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Incentives increased for Grand Avenue condo project

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The outbreak of the novel coronavirus has slowed the start of construction of an eight-story condominium proposed at 3750 Grand Ave., the Des Moines City Council learned this week.

Costs for the project have increased 6.4% to $39.8 million from $37.4 million and eight potential condo buyers have terminated their purchase agreements, according to information provided to the council. Currently, just 17 of the condos are sold; before the pandemic began, 25 had been sold.

Consequently, project developers Harry Bookey and Pamela Bass-Bookey have asked the city to increase to the economic development incentives approved in February for the project.

“For the project to move forward with higher construction costs …and increased risks associated with the ongoing pandemic, the development team is requesting an increase to the economic development incentives provided for in the Urban Renewal Development Agreement,” according to information provided the council.

Bookey and Bass-Bookey, owners of BH Equities real estate investment firm, have said they plan on buying the property that previously was home to First Church of Christ, Scientist. The couple said they planned to restore a portion of the church and build the 36-unit condominium with two levels of indoor parking. The property is still owned by Wesley Development Services Inc., real estate records show.

In January the city’s Urban Design Review Board approved designs for the project, and in February the council approved a development agreement with 3750 Grand LLC, which is managed by Harry Bookey.

This week, the council approved revising the development agreement, increasing its financial assistance in the form of project-generated tax-increment to $6.8 million from the previous $4.8 million. The agreement has also been extended to 14 years from 10 years.

The start of construction of the project has been delayed to October with completion now scheduled in July 2022. Work had been expected to begin this summer.

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