Market District Development in Des Moines Receives $9.5 Million Boost

Des Moines’ ambitious Market District development has secured a significant financial boost with a $9.5 million investment from the Iowa Reinvestment Act. The funding, approved by the Iowa Economic Development Authority (IEDA) on March 20, 2026, will accelerate the project’s progress and contribute to the revitalization of a former industrial area.

Expanding the Capital City Reinvestment District

Alongside the financial commitment, the IEDA board expanded the existing Capital City Reinvestment District by 43 acres to encompass the Market District. This area, located east of the Des Moines River and south of the East Village, is bordered by East Walnut Street, East 14th Street, and Scott Avenue. Previously occupied by a recycling center, scrap metal yard, body shops, city public works yards, and a MidAmerican Energy facility, the site is undergoing a transformative redevelopment [Business Record].

Project Details and Investment Breakdown

The $9.5 million in funding will be allocated to two key components of the Market District. A substantial portion will support the construction of a seven-story mixed-use boutique hotel and luxury condominium project, estimated to cost $50 million. This project will feature 180 guestrooms across five floors and two floors dedicated to luxury condominiums, alongside a full-service restaurant, retail spaces, and a rooftop outdoor pool and deck [Business Record].

The remaining funds will be used for a 500-space parking ramp, designed to serve both the Market District and the wider public. This parking infrastructure represents an investment of over $19.3 million [Business Record].

Phased Development and Overall Investment

The first phase of the Market District development is planned to include 2,500 residential units and approximately 30,000 square feet of retail space. Future phases will involve acquiring additional land from the city for potential office space development. A six-story, 258-unit apartment building is already proposed for a vacant lot on Southeast Fourth Street, with construction anticipated to begin in late 2026 and completion by late 2028 [Business Record].

the Market District project represents a total investment exceeding $600 million, according to developers JSC Properties and Rypma Properties [Business Record].

Iowa Reinvestment Act and Regional Impact

The IEDA award for the Market District is structured as a rebate, representing less than 20% of the projected hotel, motel, and sales tax revenue generated by the development. Developers will begin receiving these credits in January 2028 [Business Record].

This investment in the Market District adds to the $23.5 million previously allocated to the city of Des Moines for the Pro Iowa Soccer Stadium project, bringing the total Iowa Reinvestment Act funding for the expanded Capital City Reinvestment District to $33 million. The district now encompasses 116 acres [Business Record].

The Iowa Reinvestment District Program aims to support transformative projects that enhance quality of life and benefit communities across the state [Opportunity Iowa].