The Des Moines City Council gave final approval to re-develop the old downtown Younkers building at their Monday meeting.
The building located at 713 Walnut will be transformed into a residential development, with retail space on the ground floor.
The approved plan turns the upper floors into 120 affordable housing units.
The project is expected to cost $35 million, with $3 million is grants coming from the city. Construction could start as early as spring of 2013.