Cities
Des Moines leaders will consider taller buildings, increased housing density, and changes to longstanding financial safeguards at a November 5 council workshop.
The Des Moines City Council will take up two major issues Thursday, November 5 at a Committee of the Whole and a Study Session with the Planning Commission. They will discuss how the city manages tax revenue from large construction projects and what future development should look like downtown.
The discussions could affect city finances, building heights, housing density, commercial development, and the appearance of downtown Des Moines for years to come.
Changing the Rules for One-Time Revenue
At 5 p.m., the council will consider revising a 2012 ordinance designed to keep the city from using temporary construction-related tax revenue to pay ongoing operating expenses.
Under the ordinance, sales and business taxes generated by development projects valued at $15 million or more must go toward capital improvements rather than general operations.
The restriction was intended to prevent the city from building budgets around construction revenue that might never materialize or recur.
However, the city has suspended the restriction every year since 2020, citing financial pressures, inflation, and revenue limitations.
Staff is proposing several possible changes:
● Raise the threshold: Increase the $15 million project threshold to approximately $23.5 million to account for inflation.
● Change how revenue is divided: Allow a portion of tax revenue from major projects to support general city operations rather than directing the entire amount to capital improvements.
● Expand allowable spending: Permit one-time revenue to cover certain non-capital expenses, such as major technology upgrades.
● Consider reserves: Allow some revenue to support the city’s rainy-day fund.
City staff says the changes could make the ordinance easier to follow during difficult financial periods.
Council members will need to decide how much flexibility to allow while maintaining protections against using temporary revenue for ongoing expenses.
Taller Buildings and More Housing Downtown?
Beginning at 6 p.m., the council and Planning Commission will hold a joint workshop examining potential downtown zoning changes.
Consultant ECONorthwest has evaluated eight development models, ranging from townhouses and three-story apartments to five- and eight-story mixed-use buildings.
Proposals under discussion include increasing building height limits, allowing greater residential density, and relaxing requirements for ground-floor commercial space.
The consultant found that townhouses and three-story apartments are financially feasible under current market conditions. Five- to eight-story developments may need financial assistance or more favorable market conditions.
Eight-story buildings are currently prohibited under downtown zoning.
Previous discussions identified the north and south ends of Marine View Drive as possible locations for taller buildings, while concentrating walkable retail between South 223rd and South 227th Streets.
Residents may have concerns about waterfront views, parking, traffic, neighborhood character, and whether additional housing would attract enough customers to support downtown businesses.
Why Residents Should Pay Attention Now
Nearby Burien has faced development disputes involving building heights, neighborhood impacts, and the limits of what can be changed after zoning and development approvals are in place.
Des Moines residents have an opportunity to weigh in earlier, while city officials are still considering changes.
Once zoning rules are adopted, developers can generally build projects that meet those requirements. Changing the rules afterward can be difficult, particularly when projects have already received permits.
Residents concerned about building heights, waterfront views, parking, traffic, or neighborhood character may want to follow these discussions before new zoning rules are adopted.
Will More Development Improve City Finances?
The city’s financial analysis shows that not all development produces the same financial return.
For example, one modeled 17-unit apartment development would generate approximately $156,000 in one-time revenue but produce an estimated annual net fiscal loss of $5,816 after accounting for city service costs.
City leaders will be weighing which types of development could improve Des Moines’ long-term finances.
What Happens Next?
No final zoning changes are scheduled for approval Thursday.
The council may direct staff to prepare a revised revenue ordinance. Downtown zoning recommendations are expected to return for further consideration in 2027.
Meeting information: Thursday, November 5, Des Moines City Hall, 21630 11th Avenue S. The revenue discussion begins at 5 p.m., followed by the downtown workshop at 6 p.m.
Residents may comment on study session agenda items, with a three-minute limit. Those wishing to comment remotely must register with the City Clerk by noon Wednesday, November 4, at cityclerk@desmoineswa.gov.
Members Discussion
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