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Editor’s note: This “Live Updates” coverage of the Ann Arbor city council’s June 2, 2014 meeting includes all the material from an earlier preview article published last week. The intent is to facilitate easier navigation from the live updates section to background material already in this file.

The council’s first meeting after adopting the budget for fiscal year 2015 – which was approved on May 19, 2014 – features a housekeeping adjustment for the current year’s budget, so that expenditures don’t exceed allocations.

But the June 2 meeting agenda is dominated by items related to the physical attributes and layout of the city. Several items deal with city-owned physical assets, while several more involve land use and planning.

Possibly one of the more controversial agenda items related to physical infrastructure – and future development in the city – is a contract extension with CDM Smith Inc. for work related to the city’s footing drain disconnection (FDD) program. While the city council suspended the program in certain areas of the city in 2012, it continued in other areas, backed by the city’s ordinance under which the city can require residents to disconnect their footing drains from the sanitary sewer system.

Also not suspended was the city’s developer offset mitigation program, which requires developers to offset the increased flow from new construction into the sanitary sewer system. The vote on the CDM Smith Inc. contract extension was postponed from the council’s May 5 meeting. The dollar amount of the contract extension has been substantially reduced in the meantime – from about $750,000 to $143,000.

Part of the backdrop of the CDM Smith contract extension is a lawsuit that’s been filed against the city, challenging the legal foundation of the footing drain disconnect ordinance. The city sought to remove the case from state court to the federal system, but at a hearing on the matter this week, a federal judge indicated he’d be remanding the case back to the Washtenaw County 22nd circuit court.

City assets on the June 2 agenda include trees – as the council will be asked to approve the city’s urban and community forest management plan. The council will also consider a resolution on the city’s possibly most recognizable asset – the city hall building. The resolution would remove a $4 million renovation of city hall (a “reskinning”) from the city’s capital improvements plan for 2017 and 2018. This resolution was postponed from the council’s May 19 meeting.

Another city-owned asset on the agenda is the Library Lane underground parking garage. The council has already directed the city administrator to engage a real estate broker to test the market for the development rights for the surface of the garage. The resolution on the June 2 agenda, which was postponed at the council’s April 7 meeting, would set a policy to deposit 50% of the net proceeds from the sale of the development rights into the city’s affordable housing trust fund.

Land use and planning items on the June 2 agenda include a roughly $300,000 contract for study of the State Street transportation corridor. Related to transportation infrastructure, the council will also be asked to approve resolutions that move along the process of special assessing property owners on Stone School Road for the cost of installing a sidewalk on the west side of the road in connection with a road reconstruction project.

Also related to land use, three Ann Arbor housing commission properties will be given initial consideration for rezoning. A site plan and associated rezoning for the Delta Gamma house will be given final consideration. Also up for final consideration is a revision to the ordinance regulating drive-thrus. Councilmembers will also consider the site plan for a new Ruth’s Chris restaurant to be located downtown on South Fourth Avenue.

A rate increase for Ann Arbor water, sewer and stormwater rates is on the June 2 agenda for final approval.

Two items connected to parks and recreation appear on the agenda. One is approval of the receipt of funding for a program that helps Bridge cardholders purchase local produce at the farmers market. The second item is approval of a five-year agreement with the Community Action Network to continue operating the city’s Northside and Bryant community centers.

The council will also be considering a resolution in support of the local development finance authority’s application to the Michigan Economic Development Corp. for a possible 15-year extension of the arrangement under which the LDFA captures taxes. The captured taxes are used to fund a business accelerator that’s operated by Ann Arbor SPARK through a contract with the LDFA. Without an extension, the LDFA would end in 2018.

This article includes a more detailed preview of many of these agenda items. More details on other agenda items are available on the city’s online Legistar system. The meeting proceedings can be followed Monday evening live on Channel 16, streamed online by Community Television Network starting at 7 p.m.

The Chronicle will be filing live updates from city council chambers during the meeting, published in this article below the preview material. Click here to skip the preview section and go directly to the live updates. The meeting is scheduled to start at 7 p.m. at city hall, 301 E. Huron. [Full Story]

Ann Arbor planning commission meeting (Oct. 15, 2013): Planning commissioners continued a discussion that began at their Oct. 8 working session over proposed changes to downtown zoning. But they took no action and will pick up the topic at their next meeting, on Nov. 6.

Questions and comments covered a range of issues, including potential conflict of interest over a lot next to city hall that’s owned by the University of Michigan Credit Union. Five commissioners are UMCU members, and the credit union president objects to a proposed rezoning of the site. Other discussion points included affordable housing premiums, the use of diagonals as a tool for influencing the shape of tall buildings, and concerns over rezoning public land.

Ten people spoke during a public hearing on the zoning review. Before the hearing began, planning commission chair Kirk Westphal stated that the hearing would likely continue at a future meeting, but that speakers would be allowed only one turn during the entire hearing – either that night, or at a subsequent meeting. Midway through the hearing, Sabra Briere raised an objection to Westphal’s ruling, and commissioners spent about 20 minutes debating the issue. The commission ultimately voted to allow for people to speak more than once when the public hearing is continued, over the objection of Westphal, Diane Giannola and Wendy Woods.

Consultant Erin Perdu of ENP & Associates attended the Oct. 15 meeting and answered questions from commissioners, but her contract for this project has now expired. Planning manager Wendy Rampson indicated that any additional work from Perdu would require city council approval.

In addition to the downtown zoning review, two development projects were on the Oct. 15 agenda. Commissioners recommended approval of an three-floor addition to the Running Fit building at East Liberty and South Fourth. The expansion will create six residential units.

During a public hearing on the project, Ali Almiri – who owns the adjacent building to the west at 119 E. Liberty – raised concerns that three bedroom windows in his building’s residential rental units would be blocked by this new structure. He and his attorney urged that the new project be required to accommodate those existing windows. The issue will continue to be investigated by planning staff, building staff and possibly the city attorney’s office prior to the project’s consideration by the city council.

Another proposal – related to plans for two new restaurants at Briarwood Mall, on the east side of Macy’s – was postponed, because of several outstanding issues that still need to be resolved.

During public commentary, Alex Perlman, a co-owner of the food carts The Beet Box and Cheese Dream, highlighted a project at 1215 S. University – the former location of Pinball Pete’s, which burned down in 2009. The project, called Eat the Hub, would repurpose the space as a temporary food cart yard that would accommodate between three to six carts. Perlman noted that current city ordinances “don’t reflect the ever-changing landscape that mobile food businesses require.” He said he’d appreciate any help to move this project forward. [Full Story]

Editor’s note: A forum hosted by the Ann Arbor Democratic Party on June 8, 2013 drew six of seven total city council candidates who’ve qualified for the primary ballot.

In the Aug. 6 Democratic primary, only two wards offer contested races. In Ward 3, Democratic voters will choose between incumbent Stephen Kunselman and Julie Grand. Ward 4 voters will have a choice between incumbent Marcia Higgins and Jack Eaton. Higgins was reported to have been sick and was unable to attend.

The format of the event eventually allowed other candidates who are unopposed in the Democratic primary to participate: Mike Anglin (Ward 5 incumbent), Sabra Briere (Ward 1 incumbent), and Kirk Westphal, who’s challenging incumbent Jane Lumm in Ward 2. Lumm, who was elected to the council as an independent, was in the audience at the forum but didn’t participate. The event was held at the Ann Arbor Community Center on North Main Street. The Chronicle’s coverage is presented in a multiple-part series, based on common threads that formed directly in response to questions posed to the candidates, or that cut across multiple responses.

This final installment of coverage from the June 8 city council candidate forum focuses on the remarks candidates made that were overtly about the campaign – to the extent that those remarks weren’t included in one of the previous reports on this forum.

The fact that the forum was hosted by the Ann Arbor Democratic Party meant that party politics was an obvious potential topic. State representative Jeff Irwin set that tone early as he addressed the audience with a legislative update. And Ward 2 candidate Kirk Westphal, who’ll face independent Jane Lumm in the general election, stressed that he is a Democrat.

Part 1 of this series focused on the candidates’ concept of and connection to Ann Arbor, while Part 2 looked at their personal styles of engagement and views of how the council interacts. Part 3 reported on the theme of connections, including physical connections like transportation, as well as how people are connected to local government. And Part 4 covered the theme of downtown and its role in the life of the city. Chronicle election coverage is tagged with “2013 primary election.”

