Iowa's Wallace Building is coming down — its underground tunnel stays
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Demolition of the Henry A. Wallace Building is expected to be completed in the coming months. Photo: Jason Clayworth/Axios
An underground tunnel linking the mostly demolished Henry A. Wallace Building to the Capitol and other state offices is being closed but not torn down.
Why it matters: The link is potentially valuable if the state reimagines the site.
Catch up quick: The Wallace Building was widely recognized for its gold-glass exterior that reflected images of the nearby Capitol.
- It was only about 50 years old, but it had structural and mechanical problems that would have cost over $60 million to fix.
State of play: In 2023, the state government purchased the former McLeodUSA office building at 6200 Park Ave. in DSM for $18 million, relocating hundreds of state offices and paving the way for the Wallace's demolition.
- A bill introduced by Gov. Kim Reynolds last year to sell the land did not advance in the legislative process and a decision about the site's future has not been made public.

Behind the scenes: There's more than a mile of underground tunnel systems linking Capitol complex buildings, used mostly for utility connections or by state employees for convenience or exercise.
- The link to the Wallace Building ran roughly a block along the north side of East Grand Avenue to an underground intersection that connected to routes to other state offices.
Flashback: Some of the earliest tunnels were built about a century ago to transport coal to the complex's former energy plant, which was located near the Wallace site on Grand Avenue between E. 9th and E. 12th streets, according to newspaper accounts.
The intrigue: The Iowa Department of Administrative Services confirmed to Axios that it was "capping" access to the building's tunnel link but did not respond to questions about its potential future uses.
🏨 Our thought bubble: The Wallace Building site would be a great spot for a hotel with extended stays for out-of-county lawmakers during the legislative session — and quick access to their desks!

