An extension of Martin Luther King Jr. Parkway is expected to drive the development of housing and retail space in the proposed downtown Market District taking shape south of Court Avenue and east of the Des Moines River.

With a goal of extending the vitality of the East Village as the Southeast Connector project punches through, the city of Des Moines last year commissioned what was originally dubbed the Lower East Village Urban Design Study to analyze the long-term potential for new commercial development along key traffic corridors in the area.

The adaptive reuse of historic buildings into street-level retail spaces along East Fourth and East Sixth streets was a major focus, as was residential development along secondary roadways.

The study, which was spearheaded by Erin Olson-Douglas, a city urban designer, and Jeffrey Morgan Architecture Studio, paints a broad picture of a pedestrian-friendly cultural center with an eclectic mix of multifamily housing complemented by a diverse assortment of commercial real estate.

But the idea of a boutique hotel or condominiums adjacent to a scrap yard or recycling center may be hard for some to swallow.

Matt Anderson, Des Moines’ economic development administrator, said existing uses in the heavily industrial area will be grandfathered in. But he also understands that before major revitalization can occur, the city must consider changes to zoning and land-use designations that would make the area more conducive to the type of development that stakeholders hope to attract.

Property and business owners are also pondering the neighborhood’s future as the expansion of MLK brings more attention and traffic to the area.

Some are taking a wait-and-see stance, while others are positioning themselves as front-runners.

“It’s going to make a huge difference to people and property owners and potential developers,” said Mike Kinter, owner of Kinter Construction Services Inc. at 118 S.E. Fourth St.

In 2006, Kinter’s East Fourth Street LLC investment group purchased that property in anticipation of MLK being extended to Southeast Sixth Street, a project that is expected to wrap up this fall.

Kinter, who recently constructed and leased out two office spaces in the 136-year-old warehouse building, said he is building out about 12,000 square feet of speculative retail space on the ground floor. He said he is negotiating with a tenant for that space.

Kinter, who in May 2009 filed for bankruptcy protection to liquidate debt under federal bankruptcy laws, said he’s using “sweat equity” to finance the speculative retail project.

“I’ve got my blue jeans back on and I’m swinging a hammer again,” he said, adding that the recession delayed his retirement and getting back to work has helped reduce overhead costs.

The Polk County assessor’s website shows that the assessed value of Kinter’s property more than tripled in two years, to $341,000 in 2009 from $110,500 in 2007.

Three blocks to the east, Teresa VanVleet-Danos wonders what’s in store for her property.

“They’ve been talking about this for 25 years,” said VanVleet-Danos, owner of Rowat Cut Stone & Marble Co. at 110 S.E. Seventh St.

VanVleet-Danos said that soon after she acquired the 128-year-old company in 1985, the city approached her with a similar plan. “I think a few years ago, I just threw it in the trash because I figured it’s been 20-some years, they are not going to do it,” she said. “And lo and behold, here we are.”

VanVleet-Danos expects the Southeast Connector to “make a huge difference for development” in the district, which is overshadowed by the Iowa Capitol to the east. And though she has no immediate plans to sell her property or relocate her business, she is open to the idea.

“I’d blow up the building for enough money,” VanVleet-Danos quipped, adding that more than once she has envisioned condos on the site. “If the right deal came along, sure, I would move,” she said. “If it was the right location and it was more conducive to production.

“But the economy sort of took care of a lot of those thoughts with a lot of us that have property down there.”

Yet she remains optimistic.

Streetscape improvements, including new paving, new sidewalks and new curbs, are under way on East Sixth Street. And though the road is temporarily closed, which makes the task of unloading 42-foot semitrailers full of stone more of a challenge, VanVleet-Danos said she looks forward to soon seeing three paved entrances on her property’s west side.

“Is it difficult?” she asked. “Yeah, it’s a pain, because people can’t get to you as easily. But it’s going to be worth it in the end.”

Besides, she knows the recession won’t last forever. As the economy recovers, VanVleet-Danos expects demand to rise and property values to increase.

“Nobody is buying anything at the moment, because money is tight and nobody knows what’s happening with the economy,” she said, noting that lenders will likely set the pace. “They (lenders) are not going to be what they used to be, but if they could just pick it up a little bit, there would be some sales of land in this area,” she said.

On May 24, Anderson will present to the City Council an updated version of the study, which calls for the development of private-public partnerships to develop key sites and the creation of standardized economic development incentives that relate to the district’s goals.

In addition, the city will consider relocating its public works facilities, which occupy about six square blocks of the proposed district.

The city and MidAmerican Energy Co. are among the study area’s largest property owners. Mid-American Energy’s holdings are primarily riverfront sites, which the study said “should be reserved for important public or private destination venues.”

Though no timeline has been set, Anderson expects the council to soon call for a rezoning study. “There’s kind of a hodgepodge of uses down there,” he said. “It’s clearly not the best use for that land.

“It’s the relocating of public works that will drive development,” he said, noting that initial steps include gathering data, estimating costs and determining a schedule. “We’re just laying the groundwork for private development that will occur naturally as the market demands,” he said.

There are also plans to improve East Fourth Steet.

Meanwhile, commercial real estate brokers are working to stay abreast of potential zoning changes as they continue marketing properties.

Scott Berry, a sales associate with Stanbrough Realty Cos. LLC, is listing a property for sale on Southeast Seventh Street, across the street from Rowat.

“As retail development shakes out and as everything comes back, I think it’s going to be a strong area,” Berry said, noting that he sees potential for higher-end office and residential development, as well as “funky” retail shops similar to those in the East Village.

As the proposed district evolves into the more modern and chic setting envisioned in artists’ renderings by Jeffrey Morgan Architecture Studio, Confluence Inc. and Travis Rice Studio, it will have a brand-new look and feel.

Berry said he has already seen some interest from non-traditional users. But until the city nails down the land-use and zoning details, he said, marketing may be “a bit of a struggle.”

And he wonders just how dramatic the changes to the landscape will be.

“They are looking to gentrify that area,” he said.