The Iowa Economic Development Authority stepped in front of the wishes of the Des Moines City Council and awarded a $3 million federal grant to Minneapolis-based Sherman Associates for the construction of a 90-unit apartment complex in the River Point West development area south of Martin Luther King Jr. Parkway. 

After vetting requests for the funds, the council voted in August to give priority to Hansen Real Estate Services’ Eagle View Lofts project near Southeast Sixth Street. The Sherman project was the council’s second choice to receive the federal dollars.

IEDA also awarded $3 million to Community Housing Initiatives for its conversion of the former Phenix elementary school in West Des Moines to 17 apartment units; and $3 million to Windsor Crossing Senior Apartments LLC for a 31-unit project in Windsor Heights. The Windsor Heights project will receive an additional $75,000 for storm water management. 

In all, the state awarded $51 million in Community Development Block Grant Disaster Recovery funds for projects in 16 cities. The funds are distributed in areas affected by the 2008 floods. 

The state received 77 applications asking for a total of more than $173 million. The process involves communities recommending projects for funding and IEDA making the final determination on the awards. 

Hansen Real Estate Services President Troy Hansen said his project cannot go forward without the federal funds.

Sherman started development of the River Point West area with the benefit of $8.5 million in federal funds. To date, projects that have been announced but not started are a hotel, office building and two multifamily projects. 

City and Sherman officials have said construction of a Holiday Inn Express hotel has been delayed as they sort through title issues affecting the transfer of property to Sherman from the city.