Archive for May, 2011

At the May 23, 2011 session of its meeting that had begun the week before on May 16, the Ann Arbor city council did not address two issues it was expected to settle so that it could adopt its fiscal 2012 budget: (1) ratification of a new contract under which the Ann Arbor Downtown Development Authority would continue to manage the city’s public parking system; and (2) acceptance of prior contributions by the DDA to city projects, as payment for excess tax increment finance (TIF) revenues that have been captured in the DDA’s TIF district since 2003.

Instead of addressing those issues or any other budget issues, the council voted at the very start of the meeting to recess the meeting and continue it on May 31, 2011.

Per Ann Arbor’s city charter, the city council needs to adopt the city administrator’s proposed budget with any amendments no later than the second meeting in May. Failure to adopt the budget results in adoption of the administrator’s proposed budget by default. The city council is hoping to avoid some of the cuts to police and firefighters that are a part of that budget.

For a preview of the council meeting, see Chronicle coverage: “To Be Continued: Ann Arbor Council”

The vote to recess, taken before any other item was considered or could be introduced, could be seen as a move to prevent Stephen Kunselman (Ward 3) from proposing a resolution to take back responsibility for managing the city’s public parking system from the DDA. The Ann Arbor DDA has a current contract with the city that runs through 2015.

However, Kunselman’s proposed budget amendment would have essentially ignored that contract, and restored oversight of the city’s parking system to the city’s public services unit, by transferring all of the DDA’s parking funds to the city and eliminating two full-time employees at the DDA. [.pdf of Kunselman's resolution as proposed]

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. [Full Story]

Cecilia Mercante of Cecilia’s Pastries and Eve Aronoff of Frita Batidos and the former eve the restaurant are launching a series of gourmet cooking classes. The first one, on June 5, will feature dishes from eve: “This will be a rare opportunity to observe and interact with the chefs as they prepare for you a commemorative dinner from that long-time Ann Arbor landmark while gaining the first-hand knowledge to re-create the meal in your own homes.” The menu includes curried mussels with saffron scented biscuits and beef tenderloin chimichurri. [Source]

The gathering of Ann Arbor city council members tonight – May 23 – counts not as a separate meeting, but rather as a continuation of the same meeting the council began on May 16. Because of issues that could remain unresolved, councilmembers are likely to recess tonight’s meeting as well, to be continued on Tuesday, May 31 – after the Memorial Day holiday.

This is a preview of the council’s continued meeting, which starts at 7 p.m. in council chambers at city hall. Topics that council might address include excess TIF (tax increment finance) capture in the Ann Arbor Downtown Development Authority district, a new parking contract with the DDA, and possible amendments to the FY 2012 budget. Factors that might play a role in council’s deliberations include alternative calculations of the excess TIF capture, and issues of control regarding components of the proposed parking contract – such as giving the DDA sole authority to set parking rates. [Full Story]

An editorial in the Detroit News argues that a recent decision by the University of Michigan board of regents – recognizing the rights of graduate student research assistants to unionize – will drive up costs at the university. The decision was approved on a 6-2 vote, with the board’s two Republican regents dissenting: “The Democratic regents were elected with labor money, and that they would serve labor’s interests can be expected. The Democratic argument that the researchers are employees is particularly flimsy, given that the Michigan Employment Relations Commission previously ruled their work as researchers is indistinguishable from their role as students, and therefore they shouldn’t be considered employees. But who cares about expert rulings when you’ve got labor … [Full Story]

A video posted on YouTube highlights work by the Habitat for Humanity of Huron Valley being done in the Ypsilanti Township neighborhood near Nancy Park. The nonprofit is now focused on renovating foreclosed home, and recently hit the milestone of completing its 100th house in Washtenaw County. [Source]

Ann Arbor planning commission meeting (May 17, 2011): The most recent meeting of the Ann Arbor planning commission paved the way for the relocation of Summers-Knoll School to a larger facility on Platt Road.

Summers-Knoll, a private school for grades K-8, plans to move from its current location at 2015 Manchester Road in Ann Arbor, which housed 42 students. The new building at 2203 Platt will accommodate up to 144 students.

The move required the planning commission to grant a special exception use, allowing the office building to be converted into a school. After their deliberations, the commission voted unanimously to approve the special exception use, after some conditions were added. It was the only action item on the commission’s agenda, and no one spoke during public commentary at the meeting. [Full Story]

Ann Arbor Downtown Development Authority special board meeting (May 20, 2011): A special meeting held by the board of the DDA on Friday was meant to give some final resolution to the DDA’s side of a new contract under which it would continue to operate the city’s public parking system.

