Rypma Properties plans to convert the old Nichols & Shepard agricultural equipment warehouse on Southeast Fourth Street in the East Village into office space, according to documents attached to Monday’s Des Moines City Council agenda.

The council will consider a resolution approving the preliminary terms of an Urban Renewal Development Agreement with Rypma Properties, which has proposed a historic renovation and conversion of the warehouse, where Nichols & Shepard made agricultural threshing equipment.

The building was constructed in 1895 and is listed on the National Register of Historic Places. According to the Polk County Assessor’s website, it has an assessed value of $527,000.

According to council documents, Rypma Properties has proposed a $13.7 million project to redevelop the two-story, 27,696-square-foot warehouse at 108 SE Fourth St., into office space, similar to the project the developer undertook with the former Carpenter Paper building.

Tim Rypma, managing member of Rypma Properties, said his vision for the warehouse is high-end office space with timber and hardwood floors.

The city’s Urban Design Review Board is scheduled to consider the proposal at its meeting next Tuesday. 

Council documents show that the city has negotiated preliminary terms of an Urban Renewal Development Agreement with Rypma Properties that would provide Tax Increment Financing to help fill a funding gap on the project.

According to documents, the TIF financing would not exceed $1.75 million over 20 years, or about 12.7% of total project costs. The project is not eligible for a commercial tax abatement.

Rypma Properties is also seeking state historic tax credits and is working with the State Historic Preservation Office on design requirements for the warehouse. The project will also use MidAmerican Energy’s Commercial New Construction Energy Efficiency Program, council documents show.

Rypma said he plans to close on the building in August, pending approval of the State Historic Preservation Office and the National Parks Service, which approves redevelopment plans of historic buildings on the national level.

According to the assessor’s website, the building’s current owners, Diane Kreutzer and Mark Klein, purchased the warehouse in 2019 for $275,000 from Air Filter Sales & Service Inc.

Monday’s council meeting is scheduled for 5 p.m. at City Hall, 1200 Locust St.