At least two out-of-town developers have taken a pass on buying the Riverfront Y property, and a pending offer is under a due diligence period until May 23.

However, the city of Des Moines has yet to see any plans for development of the property and did not see specific plans from the previous purported buyers.

A Texas developer brought in an idea that mimicked plans several years ago that were presented by developer Jon Garnaas for a hotel and residential development, said Matt Anderson, the assistant Des Moines city manager who heads economic development efforts.

The developer, Amit Goel, recently presented plans to a working group of the West Des Moines City Council for a residential development at the Village of Ponderosa, a former Garnaas project. He did not go into any detail when the Business Record asked why he did not continue to pursue the Riverfront Y purchase.

The Riverfront Y has been abandoned since late last year, when the Wellmark YMCA opened at Fifth and Grand avenues in downtown Des Moines. Polk County has agreed to pay $1 million toward the demolition of the property, which is being marketed by Tim Sharpe and Linda Gibbs of CBRE|Hubbell Commercial.

The nearly two acres that Riverfront Y occupies at 101 Locust St. are considered prime development property. It was part of a complicated land swap in 2012 that ultimately led to the YMCA of Greater Des Moines’ purchase of the former Polk County Convention Center at Fifth and Grand and the purchase of land at Fifth and Park Street for a convention center hotel.

Polk County has agreed to pay demolition costs, which include the removal of asbestos in preparation for demolition, providing that a buyer does not want to build a hotel on the property, said Polk County Administrator Mark Wandro.

A hotel on the site would compete with the planned Iowa Events Center, a project that has strong support from county supervisors.

Delpesce has said that if a private buyer does not purchase the property by the end of the YMCA’s fiscal year on Aug. 31, it more than likely will be purchased by the nonprofit Des Moines Redevelopment Co., the group of business leaders that was formed in 2012 to buy and hold property for future development. A convention center hotel has been its priority.

Des Moines Redevelopment signed an agreement in 2013 to pay $4.5 million for the Riverfront Y site if a private developer could not be found, providing the structure is demolished. The group would hold the property and sell it to a developer.

However, the cost of developing property downtown, especially the kind of high-rise, upscale project that city leaders envision, has been an intimidating factor. One potential buyer said he could not find a construction company that would build a condominium project because of the risk of being sued by “50 owners” for possible construction defects.

It has been estimated that luxury apartments would have to lease in the range of $2.70 a square foot in order for the project to turn a profit. That rate is well above other downtown residential leases.