Des Moines: Economy

Major Industries and Commercial Activity

The Des Moines economy consists of a balance among the manufacturing, services, government, wholesale and retail trade, medical, insurance and financial services, printing, publishing, and agribusiness sectors. Manufacturing, while comprising a relatively small percentage of the city's total employment base, has a significant impact on the area economy. Manufacturing firms buy many of their supplies locally, generating more secondary jobs than any other industry. In addition, most of the goods produced are shipped outside the metropolitan area, and approximately 10 percent of manufacturing production is exported, thus contributing to the development of the local shipping industry. Some of the area's best-known manufacturers are Pella windows, Maytag and Amana appliances, and Rockwell Collins avionics equipment.

With the headquarters of nearly 70 insurance companies and the regional offices of 100 other firms located in the metropolitan area, Des Moines is a major insurance center. Other service businesses, including the health care industry, employ nearly one fourth of the work force. Many area firms are active in biotechnology, conducting research in such fields as human, plant, and animal disease cures; safer pesticides and herbicides; and new, higher crop yields.

A statewide employer based in Des Moines is Meredith Corporation, a diversified communications company specializing in printing, publishing, broadcasting, and real estate. An emerging industry in the Greater Des Moines area is fiber optics telecommunications, which is expected to replace conventional communications systems. Government employs a substantial portion of the city's work force, with the state of Iowa being among the largest employers.

Items and goods produced: flour, cosmetics, furnaces, stove and furnace parts, agricultural implements, automotive and creamery equipment, leather products, medicine, brick, food items, paint, electric switches, and elevators

Incentive Programs—New and Existing Businesses

The Greater Des Moines Partnership assists firms with an interest in applying for economic development financial assistance programs. Other public and private sector groups offer a variety of business assistance programs to businesses expanding in or relocating to Des Moines.

Local programs

A corporation intending to create 100 jobs may be eligible to receive a $400,000 low-interest or forgivable loan to help reduce its relocation cost. The City of Des Moines Office of Economic Development assists businesses in a variety of ways, including project management; identification of land, financing and other resources to facilitate projects; liaison with other city departments; referrals for business licenses; job training and recruitment; and redevelopment assistance. Qualifying Des Moines businesses are able to take advantage of several helpful tax policies, including single factor corporate income tax; tax abatement for new construction; and no property tax on machinery and equipment. Several small business loan programs and funds are available to assist qualifying small businesses in building improvements, equipment purchases, and operating costs.

State programs

Two areas within the City of Des Moines are designated as Iowa Enterprise Zones. New commercial and industrial businesses making a capital investment of at least $500,000 and creating 10 new jobs meeting wage and benefit targets within these designated areas may be eligible for a package of tax credits and exemptions. The State of Iowa New Jobs and Income Program provides a package of tax credits and exemptions to businesses making a capital investment of at least $10 million and creating 50 new production jobs meeting wage and benefit targets. The Iowa New Jobs Training Program offers funds for screening and assessment; travel for the purpose of training; on-the-job training; training facilities or supplies costs; and others. Qualifying businesses utilizing the Iowa New Jobs Training Program may take advantage of the New Jobs Tax Credit of $1,224 per new employee. Iowa's Regulatory Assistance Program offers assistance to businesses in filling out permit applications for Iowa regulatory agencies.

Job training programs

Des Moines Area Community College (DMACC) has provides a variety of business training programs. A portion of the training dollars may be used for salary reimbursement.

Development Projects

Approximately $1.5 billion in construction projects were completed or underway in 2004 and into 2005, marking a renaissance for Des Moines. Among those projects were the new Science Center of Iowa, featuring an IMAX theater; a new riverfront amphiteater; the new downtown library; and the Jordan Creek shopping complex in West Des Moines.

Construction at the Iowa Events Center, a four-venue multiuse complex, has city planners expecting record numbers of both conventions and convention attendees. The new HyVee Hall opened in winter 2004 at the complex, featuring 250,000 square feet of exhibit space 14,000 square feet of meeting room space, and another 23,700 square feet of pre-function space. Hy-Vee also contains the Iowa Hall of Pride, an interactive center that honors the people and places of Iowa's history. The Wells Fargo Arena at the complex is slated for debut in July 2005. The new arena will seat 17,000 for sports and entertainment events and will be home to the Iowa Stars hockey organization.

