Archive for April, 2012

In an article that reviewed a range of Ann Arbor Downtown Development Authority issues, we erroneously characterized a current proposal from Dan Ketelaar for support from the DDA for his 618 S. Main project – because our description was based on an earlier version of the proposal, not the more recent version that was discussed at some meetings the article covered.

The current proposal totals just the $1.3 million that is mentioned in the article as coming after the project’s completion – from part of the taxes the DDA would ordinarily capture on the additional value of the built project. The initial, upfront grant request described in the article is no longer a part of the proposal.

We acknowledge the mistake here … [Full Story]

At its April 16, 2012 meeting, the Ann Arbor city council unanimously voted to impose a 180-day moratorium on two things: (1) city staff consideration of applications to erect digital billboards; and (2) the erection of digital billboards.

Coming under the temporary moratoria are “billboards commonly referred to as ‘electronic message centers,’ ‘electronic message boards,’ ‘changeable electronic variable message signs,’ or any billboard containing LEDs, LCDs, plasma displays, or any similar technology to project an illuminated image that can be caused to move or change, or to appear to move or change, by a method other than physically removing and replacing the sign or its components, including by digital or electronic input.”

The resolution passed by the city council acknowledges that such … [Full Story]

The Ann Arbor District Library board is continuing its consideration of a possible new or renovated downtown building. At its April 16, 2012 meeting, the group received a report of recent survey results that gauged support for a millage to fund such a project.

The survey showed that if a vote were taken now – on funding a $65 million renovation or new construction project with a property tax increase of 0.69 mills – 45% of survey respondents would vote yes, and another 15% would lean toward a yes vote. That compares with a total 37% who said they would either vote no or lean toward no. [.pdf of survey results]

The survey also asked about support if the project were scaled … [Full Story]

At its April 16, 2012 meeting, the Ann Arbor District Library board reviewed a draft of the budget for the coming fiscal year, beginning July 1, 2012 through June 30, 2013. [.pdf of draft budget]

Based on collection of a 1.55 mill tax, the budget anticipates tax revenues of $11.203 million for fiscal 2012-13, compared to the current budget projection of $11.091 million for fiscal 2011-12. That represents a 1% increase in tax revenues. The overall FY 2012-13 budget revenues – including tax revenue, state aid and other revenue sources – is $12.254 million, compared to the current budget of $12.191 million.

On the expense side, employee benefits are budgeted to increase from $1.476 million this year to $1.565 million in … [Full Story]

At its April 16, 2012 meeting, the Ann Arbor city council approved four different resolutions in connection with the completion of an environmental assessment of a proposed 800-foot lengthening of the runway at Ann Arbor’s municipal airport. The main resolution was approved on a 7-4 vote. Voting for a grant contract with the Michigan Dept. of Transportation were Sandi Smith (Ward 1), Tony Derezinski (Ward 2), Christopher Taylor (Ward 3), Margie Teall (Ward 4), Marcia Higgins (Ward 4), Carsten Hohnke (Ward 5) and Mike Anglin (Ward 5). Opposing it were Sabra Briere (Ward 1), Jane Lumm (Ward 2), Stephen Kunselman (Ward 3) and mayor John Hieftje.

The city council had initially authorized funding for the assessment project at its Feb. 2, 2009 … [Full Story]

At its April 16, 2012 meeting, the Ann Arbor city council authorized a second large contract for street resurfacing work this season – $4,054,599 with Barrett Paving Materials, Inc. At its previous meeting on April 2, 2012 council had authorized a $3.6 million contract with Barrett for an initial set of streets to be resurfaced.

The second set of streets includes portions of the following: S. Seventh Street, Mt. Pleasant Avenue, Park Drive, Mt Vernon Avenue, Manhattan Drive, Meadowbrook Avenue, Martha Avenue, Palomar Drive, Catalina Avenue, Eton Court, S. Forest Avenue, Vinewood Blvd., Dorset Road, Berkshire Road, Woodside Road, Londonderry Road, Tremmel Avenue, Page Court, Pine Valley Court, Esch Avenue, and Esch Court.

