Alternative Riverfront Y plan creates buzz, irks local players

Joel Aschbrenner, jaschbrenn@dmreg.com 7:05 p.m. CDT March 30, 2016

A Chicago developer just proposed a 15-story apartment tower for the downtown Des Moines site. One problem: local developer Hubbell Realty already has the property under contract.

(Photo: CA Ventures and Humphrys & Partners Urban Architecture/Special to The Register)

Chicago-based developer CA Ventures is making waves with a proposal to build a 15-story luxury apartment tower at the Riverfront YMCA site in downtown Des Moines.
The firm released images of its $75 million proposal this week. At first glance, the plan for a glassy high-rise seems sure to please many architecture buffs and downtown advocates who have clamored for a tall, landmark building on the west bank of the Des Moines River.
But city officials and a competing developer are questioning CA Ventures’ tactics. They say the proposal lacks enough detail to be taken seriously.
“I do not think their project even comes close to viability,” said Rick Tollakson, CEO of West Des Moines-based Hubbell Realty Co. “It is just a pretty picture.”
J.J. Smith, chief operating officer for CA Ventures, countered that his company is currently working on 25 housing and hospitality projects worth $1.5 billion. “I think we know what we are doing and how to reverse engineer a project's design and proforma to fit" the costs, he said in an email.
CA Venture's proposal marks just the latest twist in the effort to redevelop the 1.8-acre site where the YMCA stood before being imploded last year. Hubbell has a contract to purchase the parcel. It has been working for more than a year on a plan to develop a high-end apartment complex.

The old downtown YMCA is imploded Sunday morning Oct. 4, 2015, along the Des Moines River in Des Moines, Iowa.  Rodney White/The Register

The contract places Hubbell first in line to acquire the property. CA Ventures would only have a shot if Hubbell or the YMCA were to terminate the contract.
Local officials said CA Ventures' move to publish a proposal when another developer has the site under contract is almost unheard of in Des Moines.
“I’m bothered about how they’re going about this when we’re in serious negotiations and talks with someone else,” Des Moines City Councilwoman Chris Hensley said. “It’s just not how we go about business in Des Moines.”
Assistant City Manager Matt Anderson said CA Ventures' move “is very unorthodox.”
PREVIOUSLY: Former YMCA site searching for signature project
The Chicago company's proposal calls for 301 apartments, about 400 parking spaces and about 11,000-square-feet of retail or restaurant space.
Smith said the company published the proposal to show it had the best plan for the site.
“We simply want the city to realize they don't have to give some economic incentive for a project that may not be highest and best use,” he said, referring to Hubbell’s project.
At the heart of the issue is the height and size of the project at 101 Locust St.
City officials like Anderson have said the riverfront parcel is prime real estate suited for a tall, once-in-a-generation development. Some history buffs, though, have said the development should not overshadow the shorter buildings along the riverfront. Hubbell has said Des Moines’ apartment rental rates are too low to make a skyscraper financially viable.

Des Moines' skyline has a new look the morning after the former site of the downtown YMCA was imploded Sunday Oct. 4, 2015.  Rodney White/The Register

Hubbell has not revealed exactly how tall its project would be. But Tollakson has previously hinted that the company could aim as tall as 10 stories.
Tollakson said he hopes to take Hubbell’s plan to the Des Moines City Council by the end of April. The company is negotiating financial incentives for the project with the city.
Anderson said the two proposals are similar, both offering high-end apartments, parking and some street-level storefronts. The main difference is CA Ventures’ proposal is larger, he said.
But CA Ventures’ plan is also “less mature” and lacking input from city planners and details contained in Hubbell’s plan, Anderson said.
Hubbell spokeswoman Tina Mowry Hadden said she worries CA Ventures will create unrealistic expectations by releasing images of its proposal without fully understanding the challenges of building at the site. Those challenges include building atop several layers of old foundations and working with city planners to handle traffic concerns, she said.
Smith said he assumes city leaders would rather spend their incentive dollars on a "high-rise that's exceptional than a low-rise that's unexceptional.”
CA Ventures’ plan created a buzz in local architecture and real estate circles. But the firm’s proposal may be moot if Hubbell pulls the trigger on the purchase of the YMCA site. The firm has until late September to close on the sale or extend the contract.
“Hubbell is in the driver’s seat right now,” Anderson said. “CA Ventures is kind of waiting in the wings.”