It was also intended to settle the matter of excess capture of TIF (tax increment finance) revenue in the DDA district – an issue raised by the city of Ann Arbor just before the DDA board had originally planned to vote on the new parking contract on May 2.

The board did vote on Friday to affirm a calculation by DDA staff that roughly $473,000 of excess TIF capture since 2004 would be divided among the following taxing authorities, which have a portion of their tax revenues captured in the DDA TIF district: Washtenaw County; Washtenaw Community College; and the Ann Arbor District Library.

Based on a representation at the special meeting by mayor John Hieftje – who has a statutory seat on the DDA board – the city of Ann Arbor is likely to agree to “forgive” the $711,767 in excess TIF capture that would be due to the city. More than that amount has effectively already been returned to the city, in the form of a roughly $0.5 million annual grant to the city to help make bond payments on its new municipal center, and a $1 million expenditure to demolish the old YMCA building, as well as other grants. In total, around $7.5 million has gone to the city, according to the DDA.

At Friday’s special meeting, the DDA board also voted to ratify its side of a new contract under which it would continue to operate the city’s public parking system. Among other features, the new contract would obligate the city of Ann Arbor to report regularly on how it is using public parking system revenues for street repair in the downtown, and how it is enforcing parking regulations downtown.

More controversially, the new contract would allow the DDA to set parking rates. Currently, the DDA forwards proposed rate changes to the city council, which can then veto the DDA’s proposal if it acts within 60 days. If the council does not act to block the rate change, the change is enacted. Although Hieftje said at the DDA board meeting he felt there was adequate support on the council to approve such a contract, there are currently at least five likely no votes on the 11-member council.

Also controversial is the exact percentage of gross revenues the city would receive from the public parking system. Before the issue of the excess TIF capture arose, the DDA board was poised to ratify a parking contract that would transfer 17% of gross parking revenues to the city of Ann Arbor’s general fund. At Friday’s special meeting, the resolution before the board dropped that number to 16%. Hieftje proposed an amendment to raise the figure to 17%. That amendment was attached to a contingency that the city council would provide a plan amendable to the DDA in which the city would “underwrite” the DDA’s fund balances. It was the 17% with a contingency that the DDA board passed.

So the special DDA board meeting did not settle with finality either the issue of the excess TIF capture or the DDA’s side of the parking contract. For the TIF capture issue, the relevant taxing authorities – especially the city of Ann Arbor – will need to affirm the solution that the DDA board approved.

For the parking contract issue, the DDA’s contingency means that the city council’s Monday, May 23 meeting – which is a continuation of its May 16 meeting, when it was supposed to approve the FY 2012 budget – will likely be recessed and continued again on May 31.

One possibility for how events would unfold is this: (1) May 23 – the city council ratifies the city’s side of the parking contract and provides the plan for underwriting DDA fund balances; city council also deliberates and amends FY 2012 budget but does not take a final vote on it; (2) May 24-27 – DDA schedules a special meeting to accept the parking contract contingency; and (3) May 31 – city council resumes the meeting started May 16 and previously continued on May 23, and approves FY 2012 budget. [.pdf of draft parking contract] [Full Story]

Ann Arbor park advisory commission meeting (May 17, 2011): This month’s PAC meeting focused on one topic – an update on the proposed Fuller Road Station, a large parking structure, bus depot and possible train station being planned on city-owned property near the University of Michigan’s medical campus.

Eli Cooper, the city of Ann Arbor’s transportation program manager, reprised a presentation he’s given dozens of times over the last two years to various public bodies and community groups. The newest details relate to recent federal funding earmarked for the project – $2.8 million from the Federal Rail Administration, to pay for environmental assessment and engineering at the site. Cooper admitted he had started to feel a bit like the boy who cried “Wolf!” regarding potential funding, but he noted that the “wolf” has materialized – in the form of the grant award.

The $2.8 million won’t come close to covering the estimated $121 million cost of the full project, including a rail station, which is estimated to cost about $18 million. But more than the funding itself, Cooper said, the award is significant because it indicates the FRA’s willingness to be the lead federal agency for this project.

Cooper also reported that the agreement being crafted by UM and city staff is nearing completion, and will likely be made public within a month. It will govern the construction, operation and maintenance of Fuller Road Station, and will include details about the project’s financing. Cooper told PAC that they would have the chance to review the agreement before it heads to the city council for approval. [Full Story]

In a May 13, 2011 article about the Washtenaw County apportionment commission’s redistricting decision, we incorrectly spelled the name of Eric Scheie, who spoke during public commentary. We note the error here, and have corrected the original article.