Economic Development Information: Greater Des Moines Partnership, 700 Locust Street, Suite 100, Des Moines, IA 50309; telephone (515)286-4950; email [email protected]. City of Des Moines, Office of Economic Development, 400 E. First Street, Des Moines, IA 50309; telephone (515)283-4004; email [email protected]

Commercial Shipping

Des Moines is served by four major railroads that provide full-time switching and piggyback ramp service. A host of motor freight carriers provide overnight and one–to five–day shipping to points throughout the United States; more than 50 terminals are maintained in the community. The Des Moines airport serves as a regional hub for UPS' second-day air service. Approximately 100 companies in the Des Moines area engage in export or import activity.

Labor Force and Employment Outlook

Local analysts contend that the best measurement of the quality of the work force is the site location decisions made by businesses. They say the greatest testimony to the quality of the Des Moines work force is that once a company locates in Des Moines, it continues to expand. Beyond a higher-quality work force, a low crime rate, short commute times in metro Des Moines, affordable housing, a broad array of education options, and attractive quality of life help local businesses recruit employees.

The major employment industries in Des Moines are financial services, insurance, government, manufacturing, trade, and services. Des Moines businesses draw employees from a five-county area consisting of more than 500,000 residents; in addition, Iowa's work force, with an 80 percent high school graduation rate, ranks among the top five states. Wages are somewhat lower than the national average in Des Moines. Vocational and technical skills training programs are widely available.

The following is a summary of data regarding the Des Moines metropolitan area labor force, 2004 annual average:

Size of nonagricultural labor force: 298,900

Number of workers employed in . . .

construction and mining: 16,900

manufacturing: 19,700

trade, transportation and utilities: 64,100

information: 9,200

financial activities: 46,800

professional and business services: 30,700

educational and health services: 34,700

leisure and hospitality: 26,500

other services: 12,100

government: 38,200

Average hourly earnings of production workers employed in manufacturing: $17.47

Unemployment rate: 5.1% (March 2005)

Cost of Living

Des Moines is often ranked in the top metro areas for housing affordability and a favorable cost of living. State and local taxes are lower than the U.S. average.

The following is a summary of data regarding several key cost of living factors in the Des Moines area.

2004 (3rd Quarter) ACCRA Average House Price: $266,690

2004 (3rd Quarter) ACCRA Cost of Living Index: 94.9 (U.S. average = 100.0)

State income tax rate: Ranges from 0.36% to 8.98%

State sales tax rate: 5.0% (2005)

Local income tax rate: None

Local sales tax rate: None

Property tax rate: $17.04857 per 1,000 of assessed valuation (2005)

Economic Information: Greater Des Moines Partnership, 700 Locust Street, Suite 100, Des Moines, IA 50309; telephone (515)286-4950; email [email protected]

Des Moines: Recreation

Sightseeing

The starting point for a tour of Des Moines is the State Capitol, one of the nation's most beautiful public buildings and one of the largest of its kind. The 275-foot main dome is covered with 23-karat gold leaf and is flanked by four smaller domes. The capitol's interior features more than 10 different wood grains mixed with 29 types of marble in detailed stone and wood carvings, ornately painted ceilings, and mosaics and murals. Another popular site is Terrace Hill, the present residence of Iowa's governor; considered to be one of the finest examples of Second Empire architecture in the country, Terrace Hill was designed by W.W. Boyington, architect of the Chicago Water Tower. Donated to the state by the Frederick M. Hubbell family, the mansion has been refurbished to its original Victorian elegance.

In both the Courthouse and Sherman Hill districts of Des Moines, residential and commercial buildings dating to 1850 reflect changing tastes and styles in architecture; especially interesting are doorway and entrance designs. The Hoyt Sherman Place, home of one of Des Moines' most successful businessmen and an example of ornate Victorian design, is now owned by the city and open for tours. The Iowa State Historical Building, completed in 1987 and housing the State Historical Library, is dedicated to Iowa's past with exhibits on natural history, Indian lore, and pioneer life. A large outdoor neon sculpture named Plains Aurora is displayed on top of the building.

