The proposed sale of the former Spaghetti Works space on Court Avenue to comedy club Teehee’s is dead, with Spaghetti Works resuming its search for a buyer, the company’s president said Friday.

Shelly Stokes, president of the Omaha, Neb.-based restaurant, said she was notified on Thursday that Teehee’s was withdrawing its offer to buy the building.

“To my knowledge the way the buyer wanted to set up the deal didn’t work out for him,” she said. “We got a call that he’s not going to be able to close this deal and they were going to cancel the agreement.”

“We’re back to square one and looking for a buyer,” Stokes said.

A telephone message left for Teehee’s co-owner Dave Boelman was not returned before the deadline for this story.

It’s the latest setback for the space at 310 Court Ave., where Spaghetti Works operated for 45 years until March 2023, when it closed abruptly, citing safety concerns in the neighborhood.

At the time the restaurant closed, Stokes said the face of Court Avenue had changed and that a family restaurant no longer seemed viable at the location.

Spaghetti Works owns the ground floor of the building. The upper stories were converted into residential space and have separate owners. 

According to the Polk County assessor’s website, the restaurant occupies 7,999 square feet on the ground floor. It has an assessed value of $879,000.

In October, the city of Des Moines’ Zoning Board of Adjustment denied a request by another prospective buyer, local bar owner Larry Smithson, to open a bar in the building. Board Chair Mel Pins said during that meeting that the Court Avenue district “needs to find a new direction if it’s going to remain viable.”

Boelman and co-owner AJ Simmons bought Teehee’s in 2022. They closed their space on Walnut Street last summer.

Now, with the Teehee’s deal for the Spaghetti Works space off the table, Stokes is expressing frustration with what she believes are undue expectations the city and downtown residents have for the use of the space. And leaving the space empty hurts the Court Avenue district more than putting another bar in the building, she said.

“I’m frustrated at the fact that all these people have kind of come out against bars and against this, but Court Avenue is suffering,” Stokes said. “Whether you want bars there, restaurants there or nice retail there, if those businesses are not coming down, you are faced with an empty space, which is hurting Court Avenue more than other businesses you could probably bring in.”

She said she knows people move downtown to be close to things and be in an area that is vibrant but questioned how long they’ll stay if buildings become vacant.

“If there is not action, if all these spaces begin to go empty because we don’t want bars in them, what happens to all the residents that have moved downtown?” Stokes said. “Why do you move downtown? You move downtown to be close to the action, to be within walking distance. It’s an exciting neighborhood when you have businesses and activity and fun things to do and people want to be in that atmosphere. When businesses aren’t able to do that, or there are no businesses, we’re sitting with empty spaces. How long before residents don’t want to be there? All the people fighting this, how long will they stick around if it all goes away?”

Stokes said a family restaurant model didn’t work on Court Avenue because of the shifting culture of the neighborhood, and now people who live in the neighborhood, which is known for its bars, are opposed to bars.

“As we stand here with the city and residents of the area, they want retail, they want a particular kind of business, they want a family restaurant,” she said. “You had a family restaurant and it didn’t work. Whatever reason, the area shifted and changed on us and now you’re standing there [saying], ‘Oh, we don’t want any more bars in this area.’ You moved into that area with bars in it.”

Cody Christensen, the city’s director of development services, said the city will continue to work to make downtown Des Moines and Court Avenue a vibrant place to live and work.

“Downtown Des Moines is a very attractive place to live, which is reflected in the number of projects that continue to add new dwelling units to the area,” he said in an email statement. “Part of what makes downtown Des Moines desirable is the healthy balance of living space, businesses, entertainment and available recreational options. Court Avenue contributes to this vibrancy, and as it continues to evolve, proposals for spaces like Spaghetti Works will be vetted through city processes that involve public input that is considered as decisions are made. Utilizing such processes in the area’s evolution will help maintain successful momentum.”

Stokes said Spaghetti Works had “a number of people” look at the space before Smithson and Teehee’s, but none have come forward with an offer.

“I don’t know if that will change,” she said. “Maybe one of those will be stepping up.”

Stokes said it’s unlikely Spaghetti Works would look to reopen in the Des Moines metro.

“I don’t want to say never, but it seems highly unlikely that we could open anything else in Des Moines unless some really good offer came our way and this property sold and all the stars aligned correctly,” she said. “I don’t want to say never, but I just don’t see that all happening.”