....

We all know what the height will be--- just 2 main things here I will strongly echo as well...ok i lied--3!

1. street frontage
2. first floor retail (hey--they've already got lucky's bar there and that downtown church--no so much prolly on the church)
3. Parking garage further north outside of gatway-- a parking garage right there on gateway is a HUGE NO NO!!

p.s. I"m going to miss lucky's! that building(street frontage anyways) was n't too bad!!

[DMRyan]

This is a mix of Aviva and Wellmark news about the incentives packages they are slated to receive. For the costs being higher to develop downtown, the Wellmark Office being larger than Aviva's planned office, a parking garage to be built, and business relocation and environmental costs--WELLMARK BUILDING DOWNTOWN WILL RECEIVE LESS IN INCENTIVES THAN AVIVA. Also, the development agreement from the DSM City Council mentions that taxes generated from the new office buildings will spur $750,000 per year in years 1-10 and $2.5 million from years 11+. That folks, is the reason why these incentives packages are put together. Not all of them have that kind of return on investment, and I'm sure both businesses will get a sweetheart deal, but what other development for this site would add $2.5 million per year to the tax kitty someday?

Also, make no bones about it, there are sour grapes in the City of Des Moines about losing Aviva, but they don't seem to be directed towards West Des Moines. Rick Clark and City Hall appear to be playing relative good sports about this (publically anyway), as evidenced in the quote by the City Manager below. Very ironic though that the City of Des Moines must sign off on an intent for Aviva to move out of the City to recieve incentives and cooperate with the metro area Fair Play Agreement.

Great, detailed stuff on Wellmark's incentives package found here:
http://www.dmgov.org/mayor_council/agen ... 07-593.htm

From the Register:

Firms seek millions in incentives
Insurers Aviva, Wellmark plan to build headquarters, add jobs

By DONNELLE ELLER
REGISTER BUSINESS WRITER

September 22, 2007

Two large Iowa insurers could get a total of $42.7 million in state and local incentives to build their headquarters in Des Moines and West Des Moines.

Documents released Friday show:

- Aviva USA could get as much as $22.5 million in state and local incentives to build a $133 million headquarters in West Des Moines. The package includes a tax rebate, grants, loan and new roads.

The company, formerly AmerUs Group, plans to build a 360,000-square-foot headquarters with space for 1,500 employees. It now employs about 750 workers in Des Moines in three downtown offices.

The company told the state it would create at least 544 jobs that pay an average of $77,875 annually.

- Wellmark Blue Cross and Blue Shield could receive up to $20.2 million from Des Moines and Polk County to build a $194 million headquarters downtown. The package includes grants, street realignment, environmental remediation and green construction incentives. Wellmark said it will also seek state incentives for the project.

Wellmark plans to build a 500,000-square-foot headquarters and 2,000-space parking garage. The project retains 1,577 jobs downtown and adds up to 150 more. The company now has employees in five downtown offices.

Aviva's incentives hinge on Des Moines signing off on the insurer's move from downtown to the western suburb.

Des Moines leaders had questioned whether the state offered appropriate incentives to Aviva to remain downtown. But there was no evidence of discord Friday.

City Manager Rick Clark said he will ask the Des Moines City Council on Monday to clear the way for Aviva's change of address. Leaders will get its first look at the Wellmark incentives at the meeting.

"I think the Aviva expansion is good for the Des Moines metro and good for the state, and we should be supportive of that," Clark said.

Clyde Evans, who leads West Des Moines economic development efforts, said the tax rebate planned for Aviva in the first phase of its project is standard and falls within its fair-play agreement with neighboring cities. Metro cities have agreed not to poach neighbors' jobs and companies through enriched development incentives.

West Des Moines officials have said they could provide richer job-creation incentives for the second phase of Aviva's project.

Here's how the incentives break down:

Aviva: The state plans to give the company $1.5 million in grants and a $132,000 loan. Aviva could also qualify for an estimated $13.4 million in tax credits for its capital investment and refund of sales tax paid during construction.

West Des Moines proposes giving Aviva a $4 million grant to add 750 jobs beyond the existing positions. It also plans to rebate the company $3.5 million in property taxes over five years, based on a taxable value of $55 million.

Wellmark: Des Moines plans to provide the health insurer with a nearly $9.4 million grant for job retention and creation, up to $1.5 million to construct an energy-efficient building, a $4.8 million tax abatement for the parking garage, $2 million for land costs and right of way, and $2.5 million for environmental cleanup.

Des Moines expects to spend nearly $7 million to realign High Street for the headquarters. It will also relocate an existing business in the area.

Polk County leaders are asked to cover $2 million of the local incentives.

West Des Moines plans to spend $12 million to expand roads and water and sewer lines for the Aviva project.