The Des Moines Botanical Center cultivates plants and flowers under one of the biggest geodesic domes in the nation. The Center preserves a permanent collection of more than 1,000 different species of tropical and subtropical plants and cultivars, growing in their natural cycle; six thematic displays are presented each year. Living History Farms in nearby Urbandale is a 600-acre agricultural museum focusing on the history and future of farming in the Midwest; buildings, planting methods, and livestock are authentic to the five time periods represented. At Adventureland Park, more than 100 theme park rides and activities combine with permanent exhibits germane to Iowa. Salisbury House, a 42-room country manor, patterns itself after King's House of Salisbury, England, duplicating Renaissance luxury and splendor; it is owned by the Iowa State Education Association, which arranges tours. Temporarily closed in mid-2005 for interior renovations, the home had undergone exterior renovations two years prior. The Science Center of Iowa covers all fields of science; the center's new facility opened to the public in May 2005, featuring a 226-seat IMAX Dome Theater, a 175-seat theater for live performances, and a 50-foot Star Theater, in addition to six "experience platforms" and a changing exhibition platform. At Blank Park Zoo, where more than 1,400 animals from 104 different species inhabit 49 acres, special attractions include the Myron and Jackie Blank Discovery Center, featuring a butterfly garden and a bat cave.

Arts and Culture

One beneficiary of the city's development has been its cultural life. Funds have been invested to house the city's cultural institutions in architecturally significant facilities. The most impressive is the Des Moines Art Center, designed by international architects Eliel Saarinen, I. M. Pei, and Richard Meier. Housing art of the nineteenth and twentieth centuries in a permanent collection, the Center also sponsors international exhibits, educational programs, and film and music series. Nollen Plaza, adjacent to the Civic Center of Greater Des Moines, is a block-square amphitheater and park with a tree-lined "peace garden," a waterfall, and a reflecting pool; Claes Oldenburg's sculpture The Crusoe Umbrella is on view in the plaza.

The Des Moines Symphony performs at the Civic Center. The Des Moines Playhouse produces a main stage season of drama, musicals, and light drama as well as Theatre for Young People. The Ingersoll Dinner Theater presents a ten-show season, which features local and guest artists in Broadway musicals and plays, in addition to special attractions.

Festivals and Holidays

In February the downtown skywalk is transformed into a 54-par putt-putt golf course for a tournament with more than 1,300 players competing for prizes. The Drake Relays Downtown Festival, a week-long celebration in April, pits city corporations against one another in the "Fake Relays"; other festival events include a whimsical "most beautiful bulldog" contest, mascot relays, and musical entertainment. The Des Moines Arts Festival features three days of art, entertainment, and children's activities in late June. July's Taste of Des Moines offers visitors a taste of local fare. Summer ends with the Iowa State Fair in August. The Festival of Trees raises money for a local hospital with the decorating of 100 downtown trees in November during Thanksgiving week.

Sports for the Spectator

For nearly 100 years, the Drake Relays hold the distinction of being the country's largest such event, with more than 200 colleges and universities participating from nearly every state and more than 60 countries. The relays, held in Drake Stadium at Drake University the last weekend in April, sell out each year; the competition also includes track and field events. A variety of other events are held throughout the city, making the Relays the focal point for an entire festival.

In addition to the Drake Relays, Drake University offers sporting events, including basketball, football, soccer, tennis, track, crew, softball, and golf.

The Iowa Cubs, the National League Chicago Cubs's top farm team, compete in baseball's Triple A international professional baseball league at Sec Taylor Field at Principal Park. The Des Moines Menace offer soccer action at Waukee Stadium, and the Des Moines Buccaneers, part of the United States Hockey League, play at Buccaneer Arena.

