Payment in Lieu of Parking Policy OK’d

At its April 2, 2012 meeting, the Ann Arbor city council approved the policy by which the minimum required parking component of developments in the downtown D1 and D2 zoning districts can be satisfied off-site from the development. The city is using the acronym CIL for “contribution in lieu” to describe the option. The idea could be familiar to some readers as PILOP, or “payment in lieu of parking.” The sole vote against the resolution came from Mike Anglin (Ward 5).

If not provided on-site, the policy allows some of the minimum required parking spaces to be provided with one of two basic strategies: (1) commit to a 15-year contract with the Ann Arbor Downtown Development Authority to purchase monthly permits in the public parking system at a rate 20% greater than the ordinary price; or (2) pay $55,000 up front before a certificate of occupancy is issued. [.pdf of parking payment in lieu policy]

The Ann Arbor DDA board had approved its recommendation of a PILOP policy over a year and half ago, at its July 7, 2010 board meeting. The DDA’s involvement in the policy formation stems from its role as operator of the city’s public parking system, under contract with the city of Ann Arbor. Part of the methodology in the CIL policy entails that the DDA will research the availability of spaces in the public parking system, when a developer applies for permits under the CIL option.

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]