The League of Women Voters of the Ann Arbor Area will be holding its candidate forums for Ward 3 and Ward 4 primaries on July 10 at the studios of Community Television Network. Those forums will be broadcast on CTN’s Channel 19 and will be available online. [Full Story]

The Ann Arbor city council’s March 4, 2013 agenda includes a proposed change to the city ordinance (Chapter 7) governing the Ann Arbor Downtown Development Authority. I think most of those ordinance amendments have considerable merit, and warrant the council’s consideration. But it’s possible that the amendments themselves won’t receive their due consideration, because they’ll be dismissed as politically motivated.

The Chapter 7 amendments are being proposed by Stephen Kunselman (Ward 3), who’s been joined by Sumi Kailasapathy (Ward 1) in sponsoring them. Kailasapathy’s co-sponsorship might help only incrementally to buffer the proposal against criticism that they’re motivated by Kunselman’s personal political aspirations.

On that theory, Kunselman is proposing revisions to Chapter 7 in an effort to raise his profile – in anticipation of a possible mayoral candidacy in 2014, and to shore up support for his Ward 3 re-election campaign his year. Given that he took out petitions for the 2013 Democratic primary on Nov. 3, 2012 – before the Nov. 6 general election – and collected signatures outside the polls, it’s pretty clear that he’s eager to seek re-election to his council seat. And last time around, in 2011, he campaigned as much against the DDA as he did against either of his two opponents. Kunselman is quoted in the February 2013 issue of the Ann Arbor Observer saying that if mayor John Hieftje runs for re-election next year, he’ll run against Hieftje.

However, on the theory that these proposed amendments are all about Stephen Kunselman and not about good public policy, I figure it’s also reasonable to toss in another possibility. Perhaps Kunselman is trying to raise his profile enough to win local blog Damn Arbor’s current poll as “most attractive councilmember.” The poll includes Kunselman as one of just four nominated councilmembers. It’s not clear to me if the voting is meant to include sartorial choices, but if it does, Kunselman could objectively be considered a natty dresser.

All kidding aside, it would be easy and convenient to dismiss the Chapter 7 amendments as a political ploy, and save the work of understanding some gnarly tax calculations. [You'll have a head start on this if you've read my previous column on the issue: "Tax Capture is a Varsity Sport."]

But I think at least some of the proposed changes to Chapter 7 have considerable merit, independent of Kunselman’s political ambitions. Millions of dollars are at stake. As councilmembers give this proposal initial consideration on March 4, I hope they focus on the tax-related amendments. [Full Story]

After a Feb. 11, 2013 budget work session that included separate presentations on the city’s capital improvements plan (CIP) and the Ann Arbor Housing Commission (AAHC), both of these topics came up again briefly at the city council’s most recent regular meeting.

During communications time for the council’s meeting on Feb. 19, 2013, Stephen Kunselman (Ward 3) expressed his view that the CIP should start including the 360 units of public housing managed by the AAHC.

Kunselman’s argument for future inclusion of AAHC properties in the city’s CIP is based in part on the fact that the city of Ann Arbor currently holds the deeds to those properties. But his broader point is that he’s opposed to the city relinquishing title to the properties – as part of a proposal made to the council by AAHC executive director Jennifer L. Hall. Hall has served in that capacity for about a year, and began her Feb. 11 presentation at the council work session with an overview of improvements that AAHC has achieved since she took the post.

Hall’s proposal stems from a need to cover an estimated $500,000 per year funding gap for needed capital investments, coupled with a perceived shift in priorities by the U.S. Dept. of Housing and Urban Development (HUD) in its funding strategy. That shift is somewhat away from subsidized public housing, where rent is subsidized in units owned by a housing commission. [Ann Arbor's situation is apparently unique – because the city, not the AAHC, holds the deeds.] While HUD still allocates several billion dollars nationally for public housing, it subsidizes even more in programs that are based on vouchers. And based on the last three years, the trend is toward more funding on the federal level for vouchers than for public housing.

Some HUD vouchers are tied to a tenant – a person. A potential tenant can take that voucher to a private landlord – and it’s the tenant who receives the rent subsidy, wherever that tenant is able to rent a place to live. Other HUD vouchers are tied instead to privately-owned property, and whoever lives in that private project receives the rent subsidy.

The strategy that Hall will be asking the council to authorize is one that converts AAHC properties to part private ownership, in order to take advantage of project-based HUD vouchers. The private ownership of the AAHC properties will also allow the possible use of tax credit financing to pay for needed capital investments – roofs, boilers, plumbing and the like.

The conversion to project-based vouchers would take place under HUD’s Rental Assistance Demonstration (RAD) program. To set the stage for that, the board of the AAHC selected a co-developer at its Jan. 10, 2013 meeting: Norstar Development USA.

The council would need to take two specific steps in order to proceed with the RAD: (1) approve the contingent transfer of the city-owned AAHC properties to the AAHC; and (2) approve a payment in lieu of taxes (PILOT) for the properties so that they’d owe just $1/unit in property tax per year. As city-owned properties, no property tax is currently owed. Without the PILOT provision, taxes would be owed. Requests to take those steps are expected to come to the council in March. March will also be a period during which public hearings will take place on this issue.

Although Kunselman expressed clear opposition to the idea of transferring the deeds, and Mike Anglin (Ward 5) joined him in expressing significant skepticism, other councilmembers were more positive. They still had several questions about the complexities and the risks associated with the RAD program. [For more background on the AAHC’s efforts to prepare for the RAD program, see Chronicle coverage: “Housing Commission Eyes Major Transition.”]

The Feb. 11 budget work session included the 15th District Court and the capital improvements plan (CIP). A session held on Feb. 25 covered the fund-by-fund budget picture for the next two years. Presentations on those topics are covered in separate Chronicle reports. The council’s discussion of its budget priorities – identified at a planning retreat late last year – is expected to begin at a March 11 work session. [Full Story]

Ann Arbor city council meeting (Feb. 19, 2013): Land use was the predominant theme of the meeting, linking several different agenda items – but the council chambers were filled mostly with people interested in just one of them.

The item drawing that interest was a proposed six-month moratorium on site plan review by the city for projects in the D1 (downtown core) zoning district. After holding a nearly one-hour closed session to review written legal advice from the city attorney’s office, the council decided to postpone the issue until March 4, its next regular meeting.

Exceptions to the proposed moratorium are provided for projects that have already received a recommendation of approval from the city’s planning commission. While that exception applies to a large residential project at 624 Church St., it does not exempt a larger project at 413 E. Huron. Planning staff had concluded that the East Huron project meets all the zoning requirements. But the planning commission’s vote on 413 E. Huron was only 5-3 in favor of recommending approval – one vote short of the six it needed. Ordinarily developers can, on their own initiative, bring a site plan to the city council for action, even without the planning commission’s recommendation.

If the resolution is enacted, then during the period of the moratorium, the planning commission would be directed to review the D1 zoning standards against site plans submitted since 2009, when new zoning regulations were established. The commission would be asked to make recommendations by June 4, its first meeting in June. The postponed resolution states that the council is supposed to take any action by Aug. 19, its second meeting in August.

Legal counsel for the 413 E. Huron developer addressed the council, intimating that if a moratorium were enacted, then a lawsuit would be filed against the city. Attorney Susan Friedlaender expressed skepticism about a provision in the postponed resolution that provided a way for an aggrieved party to have a hearing before the council. The council will take up the moratorium again on March 4.

Also postponed was a related resolution to reconvene the design guidelines task force, which would be asked to recommend improvements in the design review process. That resolution also will be taken up on March 4.

In another item related to downtown land development, the council completed an accounting step – establishing a project budget – in connection with roughly $9 million of bonds recently sold by the city. Those bonds are funding the public parking deck portion of the private City Apartments project now under construction at First and Washington. The Ann Arbor Downtown Development Authority will be making the bond payments.

Another land use issue postponed by the council was the proposed purchase of a parcel immediately adjacent to the Bluffs Nature Area. The postponement was based on council questions about the need for additional access from the west side of the nature area, and the price to be paid out of the city’s open space and parkland preservation millage. Related to that same millage, the council approved applying to the USDA Farm and Ranch Land Protection Program (FRPP) for matching funds to acquire development rights on two farms as part of the city’s greenbelt program.

In other land zoning issues, the council gave final approval to the owner-requested rezoning of some residential properties in the Arbor Hills neighborhood. The council also gave initial approval to a rezoning that would allow a retail project called The Shoppes to be built near the junction of Plymouth and US-23.