Sports for the Participant

The Des Moines Parks and Recreation Department maintains 62 city parks with a variety of facilities, including softball fields, horseshoe pits, volleyball courts, tennis courts, fitness and bicycle trails, golf courses, trails, soccer fields, play equipment, swimming pools, community centers, gardens, and an amphitheater. The city offers swimming and tennis lessons and arts and crafts programs; softball, volleyball, and tennis leagues are also sponsored by the recreation department. The Des Moines metro area offers nearly 100 public tennis courts, and many golf courses, swimming pools, and country clubs. Both indoor and outdoor sports can be enjoyed during the winter at community center gyms and ice rinks. Swimming, water skiing, fishing, and boating are popular at local rivers and lakes.

Shopping and Dining

The Des Moines downtown shopping district is 20 square blocks connected by a second-level skywalk system that encompasses 150 shops. Altogether, more than 40 shopping squares and plazas serve shoppers throughout the metropolitan area, including five major enclosed malls, one of which is located downtown. The Downtown Farmers Market runs May through October on Saturday mornings and offers shoppers fresh fruits and vegetables, home-baked breads and pastries, hand-made clothing and jewelry, specialty cheeses and wines, and music and entertainment.

Des Moines restaurants offer choices ranging from American and Midwestern fare to ethnic and continental cuisine. Prime rib and steak entrees are specialties at a number of the better restaurants. Chinese cuisine is another local favorite; barbeque, sandwich shops, cafes, vegetarian eateries, and other ethnic restaurants are popular as well. A local seafood restaurant is considered to have one of the largest selections of fresh seafood in the Midwest. Imported Italian pasta is the specialty at one of the city's oldest and most popular eateries.

Visitor Information: Greater Des Moines Convention and Visitors Bureau, 405 Sixth Avenue, Suite 201, Des Moines, IA 50309; toll-free (800)451-2625; email [email protected]

Des Moines: Education and Research

Elementary and Secondary Schools

The Des Moines Independent Community School District, the largest in the state, is governed by a seven-member board of directors who are elected at large to three-year staggered terms. The head administrator is the superintendent of schools.

The Des Moines public schools implement a variety of curriculum options for students at all levels. The district's Central Academy, established in 1985 for gifted students in grades 8 through 12, brings students together for half of the school day to learn among other gifted students; the other half is spent at their home school. At the middle and secondary levels, several school-to-work programs bring students into the real world of health care, agriculture, and business. The unique Downtown School offers small classes (16:1 student/teacher ratio), a year-round calendar with a six-week summer break and week-long breaks throughout the year, in three downtown locations accessible by skywalk to many downtown businesses. The Downtown School utilizes local businesses and the surrounding neighborhood as opportunities for learning; its locations are accessible to parents working downtown as well. Students in the Downtown School program number 160 and are ages 5 to 11. These and other innovative programs are possible because of the cooperative spirit between the school district and business community in the greater Des Moines area.

A "Schools First" plan is underway, utilizing some $317 million in funds to renovate or replace all schools in the district over a period of 10 years. By August of 2004 construction was completed on 14 schools.

The following is a summary of data regarding Des Moines public schools as of the 2003–2004 school year.

Total enrollment: 32,150

Number of facilities elementary schools: 40

middle schools: 10

senior high schools: 5

other: 10 special schools and programs

Student/teacher ratio: 13.5:1

Teacher salaries

minimum: $29,863

average: $43,174

Funding per pupil: $7,098

Five private and parochial school districts providing the Des Moines metropolitan area with educational alternatives are Des Moines Christian, Diocese of Des Moines Catholic Schools, Des Moines Jewish Academy, Grandview Park Baptist, and Mount Olive Lutheran. These schools educate approximately 5,700 students in the Des Moines area.

Public Schools Information: Des Moines Public Schools, 1801 16th Street, Des Moines, IA 50314; telephone (515)242-7911; fax (515)242-7579

Colleges and Universities

Drake University, a private institution founded in 1881, enrolls about 4,300 students and grants undergraduate and graduate degrees in a range of disciplines through the College of Arts and Sciences, the College of Business Administration, the School of Journalism and Mass Communication, the School of Education, the College of Pharmacy and Health Sciences, and the Law School. Drake operates a work experience program that includes cooperative education and internships.

