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A sought-after East Village riverfront building is staying in the city’s hands — for now.

The Argonne Armory building, located at 602 Robert D. Ray Drive, will continue to house city offices until further notice, officials said Thursday.

A feasibility test concluded that relocating staff from the building would cost more than previously anticipated, the city's economic development director Erin Olson-Douglas told the Des Moines Register on Thursday. City officials plan to ask investors for new proposals at an undetermined future date.

“It took us a little while to get there, but in the end, it’s an expensive proposition,” Olson-Douglas said.

The city received three proposals earlier this year, including a plan from Christensen Development and global music promoter Live Nation to turn the building into two music clubs, holding 2,000 and 800 people, respectively.

MORE: Nation's biggest concert promoter eyes music venue in downtown Des Moine

Local music advocates opposed the proposed $12 to $15 million project, saying in an online petition that the company's “monolithic approach to business” would put locally owned venues at risk of being shut down.

Christensen Development President Jake Christensen called the result "disappointing," but added, “I don’t think the city had much of a choice after the got the results of their study back.”

Christensen said it’s too soon to say whether he’ll work with Live Nation to bring a venue to another location, but that he’s open to the idea.

“We worked pretty hard and we met with a lot of people both for and against and learned a lot through the process,” he said.

MORE: A battle is brewing between Live Nation and Des Moines music advocates

But putting the development on pause isn’t a victory, said Amedeo Rossi, project manager of 80/35 Music Festival and owner of downtown music club Vaudeville Mews. There’s still a need for a 2,000-person club in Des Moines — a need that Rossi said could be filled by local promoters.

The Des Moines Music Coalition, local venue Wooly’s and East Village retailer Raygun were among those opposed to the Live Nation proposal. A total of 371 people digitally signed the petition.

“When it comes to what could be potentially a subsidized relationship, we think the city should look at the people that are [promoting music] here currently,” Rossi said.

The Art Deco-style building, which sits near city hall and Brenton Skating Plaza on the east bank of the Des Moines River, was once a training center for the Iowa National Guard. It currently houses city offices, including human resources, community development and IT workers.

Blackbird Investments had proposed premium condominiums for the space; Hubbell Realty Co. had offered to restore the building and add 29 residential units.

The Register’s Patt Johnson contributed to this report.

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