A expansive project to bring additional retail, hospitality, housing and office space to Des Moines’ East Village has received a $9.5 million boost from the Iowa Economic Development Authority after years of preparatory work.
The district’s developers will use the funding to address parking needs for the Market District, a mixed-use redevelopment that will span roughly 50 acres on the east bank of the Des Moines River north of Martin Luther King Jr. Parkway.
Plans for the Market District call for about 400 hotel rooms, 170,000 square feet of retail space, 220,000 square feet of office space and more than 3,000 housing units, according to the city. Overall, the project could generate $8.6 billion in total spending and more than $586 million in gross tax revenue over 20 years, according to the city;’s application to the authority’s board.
Tim Rypma, president of Rypma Properties and a member of The District Developer LLC, the coalition investing to build the Market District, said he expects the announcement of four Market District projects in 2026. “This will kind of kick-start the first of multiple vertical developments in the Market District,” Rypma told the Des Moines Register after the approval Friday, March 20, of the additional aid.
One of the projects already is nearing approval: a six-story, 258-unit apartment complex on roughly 3 acres. The city’s Urban Design Review Board reviewed plans for the South Market Apartments on March 3, according to meeting minutes.
Rypma said it’s too soon to share details of the other three.
Ames’ loss is Des Moines’ gain
The City Council in December approved seeking expansion of an already approved reinvestment area to include the Market District so that it could bid for $13 million in state funding that became available with the cancellation of a project in Ames.
The economic development authority board approved the expansion Friday, March 20, extending the zone from an already-designated area that includes the site of a proposed Des Moines pro soccer stadium, downtown’s adjacent Western Gateway and the Gray’s Landing development.
The Iowa Reinvestment District Program enables communities to leverage state hotel/motel and sales tax revenues to redevelop blighted areas, such as the aging collection of industrial buildings that formerly occupied the Market District property. In all, the Des Moines reinvestment area represents a $298.2 million investment, according to the economic development authority.
Adding the Market District increased the Des Moines’ maximum benefit from the program to $33 million from $23.5 million, a boost of $9.5 million.
The city applied for the full $13 million, but Fort Dodge was able to claim $3.5 million for another project.
What is next for the Market District?
The District Developer LLC has proposed building a “parking solution” to accommodate traffic to the area, said Rypma. It plans more than 1,300 parking spaces, including a five-story parking garage with 500 spaces, according to the city’s application for the additional funding.
The developers requested $6.5 million in state assistance for the $19 million structure to be built between E Market and SE Elm streets.
“By improving accessibility, (the parking garage) attracts investors, increases foot traffic, and supports tourism and events,” application says. “This strategically located garage has enabled better street design and creates a foundation for long-term growth.”
The group already has prepared the district for redevelopment with the construction of streets, utilities, landscaping and other amenities,. The recently opened MidAmerican Energy Two Rivers Park, which the utility built on the site of its former service center, anchors the district’s riverfront.
Rypma said that with parking now in the works, the next phase of the development can begin with construction of the South Market Apartments at 301 SE Fourth St. The complex will offer one- to three-bedroom apartments, with an interior courtyard equipped with a playground, dog park and picnic area, according to design plans.
Other amenities will include bike storage, a business center, a fitness center and a community space.
The complex will qualify for Low Income Housing Tax Credits, meaning all unit will have rents regarded as affordable to households earning 60% or less of the median income. That’s roughly $61,283 for a one-earner household in Iowa, according to the U.S. Department of Housing and Urban Development.
The project is expected to cost $47 million. Construction could begin as early as the end of 2026 and reach completion by the end of 2028, according to the urban review board memo.
Kate Kealey is the growth and development reporter for the Register. Reach her at kkealey@registermedia.com or follow her on Twitter at @Kkealey17.
This article originally appeared on Des Moines Register: Des Moines’ Market District gets $9.5M funding boost from the state
Reporting by Kate Kealey, Des Moines Register / Des Moines Register
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