Stories indexed with the term ‘Ann Arbor Downtown Development Authority’

Several revisions to Chapter 7, a city ordinance governing the Ann Arbor Downtown Development Authority (DDA), have received an initial approval by the city council. One of the revisions could result in roughly $559,000 in additional annual revenue for the city of Ann Arbor – compared to what it would receive under the DDA’s current interpretation of the ordinance.

The 7-3 vote came at the council’s April 1, 2013 meeting. In order to be enacted, the changes will need to receive approval from the council at a subsequent meeting, following a public hearing.

The revisions considered by the council fell roughly into two categories: (1) those involving board composition and policies; and (2) calculation of tax increment finance (TIF) capture in the … [Full Story]

Ann Arbor city council meeting (March 18, 2013) Part 1: The two main events of the council’s meeting centered around planning in the downtown area: (1) consideration of a possible moratorium on D1 (downtown core) site plans; and (2) consideration of the site plan for 413 E. Huron, located in a D1 district.

The council decided to conduct a review of D1 zoning, without imposing a moratorium. That cleared the way to consider the 413 E. Huron project, which the council eventually voted to postpone – at roughly 1:30 a.m. Because of the amount of time spent on just those items, they’ll be included in a separate Chronicle report.

Apart from those two items, the council’s agenda still included a planning and land use focus, as well as a downtown theme. An additional theme was the city council’s relationship to two other public bodies – the city planning commission and the board of the Ann Arbor Downtown Development Authority.

In the case of the planning commission, the council for a second time balked at the commission’s recommendation of R3 (townhouse) zoning for a recently annexed parcel on Ellsworth near Stone School Road – planned as the site of Summit Townhomes, which would be a 24-unit development. The council postponed consideration of the Summit Townhomes site plan and the zoning, having previously postponed the zoning. The council also had previously referred the zoning recommendation back to the planning commission for re-review. The council’s second postponement on March 18 came after the commission’s re-affirmation of its original recommended R3 zoning. The council sent no explicit communication to the planning commission requesting action, beyond the implicit message of postponing the vote.

In the case of the DDA board, the council is weighing changes to the city ordinance governing the composition of that body, but postponed those changes for a second time at its March 18 meeting. The more significant of the ordinance changes involves clarifying how the Ann Arbor DDA’s tax increment finance capture is calculated, which has implications for millions of dollars for the DDA, the city of Ann Arbor, Washtenaw County, Washtenaw Community College and the Ann Arbor District Library.

Also related to the DDA, early in the council’s meeting an oral report was given on a session of the council’s audit committee – held the previous week to review the DDA’s FY 2012 audit. In the middle portion of the council meeting, councilmembers postponed the ordinance changes. And in the early morning hours of March 19, after the voting agenda was concluded, a member of the audit committee – Sally Petersen (Ward 2) – announced her intention to propose a task force on the DDA.

Related to other boards and commissions, the council confirmed the appointment of a chair for the zoning board of appeals (ZBA): Alex Milshteyn. He replaces Carol Kuhnke, who resigned in December 2012 after being elected judge of the 22nd Circuit Court.

In other business, the council gave approval for the zoning and site plan of The Shoppes at 3600, a proposed retail development on Plymouth Road.

The council also voted to object to the renewal of a liquor license for The Arena, a downtown bar located at Division and Washington streets. The basis for the objection – which will be forwarded to the Michigan Liquor Control Commission for final action – was non-payment of taxes.

The council also gave initial approval to a revision to the city’s sign ordinance. It would essentially maintain current conditions, but provide for certain limited digital signs with a restricted range of changeable elements.

Council communications included a briefing on upcoming changes the council will be asked to consider for the city’s public art ordinance. In other communications, the council will be giving a fire station reconfiguration plan some additional explicit discussion at a future working session – although it appears that the idea has insufficient traction to move forward.

Public commentary at the meeting covered a range of topics, including a call for the council to waive privilege on legal advice that councilmembers had received on the D1 moratorium issue – because they’ve now voted not to enact the moratorium. [Full Story]

Several revisions to a city ordinance governing the Ann Arbor Downtown Development Authority (DDA) have again been postponed by the city council. After voting to postpone the question at its March 4, 2013 meeting, the council again delayed voting at its meeting on March 18. The question will next appear on the council’s agenda at its April 1 meeting.

Even if the council had voted to approve the proposed amendments, a second and final vote would be required to enact the ordinance changes.

City of Ann Arbor financial staff chart … [Full Story]

Ann Arbor planning commission meeting (March 5, 2013): Despite protests by members of the Library Green Conservancy and hesitation by some commissioners, the city planning commission voted unanimously to add the Connecting William Street plan to its list of resource documents that support the city’s master plan. After the vote, Wendy Woods tried to reopen the item for reconsideration, but she was unsuccessful in garnering support from the majority of commissioners, so the initial decision stands.

The Connecting William Street project was undertaken by the Ann Arbor Downtown Development Authority at the behest of the city council. It focuses on recommendations for coordinated development of five city-own sites in the William Street area, on the south side of downtown. By becoming a resource document, the CWS plan carries less weight than it would if it were part of the city’s master plan.

Amber Miller of the DDA gave a presentation during the March 5 commission meeting, similar to those previously given to the council and the DDA board.