Grand View College, a private, Lutheran-affiliated liberal arts school, educates approximately 1,750 students and awards associate and baccalaureate degrees in several fields of study; cross-registration with Drake University and Des Moines Area Community College is available. The Des Moines University College of Osteopathic Medicine offers baccalaureate, master's, and first-professional degrees in a variety of health care areas such as osteopathic medicine and surgery, podiatric medicine and surgery, health care administration, and physical therapy.

Vocational, technical, and pre-professional education in Des Moines is provided by Des Moines Area Community College and AIB College of Business. Within commuting distance of the city are Iowa State University, an internationally renowned research university in Ames, Iowa, and Simpson College, a four-year liberal arts college in Indianola, Iowa.

Libraries and Research Centers

The Public Library of Des Moines houses more than 500,000 volumes and about 950 periodical subscriptions in addition to audiotapes, videotapes, audio CDs, and CD-ROMs. The library system includes five branches in addition to its main building. As part of a $48 million renovation, building, and expansion project, construction on the New Central Library began in 2004 and is expected to be completed in 2005. Renovations at other branches were underway at that time as well. The library system is a depository for federal and state documents and government publications. The State Library of Iowa is also located in downtown Des Moines in the State Capitol Building; holdings include more than 453,000 volumes as well as a complete range of audio-visual materials and special collections on state of Iowa publications, law, medicine, public policy, and patents and trademarks. The library is a depository for state and patent documents.

The Iowa Library for the Blind and Physically Handicapped provides Braille books, large print books, and cassettes and disks. The Drake University Library houses extensive holdings in all major department areas; the law library maintains an Iowa legal history collection. The Iowa Genealogical Society Library and the Grand View College Library also serve the community. The State Historical Society of Iowa Library maintains several collections, some of which reside in Des Moines.

A variety of specialized libraries and research centers located in the city are affiliated with hospitals, corporations, government agencies, law firms, the Blank Park Zoo and the Des Moines Art Center.

Public Library Information: Public Library of Des Moines, 100 Locust Street, Des Moines, IA 50309; telephone (515)283-4152

Des Moines: History

River Fort Becomes State Capital

The city of Des Moines originated with the building of Fort Des Moines in 1843, at the confluence of the Raccoon and Des Moines rivers, as a military garrison to protect the rights of Sak and Fox tribes. Debate surrounds the correct origin of the name of Iowa's largest city. The Moingona, a native group, had located a village on the river and it appeared on the map of Jacques Marquette, the French explorer. The French expression "la riviere des moines" translates to "the river of the monks," but may approximate the name of the Moingona, who inhabited the riverbank. "De Moyen," meaning "middle," was understood as a reference to the Des Moines River being the middle distance between the Mississippi and Missouri rivers.

The Iowa River Valley was opened to new settlers in 1845; a year later, when Iowa gained statehood, the population of Fort Des Moines numbered 127 residents. After the city charter was adopted in 1857, the word Fort was dropped from the name. Des Moines officially became the state capital—and its future growth was guaranteed—in January 1858 when two oxen-driven bobsleds hauled the state's archives into the city from Iowa City.

Des Moines played an active role in the Civil War. In May 1864 Des Moines women signed a petition pledging to replace working men to free them to fight for the Union cause, but enough male recruits were found to fill the quotas. After the Civil War, in 1875, Des Moines was the site of a nationally significant speech by President Ulysses S. Grant to a reunion of the Army of Tennessee, wherein he reiterated a commitment to universal equality.

During the last quarter of the nineteenth century, wood-frame buildings in Des Moines underwent extensive construction and renovation. The impressive state capitol building, situated on an 80-acre park and featuring a gold-gilded central dome of the revived classical Roman style, was completed in 1884. In the 1880s and 1890s, local businessmen built mansions and the city's cultural life continued to flourish.

Hospitality and Development Shape Des Moines

The history of Des Moines is filled with colorful events such as the arrival in the spring of 1894 of Kelly's Army, 1,000 unemployed men on their way to Washington, D.C., and led by Charles T. Kelly, "King of the Commons." Citizens greeted them with hospitality to prevent trouble. When Kelly's Army seemed reluctant to leave, however, the townspeople bought lumber to construct an "industrial fleet" of 150 flatboats, under local union direction, to transport the men out of the city. Each man was issued a small American flag, and the waving of the flags was the last sight of Kelly's Army. Among them was the American writer Jack London.

