Iowa Capitol complex's Henry A. Wallace Building to be vacated as state buys replacement

A highly problematic building in the Iowa Capitol complex appears to be on the way to replacement.

The Executive Council of Iowa, a cabinet group led by Gov. Kim Reynolds, on Monday approved the $18 million purchase of an office building at 6200 Park Ave. from Knapp Properties. The acquisition would pave the way for moving the last two large state departments remaining in the Henry A. Wallace Building, a structure that has had numerous structural and maintenance issues during its 45-year history.

The five-floor Wallace Building, known for its gold-tinted windows reflecting the Capitol, has housed several state agencies over the years and currently is home to the Iowa Department of Agriculture and Iowa Department of Natural Resources.

Purchasing the existing Park Avenue building, which most recently housed corporate offices for Wells Fargo, saves the state from $42.5 million to more than $55 million when compared to renovating or replacing the Wallace Building, according to the Iowa Department of Administrative Services.

More: Des Moines moves forward on Nationwide building purchase for police HQ, other city offices

The department did not provide a projected timeline, but described the Park Avenue building as “fully furnished and move in ready.” In addition to Reynolds, the council is made up of state Treasurer Roby Smith, Auditor Rob Sand, Secretary of State Paul Pate and Secretary of Agriculture Mike Naig.

What will happen to the Wallace Building?

Named for Iowa-born, Des Moines-raised Henry A. Wallace, vice president during President Franklin D. Roosevelt's third term, the fate of the Wallace Building, on the northwest corner of East Ninth Street and Grand Avenue, will ultimately be decided in discussions with the Iowa Legislature. But the administrative services department noted that “initial estimates indicate that the cost to demolish the property would be recouped through the potential sale of the land on which it sits.”

It's one of several major buildings housing government offices in the East Village that could be replaced or repurposed in coming years. They include Des Moines police headquarters and the old Argonne Armory, another city office building, both of which would be vacated under a city plan for purchasing a former Nationwide Insurance building downtown and relocating the police department and other municipal offices there. Also, the current U.S. Courthouse is set to be sold or auctioned after the courts move to the new federal courthouse under construction on the west bank of the Des Moines River.

In addition, a major private building at 431 E. Locust will be vacated when LifeServe Blood Center moves to a new headquarters under construction in Johnston.

Wallace Building in need of extensive work

The Wallace Building has undergone a number of maintenance and renovation projects since its completion in 1978. Total maintenance costs since 2012 have exceeded $10 million, according to the department. Current listed needs include window replacements; tuck-pointing and waterproofing of the exterior; removal of a terrarium; electrical improvements; restroom renovations on the first, third and fifth floors; heating, ventilation and air conditioning improvements; lighting improvements in common areas; and improvements to the auditorium. While some work has been completed, the cost for the needed renovation of the HVAC system alone is estimated at $22 million.

Overall, the department estimated the cost of a total renovation at $73 million. Alternatively, the estimated price tag for abatement, demolition and temporary office space while building a new structure at the same location was estimated at a little over $77 million.

The Wallace Building currently houses about 540 state employees in a structure that has total office space of 135,112 square feet. While the structure is larger at 187,615 square feet of office space, more than 50,000 square feet was previously used as laboratory space and would need extensive renovation to be used for offices.

The Park Avenue property has 141,804 gross square feet and would come with furniture and equipment for an estimated 870 employees from the DNR and the newly configured Department of Inspections, Appeals and Licensing.

The agriculture department would move into newly renovated spaces in the Hoover Building, on the other side of the Capitol.

Completed in 2002, the Park Avenue building originally was occupied by the now-defunct McLeodUSA communications company. Principal Financial also has occupied the building. Wells Fargo vacated the space in fall 2022. The building includes warehouse space with three dock doors and amenities that include a common dining/seating area and fitness facility with showers and lockers.

This article originally appeared on Des Moines Register: Iowa's Wallace Building, in need of extensive work, to be vacated