Wellmark's New Downtown Headquarters

[DMRyan]

Anyone heard any gossip on this lately? It's been pretty quiet in the local news media, and I know Wellmark said they would choose a location this spring, but this spring is moving by fast.

[dogbo]

Finally Cityview's Civic Skinny is providing some inside scoops on development like they used to do. Here's the link (be sure to take note of the last sentence of the article for a project on Walnut St):

http://www.dmcityview.com/skinny.shtml


The part that caught my eye related to Wellmark...

While Des Moines hospitals plot to expand to the suburbs, the University of Iowa Hospitals and Clinics is quietly looking at opening a facility in downtown Des Moines, Skinny hears. It’s all hush-hush, but one factor that makes it even more intriguing: The favored site, in the Gateway area on the north side of Grand Avenue, is also a site being considered by Wellmark for a new corporate headquarters. Wellmark and the University Hospitals had a to-the-death fight two years ago — one that cost Wellmark chief John Forsyth his seat on the Board of Regents — and animosities linger. So it could get pretty interesting. Meantime, Skinny is told that Wellmark is ready and willing to sell the old J.C. Penney building to Polk County, which would put offices there and save taxpayers millions by not building a new courthouse. Some county officials are leaning toward doing this, if the price can be worked out, though they would prefer to swap the Polk County Convention Complex at Fifth Street and Grand Avenue for the Penney building. Wellmark owns the other half of the block that contains the Complex and could build a campus-like headquarters there. Wellmark has told the county it might be interested in that deal, but it keeps putting off discussions on it. Now the reason is clear: It apparently is actively looking at the Gateway site instead.... And if either Wellmark or the University Hospitals does build on the Gateway site, look for a new hotel to go up there as well — and not up by the Wells Fargo Arena. …

[speeder]

Interesting 'news', another hotel would be great for downtown as well as a new hospital, especially a branch of the U of I medical behemoth. I still don't understand what is so hard about walking, either on the street or by skywalk, from many of the hotels downtown (and maybe a new one in the gateway area) that exist to Wells Fargo Area and I certainly don't believe that tax payers of Polk County should cover the cost and/or risk of hotel development next to Wells Fargo. Regardless, if this 'news' is on-target I hope the U of I, Wellmark, and Polk County get their stuff together and make the deals that need to be made to get this all done.

[hawk61401]

The area north of Gateway is like having a million dollar house with a trailer park across the street.

If this all comes to fruition, the area north and west of the Gateway will explode with development and construction in a matter of months. If it doesn't happen, it could look like Lebanon (as Ryan recently called it) for years to come.

I'm hoping and betting that Wellmark wants to be in the newest and hottest part of downtown.

[Better Life dude]

Part of the planning discussed last month at the public meetings at the Des Moines public library mentioned the goal of extending the skyway system into this north of Grand Ave. area north of the Gateway Park. The skyways would link what gets built on all those empty lots with Methodist hospital and the rest of downtown.

[DMRyan]

That piece above featured in the Civic Skinny column deserves much more discussion.

It's huge. If Wellmark builds in the Western Gateway and Polk County takes over the old JC Penny Building, it could save the need for a $100 dollar bond referendum, freeing up more effort to get a convention hotel built. It has long been rumored that the developing parties on the north side of the Gateway park want a hotel to service Methodist Hospital, and I do not agree that this kills the county/city sponsored convention hotel by the Iowa Events Center. How great would it be to get a University Hospital presence in Des Moines, and ironic considiering we were just discussing this on the forum.

The other plus is that the JC Penny's Building won't sit empty. The downfall is that this casts doubts on an expensive new court house to fill up surface lots on the south side of downtown, and it does nothing with the Convention Center, which Polk County probably desperately wants to get rid of. I've heard another rumor-filled grumbling of the Churches United Homeless Shelter looking into taking over the old Polk County Jail, scrapping the idea of building north of downtown--again, just a rumor. Talk about some major switching around!

Times are a changing in downtown. This will be interesting to watch unfold over the next two years, especially the potential impact on office vacancies with Wellmark building new. Hopefully, some real news breaks soon.

[hawk61401]

It was back in March that Wellmark said that they would have an announcement "later this spring".

Ok, exactly 30 days to the first day of summer. I will hold them to their word that it will be spring when the announcement is made. The suspense is killin' me.

[dogbo]

Would U of I and Methodist be working together on something or as competitors? Any ideas?

[speeder]

I don't know whether this is good or bad but it means something for sure.

Settlement paves way for new WDM hospital
TONY LEYS
REGISTER STAFF WRITER

June 29, 2007

Plans for one of two West Des Moines hospitals leapt forward today with the announcement that the state’s largest health insurer would drop a lawsuit against it.

Mercy Medical Center announced that Wellmark Blue Cross/Blue Shield had agreed to drop its lawsuit against Mercy’s suburban project.

