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Start of construction delayed until next spring for warehouse development planned in northeast Des Moines


Difficulty in obtaining building materials in a timely manner likely will push the start of construction of a warehouse project in northeast Des Moines to spring 2022, members of Des Moines’ Urban Design Review Board learned this week.

The Minnesota-based ILEX Group Inc. plans to build two speculative warehouses (one of which is pictured at right) in a development planned on the northwest corner of Northeast 14th Street and Broadway Avenue, just south of Interstate Highway 80-35 in Des Moines.

Plans originally called for construction of the warehouses – one which will be 186,350 square feet and the other 164,026 square feet – to begin this fall.

However, orders must be placed months in advance for materials like steel and precast concrete, which currently are in short supply. The difficulty in getting the products is tied to COVID-related shutdown orders and safety protocols that slowed production.

“With all the craziness with lead times to get steel and precast concrete, this is probably going to be a spring project,” Ben Schultes of ILEX told board members.

The Northridge 80|35 Business Park is planned on a site where a regional shopping center was once proposed. When completed, the new development will add more than 1 million square feet of Class A industrial space to the metro area. Five buildings are planned in the park.

The Urban Design Review Board on Tuesday approved the final designs for the project and the financial assistance package. The project will receive 100% commercial tax abatement for three years and up to $4.3 million in tax increment financing for five years. The tax increment kicks in after the tax abatement expires.

Currently the vacant property is valued at $1.86 million. When construction of the first two warehouses is completed, the property’s assessed value is expected to be about $30 million, according to city documents.

WATCH drone video of the site courtesy of CBRE|Hubbell

READ related article: Construction to begin in fall on warehouse project that will add 1 million square feet of space to Des Moines

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