The city of Des Moines has launched the Ground Floor Activation program, a $7 million initiative to revitalize downtown by converting vacant commercial spaces into active businesses, according to the Des Moines City Council. Approved on Monday, the program offers 1:1 matching reimbursement grants for permanent improvements to street-level spaces, with funding sourced from the Metro Center Urban Renewal Area Tax Increment Financing. Eligible projects can receive up to $200,000 for expenses like interior buildouts and accessibility upgrades, pending council approval.
What is the Ground Floor Activation Program?
The Ground Floor Activation program is the first initiative under the broader Restore the Core DSM effort, which aims to stimulate downtown investment through multiple future projects. The program focuses on repurposing long-vacant ground-floor commercial spaces, a challenge identified by local economic development officials. According to the Des Moines Department of Economic Development, the initiative seeks to “increase foot traffic and create vibrant public spaces” by incentivizing private sector participation.
How Does the Program Work?
Participants in the Ground Floor Activation program can apply for grants that match their investment in eligible improvements, such as interior renovations, code compliance upgrades, and accessibility modifications. The maximum grant amount per project is $200,000, with all awards requiring final approval from the city council. Funding comes from the Metro Center Urban Renewal Area Tax Increment Financing, a mechanism that redirects increased property tax revenues to designated development zones.
What Are the Goals of the Initiative?
The Restore the Core DSM initiative, of which Ground Floor Activation is a component, aims to address long-standing challenges in downtown Des Moines’ commercial real estate market. A 2022 report by the Iowa Economic Development Authority noted that downtown Des Moines had a 12.3% vacancy rate for ground-floor retail spaces, higher than the national average of 8.7%. City officials have emphasized that the program is designed to “create a more dynamic downtown environment” while leveraging public-private partnerships.
What Are the Next Steps?
The city plans to announce a timeline for grant applications in the coming weeks, with eligibility criteria prioritizing projects that demonstrate “community impact and economic sustainability,” according to a statement from the Des Moines City Manager’s office. Local business groups have praised the initiative, with the Greater Des Moines Partnership noting it “aligns with broader efforts to position the city as a regional economic hub.”