Much of the discussion among commissioners focused on the issue of open space. Miller noted that recommendations on that issue have been deferred to a committee of the city’s park advisory commission. That downtown parks committee is in the early stages of its work – it was scheduled to meet earlier in the day on March 5, but that meeting was canceled.

Commentary during a public hearing on the CWS plan also focused on open space, with several members of the Library Green Conservancy advocating for a centrally located park atop the Library Lane underground parking structure. They criticized the DDA’s process for developing the plan, and felt the planning commission had not adequately publicized the fact that a public hearing on Connecting William Street would be held that evening.

Additional public commentary came after the commission’s vote. Woods said her decision to ask for reconsideration of the item was prompted by concerns raised during this final public commentary. She felt it wouldn’t hurt to wait two weeks until the commission’s next meeting, so that more people could have the chance to weigh in, if they wanted.

Sabra Briere, who had expressed strong reservations before casting her original yes vote, said she supported Woods in her effort to reconsider the item, suggesting that postponement would be appropriate. She expressed concern that the commission was deciding to use the CWS plan as a future planning document – which would be referenced when the planning staff and commission make their recommendations to the city council on site plans and other planning and development actions. Given that importance, Briere – who also serves on city council – wanted to be absolutely certain before accepting it.

Other commissioners disagreed. Kirk Westphal, the planning commission’s chair, also served on a DDA leadership outreach committee (LOC) that helped craft the Connecting William Street plan. He said he felt extremely comfortable with the public process that had led to these recommendations. Eric Mahler also argued against reopening the item for another vote, saying the commission needed to bring closure to this long process. He was satisfied that sufficient public notice had been provided.

It’s unclear whether the city council will take any action on the Connecting William Street plan. As to what happens next, Susan Pollay, the DDA’s executive director, told planning commissioners that the DDA will be following the council’s guidance. Councilmembers have already taken a first step related to one of the five parcels – the former YMCA lot. At their meeting on March 4, 2013, councilmembers voted to direct the city administrator to prepare an RFP (request for proposals) for brokerage services to sell the lot. A $3.5 million balloon payment on the property is due at the end of 2013. [Full Story]

Ann Arbor city council meeting (March 4, 2013): The council had five items on its agenda related geographically to downtown Ann Arbor – but delayed voting on two of them.

On one of those items, the council voted to postpone its initial consideration of changes to Chapter 7 of the city code, which governs the way the tax increment finance (TIF) capture is calculated for Ann Arbor’s downtown development authority. The revisions to Chapter 7 would also affect the composition of the DDA board, excluding elected officials from service.

The council also postponed until its next meeting, on March 18, a possible moratorium on site plan review for projects in the downtown. The possible moratorium previously had been postponed from the council’s Feb. 19 meeting. After hearing extensive public commentary on the topic on March 4 – from residents and representatives of the developer of a proposed 14-story residential project at 413 E. Huron – the council went into closed session.

On emerging from the closed session, the council voted, without deliberation, to postpone the item. The wording in the resolution provides an exemption from the moratorium for site plans that already have a recommendation for approval from the city planning commission. If enacted, the moratorium as worded would still apply to the 413 E. Huron project, because the planning commission’s 5-3 vote for approval fell short of the six it needed for a positive recommendation. The 413 E. Huron site plan is now expected to be on the same March 18 meeting agenda when the moratorium will be re-visited.

Eluding the impact of the proposed moratorium’s wording was another downtown project, which appeared on the March 4 meeting agenda. The site plan for a 14-story apartment building at 624 Church St. was approved at the council’s meeting – but that project would not have been impacted by the moratorium as it’s currently proposed. That’s because it had received a recommendation of approval from the city planning commission.

The council also voted to reconstitute a task force to re-evaluate the downtown design guidelines, which supplement the city’s zoning regulations.

In the final downtown-related item, the council voted to direct the city administrator to issue a request for proposals for brokerage services to possibly sell the city-owned parcel at Fifth and William streets – the location of the former Y building. It’s currently used as a surface parking lot in the city’s public parking system.

While the city is contemplating the sale of that site, which it purchased for $3.5 million, the council voted to buy a much less expensive parcel outside the downtown, near the Bluffs Nature Area. The council approved a purchase price of $115,000 for the parcel, which is located off Orkney Street.

The council also approved two other site plans for projects not in the downtown – although the four-unit project at 515 N. Fifth is near the downtown. The council also approved the Blue Heron Pond development, a 64-unit project on the western side of town, located at Liberty and Maple.

In other business, the council approved receipt of a federal grant to demolish two of the buildings on the city-owned property at 721 N. Main. The buildings are in the floodway. A third building, in the flood fringe, is being studied by the city for possible reuse.

The property at 721 N. Main is a former maintenance yard. So none of the 44 vehicles authorized for purchase by the council at the March 4 meeting will be maintained there. Total cost of the vehicles was $928,499.

None of the vehicles authorized for purchase was a plug-in electric vehicle. However, the council passed a resolution in support of preparing city infrastructure for plug-in vehicles. Two-other energy-related agenda items included one supporting the city’s participation in Earth Hour, and another one supporting use of the city’s energy fund for energy improvements in connection with community projects.