Wellmark spokeswoman Angela Feig said Mercy agreed to accept “substantially lower” payments at the suburban hospital than it receives for the same services at its downtown headquarters. She declined to be more specific. “I’m sure you understand it’s competitive information,” she said.

[Ingersoll1978]

This is what Civic Skinny of Cityview said (hand typed by me from the physical article...yes...you are welcome...LOL):

Wellmark's purchase of those 18 acres near the Wells Fargo campus in West Des Moines is part of a chess game with the hospitals, not a commitment to building a new headquarters there, insiders tell Skinny. The company wants to stay downtown, but the piece of land it really wants--on Grand Avenue across from the Gateway Park--is controlled by Iowa Health Systems, which Wellmark is suing over the hospital's plans to build a new facility in West Des Moines. Because of the suit, Iowa Health isn't inclined to cut any good deals for Wellmark, a real-estate source tells Skinny, so Wellmark is using the West Des Moines purchase as a threat to hold over Des Moines city officials, saying in effect: Pressure Iowa Health into giving us a good deal, or we'll leave town. Some pretty big names--corporate and political--are in the game, but it's not always clear whose side some of these folks are on.

Complicating matters: University Hospitals of Iowa City is eyeing some of that same Gateway land as a possible site for a building it would like to put up in Des Moines...

A further complication: Aviva, the huge British insurance company that bought Amerus, is looking for a downtown site for its US headquarters, but the Wellmark maneuvers--Wellmark also controls a key half block adjacent to the Convention Complex (which also is available)--make it more difficult for Aviva to grab a site...

[lunksmoo]

Well, the springtime deadline for an announcement has passed, and all we have heard is that Wellmark bought some spec land in WDM, and that they are having a corporate p*%$ing match with Iowa Health and the city of Des Moines. While this may be interesting to watch in the near future, hopefully it doesn't end up with downtown losing. On the one hand, downtown's west gateway could end up having Aviva's U.S. headquarters, Wellmark's headquarters, a new U of Iowa Hospital, and an expansion of Methodist hospital, and the long overdue development of some ugly surface lots. But on the other hand, WDM could get Aviva and Wellmark, and the development of the north side of the western gateway may be postponed for a long time. All interests could be satisfied in this ordeal, and hopefully that will happen. Not that a corporate headquarters in WDM wouldn't be great to see (just imagine a couple of high-rises in WDM, even though tall buildings are highly unlikely to be built there), but downtown would be transformed with just one decision: Wellmark building their headquarters on the western gateway.

[hawk61401]

There are good signs that Wellmark will build in the Gateway.

First and most important, Wellmark wants to be in the Gateway. Wellmark has dropped it's suit with Mercy Medical. In regards to the other lawsuit, Wellmark is in negotiations with Iowa Health Systems ( they own the land north of the Gateway that Wellmarks wants).

I'm gonna go out on a limb. The limb might snap and I might fall and break my neck. I bet in the next week or two it will be announced that Wellmark's lawsuit with Iowa Health has been settled. Everybody gets kissy-face and everyone comes out a winner.

[speeder]

I'm gonna go out on a limb. The limb might snap and I might fall and break my neck. I bet in the next week or two it will be announced that Wellmark's lawsuit with Iowa Health has been settled. Everybody gets kissy-face and everyone comes out a winner.

I'll venture out on that limb also, it would be a great win for everyone...except WDM....shucks!

[dogbo]

I disagree speeder. It is short sighted for WDSM to not understand how it has benefited in the past and will continue to benefit with a healthy downtown.

[speeder]

That was a sarcastic shucks... with the cool smiley face. Sorry to confuse, I agree with you DogBo.

[DMRyan]

Who are we kidding? I respect West Des Moines' role in the metro, yet I would be ready for Des Moines to nab a company like Hy-Vee or Kum and Go if the chance ever came up (as long as the fair play agreement were followed). I'm sure West Des Moines is more than licking their chops for the possibility of landing these two insurance giants in their city. If this were a new company locating to the metro, I could swollow the pill more easily. When it's an existing metro company already headquarted downtown that moves to the burbs, it seems to hurt even more.

I have a nervous, but good feeling about Wellmark making what I'm calling the right decision. It's too far out to even start speculating about what Aviva will do.

[speeder]

Aviva, two V's in the same word. I don't trust it, just like I'd never trust a person named Vivian or Vvork.

[Des Moineser]

Wellmark will do the right thing and big up. They are just playing money games with the city until the city bites.

My prediction on Aviva, a spawling, space-waster of an edge of the city campus.

[Better Life dude]

Vvork.

Don't trust it? Hell, I don't even know what that means.
I had to go here to look:
http://www.vvork.com/

Aviva is a very respectable company. It would be great to see them in a big, shiny new downtown building.

[Des Moineser]

Maybe they will, Aviva is a respectable company. But so is Wells Fargo and:

Minneapolis:


Des Moines:


Aviva buildings:




And actually, I wouldn't mind seeing another International style building on the skyline. Maybe build it modeled off the Seagram building.