Des Moines has distinguished itself in various ways throughout its history. The Des Moines Plan, one of the first of its kind in the nation, streamlined municipal government and charted development, taking into consideration the city's natural setting. Fort Des Moines, dedicated as a calvary post in 1903, became the first training center for the Women's Army Corps, which gained national attention. The economic base of Des Moines was substantially expanded when the city became a national insurance and publishing center. In 1949, Des Moines was named an All-America City by the National Municipal League. The honor was repeated in 1971, then again in 1981 after Des Moines had addressed urban renewal issues by committing $313 million to the restoration of the historic districts of Court Avenue and Sherman Hills.

The city of Des Moines was immobilized in the summer of 1993 by flooding of the Des Moines and Raccoon rivers. The state of Iowa was declared a national disaster area, and preliminary estimates indicated the city alone suffered more than $253 million in damages. By the year 2000 Des Moines was humming with construction activity.

At the dawn of the twenty-first century, residents were enjoying a changing landscape in downtown Des Moines as new buildings were erected or underway, including a new science museum, new main library branch, and new conference venues. In 2003 Des Moines was again named an All-America City by the National Municipal League. Residents today appreciate the small-town atmosphere with big-city amenities afforded them in Des Moines in addition to the city's educational and cultural amenities and well-recognized quality of life.

Historical Information: State Historical Society of Iowa, 600 East Locust Street, Des Moines, IA 50319; telephone (515)281-6200. Polk County Historical Society, 317 SW 42nd St. Des Moines, IA 50312; telephone (515)255-6657

Des Moines: Population Profile

Metropolitan Area Residents

1980: 368,000

1990: 392,928

2000: 456,022

Percent change, 1990–2000: 16.1%

U.S. rank in 1980: 86th

U.S. rank in 1990: Not reported

U.S. rank in 2000: 91st

City Residents

1980: 191,000

1990: 193,189

2000: 198,682

2003 estimate: 196,093

Percent change, 1990–2000: 2.8%

U.S. rank in 1980: 74th

U.S. rank in 1990: 80th

U.S. rank in 2000: 106th (State rank: 1st)

Density: 2,621.3 people per square mile (2000)

Racial and ethnic characteristics (2000)

White: 163,494

Black or African American: 16,025

American Indian and Alaska Native: 705

Asian: 6,946

Native Hawaiian and Pacific Islander: 95

Hispanic or Latino (may be of any race): 13,138

Other: 6,987

Percent of residents born in state: 70.7% (2000)

Age characteristics (2000)

Population under 5 years old: 14,893

Population 5 to 9 years old: 13,945

Population 10 to 14 years old: 13,049

Population 15 to 19 years old: 13,314

Population 20 to 24 years old: 15,198

Population 25 to 34 years old: 32,450

Population 35 to 44 years old: 30,760

Population 45 to 54 years old: 25,037

Population 55 to 59 years old: 8,689

Population 60 to 64 years old: 6,788

Population 65 to 74 years old: 11,934

Population 75 to 84 years old: 9,008

Population 85 years and older: 3,617

Median age: 33.8 years

Births (2002)

Total number: 3,446

Deaths (2002)

Total number: 1,904 (of which, 31 were infants under the age of 1 year)

Money income (1999)

Per capita income: $19,467

Median household income: $38,408

Total households: 80,621

Number of households with income of . . .

less than $10,000: 7,298

$10,000 to $14,999: 5,246

$15,000 to $24,999: 11,813

$25,000 to $34,999: 12,177

$35,000 to $49,999: 15,330

$50,000 to $74,999: 16,929

$75,000 to $99,999: 6,728

$100,000 to $149,999: 3,448

$150,000 to $199,999: 729

$200,000 or more: 923

Percent of families below poverty level: 7.9% (44.1% of which were female householder families with related children under 5 years)

2002 FBI Crime Index Total: 13,776