Council Communication Office of the City Manager	Date	March 8, 2010
	Agenda Item No. 46 Roll Call No. 10- Communication No. 10-114 Submitted by: Matt Anderson Economic Development Administrator

AGENDA HEADING:

Approving preliminary terms of agreement with Aviva Investors North America, Inc. for downtown employment and office expansion.

SYNOPSIS:

Aviva Investors North America, Inc. (Richard Field, Interim Chief Executive Officer, 699 Walnut, Des Moines, IA 50309) is currently located in approximately 35,000 square feet in the Hub Tower. This growing division of United Kingdom-based Aviva plc intends to nearly double its space in Des Moines.

Aviva Investors currently employ approximately 190 people in downtown Des Moines. They anticipate aggressive growth which will result in adding approximately 100 new employees during the next 7 years. Average base wage for all positions is approximately $90,000.

Aviva Investors considered locations metro-wide during their site selection process. Although they prefer a downtown location, the downtown finalists are at a financial disadvantage to an available suburban building. Downtown Des Moines is facing up to 1.5 million square feet of vacant office space. In an effort to fill this space, the Office of Economic Development will aggressively and creatively work with building owners and potential tenants to overcome leasing obstacles. A financial incentive package has been negotiated with Aviva Investors to help offset the competitive disadvantage of downtown alternatives.

Aviva Investors is currently engaged in lease negotiations downtown. The exact location of their new space will be finalized at the time the City Council considers final contract approval.

FISCAL IMPACT:

Amount: The City will reimburse up to $183,270 of Aviva’s actual annual parking expenses incurred in a privately owned parking garage and 100% of their parking expenses incurred in a city-owned garage for a period of seven years. Actual amount of the incentive will vary annually based on employment level and parking location.

Funding Source: Metro Center Urban Renewal Area tax increment financing. SP370, FIN909105, FY2010-2011 Operating Budget, page 117.

ADDITIONAL INFORMATION:

Aviva Investors North America, Inc. is a SEC-registered investment advisor specializing in institutional, income-driven asset management. Aviva Investors manage assets for insurance companies and other institutional clients and currently has assets under management of nearly $400 billion globally across a range of funds.

Aviva Investors was incorporated in December 1997 as AmerUs Capital Management, Inc. In 2006, it became Aviva Capital Management, an affiliate of Aviva plc, the world’s fifth-largest global insurer. The U.S. headquarters of Aviva Investors will be located downtown.

Business functions to be located downtown include, Global Finance, Risk Management, Compliance, Operations, Human Resources, Business Development, and Information Technology.

Aviva Investors has estimated they currently generate approximately 2,900 hotel night stays per year. The number of hotel night stays is anticipated to increase as the company’s employment grows. Visitors include institutional investors, potential clients, visitors from financial centers such as Chicago and New York, representatives from company headquarters in the United Kingdom as well as professionals from a variety of other locations. Much of this activity will occur in downtown Des Moines.

PREVIOUS COUNCIL ACTION(S): NONE

BOARD/COMMISSION ACTION(S): NONE

ANTICIPATED ACTIONS AND FUTURE COMMITMENTS:

Receive and file Urban Design Review Board financial incentive recommendation. Final consideration of Urban Renewal Development Agreement

For more information on this and other agenda items, please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office on the second floor of City Hall, 400 Robert D. Ray Drive. Council agendas are available to the public at the City Clerk’s Office on Thursday afternoon preceding Monday’s Council meeting. Citizens can also request to receive meeting notices and agendas by email by calling the Clerk’s Office or sending their request via email to cityclerk@dmgov.org.