A project to convert Two Ruan Center to market-rate apartments would receive up to $5.57 million in financial aid from the city of Des Moines, under preliminary terms of an Urban Renewal Development Agreement the City Council is expected to consider Monday.

Last fall, Ruan Inc. announced it was forming a joint venture with Block Real Estate Services and Foutch Brothers, both located in the Kansas City, Mo., area, to redevelop Two Ruan Center at 601 Locust St.

The 14-story building, which is mostly vacant, includes more than 256,000 square feet of space. The development group, Ruan Redevelopment Partners LLC,  has proposed converting the space into 221 multifamily units. Commercial uses would remain on the building’s skywalk level.

The redevelopment will include fitness centers, coworking space, a bike wash and repair station, pet spa and rooftop pet park, covered indoor parking and a rooftop lounge.

Developers are pursuing state and federal historic tax credits to help pay for the $81.2 million project, according to information provided to the council. Construction would begin at the end of 2024 and be completed by 2026.

Tax increment financing would be used to help pay for the project, according to council information. The preliminary development agreement includes a requirement to participate in MidAmerican Energy Co.’s commercial new construction program. In addition, developers are considering adding electric vehicle charging stations and designing all-electric apartment units.

Twenty-three of the apartments, or about 10%, will be rented at affordable prices.

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