The Iowa Department of Administrative Services (DAS) received approval to purchase nearly five acres and the hospital adjacent to the Capitol Complex
DES MOINES — Papers are being signed this week to sell Mercy Capitol to the state of Iowa, expanding the Capitol Complex grounds by nearly five acres. Over a year’s worth of negotiations have resulted in this agreement, which both sides say will benefit their constituencies.
Mercy will relocate its community hospital operations to a new facility in West Des Moines. The State has been interested in purchasing the land and buildings because of their location next to the Capitol Complex.
“Acquisition of this property will enable us to meet state office space needs now and into the future,” said Mollie Anderson, director of the Iowa Department of Administrative Services. Under Iowa Code DAS has the authority to purchase land for state use with the approval of the Executive Council, which is comprised of the statewide elected officials: the governor, treasurer, auditor, attorney general, secretary of state and secretary of agriculture. The Executive Council granted approval for this purchase at a meeting on Tuesday.
Anderson went on to say that the exact use of the hospital building has not been finalized yet, but several state agencies have been consulted about their office space needs and the options are being weighed carefully.
“By bringing more state offices onto the Capitol Complex we will be able to reduce the amount of lease space currently used, and that will save taxpayers money in the long run,” said Anderson.
“The sale to the state provides an excellent outcome for both parties,” says David H. Vellinga, Mercy president & CEO. “The state will have a prime location to serve its future needs and we will continue our community hospital operations at Mercy Capitol until late 2009 . We appreciate the diligent efforts of the State Administrative Staff who helped make this agreement possible.”
The state is purchasing approximately 4.7 acres of land, including the six-story hospital and the western parking lot with a two-story annex, for $4.45 million. The property is located on the northeast corner of East 12th and Des Moines streets. The two-story Mercy Capitol Medical Office Building on the east side of the hospital is not a part of the sale and will remain in operation and on the property, per the purchasing agreement terms.
The transfer of property will take place in two phases. The first phase, which will be completed on or before May 1, 2008, will be an exchange of parking lots that will allow the state to start construction on a nearby office building. The second phase, which will be the transfer of the hospital and remaining land and assets, will occur after Mercy has moved to their new location, likely in late 2009.
About the Iowa Department of Administrative Services (DAS)
DAS was created July 1, 2003, as a way to manage and coordinate the major resources of state government; its mission is to provide high quality, affordable infrastructure products and services to Iowa state government customers in a manner that empowers them to provide better service to the citizens of Iowa and support the State of Iowa in achieving economic growth. http://das.iowa.gov/
For More Information:
Laura Riordan , 515-242-5038