An item that drew considerable discussion before approval related to street closings associated with the June 9, 2013 Ann Arbor marathon. [Full Story]

Ann Arbor Downtown Development Authority board meeting (March 6, 2013): In a main agenda item, the DDA board authorized a $300,000 grant to the Ann Arbor Housing Commission – for renovations to the 64-unit Baker Commons public housing facility. It added to the $280,000 grant made late last year for the replacement of the Baker Commons roof.

The grant award had come at the request of AAHC executive director Jennifer L. Hall, who’s proposing a major change to the way the 360 units of public housing are administered. The approach involves privatization and project-based vouchers.

The DDA’s support for public housing also surfaced at the meeting as a talking point for board members in the context of a proposal being considered by the Ann Arbor city council – which would amend the city ordinance regulating how the DDA’s tax increment finance (TIF) capture works. The amendments would clarify existing language in the city ordinance in a way that would favor the other taxing authorities, whose taxes are captured as a part of the DDA’s TIF. The council postponed action on that proposal at its March 4, 2013 meeting. In that context, at the DDA’s March 6 meeting, board member Sandi Smith raised the specter that the DDA would in the future not be able to support affordable housing in the same way it has done in the past.

In addition to clarifying the question of how TIF is calculated, the amendments would prevent elected officials from serving on the board and would impose term limits for board service. Board members took turns at the start of the meeting arguing that the DDA had been a good steward of public dollars and that the amendments to the ordinance are not warranted. Board members indicated that they didn’t think their service as volunteer members of a board was being afforded adequate respect by the city council.

The board comments followed a turn at public commentary at the start of the meeting from Brendan Cavendar of Colliers International, a commercial real estate services firm. His commentary departed from the typical pattern of someone signing up to address the board for up to four minutes. Instead, Cavendar had been invited to appear, and responded to prompts from board members to deliver a range of positive responses, including: future tenancy of the former Borders location; rising rents in the downtown area; and affirmation of the importance of the downtown public parking system.

The city’s public parking system is managed by the Ann Arbor DDA under a contract with the city of Ann Arbor. The monthly parking usage report is featured at every board meeting. But the March 6 meeting featured the parking system in an additional way. The board decided to award the full $50,000 of a discretionary management incentive to the DDA’s subcontractor – Republic Parking – for operation of the public parking system. It’s an annual decision, but it’s the first time in the last five years that the full amount has been awarded. The decision was based on good performance on metrics tracked by the DDA, according to the board.

In a third voting item, the board authorized $610,662 in support of getDowntown’s go!pass program, which provides a subsidy to cover the cost of rides taken on Ann Arbor Transportation Authority buses by employees of participating downtown businesses. To participate, a business must purchase a go!pass for all employees, at an annual cost of $10 per employee. Roughly 6,500 downtown employees are provided with go!passes through the program. [Full Story]

The Ann Arbor Housing Commission’s Baker Commons building, located in downtown Ann Arbor at Packard and Main, will get an infusion of $300,000 from the Ann Arbor Downtown Development Authority – as a result of action by the DDA board at its March 6, 2013 meeting.

The $300,000 will be used toward a range of capital improvements to the 60-unit building: driveway and sidewalk replacement and repair; installation of energy-efficient lighting; insulation and air sealing; window replacement; adding a second entrance; door replacement; upgrade of fixtures appliances, flooring and cabinetry; replacement of heating and cooling units; generator replacement, elevator replacement, upgrade of common area furniture, and installation of additional security cameras.

This grant for $300,000 to Baker Commons comes in addition to … [Full Story]

Ann Arbor downtown workers who are employed by participating companies will continue to have the fare for their rides on Ann Arbor Transportation Authority buses covered by the go!pass program – as a result of a $610,662 grant from the Ann Arbor Downtown Development Authority. Holders of a go!pass do not themselves pay a fare to board the bus. Rides are subsidized by the DDA and to a much lesser extent by employers.

The DDA board voted to approve the grant at its March 6, 2013 meeting. The total grant to the getDowntown program breaks out as follows:
YEAR 2014
getDowntown … [Full Story]

The Ann Arbor Downtown Development Authority’s public parking system contractor has this year been awarded the full $50,000 amount of a discretionary management incentive. Republic Parking’s contract with the Ann Arbor DDA covers just actual costs, but also includes a $200,000 management fee. Of the $200,000 management fee, $50,000 is awarded to Republic on a discretionary basis. The vote came at the board’s March 6, 2013 meeting.

For the first time in the last five years, the DDA board decided to award the full $50,000 of the incentive. Last year, at its Feb. 1, 2012 meeting, the board determined to award $45,000 of the discretionary amount. That matched the same figure awarded in 2011, 2010 and 2009.

The direct costs for … [Full Story]

The Ann Arbor planning commission has voted to add the Connecting William Street plan to its list of resource documents that support the city’s master plan. It was the main agenda item at the commission’s March 5, 2013 meeting, and was approved unanimously. By adding the CWS plan to the list of resource documents, the planning commission did not alter the city’s downtown plan or the master plan.

