CITY OF DES MOINES SETS THE PURCHASE OF FORMER NATIONWIDE BUILDING AND PARKING GARAGE IN MOTION

DES MOINES, IOWA — Monday, July 17, 2023 — Tonight, the Des Moines City Council set in motion the first official financial steps to move forward with the purchase of the former Nationwide building at 1200 Locust Street – a move that will consolidate government operations, upgrade City facilities, and enhance services to residents.

Council actions set the date (August 7, 2023) for public hearings to approve financing to cover just over $56 million in costs to purchase the former Nationwide building, purchase the parking garage at 1200 Mulberry Street and begin making necessary improvements to the building.

“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.”

The decision follows an architectural feasibility study led by City Facilities staff and OPN Architects that confirmed the 1200 Locust building will reasonably fit the needs of the City of Des Moines to consolidate City departments from five separate buildings to one central location.

“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.”

City Council approved the $30 million purchase price in September of 2022 and authorized the feasibility study in December 2022.  The purchase price for the 360,000-square-foot building comes in at less than $90 per square-foot, well below the market rate for new construction of office space in Des Moines which is currently estimated between $300-400 per square-foot. Additionally, the $10.6 million purchase price of the parking garage comes in below current cost estimates for similar new construction.

“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 of 1200 Locust 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 will also shelve long-standing plans for an Argonne Armory replacement across the street from City Hall and a new Des Moines Police Headquarters and allow for eventual development of at least three locations on the East side of the Des Moines River.