The investment group managed by state Sen. Jack Hatch plans to turn the former Kruidenier Cadillac dealership building at 1408 Locust St. into office space.
 
On Monday, four days after the Des Moines Social Club announced its intention to vacate the property, the Des Moines City Council approved the preliminary terms of Urban Renewal Development Agreement that will help Westgate Partnership LLC fund the estimated $3 million project.
 
A marketing firm has signed a letter of intent to occupy up to 17,244 square feet of the approximately 29,000-square-foot building, including the entire second floor and a portion of the first floor, according to city records. The balance of the space will be marketed for lease to potential office, retail or restaurant users.
 
“Financial assistance to the project has been negotiated to consist of tax abatement and an economic development grant advanced in annual installments over a period of 10 years,” according to city records. If the development agreement is approved, and the project moves forward, Westgate Partnership will receive a total of $250,000 paid in 10 annual installments of $25,000 each.
 
“The business client has asked for no information to be released on that until such time as they actually enter into a lease with the developer on the project,” said Terry Vorbrich, acting economic development administrator with the city of Des Moines. “We would anticipate that would occur within the next couple of weeks.”
 
In September 2006, Westgate Partnership purchased the land and building at 1408 Locust St. for $1,025,780, according to the Polk County assessor’s website. The property has a combined assessed value of $403,500 for tax purposes.
 
The Social Club, which has occupied the property since early 2009, plans to relocate to another downtown location.