The Detroit Free Press reports on efforts by Google’s Ann Arbor office to “go green.” Projects include installing solar panels on the roof of the building – owned by McKinley Inc. – where their office is located, putting in a greenhouse in the basement to grow food for the company’s café, and building an outdoor green space. [An effort observed recently by a Chronicle reader.] From the report: “Last year, when Google was in the midst of renewing its lease at 201 S. Division St., it decided to make its office as green as possible. Its landlord, Ann Arbor-based McKinley, embraced the idea, and the two companies are sharing the costs of the green building projects.” [Source]

In a comment left on The Ann Arbor Chronicle’s website on an article about the recent redistricting of the Washtenaw County board of commissioners, Leah Gunn has announced that she does not plan to run for re-election in 2012 in the new District 8, formed out of that redistricting process. She instead intends to support fellow Democrat Yousef Rabhi.

The new redistricting plan approved earlier this month reduces the number of districts for the county board from 11 to 9. Ann Arbor will have three districts under the new plan, rather than the four districts currently in place, and the Ann Arbor residences of both Gunn and Rabhi will be located in the same new district. Gunn … [Full Story]

At a special meeting held at noon on Friday, May 20, the board of the Ann Arbor Downtown Development Authority voted to return $473,365 in taxes previously captured as part of the DDA’s tax increment finance (TIF) district. The money will be divided among three taxing authorities: Washtenaw County ($242,179); Washtenaw Community College ($156,520); and the Ann Arbor District Library ($74,666).

The decision was prompted by questions raised on Friday, April 29 by the city of Ann Arbor about the implementation of the city’s ordinance governing TIF capture for the DDA district. The ordinance includes a clause stipulating that if the growth rate in the TIF capture exceeds what is anticipated in the formal TIF plan, at least half of the excess must be divided proportionately among the taxing authorities that had some of their taxes captured in the TIF district.

The total amount of excess TIF capture that has accumulated since 2004 in the Ann Arbor DDA district is $1,185,132. The difference between that total and the combined $473,365 to be paid to Washtenaw County, WCC and AADL is $711,767. That difference is the proportionate share that would be due to the city of Ann Arbor (including the Ann Arbor Transportation Authority), which also has some of its taxes captured in the DDA TIF district. In fact, around 60% of the taxes captured in the TIF district are due to city of Ann Arbor millages.

However, Friday’s resolution included a “whereas” clause indicating that the city of Ann Arbor is likely to recognize that the $711,767 in excess TIF capture has effectively already been returned to the city, in the form of (1) a roughly $0.5 million annual grant to the city to help make bond payments on its new municipal center, and (2) a $1 million expenditure to demolish the old YMCA building, as well as other grants.

The determination of the excess was based on: (1) the “optimistic” projections in the TIF plan; (2) the combined real and personal property valuations in the district; and (3) excess growth calculated by comparing the actual growth rate between successive years against the forecast growth rate in the TIF plan between those years.

The payments to the other three taxing entities are planned to be made before June 30, making them a part of the 2011 fiscal year, which ends June 30. That will require the board to amend the FY 2011 budget.

The financial impact of the payments on the DDA led the board on Friday to review the financial component to the new contract currently being negotiated with the city under which the DDA operates Ann Arbor’s public parking system.

Before the excess TIF issue came to light, the DDA board had been prepared on May 2 to agree to a contract that would have transferred 17% of gross parking revenues to the city each year. Gross parking revenues are projected to be around $16 million in the next year.

At Friday’s meeting, the DDA board ratified its side of an agreement that would transfer 17% of gross parking revenues to the city, but added a contingency that would require the city of Ann Arbor to formalize a plan proposed by mayor John Hieftje to backstop fund balances for the DDA.

The contingency means that the city council’s May 16 budget meeting, which is continuing on May 23, will likely continue past that Monday to resume again on Tuesday, May 31. Hieftje, who also sits on the DDA board, said he felt there would be sufficient support on the council on May 23 to ratify the parking contract and formalize the backstopping plan.

The DDA will need to schedule another special meeting the week of May 23 after the council meets to resolve the contingency. The council would then be able to finalize its budget on May 31.

This brief was filed from the DDA’s offices at 150 S. Fifth Ave., where the special meeting took place. A more detailed report will follow: [link] [Full Story]

This tale of woe takes place in the ninth grade, back when ninth graders still stayed in junior high.

I had detention. I don’t remember why. But so did the prettiest girl in the class, whom I’ll call Rhonda – because that was her name.

The catch was, she was dating Benny, the captain of the football team. But, at detention, I learned there was trouble in paradise. Oh yes. They had broken up, with just four days to go before the big ninth grade dance. Tragic!

We had a fine chat when I walked her home, so when I got home, I decided, what the heck. I called her up to ask her to the dance. Sure, she said, why not.

Simple stuff! [Full Story]