Would a federal courthouse do justice to Des Moines' riverfront? Hubbell Realty says no.

Kim Norvell | The Des Moines Register

Show Caption Hide Caption What to know about the new proposed courthouse in Des Moines Federal officials announced in July that they intend to build a $137 million courthouse at the former Riverfront YMCA site in downtown Des Moines. Learn more about the timeline of events for the controversial location.

It's the case of condos v. courthouse, a fight for one of the biggest pieces of downtown real estate to hit the Des Moines market in years.

The General Services Administration said Tuesday that it plans to build a $137 million federal courthouse at the site of the former Riverfront YMCA, 101 Locust St. The federal government first announced it was leaning toward the site a year ago.

Prominent developer Hubbell Realty Co., which owns the now vacant land, released plans Monday for a $75 million luxury condominium development it wants to build there.

The federal government said it will move forward with plans to purchase the 2-acre plot on the west bank of the Des Moines River between Locust Street and Grand Avenue.

If the government cannot reach a purchase agreement with Hubbell, it could move to acquire the land through eminent domain.

"I think the project we would like to do is a better alternative for our community," Hubbell President and CEO Rick Tollakson said.

Hubbell wants to build 115 owner-occupied condo units in three buildings with ground-level entertainment venues.

"We don’t really need any more government buildings on the river," Tollakson said. "We need some things that add a little more energy to our community there."

The GSA announced in April 2016 it plans to spend $947 million to build, expand or renovate eight courthouses nationwide. Des Moines was identified as one of five sites to get a new facility.

The existing federal courthouse at 123 E. Walnut St. has no room to expand and lacks adequate security measures, according to the government. Some court functions have been relocated to leased space adjacent to the courthouse.

"A new courthouse would greatly improve the efficiency and security of court operations," the GSA says in its proposal.

The GSA examined four options during its site selection process, including two in the burgeoning Market District on the east bank of the river. It ultimately settled on the former YMCA property, despite objections from city leaders, who have said they wanted to see private development on the property, as it would generate tax revenue and promote pedestrian activity in the area.

Residents echoed those feelings. Dozens submitted comments to the GSA, saying they preferred the YMCA site be used for something that would encourage activity along the river.

"The GSA wants that site for the same reasons we want to see prime development on that site," said Deputy City Manager Matt Anderson. "It's the best site in town."

The city last August hatched a plan to thwart the federal government from building a courthouse there: It signed a put agreement with Hubbell that obligates the city to buy the site if Hubbell chose not to develop the land by Aug. 28, 2018.

In return, Hubbell agreed to withdraw the property from consideration for the courthouse.

But that stopgap didn’t deter GSA from pursuing the site. City leaders are now working with the federal government to develop a plan that will address their concerns.

"We've been working pretty collaboratively with them," Anderson said. "We've said, 'If a courthouse is going to be built on the river, here's what we'd like to see.' "

The city's wish list includes a restaurant or coffee shop, public meeting spaces and pedestrian access like a plaza or fountain where residents can gather outside. City leaders also want to see unique architecture there.

The GSA has provided the city with images of other federal courthouses that have been able to balance security concerns with public amenities.

"As they started showing us those, we started to feel more comfortable that they can achieve their security and we can have an inviting experience," Anderson said. "We've been very adamant that is a top priority for us ... I think they've heard us loud and clear."

Multiple angles on fiery Riverfront YMCA implosion From 2015: Watch from various angles as demolition crews start an implosion to bring down the former Riverfront YMCA building in Des Moines.

But the federal government has made no promises as it goes through the design process, he said. Those details will depend on budget and space constraints, as well as security measures, which take precedence.

In a news release, the GSA said the federal courthouse will "complement the character and context of the surrounding structures and amenities, interact with the Principal Riverwalk in a way that facilitates pedestrian activities and outdoor recreation, and include publicly-accessible space."

According to the agency's preliminary plans, the building would be nine stories tall, with underground parking. Overflow parking is planned for nearby parking garages and on-street meters.

The 230,000-square-feet courthouse would have five courtrooms, eight judges' chambers, two bankruptcy courtrooms/chambers, two magistrate courtrooms/chambers and a court of appeals judge's chambers.

A preliminary design should be complete by January, with a final design due the following month. Construction could start by fall 2019 with the courthouse open by fall 2022.

The GSA has hired Des Moines-based companies Neumann Monson Architects and Ryan Companies to design and construct the building.

But the question remains: Will Hubbell sell the land?

The government reached out to the West Des Moines company with an offer, but Tollakson said he declined it.

Hubbell bought the site for $4.77 million in 2016. It's now worth more to the company, factoring in property taxes, maintenance, staff time and architectural and engineering services, Tollakson said.

"The number they've talked to us about is not realistic," he said. "It's more than just a comp on a piece of property four blocks away."

Hubbell plans to move forward on its 325,000-square-foot condo project, Tollakson said. Construction could start next spring, with tenants moving in by the end of 2020.

It would feature larger units, ranging from 2,000 to 3,000 square feet, and three ground-floor retail spaces the company would like to fill with a coffee shop, an upscale restaurant and a cocktail lounge.

Hubbell also doesn’t plan to trigger the put agreement, which would obligate the city to purchase the property for $5.2 million. "It's not economically viable," Tollakson said.

If it can't reach an agreement, the feds could resort to eminent domain to acquire the property. A spokesperson for the GSA would not provide details on the eminent domain process.

The federal government has the power to exercise eminent domain when it needs to acquire privately owned land for public use. Property owners are compensated based on fair market value.

Eminent domain has been used since 1876, when the government acquired land in Cincinnati, Ohio, to build a post office. It's traditionally used to facilitate transportation, establish parks, construct public buildings and supply water, according to the United States Department of Justice.

If the federal courthouse ends up on the former YMCA site, Anderson said he'd like to see Hubbell complete its luxury condominium project elsewhere. City leaders like Hubbell's plan and hope to meet the demand for larger owner-occupied units downtown.

"They've done a good job," Anderson said. "I don’t want to just throw that idea away.”

An earlier version of this story had the incorrect opening date for the courthouse. It is scheduled to be complete by 2022.