At its May 2, 2011 meeting, the Ann Arbor Downtown Development Authority board delayed voting on the new parking contract under which the DDA would continue to operate the city’s public parking system.
An issue identified by the city of Ann Arbor late Friday raised questions about whether some of the tax increment financing (TIF) revenue captured since 2002 by the DDA should, in fact, be returned to the taxing authorities from which it was collected. So the board wanted additional time to clarify the issue before voting on the contract.
Added information after original publication: [At issue is the proper interpretation of the following paragraph of the city's ordinance establishing the DDA: "If the captured assessed valuation derived from new construction, and increase in value of property newly constructed or existing property improved subsequent thereto, grows at a rate faster than that anticipated in the tax increment plan, at least 50% of such additional amounts shall be divided among the taxing units in relation to their proportion of the current tax levies. If the captured assessed valuation derived from new construction grows at a rate of over twice that anticipated in the plan, all of such excess amounts over twice that anticipated shall be divided among the taxing units. Only after approval of the governmental units may these restrictions be removed."] [.pdf of Ann Arbor city ordinance establishing DDA]
The resolution to ratify the contract with the city was tabled by the board, and board members recognized that it would likely be necessary to convene a special meeting of the board, given the city’s need to approve its budget on May 16. [Previous Chronicle coverage: "Column: Ann Arbor Parking – Share THIS!"]
This brief was filed from the DDA offices at 150 S. Fifth Ave., where the board meets. A more detailed report will follow: [link]