The council took action related to city-owned land at 721 N. Main, approving a $30,000 physical study of the main building on that former maintenance yard, to see if it can be re-used. At least part of that site is slated to become part of an Allen Creek greenway.

Across the street from 721 N. Main stands a collection of vacant houses that were supposed to be demolished to make way for the Near North affordable housing project. With that project now defunct, the city is moving to demolish the houses as nuisances. The council’s action on Feb. 19 was to accept about $96,000 in additional federal funds through a community development block grant, which can be used only for demolition of houses on the former Near North site.

In other action, the council formally adopted a sustainability framework that now will be part of the city’s master plan. And related to sustainability, the city council authorized the issuance of up to $1 million in bonds for the property assessed clean energy program (PACE). The PACE program provides low-interest loans for owners of commercial properties to invest in energy saving improvements.

Changes to the city’s living wage ordinance also were on the Feb. 19 agenda. The council had previously contemplated but ultimately postponed those changes. This time around, they were tabled. That means the issue will not come back, unless the council proactively decides to take up the proposal again in the next six months.

Also as a result of council action on Feb. 19, the municipal airport will get new fencing. [Full Story]

An additional $96,000 has been received by the city of Ann Arbor through federal Community Development Block Grant (CDBG) allocations, which the city will put toward demolishing six houses on North Main Street.

The houses are on the site of the former Near North affordable housing project. That project, on which the nonprofit Avalon Housing had partnered, ultimately did not go forward. The city must complete the demolition by March 15, 2013.

The vote on the funding came at the council’s Feb. 19, 2013 meeting. The additional $96,000 can only be used for the demolition of structures at 700-724 North Main.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A … [Full Story]

Ann Arbor Downtown Development Authority board meeting (Jan. 9, 2013): The first meeting of the year for the DDA’s board featured a packed agenda – with items ranging from budget adjustments to the adoption of recommendations on the Connecting William Street project. Also voted on by the board were grants to the nonprofit Dawn Farm, an allocation of funds for the DDA’s energy grant program, and two monthly parking permits for The Varsity residential development.

The budget adjustments to FY 2013 were made in order to account for roughly $2.6 million in construction costs associated with the Library Lane underground parking garage. They had been allocated in the previous year’s budget, but not paid last year – because the completion of the construction extended into this fiscal year.

The FY 2012 audit report, which the board also approved at its Jan. 9 meeting, shows that for FY 2012, the DDA spent about $2.5 million less than anticipated for that year – because the construction invoices were not all submitted to the DDA by the time books closed for the year.

The result of those changes leaves a budget with $22,237,924 in revenues against $26,339,555 in expenses for the year – which translates to a planned use of the DDA’s fund balance reserve of $4,101,632. That’s about half of the existing fund balance.

Not a part of the revised budget was the approval of two allocations made by the board – one of $50,000 in connection with the DDA’s existing energy grant program, and another of $150,000 for a grant to Dawn Farm, a nonprofit offering both residential and out-patient services supporting recovery for alcoholics and drug addicts. The energy allocation will essentially attempt to leverage energy audits completed through the DDA’s program for use in the Michigan Saves program, which offers low-interest financing for energy improvements.

The board also approved recommendations to be forwarded to the city council on the future redevelopment of five city-owned sites currently used for parking. The project, which is now named Connecting William Street (CWS), began with an April 4, 2011 city council resolution that directed the DDA to seek “robust public input” from experts, stakeholders and residents to develop a plan for those parcels.

In connection with the parcels in that area, the board also adopted a policy on possible grants from the DDA’s tax increment finance (TIF) funds to support development of the CWS properties. The policy makes clear that the DDA would not forgo its TIF capture on any property – but the amount of the grant would be calculated based on TIF revenue.

Also in connection with the CWS project, the board heard remarks during public commentary from representatives of the city’s park advisory commission as well as the State Street Area Association. The board also invited Doug Kelbaugh, a University of Michigan professor of architecture and urban planning, to share his thoughts on parks versus plazas – and why he thinks the site on top of the Library Lane parking garage is more likely to succeed as a plaza instead of a park. [Full Story]

Ann Arbor city council meeting (Sept. 4, 2012): The council handled a mixed bag of items at its most recent meeting, ranging from land use to community events funding.

One item was apparently not handled the way that the majority of the council wanted, due to the absence of two councilmembers – Carsten Hohnke (Ward 5) and Marcia Higgins (Ward 4).

That item was a $60,000 appropriation – the city’s portion of a $300,000 local match for continued study of the Plymouth/State corridor, from US-23 and Plymouth southward along Plymouth to State Street, extending south to I-94. The local match is needed for a $1.2 million federal grant that has been awarded for the study. This alternatives analysis phase follows a basic feasibility study. The current study is supposed to result in a preferred choice of technology (e.g., bus rapid transit, light rail, etc.) as well as identifying stations and stops.

Because the $60,000 transfer from the general fund was a change to the city budget, it needed the votes of eight members on the 11-member city council. When Mike Anglin (Ward 5) led off the roll call by voting against it, it was clear that the council would have no more than seven votes in favor – because Jane Lumm (Ward 2) had already made plain during deliberations that she’d be voting against it. So some councilmembers voted against the resolution in order to be on the prevailing side. That gives them the right under parliamentary rules to bring back the item to the council’s next meeting for reconsideration. At that meeting it’s possible, but not certain, that supporters of the funding will have the necessary eight votes.

Several items on the agenda dealt with land use. The council gave final approval to a rezoning request for Knight’s Market, which will allow for expansion of the market at Spring and Miller streets. Winning initial approval was a rezoning requested by the developer of proposed townhouses on Catherine Street – from its current planned unit development (PUD) zoning to R4C (multi-family residential). Rezoning for part of a parcel in connection with a planned Speedway gas station at Maple and Miller also got the council’s initial approval. A related site plan for the station got its one and only required approval.

Also connected to land use was the council’s addition of two more properties to the greenbelt, using about $0.5 million in city funds from the open space and parkland preservation millage. The land from the two properties totals around 226 acres. Lumm cast a lone vote of dissent.

The council also authorized disbursements of community events funds to 13 organizations totaling $44,778, the bulk of which went to the Ann Arbor Summer Festival’s Top of the Park.

And the council set a public hearing for Oct. 1 on a tax abatement for Barracuda Networks. The firm is relocating to downtown Ann Arbor from its current location on Depot Street, in part to accommodate an additional 144 employees it expects to hire by July 1, 2014. [Full Story]

Ann Arbor Downtown Development Authority board meeting (Sept. 5, 2012): The only agenda item requiring a vote by the board was a resolution encouraging the Ann Arbor city council to adopt a policy that would direct proceeds from the sale of city-owned land to support affordable housing. The mechanism for that support would be the city’s affordable housing trust fund.

And board members voted unanimously to support the resolution, which DDA board member Sandi Smith had brought forward. Smith, who also represents Ward 1 on the Ann Arbor city council, is planning to bring the policy resolution to the council for consideration at its Sept. 17 meeting.

DDA board members were positively inclined toward their own resolution, but sought to clarify that the “proceeds” meant net proceeds – that is, whatever is left after any debt associated with city-owned land is paid off. The loan for the city’s acquisition of the former YMCA lot, for example, still has a principal of $3.5 million associated with it. Smith indicated at the meeting that the resolution she brings to the council might involve the DDA forgoing the repayment on investments it has made in city-owned property – like interest payments on the former YMCA lot or the demolition costs associated with that property.

The board also made an amendment to the resolution during the meeting, adding the phrase “a percentage of [proceeds].” The change gives the council flexibility to adopt a policy that doesn’t require the entire amount of the net proceeds to be directed to the affordable housing trust fund.

At the Sept. 5 meeting, the board also heard a request from the executive director of the Ann Arbor Housing Commission, Jennifer L. Hall, for a $260,000 allocation from the DDA’s own housing fund. The DDA has a housing fund that’s not necessarily dedicated to affordable housing. But the request Hall was making was for Baker Commons, a public housing project located within the DDA’s geographic district, at Packard and Main. The money would primarily go toward replacing the roof with one made of metal.

The board also got its regular update on the parking system. The basic message: revenue is up, and usage is up. The board also had a look at the unaudited financial figures for the end of fiscal year 2012, which concluded on June 30. Except for capital expenses, which were less than budgeted, most categories were on target. The DDA had budgeted all expenses for the new Library Lane parking structure for that fiscal year, but not all invoices have come in yet.