[Better Life dude]

I love the International style. That's what style I would describe the Ruan building as.

The Seagram Building in New York City:

[Ingersoll1978]

Ruan is the best building in Des Moines' skyline!

[Des Moineser]

You know Josh, at first, I though you were nuts to think Ruan was nice. But you have opened up my mind on that one. Ruan is a great building after all, I guess I never really noticed it.

Just don't make me change my mind on that downtown hotel rendering...

Anyway, I'd be all for an International building.

[lunksmoo]

Speaking of International style, has anyone seen the plans for the 60 story Museum Plaza in Louisville? Man, let the debate in design begin, because this one will surely set off a firestorm of opinions!

[Des Moineser]

I saw that rendering a few months back,and I thought it looked fined.
I would label it more post-modern, because the extra goofiness. But I'm happy for Louisville and the building/s are nice enough that I would mind something similar here.

By fun and games with angles, I mean something like a Burj Des Moines or a Burj al Iowa (the hotel in Dubai, Burj al Arab). They really wouldn't fit in with the area.

[dmluvr]

good call on Wells Fargo qusaie (?spell check didn't get it)middle finger to des moines with that hideous "campus"

Anyhoo---

love those pictures and---i accept the responses that may come---but really, I'm a sucker for dense tall buildings---(hell--it could be a 50 story ball of poo at this point)and des moines most certainly could use some more-......yeah---these 10 story.....and or, 4 stories are cute and all---but we know Damn good in well that this city is just licking it's jaws for a big ole freshy.

[Philby]

I wonder if this has anything to do with the fact that both Wellmark and Univ of Iowa are contemplating land in Western Gateway? Especially since it's to the med school (at least I assume college of public health is part of the med school) and the University is eyeing the land for a hospital expansion...

http://www.desmoinesregister.com/apps/p ... 05023/1001

UI, Wellmark discuss naming UI health college
ASSOCIATED PRESS

July 5, 2007

The University of Iowa and Wellmark Blue Cross Blue Shield are talking about a major gift for naming the university's new College of Public Health building.

Interim University President Gary Fethke declined to reveal the amount of the gift but praised Wellmark's involvement.

"I am thrilled that Wellmark would consider donating to the College of Public Health," Fethke said.

He said it would be unusual to have a college named after a company, but that he is not thinking so much about the name of the building as the partnership between the university and Wellmark.

In the past, colleges have been named after individuals who have made significant contributions to the university. For example, the College of Medicine is named after Roy and Lucille Carver, and the College of Business is named after Henry Tippie.

The Iowa Board of Regents would have to sign off on the name and Regent Robert Downer raised concerns ab out a possible conflict of interest because of continuing contractual relationships between the university and Wellmark.

Downer said he understood the amount of the gift would be $15 million for the college, which does research on various public health issues.

"I am concerned that there not be any skewing of conclusion of this research because of the funding, which I don't think there would be," he said. "But then you get into perception, which I think you need to look at carefully."

Wellmark is a major payer to the University of Iowa Hospitals and administers insurance plans for all the state's public universities.

Construction on the $40 million College of Public Health building is expected to begin this fall.

[BriGuy]

If all works out perfectly, Wellmark, Univ. Hospitals, and Iowa Health (Lutheran) will get what they want- prime real estate along Gateway Park and, in the case of Iowa Health, a new hospital in the burbs. However, one wonders how much Wellmark is concerned with money and low charges coming from Mercy as a condition for their approval to build a new hospital in W. Des Moines, when it certainly isn't an issue when granting $15 million to the university for naming rights for the new anticipated public health facility. That "spare" $15 million could go toward a beautiful new high rise instead of another 4-5 story campus-like building.

[DMRyan]

The Wells Fargo building in Minneapolis was built by Norwest at the time, and contains a mix of spec office space and Wells Fargo employees, similar to 801 Grand.

In all but the top 20 largest U.S. cities, this real estate tactic is a bygone area, save for few exceptions like in Mobile, Alabama, which just completed a beautiful new 800 foot tall building.

I still wonder about the feasibility of a true mixed use building, which could combine the offices of an office tenant, have a hotel, and some penthouse residential on top of a parking garage for that extra height.

The suspense on this Wellmark thing is killing me. I wish they would hurry up and get a deal inked up, and let the public know what they're doing. With that said, if they're building downtown and need more time to close the deal, take your time.

[hawk61401]

Wellmark's recent decisions have me scratching a bald spot into the top of my head.

Let's see, they pay 18 million for land in West Des Moines. They are going to give 15 million to the College of Public Health at the University of Iowa while possibly competing with University of Iowa Hospitals for land near the Gateway. That total of 33 million would have built a sufficient parking ramp for their new downtown building.

As a Des Moines taxpayer and a rabid Hawkeye fan, I have some mixed feelings about all of this. If Wellmark can spread around this kind of moolah, they shouldn't have to ask the city of Des Moines for a sweetheart deal.