Des Moines is poised for significant development along the east side of the city’s downtown core, receiving a $9.5 million boost from the Iowa Economic Development Authority (IEDA) to revitalize a former industrial area. The funds, approved today, arrive from the Iowa Reinvestment Act and will support a large-scale, mixed-employ project known as the Market District, aiming to transform a long-underutilized area into a vibrant hub for residential, commercial, and recreational activity.
The IEDA’s decision also expands the existing Capital City Reinvestment District by 43 acres to encompass the Market District, a 116-acre area bordered by East Walnut Street, East 14th Street, and Scott Avenue. This expansion signals a strong state commitment to the project and its potential to drive economic growth in the region. The Market District’s history includes a variety of industrial uses, including a recycling center, scrap metal yard, auto body shops, and facilities operated by the city and MidAmerican Energy.
A Multi-Phased Development Plan
The Market District project is being spearheaded by JSC Properties and Rypma Properties, along with other partners. The initial phase focuses on a substantial investment in both hospitality, and housing. A key component of the funding will move towards a seven-story mixed-use building, featuring 180 hotel rooms and luxury condominiums. Plans include a full-service restaurant, retail spaces, and a rooftop amenity area with a pool, fire pit, and deck. The hotel project alone is estimated to cost $50 million, according to IEDA documents.
Beyond the hotel and condominiums, the $9.5 million in state funds will also support the construction of a 500-space parking ramp, designed to serve both the modern development and the broader surrounding area. This addresses a critical need for parking as the Market District grows. The parking ramp is valued at over $19.3 million.
Looking ahead, the first phase of the Market District envisions 2,500 residential units and approximately 30,000 square feet of retail space. Future phases will involve acquiring additional land from the city to potentially accommodate office development, further diversifying the district’s offerings.
First Buildings on the Horizon
Construction is already beginning to capture shape. Earlier this month, the Des Moines Urban Design Review Board reviewed plans for a six-story, 258-unit apartment building on Southeast Fourth Street, slated to be the first structure completed in the Market District. According to documents reviewed by the board, construction is expected to begin in late 2026, with completion anticipated by late 2028.
Building on Existing Momentum
The Market District isn’t being developed in isolation. It’s intended to complement and benefit from the nearby Two Rivers Park, which developers estimate will attract around 200,000 visitors annually. Jim Cownie, founder of JSC Properties, and Tim Rypma, president of Rypma Properties, have highlighted the synergistic potential of the two projects. The Market District represents a total investment exceeding $600 million, according to Rypma.
The IEDA funding structure is designed to incentivize long-term economic impact. The agency noted that the $9.5 million award is structured as a rebate, representing less than 20% of the projected hotel, motel, and sales tax revenue generated by the development. Developers won’t begin receiving these credits until January 2028, ensuring the investment delivers on its promised returns.
This latest IEDA award builds upon previous funding allocated to the Capital City Reinvestment District. The agency previously committed $23.5 million to the proposed Pro Iowa Soccer Stadium and Global Plaza, bringing the total IRA funding for the district to $33 million across 116 acres.
“This is a tremendous opportunity for the Market District,” Tim Rypma said in a statement following the IEDA’s approval. “We will be announcing several exciting projects later this year.”
The next step for the Market District project involves finalizing architectural plans and securing necessary permits. Developers anticipate breaking ground on the initial phases of the project in late 2026, with the first buildings expected to open in 2028. The IEDA will continue to monitor the project’s progress and ensure it aligns with the goals of the Iowa Reinvestment Act.
What are your thoughts on the Market District development? Share your comments below and let us know how you think this project will impact the Des Moines area.
