In the way of progress
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Stacks of invoices, family photographs and old newspapers clutter Charles Eldridge’s small office at Eldridge Welding & Machine Inc. in downtown Des Moines. Taped on a wall above the notes and industrial drawings is the pen used to sign the 71-year-old building away to the city.
Before business closed on Tuesday, Sept. 4, Eldridge used that pen to sign a stack of papers that were reviewed by his attorney and notarized by a city official. For Eldridge, closing the doors on a building that has housed the family business for four generations wasn’t easy.
In 1937, Eldridge’s grandfather bought a home at 523 14th St. in downtown Des Moines and converted it to a welding and machine shop. It was passed on to Eldridge’s father, then to him, and then he passed it on to his son, Scott, who now controls the company.
“We talked and talked and talked and had the lawyer come down,” Eldridge said. “This has been going on for a long time because I didn’t want to move. There are a lot of family ties here.”
Many small business owners located on the footprint of Wellmark Blue Cross and Blue Shield’s planned 500,000-square-foot headquarters feel the same way as Eldridge does about relocating their businesses. Businesses between 12th and 14th streets will have to either relocate or close by February or April, depending on how much demolition is needed to make way for the insurer’s new headquarters. Wellmark has agreed to pay $12 million to relocate the businesses. The city has already awarded a construction period tax abatement up to $1.4 million in an attempt to lessen the burden of relocating the businesses.
Wellmark did not comment for this story as of press time.
Fear of the future and the loss of loyal customers rests heavily on the mind of Michael Garner, owner of Elegant Touch Cleaners, who has already had to relocate once before. His dry cleaning business was displaced from 15th Street and Grand Avenue when Meredith Corp. ex-panded its headquarters downtown.
“It’s still frightening; it’s very frightening every single time because you don’t know how much of your customer base you’re going to lose,” he said. “If we have to move outside of the downtown core, I’m screwed. I am just screwed. It will be just like starting the business over again, and I am really afraid of that.”
The move for Garner is going to be the hardest part. He has to relocate his staff and equipment from his location of 17 years. “I’ve had many sleepless nights,” he said. “I didn’t get all this gray hair for nothing. I’ve got employees to think about. I am real concerned.”
Garner has found a new location near his old store, but wouldn’t reveal the new location until the deal is finalized.
Matt Anderson, an economic development coordinator for the city of Des Moines, said the city has been involved with three relocations, which have all gone “smoothly.” The majority of relocations have been done privately through Wellmark and the building owners.
“I think it went as smooth as it could. Asking someone to move their business is always difficult,” Anderson said. “It’s been a team effort, and I commend those businesses that are moving. The business owners were very cooperative with assisting with us.”
Addresses and prices of buildings bought by Wellmark
Address |
Date Sold |
Price |
1105 Grand Ave. |
10/15/2007 |
$1,600,000* |
1109 Grand Ave. |
10/15/2007 |
$1,600,000* |
1115 Grand Ave. |
10/15/2007 |
$1,600,000* |
1201 Grand Ave. |
11/02/2007 |
$3,718,940* |
1108 High St. |
11/20/2007 |
$892,820 |
1220 High St. |
11/15/2007 |
$535,000 |
522 11th St. |
10/15/2007 |
$1,600,000* |
523 14th St. |
01/03/2008 |
$1,194,230 |
Source: Polk County assessor
* Price includes multiple properties
Note: At press time, the building that houses Lucky’s at 1117 Grand Ave. had not been sold to Wellmark.
Brad Smith has co-owned Lucky’s, a small corner bar at 11th Street and Grand Avenue, for five years. After hearing that Wellmark would stay downtown, he knew Lucky’s wouldn’t relocate and would be closing for good. Smith and his two business partners own two other venues in Des Moines.
“We’re not crying in our beers or anything; we’ve known it’s inevitable,” Smith said. “It’s too bad that another cool old building is being crushed by another parking garage and insurance building. I would much rather see this be torn down for something cool instead of another lame parking garage and insurance building. That pretty much vacuums culture away from downtown.”
Smith said that the building’s owner, Joe Coppola, dealt directly with Wellmark on the sale of the real estate.
“I’m sure it will be beneficial for downtown in the long run,” Smith said. “It’s hard to stand in the way of progress.”
Garner, whose 1,500-square-foot dry cleaning facility at 1220 High St. serves downtown residents, has mixed emotions about the Wellmark decision. He’s not opposed to the insurer building downtown and thinks it will help the downtown area thrive.
“I think that Wellmark Blue Cross and Blue Shield is a good thing. I’m glad they’re not moving to West Des Moines,” he said. “We’re just hoping that the city and Wellmark are fair with us. We know we have to go.”
For the handful of business owners who have dealt with the city, fair is what they say the city has been.
“The city has actually been quite good to deal with,” said Brad Vasey, who owns Howard Martin Body Service along with his father, Fred. “Downtown is changing, we realize that, and the city has treated us fair.”
Vasey said the city and Wellmark showed him and his father a handful of buildings throughout downtown and Des Moines as possible new locations. Unable to find a suitable site, the Vaseys decided to construct a new building at Southwest 61st Street and Park Avenue in Des Moines.
I would much rather see this be torn down for something cool instead of another lame parking garage and insurance building. That pretty much vacuums culture away from downtown.
– Brad Smith, co-owner of Lucky’s
Leaving the 61-year-old building at 528 14th St. for a new building in Des Moines is a change that 64-year-old Fred Vasey saw coming.
“We knew this time was coming; it wasn’t a total surprise. We see what is happening in downtown Des Moines,” he said. “It’s good for downtown Des Moines. It’s a real big move because we’re going to lose a percentage of our business until we get our location established out there.”
Eldridge was pleased the evening he signed the papers from the city. After hearing terrible stories from people who had to relocate in the past, Eldridge couldn’t be happier.
“It has been handled much better than I thought it was going to be,” he said. “I’ve heard a lot of horror stories about dealing with the city, and this was very pleasant. (Phillip Wageman, of the city of Des Moines Real Estate Division) didn’t pull my chain and try to deceive me.”
Eldridge Welding & Machine will move two miles from the site where his grandfather started the business. Eldridge said the new location at the corner of Illinois Street and University Avenue will have more space and be better suited to handle the heavy tooling equipment used by the company.
“We’re sorry we’re going, but we’re going to a bigger place and we’re pleased with that,” he said.