Developers of the mixed-use Market District are hoping to see vertical construction begin in the next 12 to 24 months, but to get there, they’re hoping to tap into some state funding through the Iowa Reinvestment Act Program.

Jim Cownie, founder of JSC Properties, and Tim Rypma of Rypma Properties have been collaborating — along with other partners — on the development of the property east of the Des Moines River and south of the historic East Village for more than a decade. Now, with some commitments in hand and others on the way, Cownie and Rypma are looking for a little funding boost to get them to the finish line.

“We’re seeking some help from the state, which we think will be essential to finishing this whole project,” Cownie said. 

That boost could come in the form of funding from the IRA and the Iowa Economic Development Authority, which opened a 90-day window on Sept. 23 for communities of existing and eligible redevelopment districts to apply for an additional $10 million that has come available. Communities have until Dec. 23 to submit applications for the funding, with the applications being reviewed during the first quarter of 2026, officials with the IEDA said.

Officials said the $10 million became available when the IEDA board rejected the city of Ames’ application last summer. That amount could grow if other previously approved awards to other projects are terminated or reduced, officials said.

Existing eligible projects approved after 2018 can apply for the additional funding. Other communities that have reinvestment districts include Cedar Rapids, Fort Dodge, and Newton. The Merle Hay Mall Reinvestment District is also eligible.

Along with the additional funding, the Des Moines City Council recently voted to expand the Pro Iowa Soccer Stadium and Global Plaza reinvestment district to include the Market District. 

“The City of Des Moines is in a fortunate position in which it has multiple projects that present excellent opportunities for investment in the continued growth of downtown Des Moines,” City Manager Scott Sanders wrote in an email to the Business Record.

The soccer stadium project had previously been awarded $23.5 million from the Iowa Reinvestment District Act, along with $5 million from the Destination Iowa Fund. Organizers of that project have also expressed interest in the additional funding to help them close a $22 million funding gap. 

The soccer stadium carries an estimated cost of $95 million.

Cownie and Rypma said they support the soccer stadium project and what it could mean for the community and the region, but would also like to capture those newly available state dollars to move the Market District forward.

“With the current economic conditions, we need every tool available to attract high-quality development, so that is an area we saw that we had to go after,” Rypma said.

Cownie said the Market District is going to be a “big neighborhood” that will attract an estimated 200,000 people a year to the newly completed Two Rivers Park as well as those who will live and shop in the Market District.

He said if the Market District is awarded IRA funds, the money will go to advance the entire development.

Right now, two lots that are adjacent to Two Rivers Park and front Market Street have letters of intent from out-of-state developers with plans for ground-floor retail and upper-story residential. Both are directly east of the newly completed Two Rivers Park, a redevelopment project funded by MidAmerican Energy Co.

Two other lots are under contract. One would be ground-floor retail with upper-story hospitality; the other is a multiphase, multifamily development with 250 units.

Another lot is where developers plan to address parking needs in the Market District, with Cownie referring to what could be built there as a “parking solution.”

The first phase of development will include 2,500 residential units and about 30,000 square feet of retail space. The second phase would include three other lots that Cownie and Rypma will acquire from the city at a later date, and where office space could be developed.

“As we move from phase one to phase two, phase one will allow us to manage our debt but also have enough equity to finish the project,” Cownie said.

So far, the Market District has not received any state funding, he said.

“The advantages of finishing this project in terms of the number of people who will be living here and the amount of the tax base that will be created for the city of Des Moines. The beauty of this, next to the state Capitol, all these things, are very important justifications for doing this project,” Cownie said.

Overall, the Market District represents more than $600 million in investment, Rypma said.

“Our roadways infrastructure, those improvements are in,” he said. “We’ve spent our money doing this to date. These are shovel ready projects.”

Rypma estimated those investments at $21 million for the infrastructure plus the acquisition of $9 million of land from the city.

Cownie said he hopes to continue the momentum seen in downtown Des Moines in recent years in the Market District.

“We’ve done everything we’ve said,” he said. “Des Moines has had some projects that were promised but never delivered. We’ve accomplished everything we’ve said we are going to accomplish and we will continue to do that. We will deliver on what we promise.”

Related story: Backers of Pro Iowa Soccer Stadium eye additional state funding as Des Moines expands redevelopment district