Des Moines will seek a $2.9 million grant from the Iowa Department of Transportation for the realignment of High Street; West Des Moines will seek a $7.3 million transportation grant. State transportation leaders are expected to consider the Aviva and Wellmark requests next month.

The Iowa Economic Development Board has tentatively scheduled a special meeting Tuesday to consider the $15 million in loans, grants and tax credits for Aviva.

Wellmark is the state's largest health care insurer. London-based Aviva PLC, the parent of Aviva USA, is the world's fifth-largest insurer.

[Better Life dude]

It's neat that you can apply a side by side comparison of the two incentive packages.

[Better Life dude]

I took some pics today of this row house. It's on the new Wellmark site and efforts should be made to save it by moving it to a new site (Sherman Hill I'd say!) The current occupant is an architectural firm of all things. Notice the plaque outside the front door designating the building as an historic landmark.

[dogbo]

Can you move a 100% brick building??? I almost think they'd have to disassemble it and then rebuild which would be costly. Plus, who knows how much of the adjacent building shares the same wall.

I've love to see this saved, I'm just not sure I've ever heard of a building such as this being moved. Anyone?

[Better Life dude]

If the stone house which was moved to Sherman Hill from the Mercy hospital campus last year could be done - and it was - this could be done, too. Of course it would cost some money, but people who love these kinds of projects save them because they love the challenge. Typically it goes like this: House is sold to the buyer for $1. Buyer pays about $50 -$100k for an empty lot, an all-new poured concrete foundation, a house moving contractor and to Mid America to move power lines out of the way. From there, the happy home buyer tries to not go broke doing interior and exterior rennovations to restore the home to the way it was in it's heyday.

For this particular row house the upside is location: you wouldn't have to mobve it far. If it can't be separated from the office building it shares the wall with, then like Speeder suggested: take a picture of it and then knock it down. Building around it is probably not an option. Also, if it's always had windowless side walls, that might be a problem to add those in a rennovation.

Anyone else have ideas about saving this building?

[dogbo]

I hope you're right BLD. A couple other hurdles though. This is a row house, so it needs to abut (sp?) the street as too not look out of place. Plus, wouldn't it look odd sitting by itself, so it would almost need to be set adjacent to another row house or commercial/apartment building.

[Bluestem]

I love the idea of moving this building. I would assume it could be done as well. The only problem I see is that it would lose it's designation as historic place on the national register if moved. It is still definitely a building worth saving.

[hawk61401]

I am fuzzy about having a building on The National Register. Is it simply because this structure is old, or, does it have to have some important history attached to it?

I always thought the National Register designation gave a building all kinds of safeguards in regards to moving or demolition.

[Mototail]

City Gives Initial OK To Wellmark Plan
Company Hopes To Have Plans By Year's End

POSTED: 11:09 am CDT September 25, 2007
UPDATED: 11:42 am CDT September 25, 2007

DES MOINES, Iowa -- City leaders said million of dollars in incentives is to keep a big insurance company from leaving downtown Des Moines is the price of progress.

The next multimillion-dollar addition to the Western Gateway area starts at the corner of 14th Street and Grand Avenue. It's the proposed site of the $200 million headquarters for Wellmark Blue Cross Blue Shield.

Wellmark spokeswoman Angela Feig said the company has been downtown for 67 years and it's committed to being downtown.
Click here to find out more!

Wellmark's new home will cover two blocks across the street from the new downtown Des Moines library. A 2,000-space parking garage is also part of the plan.

The city will help pay costs of moving a section of High Street north to make room for a parking garage.

"I appreciate it very much Wellmark making the decision to stay downtown that is just so critical for everything that we're trying to do down here," said City Council member Chris Hensley.

It's taken more than a year of negotiations to keep Wellmark from moving to the suburbs.

The Des Moines City Council gave its initial OK to Wellmark plans and $20 million in incentives will keep the headquarters and 1,500 employees downtown.

"We are thrilled, Wellmark is thrilled to be downtown and to stay downtown, and our employees are thrilled. Our employees preferred that we stay downtown," Feig said.

The City Council said big incentives will translate into a big payoff for the Western Gateway are and downtown Des Moines.

"Building downtown is becoming more attractive. People want to do it," said Council member Chris Coleman.

Wellmark hopes to have some plans drawn up by the end of the year. If approved, the new insurance headquarters should open by 2010.

http://www.kcci.com/news/14200374/detail.html

[hawk61401]

Wetherell and Ericsson are selling the row house to Wellmark. They are surprised that their asking price was accepted. $1,000,000?

This is the same firm that designed the downtown YMCA. In the 50's it was known as Wetherell and Harrison.

