Executive Summary

Development Pipeline

Industrial Projects

> Additional projects are included in the Appendix below.

Entitlement Risk

Approval Patterns

• The Council shows a willingness to override Planning staff recommendations for denial when an industrial applicant is a long-standing local business with a history of property maintenance .
• Density-focused residential infill near the Market District and downtown corridors is generally viewed favorably as a transition tool, even if lot sizes are tight .
• High tolerance remains for industrial expansions related to essential regional infrastructure like wastewater and airport logistics .

Denial Patterns

• Rezoning for increased density is denied when the applicant has a poor track record of project management or site maintenance on previous properties .
• Projects that face concentrated opposition from neighborhood associations regarding "community character" are high risk for denial if the density exceeds "low-density" norms .
• Electronic signage variances are consistently denied to prevent precedent-setting for commercial canopies .

Zoning Risk

• Separation Mandates: New code amendments require a 500-foot separation for freestanding liquor and tobacco stores, measured property line to property line .
• Abatement Phase-Out: The city is evaluating phasing out the Urban Revitalization Plan (tax abatement) over two years to redirect revenue, creating significant financial risk for pending projects .
• Code Updates: The city has transitioned to the 2024 International Building, Fire, and Residential Codes .

Political Risk

• Gender Balance: Council members are increasingly scrutinizing board appointments based on the city's gender balance ordinance, which may delay Planning and Zoning Commission seated roles .
• Election Transitions: Council Member Chris Coleman has retired after 23 years; new member Mike Simson (an architect) brings a professional focus on design flexibility .

Community Risk

• Service Saturation: North-side neighborhood associations are formally opposing the repurposing of city assets (like Fire Station 4) for social services, citing historical oversaturation and calling for revenue-generating uses .
• Pedestrian Advocacy: Increased organized opposition from bike and pedestrian advocates regarding drive-thru traffic and curb cuts on commuter corridors .

Procedural Risk

• Venue Change: All Board of Adjustment and City Council hearings have moved to the new council chambers at 1200 Locust Street .
• Site Plan Strings: Council is increasingly attaching site plan compliance as a mandatory condition for rezoning, preventing developers from utilizing recent legislative relief that exempted certain projects from full reviews .

Key Stakeholders

Council Voting Patterns

• Supporter of Design Flexibility: New member Mike Simson (At-Large) uses his architect background to defend non-traditional or contrasting architectural styles in historic districts .
• Ordinance Purist: Councilmember Mandelbaum maintains a hard line on enforcing the gender balance ordinance for city commissions .
• Infrastructure Focus: Councilmember Westergard emphasizes the difficulty of recruiting for time-intensive boards and prioritizes local knowledge in appointments .

Key Officials & Positions

• Cody Christensen (Development Services Director): Lead official on the tax abatement phase-out and transition to new building codes .
• Steve Neighbor (City Engineer): Managing $200M in flood mitigation and the McKinley Avenue reconstruction project .
• Ben Page (Parks Director): Overseeing Chetum Park improvements and recreation fee waivers .

Active Developers & Consultants

• Greater Des Moines Habitat for Humanity: Very active in "buy-attached" duplex infill and Arlington Avenue rezonings .
• Adam Surin: Focused on high-density rowhouse developments (34 units) near Indianola Road .
• Daniel Doyle (Amen Corner / Almond Corner): Active in "missing middle" 12-unit apartment infill projects .

Analysis & Strategic Insights

• Momentum vs. Friction: While the industrial pipeline remains open for minor vehicle repair and equipment operations, the city's move to reconsider tax abatement and the projected $8 million budget gap for FY28 signal a tightening fiscal environment that may require larger developer contributions to infrastructure.
• Approval Probability: Warehouse and flex industrial projects remain highly probable in established corridors like Dixon Street . However, any project involving liquor or tobacco retail now faces a binary "pass/fail" risk based on the new 500-foot separation rule .
• Stakeholder Engagement: The success of the "Good Neighbor Agreement" for the North Des Moines Town Hall project suggests that formal, written agreements with neighborhood committees are becoming the preferred path for high-density mixed-use projects.
• Strategic Recommendations:
• Industrial Repurposing: Developers should target existing non-conforming auto or storage sites for conversion; the Council has shown a pattern of approving rezonings to MX3 or I1 to "legitimize" and upgrade these sites .
• Abatement Timing: Accelerate applications for Urban Revitalization tax abatement before the proposed two-year phase-out becomes effective .
• Near-term Watch Items:
• Tax Abatement Roundtables: Upcoming sessions with lenders and developers will determine the final schedule for incentive removal .
• FY28 Budget Gap: Monitor the $8 million shortfall analysis due in mid-2026, which may trigger new impact fees or increased permitting costs .