A decades-old hotel that overlooks downtown Des Moines could be converted to rental housing for low-income adults, city documents show.

The Des Moines City Council at its meeting today is scheduled to vote on providing $2.5 million in funding to the project proposed by Greater Des Moines Supportive Housing, a nonprofit group that provides housing and services to people facing housing barriers.

The group is proposing to purchase the Holiday Inn Mercy Campus at 1050 Sixth Ave. and convert it to 160 single-room apartments, each of which would include a kitchen and bathroom.

Services would be provided to residents, including coordination of physical health needs, education programs, employment support and transportation. Food and clothing pantries would also be located on the site.

The council will vote on whether to provide the program with $1.25 million from the federal economic stimulus bill passed by Congress in 2021 and $1.25 million in Community Development Block Grant funds. The money would be used to buy and renovate the nearly 2-acre parcel. Greater Des Moines Supportive Housing would have up to three years to complete the renovation.

The acquisition and renovation of the property is expected to cost $33.8 million. The group is expected to also receive funding from the Polk County Housing Trust Fund Revolving Loan Program, the Polk County Emergency Rental Assistance Program, the Iowa Finance Authority and private donations.

The 12-story, 250-room hotel opened in 1972 and included a revolving restaurant called Starlight Roof Dining. The revolving dining floor, which protruded from the hotel’s top floor, made a full rotation once an hour. The property, owned by RJ Conley Hotel LC, is valued at $7.2 million.

Greater Des Moines Supportive Housing has considered similar projects in recent years that failed to move forward. In 2022, the group considered purchasing the former Valley West Inn in West Des Moines and converting the structure to supportive housing. The project didn’t advance and the hotel has since been razed. Nearly a year ago, the group proposed constructing a 101-unit apartment building in Pleasant Hill. The suburb’s Board of Adjustment denied the group’s request for a conditional use permit.

The council meets at 5 p.m. today at City Hall, 400 Robert D. Ray Drive.