Principal Financial Group
Campus Renovations
MATTHEW A. ANDERSON
ASSISTANT CITY MANAGER
FEBRUARY 11, 2013
Project Introduction
 Principal currently has 6,000 employees in 2.4
million square feet downtown
 The employment base has been shifting from a
“transaction based” workforce to a higher skilled and
higher paid “knowledge based” workforce
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IT
Accounting
Asset Management
Actuarial Sciences
Legal
Project Scope
 This changing workforce requires a different physical
working environment than their predecessors
 Less than 2% of Principal’s office campus consists of
collaboration space. The new design will designate 18%
as collaboration space.
 $238.5 million phase 1 investment (future phases are
projected to total $400 million):
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Infrastructure Repairs and Maintenance
Interior Upgrades
Building Modernization/Sustainability
IT Improvements
Employee Moves/Consolidations (801 Grand)
New Skywalk Bridge Across 8th Street
Project Locations and Timeline
 600 7th Street (Z-Building)
 801 Grand Avenue
 711 High Street
 Work on these three buildings will progress in the
order above beginning in 2013 and ending in 2017
Project Benefits
 Commitment to retain Principal’s workforce base in
downtown
 Reinforces Des Moines’ standing as worldwide leader
in the finance and insurance industry
 Demonstration of Principal’s corporate stewardship
toward its downtown real estate. Reinvestment will
make the buildings more competitive and increase
the assessed value.
City Commitments
 Economic Development grant equaling 50% of any
new tax increment for a period of 15 years.
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Improvements coming online in year 1 will be eligible for 15
years of incentives, year 3 will be eligible for 12 years of
incentives, and so on.
 Sustainability incentive of $25,000 per year for 10
years for each certified building. Will follow the
same payout provisions as above.
 Keo Way Improvements
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Recommend a planning study of the corridor from I-235 to
Park St. to improve this gateway into downtown.
7th & Grand Parking Garage
 Engineering has estimated 2019 to be the end of the
garage’s useful life.
 Principal’s planned improvements for 711 High
Street include raising the skywalk to the 3rd level.
 Recommend accelerating the demolition and
reconstruction of the garage to match Principal’s
timeline.
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2013 – Develop project scope and RFP
2014 – Issue RFP, select developer, finalize financing and
contracts
2015–2017 – Demolition and Construction