DES MOINES, Iowa -- With a treacherous flood in the early 1990sand a stubborn reluctance from residents to stay in the city pastworking hours, downtown Des Moines had seen its share of plightsover the years including another wave of recent flooding.

That all changed in the spring of 2007 when a once lifeless,three-story building became one of the catalysts to breathe lifeback into Des Moines. Thanks to the vision of area developers andcity officials coupled with partial financing from CommunityBusiness Lenders LLC, the building has transformed into the CourtCenter, a bustling entertainment venue home to several trendyrestaurants and live music spots.

Located on the corner of Third and Court, the 33,000-square footCourt Center at one point housed a restaurant and office space onthe first floor but the second and third floors sat dormant foryears, said Mark Kilian, CEO of Community Business Lenders. TheCUSO was founded in 2005 by the Iowa Credit Union League, $224million Community Choice Credit Union $124 million MEMBERS1stCommunity Credit Union. A Des Moines resident for nearly 30 years,Killian said he was all too familiar with the starts and stops torevitalize downtown.

"The city has been working to redevelop the area for years,"Kilian recalled. "It was like taking two steps forward andone-and-a-half back. There were some promising projects planned butthey were never executed."

Some of those plans included a movie theater and a large chainbook store, he said. Those projects were immediately put on holdwhen the floods of 1993 swept the Midwest, submerging nine states,killing nearly 50 people and damaging or destroying 55,000 homes,according to the American Red Cross. The entire state of Iowa wasdeclared a disaster area. In all, damage in the affected statestotaled $15 billion to $20 billion.

Still, Russ McCullough and David Keller founders of the McKelGroup, a commercial development firm, saw the potential to bringdowntown Des Moines on par with other similar-sized cities.McCullough said proposals were sent to CBL and other lenders. Inthe end, the CUSO was either able to beat or meet what others hadoffered.

"There were many challenges in terms of financing with the stateand historic tax credits. You're dealing with all levels ofgovernment, which made it challenging and complex," McCulloughsaid. "Mark was adaptable and sharp enough to stick with it."

To make up the investment difference, the developers applied forand were approved to deem the Court Center a National Historic Sitefrom the National Park Service. As a result, some of the renovationexpenses were eligible for several tax credits, McCullough said.Financial support also came from the city of Des Moines throughlow-interest and forgivable loans and tax abatement. CBL created anarrangement that combined all of these elements into one loanpackage. The entire building was gutted and renovated over a15-month period. Kilian would not provide the amount CBL financed.Several published reports indicated that the center was a $5million investment.

Today, the Court Center's first floor is home to LegendsAmerican Grill, a sports-themed restaurant and A.K. O'Conner's, anIrish pub. The Liar's Club, an urban bar, is situated on the secondfloor as well as C.C. Taft and Company, described as a high-enddining experience. The third floor houses People's Court, a barthat hosts live bands.

Since the Court Center's opening, condos, lofts and apartmentshave sprang up all over downtown--all the rental flats are leasedout, said Terry Vorbrich, economic development coordinator for thecity of Des Moines. Before Court Center, Des Moines-based PrincipalFinancial Group, which has 8,500 employees, launched a $30 millionriver walk project. The three-mile trail along the riverfront isadjacent to Court Avenue, Vorbrich said. Wells Fargo's 12,500-seatIowa Center is the nearby home to the Iowa Energy, a professionaldevelopment basketball team, and the Iowa Stars hockey team.

"Des Moines is the capital and business center of the state. Theentertainment district has spurred housing," Vorbrich said, addingthat before, people would come downtown to work at 7 a.m. andpromptly leave the area at 5:00 p.m.

Vorbrich recalled the doubters who wondered if Court Center'sdevelopers could find occupants for all three floors.

"There is real demand now to live here, mostly from youngprofessionals coming out of college," he said.

The Iowa Credit Union League is pleased that credit unionsplayed a part in helping to resurrect Des Moines, said MurrayWilliams, vice president of the league. Once upon a time,developers would only turn to banks for financing but times havedrastically changed.

"For credit unions to be able to invest in the center and thecenter to be the focal point, that's really significant," Williamssaid. "Here in Iowa, small businesses, for whatever reason, haveoverlooked credit unions and that's probably why credit unions havenot really reached out to small businesses. CBL has bridged thatgap."

The Court Center has also become a draw for the state's creditunions. Several have hosted their holiday parties there and theCentral Iowa Chapter of Credit Unions held its reception there atPeople's Court last fall, Kilian said. No one could have predictedthe entertainment venue's impact on downtown Des Moines. For CBL,ensuring that the loan package it developed met stringentguidelines was critical.

"It's always our job to exercise due diligence. From a loanstructure, we thought it was a prudent project and was in line withlending policies and credit union regulations," Kilian said.

Community Choice CU, one of CBL's owner, saw the experience as aunique connection.

"It was an opportunity for us to get community involvement,"said Roger Reiser, president/CEO. "There were certain parties inthe transactions that were members of the credit union. It's neatto be involved and to see the city coming back to life."

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