The project includes a $405,000 contingency.

Also at the … [Full Story]

At its April 16, 2012 meeting, the Ann Arbor city council unanimously approved a site plan for a new Tim Hortons restaurant at 3965 S. State St. The site plan had received a unanimous recommendation for approval by the Ann Arbor planning commission at its March 6, 2012 meeting. The site is located on the east side of the street, near the intersection of State and Ellsworth.

The plan calls for demolishing a vacant building on the 2.23-acre site where previous restaurants, including Enzo’s and Gallagher’s, were located. In its place, a one-story 1,953-square-foot restaurant with drive-thru facilities would be built on a 1.18-acre site divided from the current parcel. The building would face West Ellsworth and use an existing shared drive on South … [Full Story]

At its April 16, 2012 meeting, the Ann Arbor city council voted to set a public hearing for May 7 on a tax abatement for Sakti3 – a battery technology spinoff from the University of Michigan. Sakti3 is led by UM professor Ann Marie Sastry.

According to the staff memo accompanying the resolution, Sakti3 is requesting an abatement on $151,433 of real property improvements and $1,374,861 of new personal property. If approved, it would reduce Sakti3 Inc.’s annual tax bill by $23,200 for each of three years in the recommended abatement period. The new building improvements and personal property investments would generate about $29,500 in property taxes for each year during the abatement period.

Previously, the council voted on March 21, … [Full Story]

At its April 16, 2012 meeting, the Ann Arbor city council voted to award a five-year contract for independent auditing work to The Rehmann Group – based on its $344,500 bid. The contract allows for two one-year extensions.

The recommendation to select Rehmann came from the city council’s audit committee. As The Chronicle previously reported, “… next up for committee members in 2012 will be working to come up with a recommendation on the selection of an auditing firm – the contract with Abraham & Gaffney expires with this year’s audit.”

Abraham & Gaffney, the firm that the city has used for the last few years, also bid on the work. The Abraham & Gaffney bid came in at $387,500. Two other firms … [Full Story]

At its April 16, 2012  meeting, the Ann Arbor city council gave initial approval to six separate rezoning requests associated with annexation into the city of Ann Arbor from Scio Township. The zoning change in all cases is from the township to a residential category.

Five of the properties were annexed into the city on Oct. 3, 2011 – in connection with the expansion of a well-prohibition zone due to 1,4 dioxane groundwater contamination caused by the Pall Corp.’s Wagner Road facility, formerly owned by Gelman Sciences. Those five properties are: 305 Pinewood St.; 3225 Dexter Rd.; 427 Barber Ave.; 545 Allison Dr.; 3249 Dexter Rd.

Annexation into the city allows the properties to connect to city of Ann Arbor water services. Pall … [Full Story]

At the Ann Arbor city council’s April 16, 2012 meeting, city administrator Steve Powers presented the Ann Arbor city council with his proposed budget for fiscal year 2013, which begins on July 1, 2012. He described the current situation as one where the city has emerged from the crisis of the last few years and is ready to return its focus to “sustaining our future.”

The total expenditure budget for FY 2013 – across all funds, including utilities, solid waste and the like – is proposed at $404,900,312 in revenues against $382,172,603 in expenses.

The proposed budget for the much smaller general fund – out of which the city pays for services like fire and police, planning, financial services, administration, parks and recreation – shows $79,193,112 in revenues against expenses totaling $78,869,750 for a planned surplus of $323,362. The following year, FY 2014, is currently projected to be basically a break-even year.

That’s similar to the picture that chief financial officer Tom Crawford had sketched out for the city council at a Feb. 13, 2012 work session. But he’d projected close to $1 million in net surplus – which included $1.6 million in surplus on the recurring revenue and recurring expenses side.

So the city administrator’s budget includes some additional one-time, non-recurring expenses as well as some additional costs, compared to Crawford’s February sketch. An example of a greater recurring cost is the settlement of the firefighters union contract. A more frequent mowing cycle in the parks – every 14 days instead of every 19 days – is an additional cost. An example of an additional non-recurring cost is an allocation for the local matching portion of the High Speed Intercity Rail project – the city’s current nomenclature for the Fuller Road Station, while the final site determination of such a station is still pending.

