At its Feb. 7, 2011 meeting, the Ann Arbor city council approved an amendment to a contract with Village Green to develop a 244-space parking deck as the first two stories of a 9-story, 99-foot-tall building, City Apartments – a 156-unit residential planned unit development (PUD) at First and Washington. Among other items, the amendment clarifies the ability of the Ann Arbor Downtown Development Authority and the city to provide oversight to the construction process.
Once the parking deck portion of the building is completed and issued a certificate of occupancy, the city of Ann Arbor has agreed to issue $9 million worth of bonds to purchase the deck, and the Ann Arbor DDA has agreed to make the payments on those bonds. The DDA board approved its part of the contract amendment at its Feb. 2, 2011 meeting.
The contract amendment comes in the context of a series of milestones that were put in place last year, when the council extended Village Green’s option to purchase the parcel at First and Washington, where City Apartments would be built. That most recent extension came at the the council’s Aug. 5, 2010 meeting, and provides a purchase option through June 1, 2011. The $3 million from the transaction would be put towards the construction fund for the city’s new municipal center, which is now largely complete and partly open for business. If the $3 million transaction does not go through, the city has said it would borrow money to cover the construction shortfall, a step that would require city council approval.
This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link]