Yeah, that could work if there is enough room, and it would solve the parking problem being so close to Hancher. According to Google Maps it houses the Iowa Dept of Theatre, which would have to relocated - might end up building another building in that case.
But, it's still not downtown. It's probably easier for students to get to than Carver, but it's not close to restaurants and bars.
Still, it's likely a pipe dream unless it can be combined with something.
Like - the Iowa Memorial Union! The last time I was in it (probably 10 years ago) it was kind of a dump.