With some notable exceptions in police and fire, the proposed FY 2013 budget mostly reflects the planning done a year ago when the FY 2012 budget was adopted. (Although the city of Ann Arbor adopts annual budgets, it plans in two-year cycles.)

Highlights of the proposed FY 2013 budget that are different from the two-year plan include the addition of one police officer instead of eliminating nine positions (for an additional cost of $1,038,167). Staffing for the police department as a whole, however, will include a reduction of 19 dispatcher positions, because the city is now contracting with Washtenaw County for dispatch services. In the city administrator’s budget message to the council, the savings due to the outsourcing of dispatch operations are identified as $1,238,297. Also identified in the budget message are $477,000 in savings from labor contract settlements with the police unions.

The proposed budget also calls for maintaining the budgeted staffing for the fire department at 82 firefighters, instead of reducing firefighter positions by five positions (for an additional cost of $584,000). The recent contract settlement with the firefighters union is listed as a $229,000 additional cost – firefighters are being paid to work more hours. However, $657,000 in additional revenues to the fire department are also identified – due primarily to increased inspections and the fees associated with that. At the March 12 work session when fire chief Chuck Hubbard presented a new, three-station coverage model to the city council, he stated that he felt the ideal number of firefighters for the Ann Arbor department would be 88 firefighters.

In terms of utility rates, the drinking water, sanitary sewer, and stormwater fees are proposed to increase between 3.25% to 4.25%.

According to Ann Arbor’s city charter, the city administrator must present the city council with a proposed budget for the next fiscal year at its second meeting in April, which fell on April 16 this year. The city council then must make any amendments to the proposed budget by the second meeting in May. This year that falls on May 21. Public hearings on the budget and associated fee changes will be held at the council’s May 7 meeting. [Full Story]

At its April 16, 2012 meeting, the Ann Arbor city council gave initial approval to a proposal from AAA Michigan to rezone half of a parcel located at 1200 S. Main to P (parking). To take effect, the initial approval from the city council will need to be followed by a second and final approval following a public hearing at a subsequent meeting.

The rezoning to P (parking) is part of a two-parcel site plan proposal – for which the city planning commission provided a positive recommendation at its March 6, 2012 meeting. At that meeting, the commission took two votes on the 1200 S. Main parcel – the site plan and the rezoning proposal. And on both votes, the … [Full Story]

At its April 16, 2012 meeting, the Ann Arbor city council voted unanimously to reject a request to conditionally rezone 1320 S. University – from D2 (downtown interface) to D1 (downtown core).

The conditions on the D1 designation would have included restrictions on height and floor area that are less than what’s allowed in “unconditioned” D1. For example, the by-right height limit in D1 is 180 feet, but one condition the owner of the property – Philip Sotiroff – wanted to place on the property was a 145-foot height limit.

That 145-foot limit, however, is more than twice the limit of the parcel’s current D2 zoning, which allows buildings only as tall as 60 feet. Currently at the site – on the south … [Full Story]

At its April 16, 2012 meeting, the Ann Arbor city council gave approval to changes to the employee retirement system to accommodate recent changes to the collective bargaining agreement with its police command officers union and firefighters union. The council also gave final approval to changes to the retirement health care benefits to reflect changes to those collectively bargained agreements.

Changes to the retirement system include: (1) increasing the pension contribution of command officer members to 6% from 5%; (2) implementing a pick-up feature as permitted by the Internal Revenue Code for the pension contributions of firefighters and command officers, converting their 6% pre-tax contribution to a 6% post-tax contribution; (3) increasing the vesting and final average compensation requirements for firefighters hired … [Full Story]

At its April 16, 2012 meeting, the Ann Arbor city council gave final approval to a change in its traffic ordinance to adopt a provision of the Michigan Vehicle Code – which establishes driving with a blood alcohol content (BAC) of more than 0.17 as a separate offense from operating under the influence. The council had given its initial approval to the ordinance change on April 2.

