At its June 6, 2011 meeting, the Ann Arbor city council authorized a revision to the purchase option agreement with Village Green on the city-owned First and Washington site, where the developer plans to build a 9-story, 99-foot-tall building with 156 dwelling units. That revision reduces the price from $3.3 million to $3.2 million.
The break on the price is related to the “bathtub” design for the foundation of a 244-space parking deck, which makes up the first two stories of the development. The site of the development is near Allen Creek, and some kind of design strategy is required in order to deal with the possibility of water entering the parking structure. Rather than use a hybrid design that would entail pumping water out of the structure and into the city’s stormwater system on an ongoing basis, Village Green wants to use a complete bathtub-type design that will cost around $250,000. The city’s price break is thus a portion of that cost.
The parking deck is being developed in cooperation with the Ann Arbor Downtown Development Authority, which has pledged to make payments on around $9 million worth of bonds, after the structure is completed and has been issued a permit for occupancy.
The timeline put in place on Aug. 5, 2010 – when the city council most recently approved an extension of Village Green’s option to purchase the First and Washington city-owned parcel – called for Village Green to purchase the land by June 1, 2011. However, that deadline was subject to an extension of 90 days by the city administrator – an option which the interim administrator then exercised. That sets a new deadline of Aug. 30, 2011 for purchase of the parcel. The proceeds from the sale of the land were a part of the city’s financing plan for the new municipal center at Fifth and Huron, which is currently in the final stages of construction.
This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link]