City council questions business incubator's $1 per year lease
The future of Valley Junction’s old city hall building is uncertain following a West Des Moines City Council meeting Monday.
West Des Moines residents said they are concerned taxpayer money is funding the operation of the city-owned building for what they believe is a private purpose.
The city currently has a $1 per year lease with the West Des Moines Business Incubator -- an organization that helps build new businesses.
Gravitate Co-working subleases from the West Des Moines Business Incubator and said it has offered co-working space for an average of 58 people a month in the last two years.
Some city leaders argue the incubator’s current use as a co-working space violates the lease.
“Nothing in this agreement shall give the incubator the right to use the property for any other purpose or to sublease, assign, or license the use of the property to any sublease, assignee, or licensee unless directly related to the operation of the incubator,” West Des Moines City Council member Kevin Trevillyan said.
Geoff Wood, who owns Gravitate, said he believes they bring job growth in a more evolved way.
“The incubator is something that’s been around for a long time in the concept of growing small businesses,” Wood said. “Really, a lot of people think of that in different ways. The way we think of it is something that helps create the conditions to help a small business grow, and that’s what we think we do at 318 5th Street.”
A proposal to move the West Des Moines Fire and EMS administration team into the building was discussed during the city council meeting.
The move would cost an estimated $500,000.
The West Des Moines fire chief and incubator leaders will work with a subcommittee over the next few months to detail the benefits and costs of keeping the incubator at the building versus using the building for fire and EMS administration.
The decision will then go back to city council members.