However, there was some concern about whether the agenda item had been adequately publicized. Those concerns were voiced by several people during public commentary before and after the vote, which led Wendy Woods to attempt to reopen the item for reconsideration at the end of the meeting. The vote to reopen … [Full Story]

Several revisions to a city ordinance governing the Ann Arbor Downtown Development Authority (DDA) were postponed by the city council at its March 4, 2013 meeting. Some of the proposed revisions would have an impact of several million dollars over the next two decades, affecting several jurisdictions besides Ann Arbor. The postponement was until the council’s March 18  meeting.

Among the revisions to Chapter 7 that are being considered by the council … [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]

The Ann Arbor city council has approved a step necessary for the Ann Arbor Downtown Development Authority to satisfy its commitment to support the construction of the parking deck within Village Green’s City Apartments project. The residential project is currently under construction at the southeast corner of First and Washington.

The step taken by the council was to create a project budget for the proceeds of bonds sold by the city on Jan. 22, 2013 – $8,666,075 total, of which $4,079,743 were taxable and $4,586,332 were non-taxable. The council created the project budget at its Feb. 19, 2013 meeting. The authorization to issue the bonds had come at the council’s Oct. 4, 2010 meeting.

The DDA is committed to covering payments … [Full Story]

Ann Arbor Downtown Development Authority board meeting (Feb. 6, 2013): The meeting of the full DDA board reprised much of the same content of the operations committee meeting two weeks earlier, which focused on the organization’s budgets for the next two fiscal years. The board voted to approve budgets for FY 2014 and FY 2015.

For FY 2014, the DDA budget calls for $23.1 million in expenditures against $23.4 million in revenues. That would add about $300,000 to the total fund balance reserve, which is projected to end FY 2014 fiscal at around $5.5 million. The surplus from FY 2014 would be used in the FY 2015 budget, which calls for $23.8 million in expenditures against $23.5 in revenues, leaving the DDA with about $5.2 million in total fund balance reserve at the end of FY 2015. Reserve amounts indicated in the budget are about $800,000 more than the “true fund balance” – because the money lent to the DDA by Republic Parking for installation of new equipment is recorded as revenue.

Some of the larger categories of expenses in the $23.1 million expense budget for FY 2014, which is similar to FY 2015, are: payments to Republic Parking for operating the public parking system ($6.5 million); bond payments and interest ($6.6 million); payments to the city of Ann Arbor ($3 million in parking revenue and $500,000 for the police/courts facility); capital costs ($2 million); administration ($800,000); and alternative transportation ($615,000).

The alternative transportation allocation would fall a bit short of covering this year’s $623,662 request from the Ann Arbor Transportation Authority to support the getDowntown program, which includes a subsidy to cover the cost of rides taken with the go!pass. That compares with $553,488 granted by the DDA last year to support getDowntown. A presentation made previously to the operations committee – by Michael Ford, CEO of the AATA, and Nancy Shore, director of the getDowntown program – was also given to the full board at the Feb. 6 meeting. The presentation highlighted the fact that 31% of go!pass riders get on the bus east of US-23.

Money in the budget labeled “discretionary” could cover the gap between AATA’s request and the amount in the budget slated for alternative transportation. That money is one of a number of “placeholder” items included in the budget – like $250,000 for a possible arrangement with the city of Ann Arbor for additional police patrols in the downtown. Another $300,000 could be used for a range of capital projects – from sidewalk improvements for patio dining in the State Street area, to streetscape improvements for William Street, to alley improvements near the Bell Tower Hotel.

The board did not discuss remarks made earlier in the week by Ward 3 city councilmember Stephen Kunselman, who at the council’s Feb. 4 meeting called for a number of changes to the city’s DDA ordinance. If enacted, the changes could have a significant impact on the DDA’s revenue from its tax increment finance (TIF) budget. Of the DDA’s roughly $23 million revenue budget, about $4 million comes from TIF capture, with the remainder coming from the public parking system.

The DDA board meeting featured public commentary from Alan Haber, a self-described “agitator” for a public park on top of the Library Lane underground parking garage, and a briefing from Ray Detter, chair of the downtown citizens advisory council, on the status of the 413 E. Huron project. The previous evening, that proposed residential project had failed to achieve the six votes it needed for a planning commission recommendation of approval. The project is still expected to be brought to the city council for consideration, possibly on March 18.

The board was also presented with this year’s edition of the DDA’s “State of the Downtown” report, which summarizes a number of statistics about the DDA district. [Full Story]

Budgets for the fiscal years 2014 and 2015 have been approved by the board of Ann Arbor’s downtown development authority. The DDA’s fiscal year is in sync with the city of Ann Arbor’s fiscal year, which begins on July 1.

For FY 2014, the DDA budget calls for $23.1 million in expenditures against $23.4 million in revenues. That would add about $300,000 to the total fund balance reserve, which is projected to end FY 2014 fiscal at around $5.5 million. The surplus from FY 2014 would be used in the FY 2015 budget, which calls for $23.8 million in expenditures against $23.5 in revenues, leaving the DDA with about $5.2 million in total fund balance reserve at the end of FY … [Full Story]

The Jan. 25, 2013 meeting of the Ann Arbor Downtown Development Authority’s operations committee featured a preview of budgets for the fiscal years 2014 and 2015. For FY 2014, the DDA budget calls for $23.1 million in expenditures against $23.4 million in revenues. That would add about $300,000 to the total fund balance reserve, which is projected to end FY 2014 fiscal at around $5.5 million.

