.bodytext {float: left; } .floatimg-left-hort { float:left; margin-top:10px; margin-right: 10px; width:300px; clear:left;} .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 10px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 10px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 10px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} Central Iowa business leaders favor more downtown hotel space in Des Moines and stand behind the “Yes to Destiny” proposal. However, they have serious doubts about the demand for more downtown Class A office space.

Those were among the findings in the Des Moines Business Record’s annual survey of the local business climate. The sampling of business leaders included questions about key local issues and the outlook for their own companies. The e-mailed survey achieved a response rate of 34 percent.

Here’s how the results looked on the big issues:

Another downtown hotel. Fifty-five percent said yes, Des Moines needs the large hotel being proposed for a site adjacent to the Iowa Events Center. Forty-five percent said it’s not necessary.

Click to see larger

Click to see larger

Sales tax increase. The controversial “Yes to Destiny” plan, which would increase the sales tax in Polk, Dallas and Warren counties one percentage point, got high marks in this poll. Two-thirds said they favor its passage in a referendum this summer.

More Class A office space. A large amount of downtown office space is being converted to residential uses, but some developers argue that it makes sense to replace that outmoded space with new Class A facilities. Several planned projects would do just that. However, the survey found overwhelming pessimism about the result; 63 percent of the respondents said they don’t expect that space to fill quickly.

Downtown living. Much of the downtown condominium space now coming on line seems to be priced out of the reach of downtown employees, but are company managers interested in buying? Forty-two percent said yes, they’ve thought about it. When asked the same question in 2006, 46 percent said yes.

Jordan Creek. Building continues to roar ahead in the area near Jordan Creek Town Center in West Des Moines, and 54 percent of respondents said it’s fine with them if that expansion continues. Twenty-five percent said enough is enough, and 21 percent said the area already has too much in place.

Tax cuts. Sixty-four percent said the tax cuts made under the leadership of President Bush have not helped their businesses in a significant way.

Ethanol. In last year’s survey, 27 percent called the ethanol and biodiesel industry a “vital factor” in Iowa’s economy. Many plants have been built since then, but in this year’s survey 48 percent of respondents said aggressive growth should continue; 24 percent said the state has done enough for now, and 28 percent said we’ve gone too far, too fast.

The Legislature. No one was willing to call the 2007 legislative session “outstanding,” instead splitting evenly between “satisfactory” and “disappointing.”

On the subject of their own companies’ prospects, 85 percent of the respondents said they expect revenues to increase during the next 12 months, about the same as the 87 percent who answered that way in the 2006 survey. Fifty-eight percent said they expect to increase the size of their work force; last year, 70 percent were looking to hire. When asked about capital investments, the group was nearly evenly divided: 49 percent plan to make significant expenditures, and 51 percent don’t.

Only a handful of the survey respondents took the opportunity to add their comments. Among them:

• “Des Moines needs to be more competitive on its tax structure to induce businesses and people to live and work here. Continue to invest in a world-class educational system.” – Steve Simon, Two Rivers Bank and Trust.

• “Property taxes are deterring additional investment and growth of my business.” – Bill Weidmaier, Iowa Des Moines Supply Inc.

• “Des Moines needs to recover some key large-box retailers downtown so smaller locally owned retailers could benefit. Now when the high school tourneys come to town, they run out to Jordan Creek to shop. In the past three years, our spring tourney traffic and State Fair out-of-town traffic has declined dramatically thanks to Jordan Creek and freeway construction.” – Joe Domeier, The Art Store.

• “As for the hotel near the Events Center, it should not be the big box, but phased in with smaller hotels that are more boutique in nature. We are long overdue for new hotels in the downtown area. As downtown is working to attract additional major development projects, the city has their hands tied due to the changes made by the Legislature in the eminent domain laws. This needs to be addressed and quickly.” – Christine Hensley, Des Moines City Council member.