A development agreement with R&R Realty Group has been approved by the West Des Moines City Council that will provide the development company a 10-year, 100% property tax rebate for office building property at 4900 University Ave.

The approval, though, came after questions were raised about whether the incentive was necessary.

“The building isn’t falling down around its foundation,” Councilman Kevin Trevillyan said at a recent council meeting. “Convince me why this is good.”

The two-story office building, known locally as Palisade, has sat unused for several years. The property’s owner – R&R Realty Group – began updating the building about a year ago as a way to attract new tenants.

Other improvements are planned to accommodate a new tenant, Co-op Solutions, which will occupy 99,700 square feet of the building’s 163,196 square feet of space. Co-op Solutions, headquartered in Rancho Cucamonga, Calif., currently leases office space in Clive. The company provides services that support credit unions.

Clyde Evans, West Des Moines’ community and economic development director, told the council that Co-op Solutions would have about 400 employees in the building, some of whom are coming from other parts of the country.

“They are bringing jobs to West Des Moines, including employees who are actually moving from other parts of the country,” Evans said. “R&R felt that if they weren’t able to get this type of assistance, they weren’t going to be able to attract this tenant to the building.”

Substantial improvements to the interior of the building are planned, including “opening it up to get more light in,” Evans said.

The property is valued at $5.9 million, $1 million less than what it was valued at in 2022, Polk County assessor records show.

The agreement calls for a minimum of $6.1 million in improvements to be made to the building.
The agreement also requires the property to be valued at a minimum of $11.8 million assessed valuation. In return, R&R Realty Group will receive up to $1.59 million in economic development grants over a 10-year period, according to the agreement, which expires Dec. 31, 2035.

Related article: R&R Realty official: Updates made to Palisade building make structure ‘look new again’