The surplus from FY 2014 would be used in the FY 2015 budget, which calls for $23.8 million in expenditures against $23.5 in revenues, leaving the DDA with about $5.2 million in total fund balance reserve at the end of FY 2015.

DDA revenues come from two main sources – tax increment finance (TIF) capture and Ann Arbor’s public parking system.

Besides operation and capital maintenance of the parking system, revenues to the public parking system are used by the DDA to support the getDowntown program’s go!pass subsidy. So one focus of the Jan. 25 DDA operations committee meeting was budgeting for that program. The go!pass is a bus pass that downtown employees obtain through their employers, who pay $10 annually for passes for each of their employees. In a presentation made to the operations committee, Michael Ford – CEO of the Ann Arbor Transportation Authority – requested a total of $623,662 to support the getDowntown program, including the go!pass subsidy. That compares with $553,488 granted by the DDA last year. For FY 2014, the DDA’s draft budget calls for a $600,000 allocation that could cover most of that request.

This year’s draft budget also calls for $250,000 in parking revenue to be spent on a possible arrangement with the city of Ann Arbor to pay for additional downtown police patrols. Based on the conversation at the operations committee meeting, it’s not a topic on which any recent detailed talks have taken place. But DDA executive director Susan Pollay indicated a strong interest in having those conversations with the city. If that didn’t lead to an agreement with the city, she said, then the DDA board was certainly not obligated to spend the money in that way.

Another $300,000 in the FY 2014 budget that could be used somewhat flexibly is in the TIF fund budget, labeled “capital construction.” It could be used to fund sidewalk improvements between William and Liberty along State Street to facilitate patio dining for restaurants along that strip – or streetscape improvements for William Street, or even alley improvements near the Bell Tower Hotel, Pollay told the committee.

The full DDA board will be asked to approve the FY 2014 and FY 215 budgets at its Feb. 6 meeting. The DDA’s fiscal year is in sync with the city of Ann Arbor’s fiscal year, which begins on July 1. The city council will settle the city’s FY 2014 budget by May 20 – the council’s second meeting in May. While the city uses a two-year planning cycle – which begins fresh this year – the council approves its budget just one year at a time. [.pdf of draft DDA budgets FY 2014-15] [.pdf of FY 2013 six-month financial statements] [.pdf of monthly parking reports] [Full Story]

For the next two years, many sidewalks within the geographic district of Ann Arbor’s Downtown Development Authority (DDA) will be repaired by the city of Ann Arbor – using funds captured by the DDA from the city’s sidewalk repair millage under its standard tax increment finance (TIF) mechanism.

Voters approved the 1/8 mill sidewalk repair millage in November 2011. The city council resolution placing the question on the ballot that year excluded certain properties inside the DDA district – those that are not one- and two-family houses – from the city’s sidewalk repair program that is funded with the millage proceeds.

The council subsequently enacted an ordinance, on June 4, 2012, that assigns responsibility for sidewalk maintenance and repair to the … [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]

The Varsity residential development has been granted the right to purchase two monthly permits in Ann Arbor’s public parking system, in order to satisfy the project’s 76-space parking requirement under the city’s zoning regulations. The project, located on East Washington Street, is a 13-story, 173-unit, 178,380-square-foot apartment building for approximately 418 people. Construction on the project is well underway.

The vote by the Ann Arbor Downtown Development Authority board came at its Jan. 9, 2013 meeting. The DDA manages the public parking system – including parking permits – under contract with the city. The DDA in turn subcontracts out the day-to-day parking operations to Republic Parking.

The developer of The Varsity had originally planned to satisfy its parking requirement through a contract … [Full Story]

Roughly $2.6 million in changes to the current year’s budget (FY 2013) have been approved by the Ann Arbor Downtown Development Authority board. They stem primarily from costs that had been budgeted for the previous year for construction of the Library Lane underground parking garage, but not paid for. The vote on the amended budget came at the board’s Jan. 9, 2013 meeting.

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. The FY 2013 budget projects a fund balance at the end of FY 2013, on June … [Full Story]

The Ann Arbor Downtown Development Authority has voted to approve the recommendations related to future development of five city-owned parcels in the DDA district – known as the Connecting William Street project. The recommendations cover: (1) the Kline lot (on the east side of Ashley, north of William), (2) the lot next to Palio restaurant (northeast corner of Main & William), (3) the ground floor of the Fourth & William parking structure, (4) the old YMCA lot (on William between Fourth and Fifth), and (5) the top of the Library Lane underground parking garage on South Fifth, north of the downtown library. [.pdf of presentation made at Dec. 5, 2012 board meeting]

The recommendations stemmed from a directive given … [Full Story]

About 40 monthly parking permits in Ann Arbor’s public parking system – to be sold to a proposed project at 624 Church St. – have been the topic of discussion by the Ann Arbor Downtown Development Authority in the last few months.

Most recently, at the Dec. 19 meeting of the DDA’s operations committee, the discussion focused on location: For which of the six public parking structures would monthly permits be sold? The developer of the 624 Church St. project would prefer that the project be allowed to buy permits in the Forest parking structure.

