Ryan Cos., once in running to buy Riverfront Y site, gets a contract for federal courthouse
KENT DARR Aug 8, 2018 | 3:53 pm
2 min read time
472 wordsBusiness Record Insider, Government Policy and Law, Real Estate and DevelopmentOne day after announcing its commitment to build a $140 million federal courthouse at the site of the former Riverfront YMCA in downtown Des Moines, the federal government said it has awarded Ryan Cos. US Inc. the contract for design-phase services on the project.
At one point during what is certain to become a storied history of the site at 101 Locust St., Ryan attempted to buy the property in 2016 when Hubbell Realty Co. had the site under contract. That effort blew apart on the day the two sides were scheduled to close on the deal. Hubbell then finalized its purchase of the property.
To date, Hubbell has not reached a deal to sell the nearly two-acre property, considered a prime development property along the Des Moines River. The U.S. General Services Administration says it is continuing to negotiate a purchase price. Hubbell President and CEO Rick Tollakson said Tuesday the two sides have not met in at least two weeks.
For its part, Hubbell has announced plans for an upscale condominium project for the site. Those plans could be moot. The GSA can take the property via eminent domain if an agreement cannot be reached for its purchase, with a federal judge or jury left to decide a fair price. A similar situation occurred in Norfolk, Va., where the GSA built an annex to a federal courthouse after taking the property through eminent domain. A jury later awarded the property owners several million dollars more than the GSA’s final offer.
The GSA said today that Ryan Cos. “will be part of the project team to assist in design review and estimating during the design phase services. The contract includes an option for the construction phase services to be exercised at a later date.”
The selection of the Riverfront Y site flew in the face of efforts dating back to 2012 to trigger downtown development through a series of land swaps that led to the construction of a convention center hotel at the Iowa Events Center, the redevelopment of the former Polk County Convention Complex into the Wellmark YMCA, and redevelopment of a former J.C. Penney store into a tony home for Polk County court services.
The Riverfront Y property stood out in that process as the future site of an iconic private development along the riverfront. Though one leader in that land swap noted that the federal government builds “great monuments,” he questioned use of the site for a federal courthouse.
Des Moines city officials also have been among the leaders of efforts to persuade the GSA and the federal judges it represents to find a different location. Those efforts are pointless at this time, Des Moines Deputy City Manager Matt Anderson said.
Read more about Ryan’s earlier involvement with the site and Hubbell’s decision to buy the property in this Business Record article.