The proposed project to renovate the Financial Center would receive up to $10 million in financial assistance from the city of Des Moines under a proposal scheduled to be voted on by a city board on Tuesday.

Landmark Capital, which owns the 25-story Financial Center at 606/666 Walnut St., is converting half of the building’s floors to residential units. The remaining levels would be office; the first through third levels would include a mix of retail, office and commercial uses.

The proposed renovation of the historic building was first announced in early 2020. At the time, plans included converting a portion of the building into a hotel. The renovation was expected to cost nearly $60 million; the Des Moines City Council approved a preliminary financial package of up to $7.5 million.

The aftereffects of the pandemic prompted Landmark Capital officials to decide to add 209 residential units to the building rather than a hotel. Also, the project has expanded to include the redevelopment of adjacent space that previously had been occupied by Walgreens.

The Business Record has previously reported that Cologix, a leading network-neutral interconnection and hyperscale edge data center company, will occupy over half of the 12,000 square feet of space in the former Walgreens space.

The renovation project is expected to cost $77.1 million, according to information provided to members of the Urban Design Review Board, which meets at 7:30 a.m. Tuesday. City staff are recommending the project be provided $10 million in assistance generated from tax increment financing. The assistance is about 13% of the project’s total costs.

In December, the project was awarded $16.9 million from the state of Iowa’s Historic Preservation Tax Credit program.

Work on the renovation is expected to begin in 2025’s first quarter and be completed by spring 2026. The property is currently valued at over $13.6 million. When the renovation is completed, the property is expected to be valued at over $33 million, information provided to the city board shows.