The Forest facility, a joint venture of the DDA and the University of Michigan, is the structure closest to the proposed residential development. According to the developer’s Nov. 28 submittal to the city, the 13-story project would include more than 80,000 square feet of new floor area with the following configuration of apartments: 11 one-bedroom; 21 two-bedroom; 33 three-bedroom; and 11 four-bedroom units. That’s a total of 76 apartments, with 196 bedrooms.

The developer, Opus Development Corp., has already won approval from the DDA’s board to satisfy the project’s parking requirement without providing onsite spaces – by instead using the contribution in lieu (CIL) program. The CIL provides an option to purchase monthly permits, but the cost is at a rate 20% higher than standard pricing.

Discussion by the DDA operations committee on Dec. 19 centered around the issue of fairness: Would allowing the purchase of permits in the Forest structure give the developer of the 624 Church St. project an unfair competitive advantage in the South University area rental market? Raising the fairness issue was DDA board member Roger Hewitt, who owns Revive + Replenish, which is a tenant in the ground floor of the Zaragon Place on East University. Zaragon is a nine-story apartment building with almost 250 bedrooms, catering to the student rental market.

Other board members did not perceive the issue to be problematic, from the perspective of fairness to already-existing projects. And Susan Pollay, executive director of the DDA, pointed out that the decision to allow a project to purchase monthly parking permits is a tool that’s available to the DDA to help make a private development possible that otherwise would not be. In the case of 624 Church St., building parking spaces on that site isn’t feasible. Hewitt was concerned that the strategy – if the DDA allowed permits to be purchased at a structure very near to projects – might result in an incentive for developers in the future not to build any onsite parking.

The committee’s discussion was inconclusive, but committee members indicated they wanted to develop a formal policy on which parking structures would be chosen for monthly permits sold under the CIL program. The 624 Church St. project is due to come before the city planning commission on Jan. 15, so the developer would prefer to have the issue settled by then. But given the DDA’s desire first to establish a policy that would guide this and future decisions, it’s unlikely it will be finalized as early as mid-January.

Based on the committee’s discussion, capacity in the parking system does not appear currently to be a limiting factor on selling CIL permits. The committee also reviewed the latest monthly parking data, which shows continued increased usage of the new underground garage, Library Lane.

Revenues per space in the Library Lane structure are now beginning to approach those of on-street parking spaces, but are still the lowest of any facility in the system. That’s due in part to a discounted rate offered to induce holders of permits in other structures to move to Library Lane.

Also of interest at the operations committee meeting was a draft policy for holding events on top of the Library Lane structure, including the closure of the mid-block cut-through, Library Lane itself. [Full Story]

Ann Arbor Downtown Development Authority board meeting (Dec. 5, 2012): The board had no voting items for its final meeting of the calendar year, but received several reports. Among the reports was a draft recommendation to be presented to the city council early next year about the use of five city-owned pieces of downtown land, which are currently used for parking – the Connecting William Street project. That presentation, discussion by the board, and public commentary on the topic will be covered in future Chronicle reporting.

The DDA manages the city’s public parking system, and a report presented to the board for October 2012 – the most recent month for which data is available – showed $1.675 million in revenue, which amounts to an increase in revenue compared to October 2011 of about 15.5%. The increase is at least partly a function of rate increases, changes to the billing method, and an increase in the parking system inventory. The recently completed Library Lane underground parking garage offers more than 700 spaces, which were not available a year ago. The use of the parking system as measured by hourly patrons showed only a 1.8% increase.

At the meeting, DDA board member Roger Hewitt announced that future monthly reports would begin including more detailed information on the length of time patrons park in the system. Currently the board uses revenue levels as a kind of imperfect proxy for system usage.

Also related to the parking system, the stats for November will include the fact that the parking system maxed out – with all spaces in the entire system filled – on the night of the Midnight Madness holiday shopping promotion. That’s an event sponsored by the Main Street Area Association (MSAA), which took place on Nov. 30. Maura Thomson, executive director of the MSAA, relayed her appreciation to the board during public commentary for the DDA’s financial support of the holiday lights strung on trees downtown.

Again related to parking were brief remarks made to the board by local attorney Scott Munzel, who spoke on behalf of the developer of the proposed new residential project at 624 Church St. The DDA board had given its support for around 40 parking spaces to be provided for that 14-story, 81-unit apartment building through the city’s contribution-in-lieu program. Munzel alerted the board that the project was anticipated to be on the city planning commission’s Jan. 15, 2013 agenda. Munzel was hoping the location of the parking spaces in the public parking system could be determined by then.

Ray Detter, speaking for the downtown citizens advisory council, updated the board on another major development – 413 E. Huron. The northeast corner of Huron and Division is the location of a planned residential and retail development with 213 apartments – which does not need any variances in the D1 zoning district. Detter reported the developer’s intention to proceed with the development even through it was strongly criticized by the city’s design review board.

Addressing the board on a non-parking topic was Jim Balmer, president of Dawn Farm, a nonprofit offering both residential and out-patient services supporting recovery for alcoholics and drug addicts. Dawn Farm’s Chapin Street facility has been supported in the past by the DDA, and Balmer addressed the board to thank them for that support and to highlight a future funding request – $150,000 to pay down debt. The grant is intended to help Dawn Farm achieve a target of 200 beds for its residential facilities, up from the current 159 beds.

