The renovation of property at 2525 Grand Ave. is expected to begin in the spring, the project’s developer said. The structure will be returned to its original use as a hotel.  Architectural rendering by Slingshot Architecture

A plan is moving forward to return property in Des Moines to its original use as a hotel after the redevelopment project was awarded $4.9 million from Iowa’s Historic Preservation Tax Credit program.

The project at 2525 Grand Ave. is also expected to receive about $3.8 million in federal historic tax credits.

“We now have two of the critical pieces put together to be able to complete the capital stack,” said developer Jake Christensen, who in fall 2019 revealed plans to restore a three-story structure between Grand and Ingersoll avenues to a hotel.

The building opened in 1962 as a Howard Johnson motor lodge. About 25 years later, it was converted to apartments. The redevelopment project includes renovating the building to have the look and feel of a 1950s-60s hotel.

Christensen put the project on hold shortly after the start of the pandemic.

The past two years, however, have reinforced that travelers want to stay in unique places, Christensen said.

“Travelers are looking for unique lodging opportunities in areas or neighborhoods that offer restaurants and other amenities,” he said. “Being on the edge of downtown and in a burgeoning corridor, we feel, is a good place to be.”

Activity along Ingersoll Avenue includes a $17 million streetscape project that involves reconstruction of the street between Martin Luther King Jr. Parkway and 31st Street. The project, which is expected to be completed this year, includes installation of new storm sewers, sidewalk widening, upgraded bus stops, burying overhead utility wires, new pedestrian crossings, landscaping and elevated bike lanes.

Other development in the area includes the remodeling of a former fast-foot restaurant at 2510 Ingersoll Ave. into a Starbucks coffeehouse. Farther east, Big Grove Brewery is opening a craft beer brewery and taproom at about 17th Street and Ingersoll Avenue.

Christensen said inflation and the material shortage has caused the project’s costs to increase. However, he said, the state and federal tax credit awards are based on qualified expenditures that include construction costs.

Before the pandemic, the project was estimated at $18.3 million. Updated development costs were not immediately available.

Redevelopment of the structure is expected to begin in May and take about one year to complete.

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