A proposed 33-story high-rise apartment project in downtown would receive up to $6.2 million in incentives from the city of Des Moines, according to terms of a preliminary development agreement the City Council is expected to vote on at its meeting today.

The high-rise would be built at 515 Walnut St., the site of the vacant Kaleidoscope at the Hub. The $133 million project would include 360 apartment units and 1,400 square feet of streel-level commercial space, according to information provided to the council. 

Kaleidoscope at the Hub, a three-story, 91,660-square-foot structure built in the mid-1980s, was once a bustling retail center with an indoor mall and food court. Over the years, traffic in the center declined and businesses closed. The building was shuttered about four years ago.

Local developer Joe Teeling of the St. Joseph Group has resurrected the apartment project that was first proposed in 2016 by Des Moines-based real estate development group Blackbird Investments Inc. The project was to include affordable and luxury apartments as well as a cantilevered swimming pool that hung from the top of the building. 

That project, though, never materialized. 

In October, the Des Moines Register reported that St. Joseph Group now owns the architectural plans for the Blackbird tower project. 

According to information provided to the council, the proposed high-rise project would:

Be built on a 0.35-acre parcel at Fifth Avenue and Walnut Street. The western portion of the property, about a half acre, would be developed at a later date. The existing structure on the site would be demolished in spring 2023.

• Include a total of 360 apartments, ranging from studio to two-bedroom units. 

Include affordable units for people earning 50% or less of the area median income. To qualify for the affordable unit, the maximum annual salary a single person could earn would be $34,500. The mix of affordably priced apartments would include 24 studio units, 36 one-bedroom units, and 12 two-bedroom units. 

Be all-electric with the exception of the commercial tenant bay.

A report released in May 2019 showed that Polk, Dallas, Warren and Guthrie counties need to add more than 57,000 new housing units by 2038 to accommodate new workers to the region. More than 23,000 of those units need to be rentals, the report said. 

The council today will consider approving up to $5.7 million in tax increment financing for the apartment tower, which would be paid over a 14-year period.The incentive includes $2 million that would be provided St. Joseph Group over four years and paid in $500,000 increments. When the project is completed, the city would also provide St. Joseph Group with an additional $500,000 from the American Rescue Plan and other affordable housing designated funds, according to information provided the council

St. Joseph Group also would request 10-year declining residential tax abatement on the project, according to information given to the council.  

The property is currently valued at $849,100. When the project is completed, the property is expected to be valued at over $60.8 million.

The City Council meets at 5 p.m. today at City Hall, 400 Robert D. Ray Drive. To watch the meeting online, click here

Editor's note: This story was updated to include accurate information on the amount of incentives would be provided to St. Joseph Group and the correct starting time of the Des Moines City Council meeting.