The federal government appears poised to stake a claim for what many believe to be the premier development site in Iowa, nearly two acres of land near the Des Moines River where Hubbell Realty Co. has plans to build luxury condominiums.

Sense a standoff?

Hubbell Realty President and CEO Rick Tollakson has said he will sell the site — Hubbell bought the property in 2016 — at the right price, but he prefers the condominium project and has been saying the same for several years.

On Monday, Hubbell released drawings for the condominium project, with units selling for $500,000 to $1.5 million. In the wee hours of today, the U.S. General Services Administration released its second and final assessment of potential sites for a $140 million courthouse. The conclusion: The Hubbell site at 101 Locust St. gets the nod for the second and, apparently, final time.

Tollakson said today that the government could find a different site. In previous conversations, he has said, “I wish the GSA would just go away.”

It isn’t. The agency, which is charged with designing and building the courthouse, has told Hubbell representatives that the federal government could exercise its power of eminent domain to claim the site if a purchase agreement cannot be reached, Tollakson said. The last conversation with GSA was two weeks ago, he said.

“I found it odd in today’s world that the federal government would use eminent domain to take a site in Des Moines, Iowa,” Tollakson said.

A GSA spokesperson could not be reached for comment regarding the likelihood that it would acquire the property through eminent domain.

So, what is GSA offering for the property and what is Hubbell asking? Good question.

Under an agreement last year, the city of Des Moines could acquire the site for $5.2 million if Hubbell does not deliver a development proposal by Aug. 28. Hubbell would have to exercise that option for the purchase to occur. 

Under the agreement, if Hubbell develops the site, it would receive 100 percent of tax increment revenues generated by the new construction. Hubbell’s plan calls for three seven-story buildings with 115 for-sale units. The number of units depends on the size of the condominiums as well as whether Hubbell is successful in finding a developer that would add a luxury hotel to the project.

Although there are few specifics about the costs of the Hubbell project and a final city incentive package, Des Moines City Manager Scott Sanders said adding a hotel would ease city concerns about the cost of the project because hotel/motel tax revenues could be factored into a development agreement.

Tollakson said today that he would want an offer from the GSA that exceeds $5.2 million.

Progress since last year

Hubbell bought the property for $4.7 million in October 2016 from the YMCA of Greater Des Moines. The site is located on land that was donated to the city by company founder Frederick M. Hubbell for construction of the Des Moines Coliseum, which opened in 1909 and was destroyed by fire in 1949. The Riverfront Y was built a few years later.

When Hubbell bought the property two years ago, it was paying the carrying costs of a loan held by the YMCA of Greater Des Moines. At the time, a group of Des Moines civic and business leaders had agreed to purchase the property — under another put agreement — if it did not sell for development. The agreement was extended and Hubbell ultimately bought the property.

When asked whether he would exercise the put agreement with the city, Tollakson said, “Absolutely not.”

Equally as clear is that some city officials are warming to current GSA proposals for design of the new courthouse.

“They have allowed us great access to their design team to discuss our concerns,” Deputy City Manager Matt Anderson said in an email. “We still have a long way to go, but we’ve made great strides since last summer.”

What did GSA say?

Anderson provided the following summary of discussions with GSA.

“Urban design and pedestrian engagement has been our top priority,” Anderson said. “How do we balance the courthouse’s security needs with our desire to engage the Riverwalk and create a vibrant pedestrian experience?

“GSA response: The design team has been investigating ways to incorporate restaurant or other publicly accessible spaces into the building. Site size and budget are their main constraints. We may not get a signature riverfront restaurant, but I’m hopeful for a coffeeshop-deli-wine bar use – some commercial use that draws the non-courthouse-using public to the site.

“GSA response: The design team is developing building massing that provides for public open space adjoining the riverfront. The program for the ground floor of the courthouse on this site does not cover the entire site, so GSA is planning for outdoor space that provides landscaping, public art, seating and/or a fountain that is available for public use along the Riverwalk.  

“GSA response: Through the design of the ground floor, GSA is working on ideas that would allow public areas to be available for local off-hours uses, such as community gatherings and events. They cite other locations that use the lobby and jury assembly rooms for civic meetings, proms, weddings, etc.

“Related to the issue above … don’t build something that looks like a fortress,” Anderson continued.

“GSA response: GSA has shared renderings of security options at existing courthouses and public institutions such as universities. The use of topography, water features, stone benches, landscaping, and art that doubles as security barriers will be pursued over traditional means such as fences and opaque walls.”

Completion in 2022?

In a release, the GSA said it has “has worked closely with city officials to address concerns raised during the public comment period begun in July 2017. The federal courthouse will complement the character and context of the surrounding structures and amenities, interact with the Principal Riverwalk in a way that facilitates pedestrian activities and outdoor recreation, and include publicly-accessible space.”

Meanwhile, the GSA also released a timeline that calls for construction to begin in the spring with completion in fall 2022. The construction team is made up of Mack Scogin Merrill Elam Architects as the lead architect and Neumann Monson Architects as the design architect of record, Jacobs Technology and Ryan Cos. US Inc. as the lead construction managers.

The final assessment is available here.