The board was also updated on a possible change to the way that transportation planning and funding takes place in Washtenaw County. Discussions by the policy board of the Washtenaw Area Transportation Study (WATS) suggest the  possibility that Washtenaw County could form its own metropolitan planning organization (MPO). Currently, the Southeast Michigan Council of Governments (SEMCOG), which includes a total of seven counties, serves as the MPO  for Washtenaw County. The change would affect how federal transportation funding is administered locally. [Full Story]

In the coming weeks, the Ann Arbor city council will be taking up discussion of a policy that was changed a half-decade ago – as part of a land sale by the city.

A June 4, 2007 city council action authorized the sale of city-owned property on East Eisenhower for $23,750. But the council’s action that summer also included a “resolved” clause that rescinded the city’s policy dealing with the proceeds from the sale of city-owned land. As a result of that “resolved” clause, proceeds from the sale of city-owned land were no longer required to be deposited into the city’s affordable housing trust fund.

The city council will soon be reviewing that policy, with this possible outcome: It could again become official city policy that the proceeds from sales of city-owned land will be designated at least in part to support affordable housing.

Leah Gunn, chair of the Ann Arbor Downtown Development Authority board, conveyed news of the upcoming policy discussion to her colleagues at an Aug. 29 meeting of the DDA’s operations committee. But it’s Sandi Smith – a city councilmember representing Ward 1 and a DDA board member – who is leading the effort to reconsider the land-sale-proceeds policy. She emailed her colleagues on the city council earlier in the week alerting them of her intention to revisit the issue – with an action item to come at the council’s Sept. 17 meeting.

Gunn will be seeking support from the rest of the DDA board, encouraging the city council to revert to the previous policy in some form – so that proceeds from the sale of city-owned land are designated to support affordable housing. That resolution of support will be on the DDA board’s Sept. 5 meeting agenda. Gunn also indicated that she’d ask her colleagues on the Washtenaw County board of commissioners to pass a resolution of support for the city council to change the policy. The county board’s next meeting is also on Sept. 5.

Any change in the current policy will come in the context of the DDA’s current planning effort, called Connecting William Street, for five city-owned parcels in downtown Ann Arbor, some of which could eventually be sold.

The upcoming council discussion, focusing just on this policy, will take place five years later than Ward 3 city councilmember Stephen Kunselman had wanted. On June 4, 2007 Kunselman had objected to including the policy shift as one of many “resolved” clauses in a land transaction resolution, saying that it wasn’t consistent with transparent governance.

The motivation for the change in policy back in 2007 involved a desire to put the $3 million in proceeds from selling the First and Washington parcel toward the building fund of a new police/courts building (now officially dubbed the Justice Center). The property was sold to Village Green, which is currently constructing City Apartments, with 156 residential units and a 244-space parking structure on the bottom two floors. The parcel was previously the site of a 199-space parking structure. Of the 156 units in the City Apartments project, 16 are supposed to be affordable to those earning between 60-80% of the area median income (AMI) – a requirement of the project’s planned unit development (PUD) zoning.

Provision of “affordable” housing within a project like City Apartments is one of at least two different strategies used by the city to address the need for a diversity of affordable housing options. Another strategy is for a developer to make a payment in lieu of providing the units themselves – a payment that is deposited into the affordable housing trust fund.  The idea behind that strategy is that affordable units might be constructed more economically elsewhere, using money from the trust fund.

While downtown Ann Arbor is in some ways an ideal location for affordable housing – because it’s easier to provide supportive human services to those residents who need them – the cost of real estate in the downtown area is higher than elsewhere in Washtenaw County. That’s a secondary piece of the policy discussion that the city council will likely have about the land-sale-proceeds policy.

In a phone interview with Mary Jo Callan, head of the city/county office of community and economic development, she described how one of her first tasks since taking the position in 2007 was to find strategies for replacing the 100 units of single resident occupancy supportive housing in the former YMCA. Those units had been lost when the building – owned by the city at that time – was condemned and subsequently demolished. Since the city’s affordable housing trust fund’s inception, Callan said the fund has invested in 399 units of affordable housing.

A look back to the city council meeting on June 4, 2007 shows that local government today still deals with many of the same topics – dog parks, affordable housing, transparency. Although the origin of the land-sale-proceeds policy and its connection to affordable housing goes back even further, to 1996, we’ll begin this report with the June 2007 action.  [Full Story]

In a letter sent to Ann Arbor councilmembers and other government officials, Avalon Housing‘s senior developer Michael Appel has announced that the Near North affordable housing project will not move forward. The development team has determined that the project, which was to include 39 new affordable housing units, 16 of them as supportive housing, is not feasible as planned. [.pdf of letter from Michael Appel]

A change to the FEMA flood maps is highlighted in Appel’s letter as a crucial factor in the inability of the project to move forward. The new maps, adopted in 2012, show an expanded floodway, which cuts across the corner of the parcel. That mean that federal funds – part of the project’s financing … [Full Story]

Ann Arbor city council meeting (Aug. 9, 2012) Part 2: Ballot initiatives for the Nov. 6, 2012 election – two about parks and one on public art – were the dominant theme of the council’s meeting. Those are covered in Part 1 of the meeting report.

But the council transacted several other pieces of business as well, some of which could be grouped into the general thematic pattern of land and property use. Most obviously connected to land use was the council’s initial approval of a rezoning request in connection with an expansion proposal from Knight’s Market, at the corner of Miller and Spring streets. The rezoning would allow a house to be converted into a bakery. It would also allow for eventual approval of a site plan to build a 1,200-square-foot addition to the existing grocery store and to expand, reconfigure, and improve the existing parking lot.

The council also passed a resolution to deal with an issue stemming, in part, from land use decisions made decades ago that resulted in residential development in the area of the Malletts Creek drainage district. Recently, residents in the area have been faced with severe localized flooding. The council’s resolution directed staff to start negotiations with the Washtenaw County water resources commissioner to identify “opportunities for stormwater conveyance and stormwater quality improvement in the area of the Malletts Creek drainage district.”

Related at least tangentially to land use at the level of a specific parcel was a resolution the council passed establishing the property at 317 Maynard in downtown Ann Arbor as an industrial development district. The move sets the stage for an expected application from the future tenant of the space, owned by First Martin Corp., for a tax abatement that would be worth around $85,000. The tenant is Barracuda Networks.

And the council took another step in implementing a strategy to eliminate blight. The city had previously set aside funds that could be used to demolish blighted buildings – if the city is unsuccessful in getting property owners to demolish them. The council’s action last Thursday authorized the city to sign contracts with four different companies to do such demolition work on an as-needed basis. It was announced at the meeting that the houses on North Main – at the site of the planned Near North affordable housing project – will likely be among the first to be demolished under the contracts authorized by the council.

To the extent that transportation systems have an impact on future land use, another item related to land use was a reapproval of the articles of incorporation for a possible new countywide transportation authority. The articles of incorporation are part of a four-party agreement to establish a framework for possibly expanding the governance and service area of the Ann Arbor Transportation Authority.

The four-party agreement is between the cities of Ann Arbor and Ypsilanti, Washtenaw County and the AATA. The Ann Arbor council changed the minimum threshold of votes required on the proposed new 15-member transit authority board, an action that brought the council in line with a version that the Washtenaw County board of commissioners had approved earlier this month. That threshold was increased from a 2/3 majority (10 votes) to a 4/5 majority (12 votes).

In other business, the council authorized the hiring of three additional firefighters for the next two years, using a federal grant. It also authorized the purchase of a new aerial fire truck.

Nominations to city boards and commissions made at the meeting included reappointment of Sandi Smith, Roger Hewitt and Keith Orr to the board of the Ann Arbor Downtown Development Authority. And Sally Petersen, who won the Ward 2 Democratic primary on Aug. 7, was nominated for the city’s commission on disability issues.

The council also heard public commentary on a range of topics, including smart meters and the idea of corporations as people.  [Full Story]

One of the first local candidate forums in the 2012 primary election season was held last week – for Ann Arbor Ward 1 city council Democratic candidates, Sumi Kailasapathy and Eric Sturgis.

In the Aug. 7 primary, the two candidates will contest Sandi Smith’s seat on the council. Smith announced in April that she will not seek re-election to a third two-year term.