The Michigan legislature had previously changed the MVC, which Ann Arbor has adopted, to include the separate charge for the very high BAC of 0.17. However, the legislature did not at that time change the Home Rule Cities Act to allow cities to impose the greater penalty of 180 days in jail and/or $700 fine that comes with … [Full Story]

Laurence Thomas isn’t the world’s best salesman. Really – trying to get this guy to talk about Third Wednesday, the literary journal he edits, was like pulling teeth. You’d think he was a poet or something.

As it turns out, all you need to know about this well-kept secret can be found in its pages.

Thomas – who is a poet, as well as an essayist and a writer of fiction – was born in Ypsilanti 85 years ago. A Hopwood Award winner for essay and poetry at the University of Michigan in the early 1950s, he had a teaching career that took him as far as Uganda, Saudi Arabia and Costa Rica before he returned to his hometown, where he lives today. Third Wednesday was an outgrowth of a monthly poetry group and of his friendship with the late Dearborn Heights attorney and magistrate Michael J. Barney, who was also a published poet and founder of Gravity Presses (lest we all float away) Inc.

Barney, “a regular attendant” of the group, Thomas says, had begun publishing through Gravity Presses a local literary magazine called Now Here Nowhere. Only a handful of issues came out of the project before Barney became ill (he died of cancer in 2006). Third Wednesday picked up where Now Here Nowhere left off, Thomas says, and is in great part an homage to Barney’s memory.

From his home office, Thomas corrals the input of associate editors both local and far-flung (one of them lives in Tajikistan!) who review submissions of poetry, fiction and visual art to produce a quarterly collection. Third Wednesday casts a wider net than did its predecessor and draws submissions – “two or three a day,” Thomas says – from around the country as well as Michigan. The current issue – Winter 2012 – publishes poets from Ann Arbor to Sofia, Bulgaria. [Full Story]

The Wall Street Journal reports on how health care providers are shifting their treatments to focus on quality-of-life outcomes for patients. The article quotes Noreen Clark, director of the University of Michigan’s Center for Managing Chronic Disease: “Quality of life happens to be the element that is most important in motivating people to deal with an illness. People aren’t motivated to follow their clinical regimen if in fact it doesn’t improve the way they function and get along with others and manage day to day.” [Source]

Writing on his Common Monkeyflower blog, Richard Murphy makes a proposal that he describes as a starting point for discussion: Ypsilanti “should hand out $10,000 cash grants to people who purchase, fix up, and occupy vacant and foreclosed homes. Why? Because it’s a net fiscal gain for the city.” Murphy uses properties owned by Ypsilanti landlord David Kircher as a case study for this proposal. His conclusion: “Even if we’re only looking at tax revenues, the city can expect between a 10% and 40% annual return on this investment.” [Source]

On its April 16, 2012 meeting agenda, the Ann Arbor city council recorded in its written communications a memo from its financial services staff about the city’s living wage. The wage, as defined by city ordinance Chapter 23, Section 1:815, will be raised slightly in order to conform with the ordinance.

The new wage is set at $12.17/hour for those employers paying health insurance and $13.57/hour for those employers not paying health insurance. The previous minimum hourly rates were $11.83/hour for those employers paying health insurance, and $13.19/hour for those employers not paying health insurance. The wage is evaluated each year, and this year is the second year in a row that the wage will increase. The living wage was raised to last year’s … [Full Story]

Ann Arbor Downtown Development Authority board meeting (April 4, 2012): The absence of four out of 12 DDA board members had no effect on any outcomes at the meeting, because the board did not have resolutions on its agenda.

The meeting took place against the backdrop of the DDA’s budget presentation to the city council the following week – on April 9 – and various other ongoing projects. So the board’s agenda consisted of a collection of regular committee updates and status reports.

