Five lots are ready to be developed in a portion of the Market District that is being redeveloped by District Developer LLC, a consortium that includes developer James Cownie’s JSC Properties, MidAmerican Energy Co., Knapp Properties, developer Tim Rypma and others.

“We hope that we’ll sell a couple of the lots this year,” said Paul Hayes, JSC Properties president. “We are post-COVID. Interest rates appear to be coming down. Construction costs have stabilized. This is the year we expect that we’ll have transactions.”

In fall 2019, the city of Des Moines released a proposed master plan to redevelop 260 acres known as the Market District, an aged industrial area roughly bordered by East Walnut Street, East 14th Street, Scott Avenue and the Des Moines River. The area, bisected by railroad track that run east and west, has been home to a recycling center, a scrap metal yard, body shops, the city’s public works yards and a MidAmerican Energy facility.

In December 2019, JSC Properties announced plans to redevelop a 40-acre section of the Market District located between Martin Luther King Jr. Parkway and the railroad tracks, and the river and East Sixth Street. The development was expected to include housing, offices, retail, entertainment and one or more hotels.

While the COVID-19 pandemic stalled developer interest, it didn’t slow the installation of new sewers, streets, utilities and bioswales. Buildings have been razed and colorful light features added.

MidAmerican Energy, in late 2023, unveiled plans for a 9-acre park that will be between the river and East Second/Elm streets. Two Rivers Park will include an elevated walkway on which visitors can see activities on the river and downtown Des Moines’ skyline. It will also include paths through green space, a shelter, restrooms and parking.

“The question that we got asked the most – ‘What is going on with the park?’ – has been answered now,” Rypma said. “Everyone knows the answer, especially now that you can see all of the dirt that has been brought in for the overlook. … People are also seeing movement on the water trails and are getting a better sense of what is planned for this whole area.” (The ICON Water Trails is a $125 million public-private initiative to connect more than 80 sites, also 150 miles of rivers and creeks in Central Iowa. White water features are planned near the confluence of the Des Moines and Raccoon rivers.)

The energy company in December acquired a 2.5-acre parcel at 251 Elm St. from District Developer LLC for $7.9 million, Polk County real estate records show. The parcel will be used for parking for the park.

“Developers want as much certainty as they can get,” Hayes said.

MidAmerican Energy answered potential developers’ questions when it revealed plans for Two Rivers Park, he said. “There’s a little more stability and certainty in what will be put on that site. [Potential developers] can also see what we meant when we were talking about the bioswales. They can see what the view of downtown will be from some of the lots.”

Some changes have occurred to Market District development since it was first announced, Hayes said. For one, the park is bigger than originally envisioned. A proposed live entertainment arena was scratched when plans for Vibrant Music Hall in Waukee were announced.

“I doubt that we will see any speculative office space right away,” Hayes said. “But a single user? I think that would be a great location for an office.”

Interest in developing the lots is picking up, Hayes said. “Most of it is from out of town – Omaha, St. Louis, Indianapolis. Developers who have some taste of development in Des Moines and want to do more.”

Hayes and Rypma said that they are hopeful one or more Market District projects will be announced by the end of 2024.

“I think we’ll see vertical construction going into 2025,” Rypma said. “There is more certainty in the economy, which is what developers want to see before committing to a project.”