The June 20 forum included fairly standard opening and closing statements, and other questions that invited candidates to talk about themselves.

Sturgis emphasized the fact that he grew up in Ann Arbor and noted his connection to the Ann Arbor public schools; he liberally sprinkled through his remarks the names of several people who’ve endorsed him, including Sandi Smith.

Kailasapathy emphasized her educational background in political science and economics and her professional training as a certified public accountant.

Broader policy issues covered at the forum included: communication (transparency and dissemination of information); planning and development (African American Cultural & Historical Museum, Near North, 618 S. Main); and transportation (rail station, countywide transit). The candidates were also asked questions about employee health care, public art, medical marijuana, and the public schools.

The forum featured a combination of questions that had been prepared in advance, as well as some questions submitted by audience members on cards during the forum. Mike Henry, co-chair of the Ann Arbor Democratic Party, moderated the forum and declined to read some of the questions submitted from the audience on cards, calling them “unfair.” But toward the end of the event Henry allowed questions to be asked directly from the audience. Anne Bannister, the other party co-chair, was also on hand to help manage the forum.

A kerfuffle over campaign yard signs preceded the forum – as the two campaigns had difficulty reaching agreement on the appropriate placement of yard signs outside the venue, the Arrowwood Community Center. The center is located off Pontiac Trail about a half mile north of Barton Road.

And during the forum itself, the focus of the conversation at times veered away from substantive issues into associations that Sturgis and Kailasapathy may or may not have had with past candidates for office – locally and statewide. One of those past candidates was current Ward 2 city councilmember Jane Lumm.

In a comment emailed to The Chronicle, Lumm offered this perspective: “I was not at the debate the other night, but it sounds like some of the discussion was about who supported whom in past elections rather than exclusively focused on the issues and challenges facing the city. That’s unfortunate. Whether it’s beefing up public safety, or the strategies and decisions on county-wide transit and the passenger rail station, or service delivery efficiency, there are important city issues and that’s where the discussion ought to be.”

The detailed report of the forum below is organized thematically, not in chronological sequence. The report begins with a brief bit of internal Ann Arbor Democratic Party business, and is followed by the broader policy topics and other one-off policy questions. The various who-supported-whom issues are extracted into a separate, final section. [Full Story]

Ann Arbor Downtown Development Authority board meeting (June 6, 2012): The board’s action items this month covered both of the DDA’s functions – as the administrator of tax increment finance (TIF) revenues within its geographic district, as well as the manager of the city’s parking system.

On the TIF side, the board first adopted a formal policy to guide its allocation of grants to new private developments. The board then acted to authorize a $650,000 TIF-capture-based grant to the 618 S. Main project. The policy applies to developments that are seeking to leverage support from the state’s brownfield and Community Revitalization Program, or other matching programs.

Highlights of that policy include a priority ranking of benefits that a development must offer. At the top of that list: A requirement that the project fills a gap in the existing market. The DDA board concluded that the 618 S. Main project filled such a gap – by targeting residential space for young professionals. The $650,000 would be distributed over four years, with the amount in any one year not to exceed the estimated $250,000 in TIF capture that would ordinarily be retained by the DDA as a result of the completed construction.

The board was interested in achieving a unanimous vote of support for the 618 S. Main grant, and not all board members agreed with covering bank carrying costs and the full amount of streetscape improvements. So the $650,000 reflected a reduction from a $725,000 grant in the original resolution before the board.

On the parking side of the DDA’s responsibilities, routine business was mixed with issues involving the imminent opening of a new underground parking garage on South Fifth Avenue. In the routine category was the board’s authorization of three-year leases for two properties from companies controlled by First Martin Corp., which the DDA manages as surface parking lots – at Huron/Ashley and Huron/First. Per space, the Huron/Ashley lot generates more revenue per month than any of the other public parking facilities in the city.

The board was also presented with a demand-management strategy for encouraging the use of the new underground parking garage on South Fifth Avenue, which is scheduled to open in mid-July. Highlights of that strategy include a reduced rate for monthly permits of $95/month – a $50/month savings over the $145/month rate set to take effect in September this year, and a $60 savings over the extra increase that the DDA is planning for two structures. The special $95/month permits are available only to current holders of permits in two other parking structures in the system: Liberty Square and Maynard Street. The DDA wants to free up spaces in those two structures for people who do not hold permits, and pay the hourly rate instead.

The DDA board also heard public commentary from advocates for some kind of public park to be constructed on top of the new underground parking structure – instead of using the space for additional surface parking, with the eventual possibility of allowing development of a significantly-sized building there.

In the board’s final action item, routine adjustments were made to the current fiscal year’s budget in order to assure that actual expenses did not exceed budgeted revenues for any of the DDA’s four funds. Last year, the routine adjustment did not adequately cover construction invoices that arrived after the final budget adjustment, something that was pointed out in the DDA’s audit for that year. [Full Story]

Ann Arbor city council meeting (May 21, 2012) Part 2: The council approved the city’s fiscal year 2013 budget – with disagreement about what priorities it reflected.

The cumulative impact of the amendments approved by the council on May 21 increased general fund expenditures to $79,070,842 against revenues of $79,193,112, for a surplus of $122,270. The entire city budget, across all funds, was proposed at $404,900,312 in revenues against $382,172,603 in expenses. The fiscal year begins on July 1.

Jane Lumm (Ward 2) saw two of her proposed amendments fail – which would have funded five additional police officers from non-specific reductions in other general fund departments, and would have restored the service of loose leaf collection in the fall. She also opposed the addition of a court secretary position for the 15th District Court, which the rest of her colleagues agreed to add into the budget that evening. That combination prompted her to vote against the overall budget, saying it did not adequately prioritize public safety. She was joined by Mike Anglin (Ward 5) in voting against the budget.

But Mayor John Hieftje summarized the majority view on the council in framing this year’s budget as a reflection of public safety as a top priority of the city – because nearly half of the general fund is being spent on public safety, and the vast bulk of additional revenue for FY 2013 (compared to the forecast in last year’s budget planning) is being spent on public safety. Those investments in public safety prevented further reduction in budgeted firefighters (by five) and in police officers (by nine) – reductions that were originally called for in the two-year budget plan. Those investments also allowed the city to add one police officer.

However, former police chief Barnett Jones and current fire chief Chuck Hubbard have identified ideal targets for staffing levels for their departments that are higher than the budgeted levels for FY 2013. For the fire department, that’s 82 firefighters compared to Hubbard’s ideal 88; for police, that’s 119 sworn officers compared to Jones’ ideal 150. The point of disagreement on the council essentially reduced to this: Should the city take additional steps this year to reduce the gap in public safety staffing between current levels and the ideal targets?

One resolution approved at the meeting – which did not actually modify the budget – simply directed the city administrator to bring a future mid-year budget amendment to add up to six firefighters to the budget – if a federal grant and increased state fire protection allocations materialize. Although it would have been conceivable to pass a parallel resolution on the police side of public safety, there was no effort at the table (by Lumm or other councilmembers) to modify Lumm’s resolution  and stipulate that additional police officers would be hired, if a federal grant application were successful.

Voting for the budget were eight councilmembers, including Stephen Kunselman (Ward 3), who saw two of his own amendments fail. One would have interpreted the city ordinance on DDA TIF capture differently, which would have resulted in additional revenue to the city’s general fund – revenue sufficient to fund two firefighter positions. Also failing was an amendment that would have prevented the transfer of money to the public art fund from a variety of different sources. [The 8-2 overall budget vote on the 11-member council was due to the absence of Marcia Higgins (Ward 4) for the final vote. She attended the meeting and stayed for the better part of it, but succumbed to a persistent hacking cough before it ended.]

Although several amendments failed, others were approved by the council. Those included budget modifications that added a secretary position to the 15th District Court, increased human services funding by $46,899, added $78,000 to the Ann Arbor Housing Commission budget, and eliminated a contract with RecycleBank to administer a coupon program to encourage recycling.

The council’s budget discussion came in the context of a briefing from the city’s paid lobbyist in Lansing, Kirk Profit, who sketched an uncertain state budget picture, but offered compliments to the city’s approach to managing its budget.