Those included an update on the Connecting William Street project – an initiative to explore alternative uses of a limited set of city-owned parcels currently used for parking. The DDA embarked on the project at the direction of the Ann Arbor city council in a resolution it approved about a year ago – on April 4, 2011. The DDA had wanted the ability to lead that exploration, partly in exchange for renegotiating a contract under which the DDA operates the city’s public parking system. That new contract was finally settled on May 31, 2011, and features a clause that provides the city of Ann Arbor 17% of gross revenues out of the public parking system.

Total parking revenues for fiscal year 2013 are projected at around $18 million in the budget approved by the DDA board at its meeting the previous month, on March 7, 2012. That budget was presented by the DDA at a city council work session on April 9. The budget presentation featured a review of the DDA’s history of infrastructure investment and impact on the downtown district since its formation in 1982 – over $100 million of DDA investment, accompanied by $300 million in private investment and an increase in taxable value from $89 million to $386 million.

Another work session highlight was a series of questions posed by councilmember Stephen Kunselman (Ward 3) about compliance with Ann Arbor’s ordinance that regulates how the tax increment finance (TIF) tax capture works for the DDA district. Last year, the city’s financial staff pointed to Chapter 7 of the city code, which appears to limit the amount of taxes the DDA can “capture” from the other taxing units in the district. The DDA board agreed with the city’s interpretation, and returned $473,000 in combined TIF revenues to the Ann Arbor District Library, Washtenaw Community College and Washtenaw County.

Subsequently, the DDA reversed its position and gave a different interpretation to Chapter 7. Responding to Kunselman at the work session, DDA board chair (and retired Washtenaw County administrator) Bob Guenzel told Kunselman that the DDA had informed other taxing units of the DDA’s revised position, which was not to say they agreed with the DDA, he said.

Also the focus of TIF monies captured by the DDA is a proposed development at 618 S. Main, which received a positive recommendation from the Ann Arbor planning commission on Jan. 19, 2012. The 7-story building would include 190 units for 231 bedrooms, plus two levels of parking for 121 vehicles. The developer of the project, Dan Ketelaar, has estimated that the tax on the increment between the current valuation of the property and the final built project would yield around $250,000 a year in TIF revenue to the DDA.

Ketelaar is was initially asking that in addition to reimbursement of certain costs (at around $1.4 million) within six months of the project’s completion, the DDA pledge 80% of its TIF capture money for six years – an additional $1.3 million – to support certain aspects of the project in connection with the state’s Community Revitalization Program. But subsequently, Ketelaar revised the request to include just the TIF reimbursement. So the total request, over six years, is $1.3 million. The CRP is the successor to the brownfield and historic preservation tax credit program. In order to approve the tax credit, the state would like to see a commensurate commitment from local units – and Ketelaar is proposing that it take the form of the DDA’s support.

Ketelaar has pitched his idea to the DDA board on several occasions now – first at the full board meeting on Feb. 1, 2012, and at three subsequent DDA partnerships committee meetings. DDA board members are cautious about the precedent that such a pledge might set, and the appropriateness of the DDA’s role at this early stage in the project. (Ketelaar has not yet acquired the land.) At the March 28 partnerships committee meeting, DDA board member Newcombe Clark expressed concern that, depending on the precise role defined for the DDA’s participation, the DDA could effectively be artificially inflating land values.

This report takes a look in more detail at Connecting William Street, the DDA’s April 9 budget presentation to the city council, the lingering TIF capture issue, and the 618 S. Main project, as well as odds and ends from the April 4 DDA board meeting. [Full Story]

The Southeast Michigan Land Conservancy, Washtenaw County’s natural areas preservation program, and the city of Ann Arbor greenbelt program have partnered in a deal to preserve 100.33 acres of land that will become part of the Superior Greenway, a corridor of more than 2,000 acres of protected land between Ann Arbor and Detroit. The property is located in Superior Township along the east side of Prospect Road, south of Cherry Hill Road. [.pdf of map showing property location]

The property becomes part of 1,237 acres of contiguous protected land, including 710 acres that are open to the public. It includes a section of Fowler Creek (a tributary of the Rouge River) and a woodlot that’s part of … [Full Story]