A proposed historic renovation of a downtown Des Moines warehouse building would receive up to $6.4 million in financial incentives from the city under a development agreement expected to be voted on today by the City Council.

Developer Tim Rypma is proposing converting the four-story warehouse at 106 S.W. Seventh St. into Class A commercial office, according to information provided to the council. The four-story, 46,816-square-foot building, constructed in 1917, is commonly known as the Carpenter Paper Co. warehouse.

The proposed $21.9 million renovation also includes landscaping and parking lot improvements. The proposed tax increment financial incentive would be paid over 20 years, council information shows.

Rypma is also seeking federal and state historic tax credits for the project.

City staff previously have said that the building is one of the “last few classic brick warehouse buildings remaining downtown that haven’t been converted to other uses other than industrial.” Other buildings that had been used as warehouses have either been demolished or converted to residential uses.

The Carpenter Paper Co. was established in 1890 in Omaha, according to the University of Delaware library. The company was Omaha’s first paper company, which sold a variety of stationery products, envelopes and cardboard. The company established branches in Des Moines, Kansas City, Denver and Salt Lake City. By 1937, it operated 29 distribution centers in 19 states. The company was sold in 1961 to a larger paper company.

The paper company used the downtown Des Moines building until 1987 for offices and warehouse space.

Employers Mutual Casualty Co. acquired the property and used the building for document storage space. EMC sold the property, as well as the adjacent Lortex Inc. building, in 2022.

The property at 106 S.W. Seventh St. is valued at $1.76 million. When the renovation is completed, the property is expected to be valued at nearly $11 million, council information shows.

“It is anticipated that this project could spur additional interest in the development of adjoining surface parking lots in the surrounding area,” city staff wrote in information provided the council. The city’s Urban Development Design Board in June 2022 gave approval to the project’s preliminary designs.

Rypma has also said he plans on converting the Lortex building at 113 S.W. Eighth St. into space for a restaurant, tavern or other entertainment uses.

Also today, the council is expected to:

• Approve a professional services agreement with M.A. Architecture to provide architectural and engineering design services for the Reichardt Community Recreation Center, planned on the current site of the John R. Grubb Community YMCA at 1611 11th St.
  
  The agreement with M.A. Architecture, located at 1201 Keosauqua Way, is not to exceed $2,022,700, according to information provided to the council members. M.A. Architecture was among six firms that submitted requests for proposals for the project. A selection committee composed of city staff reviewed the proposals and recommended M.A. Architecture be awarded the architectural design project.
  
  The planned two-story center is expected to include an NBA-sized basketball court, an elevated track, fitness space and community rooms. Construction costs are estimated at $18 million. The city of Des Moines has allocated up to $12 million from the local options sales service tax to be used to pay for construction.

• Approve preliminary terms of a development agreement with North Des Moines Town Hall LP that plans to renovate property at 1601 Sixth Ave. The two-story building, known locally as North Des Moines Hall, is proposed to undergo an estimated $3.5 million renovation. The building is expected to include a restaurant and another commercial user on the first floor and four residential units on the second floor. City staff is recommending the project receive a $300,000 forgivable loan. The project has also received a $160,000 grant from the Neighborhood Commercial Revitalization program and is receiving State Historical Tax Credits. Redevelopment is expected to be completed by fall 2024.