The Des Moines City Council voted Dec. 23 to approve preliminary urban‑renewal terms for a 33‑story, 390‑unit tower at 515 Walnut, but not before a 90‑minute debate over labor standards, insurance verification and how the city will enforce contractor obligations.

Supporters said the project—expected to be financed partly through tax‑increment financing and tax abatement—could be transformative for downtown and generate substantial tax revenue over time. Opponents and some council members urged stronger, written commitments from the developer on apprenticeships, proof of workers’ compensation and unemployment insurance from contractors and subcontractors, and the ability to request payroll records and subcontractor lists for transparency and enforcement.

Council members who supported delaying or tightening contract language argued the city should require the developer, on request, to provide proof that all contractors and subcontractors carry statutorily required unemployment insurance and workers’ compensation. One council member recommended language similar to Cedar Rapids requiring a developer to abate violations and, if necessary, end contracts with noncompliant subcontractors. The council also discussed asking for subcontractor lists at every tier and the right to review payroll records to verify compliance with project standards.

City staff and other council members cautioned that negotiating extensive new obligations at the council dais in the late stages of a negotiated deal could prompt the developer to walk away. One council speaker said the negotiated agreement represents what the city can secure now and warned that pushing new requirements at this point risks killing a roughly $140 million project. City staff noted the deal’s structure attempts to limit risk to the city; tax incentives are administered through TIF and abatement mechanisms rather than direct checks from the city’s general fund.

Public commenters, including building trades representatives, urged local hiring and said taxpayers should see the benefits of publicly supported development. Devin Fishback, president of Carpenters Local 106, urged the city to prioritize local workers and said tax incentives should translate into local employment. Joe Derby of Ironworkers Local 67 said the city should ensure fair employment practices and benefits on major projects.

After discussion about policy‑level solutions, monitoring capacity and whether new rules should be adopted citywide rather than project‑by‑project, the council approved the preliminary terms and directed staff to schedule further work sessions to address enforcement, apprenticeship policy, and monitoring needs. The motion to approve preliminary terms passed with a recorded vote of 7 yes.

Next steps: staff will continue negotiations on final contract language and the development returns to the council under the normal urban renewal and development approval process. Councilmembers requested a workshop to evaluate whether citywide policy on apprenticeships, payroll verification and contractor transparency should be adopted for future projects.