Health club operator receives $3 million loan from Polk County
KATHY A. BOLTEN Jan 4, 2022 | 11:08 pm
2 min read time
408 wordsAll Latest News, Real Estate and Development
Genesis Health Clubs has purchased a building at Southridge Mall that previously had been occupied by Sears department store. The Kansas-based health club, which has three Des Moines locations, plans to repurpose the space to include basketball courts, workout areas and a lap pool. Rendering by Hanney & Associates Architects
The operator of a Kansas-based health club has received a $3 million loan from Polk County to help pay for the cost to purchase and repurpose the former Sears building at Southridge Mall, records show.
Polk County supervisors unanimously approved the loan at their meeting on Dec. 28.
Also approved was a minimum assessment agreement with Genesis Health Clubs, whose corporate headquarters are in Wichita, Kan. The agreement stipulates that the 13.2-acre property must have a minimum assessment of $11 million. In 2019, the property was valued at $6.56 million. It’s currently valued at $5.64.
The proposed conversion of the vacant Southridge Mall department store first became public in June 2020 when the Des Moines City Council directed city officials to work with mall owners and the health club on a development agreement. In March 2021, Genesis Health Clubs said it planned to purchase the former Sears building and convert it into a fitness and athletic complex.
The 108,807-square-foot building has been vacant since August 2016 when Sears closed its store and auto center. The mall is located at 111 E. Army Post Road.
Polk County real estate records show that Genesis Health Clubs Sports Complex SE LLC bought the property for $2.3 million in a transaction with Macerich Southridge Mall LLC that was recorded Dec. 30.
The loan from Polk County “stems from the intent to prevent urban blight,” according to the loan agreement. The agreement calls for Genesis to repay the loan within 10 years, paying an interest rate of 1% annually.
The $16.5 million redevelopment project includes raising the roof of the structure to accommodate five high-school-size basketball courts that can also be used for volleyball, according to city documents. The facility will also include a health club with areas for cardio fitness, free-weight training, and aerobics and cycling studios. A five-lane, 25-yard lap pool is also planned.
The project is expected to receive up to $9.6 million in tax increment financing assistance that would be paid over a 20-year period.
Construction is expected to begin in the first quarter of 2022.
Related article: Details released for new south Des Moines health club facility
Polk County supervisors unanimously approved the loan at their meeting on Dec. 28.
Also approved was a minimum assessment agreement with Genesis Health Clubs, whose corporate headquarters are in Wichita, Kan. The agreement stipulates that the 13.2-acre property must have a minimum assessment of $11 million. In 2019, the property was valued at $6.56 million. It’s currently valued at $5.64.
The proposed conversion of the vacant Southridge Mall department store first became public in June 2020 when the Des Moines City Council directed city officials to work with mall owners and the health club on a development agreement. In March 2021, Genesis Health Clubs said it planned to purchase the former Sears building and convert it into a fitness and athletic complex.
The 108,807-square-foot building has been vacant since August 2016 when Sears closed its store and auto center. The mall is located at 111 E. Army Post Road.
Polk County real estate records show that Genesis Health Clubs Sports Complex SE LLC bought the property for $2.3 million in a transaction with Macerich Southridge Mall LLC that was recorded Dec. 30.
The loan from Polk County “stems from the intent to prevent urban blight,” according to the loan agreement. The agreement calls for Genesis to repay the loan within 10 years, paying an interest rate of 1% annually.
The $16.5 million redevelopment project includes raising the roof of the structure to accommodate five high-school-size basketball courts that can also be used for volleyball, according to city documents. The facility will also include a health club with areas for cardio fitness, free-weight training, and aerobics and cycling studios. A five-lane, 25-yard lap pool is also planned.
The project is expected to receive up to $9.6 million in tax increment financing assistance that would be paid over a 20-year period.
Construction is expected to begin in the first quarter of 2022.
Related article: Details released for new south Des Moines health club facility
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