Box-score style results on the budget amendments were previously covered in a report filed from the city council chambers on the night of the vote. Below we’ve summarized the deliberations by the council on the budget amendments. Items not related to the FY 2013 budget are detailed in Part 1 of this meeting report: “City Council Expands North Main Task Force.” [Full Story]

Ann Arbor Downtown Development Authority board meeting (May 2, 2012): The one action item on the board’s agenda was a resolution directing its operations committee to start applying demand-management principles to the pricing for permits in Ann Arbor’s public parking system. The resolution, which passed unanimously, notes that the goal of the pricing strategy is to attract patrons to those structures that are located farther away from the University of Michigan campus.

One of those structures farther west of the campus is the new underground parking garage on South Fifth Avenue, which is nearing completion. The garage, which the DDA is currently calling the “Library Lane” parking structure, is now expected to open by the time the art fairs begin, which this year fall on July 18–21. South Fifth Avenue between Liberty and William is expected to re-open by Memorial Day.

A characterization of that timing as “on schedule” was disputed during public commentary by Ali Ramlawi, owner of the Jerusalem Garden restaurant. Jerusalem Garden is adjacent to the construction site. Ramlawi noted that the structure was originally due to be completed by August 2011.

The future use of the top of the underground garage was the subject of public commentary from advocates who’d like to see it used as a green plaza. That suggestion was met with remarks from mayor John Hieftje, who sits on the DDA board, with a description of his expectation that three major parcels would soon be incorporated into the city’s park system – 721 N. Main, 415 W. Washington, and the MichCon property (located between the Amtrak rail station and the Huron River near the Broadway bridges). Hieftje’s point was that the additional financial burden for the maintenance of those parcels as parks might impact the city’s ability to add a downtown green plaza to the park system.

Requests for better information about the parking system and suggestions for disseminating information about the availability of open parking spaces were topics of additional public commentary.

Although it was not an action item, the board discussed a draft policy on supporting “brownfield” projects – a policy prompted by discussions at the board’s partnerships committee over the last few months. [.pdf of draft DDA brownfield policy]

The committee has been discussing a proposal by Dan Ketelaar for support of a proposed development at 618 S. Main, which received a positive recommendation from the Ann Arbor planning commission on Jan. 19, 2012. If the project moves forward, the 7-story building would include 190 units for 231 bedrooms, plus two levels of parking for 121 vehicles. 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 (tax increment finance) revenue to the DDA. If adopted as it’s currently worded in the draft, the formula in the policy would translate into up to $625,000 of support for 618 S. Main.

The board also received updates on the third-quarter financial statements for the DDA, as well as an update on the Connection William Street planning project.  [Full Story]

Ann Arbor Downtown Development Authority board meeting (March 7, 2012): The main business item for the board at its monthly meeting was the approval of its budget for the coming fiscal year 2013, which starts on July 1, 2012. Across all funds, the FY 2013 DDA budget shows anticipated revenues of $22,097,956 against $24,101,692 in expenditures – for an excess of expenditures over revenues of $2,003,736.

The difference will be covered from the existing fund balance. The use of fund balance, in the current year and in the coming year, was planned as part of the construction of a new underground parking structure on South Fifth Avenue, and a new contract with the city of Ann Arbor, ratified in May of 2011. The contract, under which the DDA manages the city’s public parking system, pays the city of Ann Arbor 17% of gross revenues from the parking system.

At the end of FY 2013, the DDA expects to have a total fund balance of $4.38 million, or an amount equal to about 18.2% of expenses.

In its other main business item, the board authorized a budget of $100,000 for its Connecting William Street project, which it’s undertaking at the direction of the Ann Arbor city council. The council passed a resolution on April 4, 2011 that gave the DDA direction to explore alternative uses of city-owned parcels – currently used for surface parking – in a limited area of downtown. The area is bounded by Ashley, Division, Liberty and William streets.

Parcels included in the area are: the Kline’s lot (on Ashley, north of William), Palio’s lot (at Main & William), the ground floor of the Fourth & William parking structure, the old Y lot (Fifth & William), and the top of the Fifth Avenue underground parking garage, which is nearing completion.

Of the budgeted amount, $65,000 will come from a community challenge grant awarded recently as part of a larger $3 million grant awarded to Washtenaw County by the U.S. Dept. of Housing and Urban Development. The remaining $35,000 will be made up by DDA cash (no more than $20,000) and DDA in-kind contributions of staff time.

Toward the end of Wednesday’s meeting, the board also entertained some discussion about parking meter bags. The bags placed over on-street parking meters to designate the spots as unusable, so that streets are free of parked cars for construction projects or special events. The meter bag discussion came in the context of a request on behalf of FestiFools and conveyed by mayor John Hieftje, who sits on the DDA board. The request was to waive fees ordinarily associated with the meter bag placement for the April 1 FestiFools parade in downtown Ann Arbor.

One possible approach includes the creation of a parking meter puppet. [Full Story]

Ann Arbor city council meeting (Feb. 21, 2012): Land use was one common theme that trickled through the city council’s relatively short meeting.

The council denied a rezoning request from the owners of Biercamp Artisan Sausage and Jerky, located on South State Street near the Produce Station, that would have allowed them to use the property for a retail operation larger than what currently exists. But the council did give initial approval to a rezoning request from the Society of Les Voyageurs that will allow the group to make an addition to their house, which is located near the Argo Dam.

At the other end of the spectrum from development, the council also took action that will allow the city to move quickly to demolish buildings that are derelict, posing a safety risk to the community. The council authorized the allocation of $250,000 from the general fund to pay upfront costs for the demolition of such structures. The city expects to be able to replenish the money out of a lawsuit settlement it won previously against the owner of the former Michigan Inn. The city will also eventually be able to recover its costs from property owners whose buildings require demolition.

Also related to possible future construction on land throughout the city, as well as the insurance for existing buildings, was the council’s initial approval of new federal flood maps. The most recent maps date from 1992. The new maps being considered for approval by the city were created out of a process begun by the Federal Emergency Management Agency (FEMA). Throughout the city, 452 structures are no longer analyzed as lying within a floodplain, while 88 buildings are newly analyzed as in a floodplain, according to the new maps.

Floods are one of the natural disasters that the city’s new emergency management director, Rick Norman, will be responsible for preparing the city to handle. The council formally authorized Norman’s appointment at their meeting.

In resolutions that required expenditures of funds, the council authorized additional outside accounting and legal expenses, as well as the painting and repair of equipment at the city’s water treatment plant.

In other business, the council passed a resolution in support of a clean air campaign, and authorized the closing of city streets for eight different upcoming events.

Two significant appointments were discussed at the meeting. The first was a mayoral nomination on which the council will be asked to take action at its next meeting – appointing Sue Gott, planner for the University of Michigan, to the board of the Ann Arbor Transportation Authority. The other was an appointment that has already been made by Gov. Rick Snyder – Joe Burke as judge to the 15th District Court. Burke was on hand to be introduced to the council. [Full Story]

At the city council’s Jan. 23, 2012 meeting, Dan Rainey – the city of Ann Arbor’s head of information technology – was on hand to receive an award recognizing the city’s use of digital technology. The award was for 5th place in the 2011 edition of the Center for Digital Government’s Digital Cities Survey.

Yet among the nearly 12,000 words in The Chronicle’s report from that meeting, there’s no mention of the city’s Digital Cities award. The decision not to include that award in the meeting report was not one about which I agonized; it was not made on the basis of some high-minded journalistic principle. From a purely practical point of view, the award was likely a victim of my finite stamina for writing about a city council meeting.

But one reason I don’t mind omitting that kind of award from a meeting report is that it really does not matter to me where Ann Arbor ranks on that survey. What matters to me is the fact that the city’s investments in the realm of digital technology make life in Ann Arbor as a local journalist easier than it would be otherwise.

And that, I think, is best illustrated with a specific example. It’s an example I stumbled across a couple of months ago. But because it overlaps with two agenda items on the city council’s next meeting, on Feb. 21, I thought now would be a good time to share it with readers. One of those agenda items involves demolishing derelict houses, and the other involves the Federal Emergency Management Agency (FEMA) flood maps.

This tale begins on Facebook and ends in the bucket of a big yellow backhoe. [Full Story]

Ann Arbor city council meeting (Feb. 6, 2012): As expected, the council postponed consideration of a four-party agreement that would establish a framework for transitioning the Ann Arbor Transportation Authority to a countywide system. The agreement would be between the city of Ann Arbor, the city of Ypsilanti, Washtenaw County and the Ann Arbor Transportation Authority.

