City recommends $10M for Invest DSM and expands ION program funding

A bold proposal to double the city's investment in the Invest DSM initiative took center stage at the City of Des Moines Council Work Session on February 10, 2025. City leaders are recommending an increase from $5 million to $10 million, matched by Polk County, to further bolster economic development efforts in the area.

The discussion highlighted the proven success of Invest DSM, with officials asserting that its impact is "statistically unimpeachable" and "empirically sound." This strong endorsement sets the stage for a significant expansion of the program, with calls to create more districts to enhance its reach and effectiveness.

In addition to the Invest DSM initiative, the council is looking to grow the ION program, which focuses on revitalizing neighborhoods. Officials suggested that the ION program could see a growth of approximately 2.3 times its current scale, reflecting confidence in its potential to address local challenges.

However, the conversation also revealed some hurdles. While there are plans for expansion, officials acknowledged that the marketing efforts for ION have slowed down, which could impact the readiness of projects that would utilize the proposed funding. The relationship between property maintenance codes and the ION program was also discussed, indicating that further financial support is necessary before moving forward.

To maximize resources, the council is considering a reallocation of funds, including a potential rethink of the $11 million abatement strategy. This could involve redirecting capital improvement project (CIP) and sales tax funding, as well as possibly enlarging tax increment financing (TIF) based on market conditions.

The meeting concluded with a vision for "whole block redevelopment," which aims to integrate various funding sources to tackle blight and enhance community development. As these discussions progress, the city is poised to take significant steps toward revitalizing Des Moines and fostering economic growth.