The board received news that the preliminary draft audit report indicates that the fiscal year 2012, which ended June 30, 2012, will be unqualified – that is, “clean.” The unrestricted net assets held by the DDA at the end of the fiscal year totaled about $8.65 million. [Full Story]

Ann Arbor Downtown Development Authority board meeting (Nov. 7, 2012): The board’s first-Wednesday monthly noon meeting often falls the day after Election Day, as it did this year. That left executive director of the DDA Susan Pollay with less sleep than others – as she did not conclude her duties on one of the city’s 11 absent voter count boards until around 3 a.m.

But the DDA board’s agenda was relatively light. It did not include any voting items, and consisted of a series of reports and commentary – some of it in preparation for the board’s upcoming annual retreat on Nov. 16.

Sketching out the retreat for the board, Pollay told them that for the first time in the nearly 17 years she’s served as executive director, there is no “next big project.”

A big project the DDA is just completing is the construction of the Library Lane underground parking garage on South Fifth Avenue. The construction bills for that project were included in last year’s (FY 2012) budget, but not all of them came in by year’s end. So as board member Roger Hewitt reported, the first quarter financial statements for this year include bills that were originally budgeted for last year. When all the construction bills are paid, a budget adjustment will be made, he said. In any case, he characterized the DDA’s financial position as strong.

The board was also briefed on the public parking system, which the DDA manages under a contract with the city of Ann Arbor. Chronicle coverage of the parking report came earlier in a preview article.

The board got an update on two projects recently proposed for the downtown, which have now undergone review by the city’s design review board, and for which citizen participation meetings have been held: 624 Church Street, next to Pizza House; and 413 E. Huron at Division Street. The next formal step for both of those projects will be submission to the Ann Arbor planning commission.

At the meeting it was reported that the developer of the 413 E. Huron project also has a possible interest in the city-owned properties that are included in the scope of the Connecting William Street (CWS) planning project, which the DDA is overseeing. The board got an update on CWS – the process is expected to result in a recommendation made to the city council before the end of the year.

The board also got an update on the review of an issue that mayor John Hieftje has pushed the DDA to address for the last three years: bicycle riding on downtown sidewalks. For now it looks like the DDA is not likely to move forward on that issue, until the problem is more clearly defined. [Full Story]

The board of the Ann Arbor Downtown Development Authority will face a relatively light agenda for its post-election-day meeting scheduled for Nov. 7. But the meeting will include the usual routine update on usage statistics for Ann Arbor’s public parking system.

And while the most recent figures show revenues to be slightly better than expected for the quarter ending Sept. 30, revenues for just the month of September 2012 showed only a 3% gain against September 2011.

All other things being equal, the 3% revenue increase could be analyzed as increased usage of the parking system. But a couple of significant factors were not equal: total spaces available in the system, and parking rates. Both factors increased significantly more than 3%, indicating a dip in usage.

In September 2012, Ann Arbor’s public parking system offered about 12% more spaces than in September 2011 – 7,824 compared to 6,974 a year ago. Much of that increased inventory is due to the 738 spaces in the new Library Lane underground parking garage.

And parking rates increased 7-9% system-wide in September: Hourly parking structure rates increased from $1.10/hour to $1.20/hour; hourly parking lot rates increased from $1.30 ($1.50 after 3 hours) to $1.40 ($1.60 after 3 hours); hourly parking meter rates increased from $1.40/hour to $1.50/hour; and monthly parking permit rates increased from $140/month to $145/month.

The count of hourly patrons in the system is also consistent with a usage drop for September 2012 compared to September a year ago – 171,107 compared to 194,034 last year, or nearly 12% fewer patrons.

Discussion of the September parking system revenue totals at the DDA’s operations committee meeting on Oct. 31, 2012 included several factors that might account for the usage drop. In September 2011, the University of Michigan played four home football games, compared to just two this year. And September 2012 included one fewer business day (24 compared to 25) and one fewer weekend day (8 compared to 9) than September 2011. In addition, September 2012 did not include the Friday before Labor Day.

September revenue totals also reflect the fact that one segment of parking customers paid less, despite consistent usage. Holders of monthly permits in structures near the UM campus were offered a substantial discount to move their permits to the new underground Library Lane parking garage – $95 compared to the $145 regular rate. So a portion of the roughly 415 monthly permits that have been sold for the Library Lane garage reflect the discounted rate.

September was the first full month the Library Lane garage was open, without any part of it closed off for construction inspection activity. The garage showed modest revenue gains compared to last month. But somewhat as expected, it is initially lagging behind other facilities measured by revenue per space – $77 per space compared to a system-wide average of $196.

The public parking system will be adding more spaces sometime in mid-March 2013. At the DDA’s operations committee meeting, DDA executive director Susan Pollay indicated that current projections are for the DDA to take possession of the first two floors of Village Green’s City Apartments project on March 15, 2013. The building – located at First and Washington – will contain a 244-space parking deck on those first two floors, 95 of which are to be available for public parking. The rest of the spaces will be used by residents of the 146-unit project, when the construction is completed.