The AATA had requested the postponement until March 5. The council ultimately agreed to do that, but not before thoroughly debating the merits of March 5 versus March 19, or even some unspecified date in the future. In the end, the resolution to postpone included a stipulation that the mayor or city administrator could take the item off the March 5 agenda, if a funding recommendation and 5-year service plan are not provided to the council by the AATA in a timely way for the March 5 meeting. A meeting of a financial advisory group, co-chaired by McKinley Inc. CEO Albert Berriz and retired Washtenaw County administrator Bob Guenzel, is scheduled to take place on Feb. 29.

In other business, the council approved the tentative award of a $92,929,000 contract with Walsh Construction Company II to undertake a major renovation project at the city’s wastewater treatment plant. During public commentary, the council heard from Glenn Granger, whose company was one of two that had submitted lower bids than Walsh. City staff evaluating the bids did not agree with Granger’s contention that his company had comparable previous experience with a project of similar complexity.

The council gave final approval to a revision to the Arlington Square planned unit development, which grants the developer additional types of uses, without imposing additional parking requirements. The council also appointed a hearing officer for the coming year’s liquor license review process – councilmember Tony Derezinski (Ward 2), who also served last year in that capacity.

Highlights of public participation included commentary from a group that has been advocating for a warming center for the homeless. [Full Story]

The Ann Arbor housing commission board’s last meeting of 2011 was the first one attended by Jennifer L. Hall in her new role as executive director of the commission. Hall – who previously served as housing manager for the Washtenaw County/city of Ann Arbor office of community development – was selected by the board in October to replace Marge Novak, who had resigned in July.

Most of the Dec. 21 meeting focused on a presentation by Hall. She gave an overview of local affordable housing demand, and looked at how the housing commission’s operations might address some of those needs. In part, her talk set the stage for possible land acquisition. Later in the meeting, the commission entered into closed session to discuss two potential properties it might buy to add to the city’s public housing stock.

On one of the properties Hall suggested constructing a rental project consisting of 22-37 detached single-family units and duplexes, ranging between 1-5 bedrooms. For the other property, she proposed building a 15-unit complex of detached 2-4 bedroom condos and duplexes, which would eventually be sold to low-income homeowners for $140,000 each. Funding for these projects would come from a variety of sources, including state and federal grants and loans.

The locations of the properties weren’t disclosed in open session. But Hall said she was looking for direction from the board on pursuing the two projects. If the projects move forward, more details would be discussed in the public portion of upcoming meetings.

Hall also floated the idea of changing the format of board meetings and of the information that commissioners receive in their meeting packets. She proposed cutting back on staff reports, presenting them quarterly instead of monthly. That way, more of the board’s meeting time would be freed to focus on strategic planning issues, she said.

Hall also suggested changing the way that meeting minutes are written up. Instead of including a detailed description of the board’s discussions, she said, the minutes could provide a summary of the discussion and a note about the outcome, if a vote is taken. Some commissioners expressed concerns about truncating the minutes dramatically. Board president Marta Manildi said the AAHC board would like a richer level of detail than what’s provided in Ann Arbor city council minutes, which she described as too terse.

During the time available for public commentary, two residents of Miller Manor – an AAHC apartment complex on Miller Avenue – raised concerns about security issues in the building. Manildi told them that their comments would be forwarded to a working group of staff that’s addressing security problems at all AAHC properties. [Full Story]

Ann Arbor Downtown Development Authority board meeting (Nov. 2, 2011): At a meeting that included no business requiring a vote, the Ann Arbor DDA board began a public hearing on possible parking rate increases for the city’s public parking system.

The hearing will continue at the board’s Dec. 7 meeting, after a Nov. 14 joint working session with the Ann Arbor city council, when the two bodies will discuss proposed increases. A vote by the DDA board on the rate increases would not come until January.

Around a half dozen people spoke at the initial opportunity for public comment on the proposed rate increases, most either downtown merchants or representatives of merchant associations. They were uniformly in support of one feature of the proposal – no extension of meter enforcement past 6 p.m. Extension of enforcement hours has been actively on the table for at least two years. Based on board discussion at Wednesday’s meeting, evening enforcement could eventually be implemented – but not for the current rate increase cycle.

Those who spoke at the initial part of the hearing were generally opposed to increasing rates, but also acknowledged the financial decisions the DDA faces. And some speakers put part of the blame for that situation on the city of Ann Arbor. Under a new contract, the city of Ann Arbor now receives 17% of gross public parking revenues, which could otherwise be put back into the parking system, reducing the pressure to raise rates. Under the contract, the DDA operates the system, and is responsible for ongoing maintenance. Rates are controlled by the DDA in consultation with the city council.

The details of proposed parking rate increases were first announced towards the end of last week, most of which would be implemented starting in September 2012. Some increases would be implemented starting in February. [.pdf of DDA proposed parking rate changes]

Highlights of the changes to be enacted in September 2012 include predominantly $.10/hour increases: hourly structure parking rates would increase from $1.10/hour to $1.20/hour; hourly parking lot rates would increase from $1.30 ($1.50 after 3 hours) to $1.40 ($1.60 after 3 hours;) hourly parking meter rates would increase from $1.40/hour to $1.50/hour; monthly parking permit rates would increase from $140/month to $145/month.

The board’s meeting included the usual range of reports, including the quarterly financial numbers and parking report, and updates on the Fifth Avenue underground parking garage construction as well as the most recent development in the Nov. 8 sidewalk millage ballot proposal.

At the city council’s Oct. 17 meeting, the council passed a resolution clarifying how the millage proceeds would be used inside the DDA’s geographic district. And at the DDA’s Wednesday meeting, mayor John Hieftje gave the clearest public indication to date that he does not want to take a position on the sidewalk millage, saying that residents would have to “figure it out for themselves.”

The board also held a closed session, under the provision of the Michigan Open Meetings Act that allows such a session to discuss the meaning of legal advice contained in a written document protected under attorney-client privilege.  [Full Story]

Ann Arbor Downtown Development Authority board meeting (Sept. 7, 2011): In the main business of its September meeting, the DDA board voted to renew a $500,000 grant previously awarded to Avalon Housing for its Near North affordable housing project on North Main Street. The project is planned to include 39 units of affordable housing on the site where eight now-vacant houses stand.

The Near North decision came over the objection of three board members, who expressed concern over unanswered questions about the project’s timeline. Avalon had also requested that the intent of the resolution be expressed in the form of a contractual agreement and that the period of the grant be two and a half years, instead of the maximum two years normally attached to DDA grants. The additional time is needed in order to cover a sufficient period to achieve LEED certification.

Representatives of the construction trades, who objected to the selection of the Grand Rapids-based Rockford Construction as the general contractor for the Near North project, as well as a resident spoke against the DDA’s grant award during the time allowed for public participation.

The three votes against the grant renewal came from Newcombe Clark, Roger Hewitt and Russ Collins. With the absence of board members Keith Orr and Bob Guenzel, the 12-member board still achieved the minimum seven votes it needed for approval of the grant.

Despite his absence from Wednesday’s meeting, Guenzel was voted as the new chair of the DDA board, filling a vacancy in that position left when the recently elected chair, Gary Boren, was not nominated for reappointment to the board when his term expired on July 31. Boren was on hand to accept a resolution of appreciation for his service on the board.

In connection to the officer election timing issue, Clark asked for a review of the board’s bylaws by the board’s executive committee. Clark has raised the issue during the July officer elections for the last two years. Because the mayor has been reticent about his intended appointments, DDA board members have elected their officers for the coming year without knowing if all board members with expiring terms will be reappointed. Clark asked that the bylaws possibly be changed so that board officers are elected after appointments are made, so that it’s clear who will be serving on the board.

In other business, the board unanimously passed a resolution of support for the RiverUp! program amid some discussion of the appropriateness of the resolution – in light of the fact that the Huron River does not flow through the DDA tax district.

The board also passed a resolution encouraging the Washtenaw County board of commissioners to enact an economic development tax on county residents. About half of the tax proceeds would go to Ann Arbor SPARK. The resolution came at the request of DDA board member Leah Gunn, who also serves on the Washtenaw County board. The Ann Arbor city council had previously passed a resolution encouraging the county board to enact the tax. The county board gave initial approval to the tax later that evening.

As part of the reports from various board committees, Roger Hewitt stressed that the parking rates and hours of enforcement discussed at the previous week’s operations committee meeting were merely the start of the discussion. The DDA is currently discussing what kind of proposal it will present to the city council at a November joint work session on parking. Under its new contract with the city to manage the public parking system, the DDA’s authority to set rates and hours of enforcement comes with specific requirements on public input.

