What: Restoration of former Howard Johnson motor lodge to original hotel use.
Where: 2525 Grand Ave., Des Moines
Project cost: $22 million
Developer: Christensen Development
Architect: Slingshot Architecture
General contractor: Catalyst Project Management, located in Grinnell
What’s new: Redevelopment of a former hotel along Grand Avenue in Des Moines is expected to pick up speed in the coming weeks, the project’s developer said.

The Des Moines City Council this week approved adjusting its agreement with Christensen Development Corp. on the restoration of a former Howard Johnson hotel on Grand Avenue. The changes include increasing the tax increment financing benefit to $2.9 million from its original $2.5 million.

The MoLo, a boutique hotel planned at 2525 Grand Ave. in Des Moines, is expected to open by next summer, the project's developer said. The project, which was delayed by the pandemic, was first announced in fall 2019. Rendering by Slingshot Architecture

A rendering of the Gatehouse, where guests checked in to the former Howard Johnson motor lodge. The building is being converted into a bar. Rendering by Slingshot Architecture

The interior of the Gatehouse bar at the MoLo, a boutique hotel that will be located at 2525 Grand Ave. Rendering by Slingshot Architecture

The change in the financial package is due to increased costs of financing, materials and labor, according to information provided to the council.

The $22 million project has also received federal and state historic tax credits.

In fall 2019, developer Jake Christensen revealed plans to restore the former Howard Johnson motor lodge to its original hotel use. The three-story structure on Grand Avenue opened as a hotel in 1962. About 25 years later it was converted to apartments.

Christensen put the brakes on the project during the pandemic. During that time, much has happened in the area around Ingersoll Avenue, which borders the north side of the hotel’s property.

In December, plans were announced about the development of a 98-seat fine dining restaurant called Oak Park. The restaurant, located in the 3900 block of Ingersoll Avenue, is expected to open in late 2023.

In addition, Big Grove Brewery opened at 555 17th St. last July. Earlier in 2022, Starbucks coffeehouse opened at 2510 Ingersoll Ave. A streetscape project along Ingersoll Avenue is also nearing completion.

“Our hotel operator is starting to say things like ‘We’re going to be home base for everything everybody wants to do on Ingersoll,” Christensen said. “We’re really excited about how much Ingersoll has progress since we initially started working to this project.”

The MoLo project (short for motor lodge) will include 81 rooms as well as two bars. One of the bars will be located in what Christensen describes as the Gatehouse. A second bar will be in an area near the pool and lobby, he said.

Plans also include converting a former medical office building at 2515 Grand Ave. into a restaurant. It’s not known when work on that project will begin, Christensen said.

Asbestos abatement is underway in the hotel building and is expected to be completed in the coming weeks and construction will likely start by midspring, Christensen said. He said he expects the hotel to open by summer of 2024.

The property in 2022 was valued at $2.3 million. When the restoration project is completed, the property’s value is expected to be more than $8.5 million, according to a council memo.