[DMRyan]

As a part of the incentives package for Wellmark, the City is offering extra incentive to build the HQ to LEED certification standards. A first for Des Moines, but expect to see more of this in the future. Among the environmental features that could be featured in the building will be cisterns that capture rain water from the roof to flush toilets, solar cells to power the building, use of recycled materials, and HVAC controls that save energy.

From the Register:

D.M. rewards green builders in fresh move
The perks reflect a growing focus on an environmentally sustainable economy.

By DONNELLE ELLER
REGISTER BUSINESS WRITER


October 3, 2007

For the first time, Des Moines is offering economic development perks for energy and environmental conservation, such as cutting carbon emissions, squeezing energy use and building green roofs.

The move reflects a larger emphasis in Iowa and the nation on building an environmentally sustainable economy. Iowa, for example, created a four-year, $100 million fund this year that focuses on renewable energy development. States from California to Florida have embraced green efforts, such as reducing carbon emissions.

Last month, Des Moines offered Wellmark Blue Cross and Blue Shield up to $1.5 million to build environmentally friendly headquarters. Wellmark plans to construct a $194 million, 500,000-square-foot building downtown that will be home to 1,700 workers.

The green-building incentives are part of a $20.2 million package that includes more traditional perks, such as job-creation grants, road work and help eliminating pollution.

Matt Anderson, who leads the city's economic development department, said the city wanted to help offset some of the added costs of green construction - as much as 6 percent more.

The city will give Wellmark $25,000 to $150,000 annually for a decade, depending on the building's environmental design. It will use the U.S. Green Building Council's certification to rate the project.

"It benefits the city with better air quality, better water quality," Anderson said. "I would expect the city would provide the incentives again. They have a lot of merit."

Improving the environment has been a push of Mayor Frank Cownie, who has sought to shape up Iowa's capital in several ways, such as encouraging using paint with fewer toxins and offering tax breaks for green development.

Kevin Nordmeyer, a Des Moines architect working on the Wellmark project, said Iowa's largest health insurer could set a new standard in "healthy building" construction.

"Wellmark is keenly aware of the effect of buildings, not only on the macro environment, in terms of energy use and global warming but also on human performance," he said.

"There's research that shows in high-performance buildings you get high-performing" workers. Nordmeyer, who is with RDG Planning & Design. RDG is a partner with architect HOK in Chicago on the project.

Heather MacDonald, associate professor of urban planning at the University of Iowa, said the incentives help get cleaner water and air for Des Moines residents and fewer sick employees for Wellmark. The city's image takes on a hipper, environmental sheen that's attractive to young workers, she said.

"There's real social good to this," MacDonald said.

She said many cities and states have embraced green-building incentives, including giving environmentally conscious builders tax breaks, adding more square feet to a project, waiving building permit fees and fast-tracking construction inspections.

Santa Monica, Calif., for example, has provided grants up to $35,000 since 2004 to commercial developers who meet national green-building guidelines.

Nordmeyer said the Wellmark building would consider a range of low-impact practices, such as using cisterns to capture water for landscaping and planting trees to "scrub carbon from the air."

That includes trying to buy construction products locally or regionally, so they won't need to be trucked cross- country, Nordmeyer said. The move also helps support markets for local recyclers.

Bill Lawrie, who leads Corell Recycling of West Des Moines, said he's seen business grow for the limestone-replacement products his company makes from crushed concrete and asphalt. "It's really a cost-effective alternative to finite resources," he said.

Nordmeyer said Des Moines' green incentives "encourage a healthy, productive city."

"The decisions we make now impact people five, 10, 30 years from now," he said. "They will have a ripple effect for generations."

[hawk61401]

Because the city is giving incentives to build the Wellmark HQ to LEED certification standards, this could give us some clues about the footprint and whether it will be a tower or a lower type building.

With a LEED Building, it's better to build an office tower and surround it with green space than to build a low building that covers up the landscape.

[rasmeth]

Building vertical rather than gobblin' up more land is better for the environment not just because a park could be built next to a taller building but even another high-rise could be placed next to the first building rather than being built in a part of West Des Moines that was a soy field a couple of years ago.

[NOG]

Here is some info about the new Wellmark Project:

-The building will be five stories. Four of the stories will be used immediately and the fifth is for future growth.

-The garden area surrounded by the building is large enough to fit Kinnick Stadium inside.

Image of building's footprint:


Now I will run for cover as the shelling over lack of height begins.

[speeder]

No problems from me with five stories at that location; if 5 is what they need, and Wellmark is staying downtown... I'm good. The garden thing sound very cool.

Building vertical rather than gobblin' up more land is better for the environment not just because a park could be built next to a taller building but even another high-rise could be placed next to the first building rather than being built in a part of West Des Moines that was a soy field a couple of years ago.

Yes, in Utopia.... this is the really, real world though... and taller buildings in Des Moines mean more parking garages taking up that park/lot your going to save soybeans with.