The city council also has directed the DDA to explore alternate uses for some of the city-owned surface parking lots in the downtown. Board members got an update on the status of the DDA’s effort to plan how to implement that directive.  [Full Story]

Ann Arbor planning commission meeting (Sept. 8, 2011): At its Thursday meeting – held later in the week than usual because of the Labor Day holiday – commissioners had two main business items on the agenda, and did not recommend in favor of the petitioner for either of them. In one case the commission put off a decision, and in the other commissioners took a vote on the issue.

The commission put off a decision on a proposal from University Bank to increase the number of allowable employees from 50 to 59 at its headquarters on Washtenaw Avenue and to add 14 parking spaces to a new lot on the site. The headquarters is located in what’s known as the Hoover Mansion.

In October 2010, the commission had put off a decision on University Bank’s proposal as well, faced with a recommendation against approval from city planning staff and opposition from some neighbors. This time around, a consensus appeared to have been reached – among planning staff, neighbors and bank officials – to accommodate neighbors’ concerns. However, the commission was reluctant to make a recommendation, because the final site plan had not yet been submitted. The consensus had been achieved only a week ago, on Sept. 1. The vote to postpone, likely until the commission’s next meeting on Sept. 20, was unanimous.

The commission did make a recommendation on a proposal from Walt Hansen and Hannah Cheadle – the owners of Biercamp Artisan Sausage and Jerky – to rezone the property at 1643 and 1645 S. State St., south of Stimson and next to the Produce Station. The parcels currently house the couple’s sausage business as well as an auto repair shop and furniture manufacturer. The commission found the proposed rezoning inconsistent with the city’s master plan and recommended against it.

In connection with the property’s annexation into the city from Ann Arbor Township, the Biercamp owners had wanted to rezone the property to C3 (fringe commercial district). That zoning designation would allow their business to sell a wider variety of merchandise, in addition to the sausage and jerky products they make on site. The recommendation against approval will be forwarded to the city council.

Commissioners offered a glimmer of possibility that commercial zoning for the Biercamp parcel could result from a study of the entire State Street corridor and a revision to the city’s master plan.

At the meeting, commissioners also got an update on future planning-connected events, including a Grand Rapids planning conference that commissioners might want to attend, and visitors from Indonesia that the city is hosting through an International City/County Management Association (ICMA) sustainability fellows program.

The commission also received a heads up that on their Sept. 20 agenda would be a proposal for The Varsity at Ann Arbor, a proposed 13-story, 173-unit, 178,380-square-foot apartment building for approximately 418 students. It would include 77 parking spaces, and would replace the two-story office building and parking lot currently on the site. [Full Story]

At its Sept. 7, 2011 meeting, the Ann Arbor Downtown Development Authority board voted to renew a grant to Avalon Housing that the board had originally approved two years ago for the Near North affordable housing project on North Main street.

The grant is for $400,000, with another $100,000 available if the project achieves LEED certification. The grant would be paid when the project receives a certificate of occupancy, and a waiver of all liens. Avalon must also have an agreement in place with the city/county office of community development to ensure that income eligibility requirements are met for all residents.

The income eligibility requirements for the 39 units in Near North are based on affordability as defined for two categories of apartments. … [Full Story]

Ann Arbor public art commission meeting (Aug. 24, 2011): Briefly discussed at AAPAC’s August meeting was the possibility of increasing the number of members on the city’s public art commission – a move that would require amending Ann Arbor’s Percent for Art ordinance. Though commissioners expressed support for the idea, they ultimately tabled it in light of a possible upcoming city council working session on the public art program.

The working session has been discussed as potentially taking place on Sept. 12. But Tony Derezinski – a city councilmember who is AAPAC’s newest commissioner and who attended his first meeting on Wednesday – said he hoped to push back the commission’s presentation to the city council until a later date. [As of late Aug. 29, no city council working session has been scheduled on the city's Legistar system.]

Derezinski characterized it as an extremely important opportunity for AAPAC to convince the council of the value of the Percent for Art program, noting that he has defended it twice when other councilmembers previously proposed cutting it.

Margaret Parker, a local artist who’s served on AAPAC since its inception, suggested making the working session presentation after the formal dedication of Herbert Dreiseitl’s water sculpture in front of city hall – so councilmembers will first have the chance to “bask in some glory” of the program’s efforts, she said. The dedication is being planned for early October, to coincide with Dreiseitl’s next trip to Ann Arbor to oversee the sculpture’s installation.

The Dreiseitl work, costing more than $750,000, will be the second completed piece under the Percent for Art program, which was created in 2007. During Wednesday’s meeting, commissioners also discussed the possibility of using public art funds to buy existing artwork, rather than only commissioning pieces, as they’ve done to date. Although Parker expressed some concerns, they agreed to explore this approach as a way to quicken the pace of public art acquisition.

Commissioners also discussed several projects that are in the formative stages, including artwork for the proposed Fuller Road Station, a mural for Allmendinger Park, and a possible artwalk along the Huron River. A previous recommendation for a mural along the Huron Parkway, near Huron Hills Golf Course, has been postponed, based on negative feedback from residents. [Full Story]

Ann Arbor city council meeting (Aug. 4, 2011): In the early part of the meeting, mayor John Hieftje effectively headed off a debate that might have otherwise unfolded among councilmembers on the relationship between the taxes collected for street and sidewalk repair and the city’s public art program. The mayor announced that he’d be nominating Tony Derezinski (Ward 2) to serve on the public art commission as a replacement for recently resigned commissioner Jeff Meyers. And Hieftje went on to say that in September he wanted to take a longer look at the city’s public art program.

That assurance was enough for now to hold off a council discussion of an explicit restriction on the street/sidewalk repair tax – a restriction that would prevent those tax monies from being used to pay for public art under the city’s Percent for Art program. At the meeting, the council approved ballot language for Nov. 8 that will ask voters to renew the street repair tax (at a rate of 2.0 mills) as well as to approve an additional tax to repair sidewalks (at a rate of 0.125 mills).

But no discussion took place on a possible restriction on those monies in connection with public art. It’s technically possible for the council to revisit the issue at its next meeting, on Aug. 15, which falls one day before the ballot language must be filed, according to the state election statute.

If the discussion of appropriate funding mechanisms for public art is pushed to September, it will join another topic the council voted at its meeting to postpone for two months – termination of the city’s contract with RecycleBank. That company administers a coupon-based incentive program in connection with the city’s new single-stream recycling program.

It was a year ago, in July 2010, that the new single-stream system replaced Ann Arbor’s decades-old dual-stream system. Councilmembers questioned the evidence that RecycleBank’s program had any significant impact on residents’ recycling behavior. The measure needed an eight-vote super majority of the 11 councilmembers, and based on deliberations, there were only seven clear votes to terminate. But instead of voting, the council postponed the issue.

The council did take action on a related recycling issue, voting to increase its annual contract with Recycle Ann Arbor, which empties the curbside recycling carts set out by residents. The increase was set for $107,000 a year and was meant to offset diminished revenue that Recycle Ann Arbor was getting under the contract, due to a smaller number of carts being deployed in the city.

In other business, the council gave final approval to changes in employee benefits. It also approved terms of a contract with Steve Powers, who on Sept. 15 will become the city’s newest employee as city administrator. Highlights include a $145,000 base salary and participation in a 401(a) plan instead of the city’s pension system.

Allen Creek was the geographic focus of two items on the agenda. The council approved another extension to the purchase option agreement with Village Green – for the City Apartments project to be located at First and Washington. The council also approved a general expression of support for the idea of constructing a greenway in the Allen Creek corridor.

The council also approved revisions to the proposed Burton Commons housing development, located on Burton Road near Packard and US-23. And receiving initial approval were changes to the boundaries for the city’s five wards.

Highlights of council communications came from Sandi Smith (Ward 1) and Stephen Kunselman (Ward 3). Smith alerted her colleagues to possible legislation she’d be bringing forward in the future that would restrict video surveillance. Kunselman announced that he would eventually be bringing forward possible revisions to the city’s ordinance that governs how its downtown development authority operates.

A highlight from public commentary was praise heaped upon the Ann Arbor police chief, Barnett Jones, by a representative of the Washtenaw Interfaith Coalition for Immigrant Rights (WICIR). [Full Story]