Graphs and some discussion of other ways to measure parking system performance are included in this report. [Full Story]

In my wallet I have a transit pass. By sliding this pass through the farebox card reader aboard any Ann Arbor Transportation Authority bus, I get access to a public transportation system that served our community with 6.3 million rides this past fiscal year.

If I rode the AATA buses to and from work every day and paid the full $1.50 fare each way, the cash value of that card would be about $750 per year. Of course if I were actually riding the bus that frequently, I’d be somewhat better off purchasing a 30-day pass for $58 a month, which would come out to just a bit under $700 annually.

What I actually paid for that card this year was $10 – just a bit over 1% of its potential cash value.

So what sort of dark magic subsidizes my potential rides on AATA buses? And why do I have access to this magical go!pass card, when you, dear Chronicle reader, likely do not?

Along the road to answering these questions, I’d also like to make a proposal. It’s a vision for broadening the program, getting more transit passes into the hands of Ann Arbor residents, and expanding the possible uses for the go!pass – including (shudder) the ability to use a transit pass to pay for parking. [Full Story]

Ann Arbor Downtown Development Authority board meeting (Oct. 3, 2012): At its most recent meeting, the DDA board approved four resolutions – two related to downtown housing and two related to transportation.

Getting approval from the board was a $260,000 request from the Ann Arbor housing commission (AAHC), the bulk of which will pay for the emergency replacement of the roof on Baker Commons, a 64-unit public housing complex located at the intersection of Packard and Main streets. The sharply pitched roof will be made of steel, and is expected to last for 50 years, though it’s guaranteed for 20. Overall the board was positively inclined toward the request, but board member Newcombe Clark also wanted a clearer idea of how the DDA’s contribution fit into the AAHC’s capital maintenance and replacement schedule.

Also getting approval from the board was a resolution that authorized negotiating an arrangement for around 42 parking spaces in the public parking system for a proposed residential development at 624 Church St. The 13- or 14-story, 83-unit apartment building will include about 181 beds – a residential use that allows the project to qualify for a by-right “premium” under the city’s D1 (downtown core) zoning code.

The parking spaces for 624 Church St. can be provided through a contribution-in-lieu (CIL) program instead of providing them on site. That CIL program is administered by the DDA, because the DDA manages the public parking system under a contract with the city of Ann Arbor.

While the CIL authorization was perhaps at first glance only about housing, not transportation, two other items on the agenda were more obviously transportation-related.

A transportation connector study got a $30,000 contribution from the DDA. It’s contingent on the city of Ann Arbor contributing $30,000 as well, which is not a certainty. The total of $60,000 in city sources is part of $300,000 in local matching funds required for an already awarded $1.2 million federal grant. The remaining $240,000 is coming from the University of Michigan ($150,000) and the Ann Arbor Transportation Authority ($90,000). The corridor to be studied runs from US-23 and Plymouth southward along Plymouth to State Street and farther south to I-94. This alternatives analysis phase of the study is to result in identifying a preferred mode – such as bus rapid transit or light rail – and the location of stations and stops.

The board also authorized a 50-bike storage facility that would have the footprint of two vehicle parking spaces. The “cage” will be located in the downtown Ann Arbor’s Maynard Street parking structure.

In addition to the monthly parking report, the board received an update on the electric vehicle charging stations that are located in public parking structures. [Full Story]

A 50-bike storage facility that would have the footprint of two automobile parking spaces has been given approval by the Ann Arbor Downtown Development Authority board. [.jpg of footprint] The “cage” will be located in the downtown Ann Arbor Maynard Street parking structure.

The authorization of $30,000 from the DDA’s parking fund – for design, fabrication and installation of the bicycle storage facility – was given at the board’s Oct. 3, 2012 meeting. Similar “cages” in other cities use a chain-link fencing material. However, the DDA hopes that a more aesthetically pleasing option can be identified.

The facility is designed for commuters who would pay a rental amount for use of the “cage.” Bicyclists would still be responsible for securing their … [Full Story]

The study of a transportation connector between the northeast and south sides of Ann Arbor has been given a $30,000 boost by the Ann Arbor Downtown Development Authority. The corridor runs from US-23 and Plymouth southward along Plymouth to State Street and farther south to I-94. This alternatives analysis phase of the study is to result in identifying a preferred choice of technology (e.g., bus rapid transit, light rail, etc.) and the location of stations and stops. The decision to help fund the project was made at the DDA board’s Oct. 3, 2012 meeting.

The grant from the DDA to the project would come from parking revenues, split equally between the current fiscal year (2013) and next year. It also would be contingent on the … [Full Story]

A proposed residential development at 624 Church St. in downtown Ann Arbor – a 13- or 14-story, 83-unit apartment building with approximately 181 beds – will be able to provide 42 spaces of required parking by contracting for the spaces in the public parking system. That’s instead of building the spaces on site as part of the project.

The authorization to work out the arrangement came on a vote taken at the Oct. 3, 2012 meeting of the Ann Arbor Downtown Development Authority board. The DDA manages the city’s public parking system under a contract with the city.

Ann Arbor’s “contribution in lieu of parking” program was authorized by the city council on April 2, 2012. That program allows essentially two options: (1) … [Full Story]