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

Downtown Parcel Planning Gets Budget

At its March 7, 2012 meeting, the Ann Arbor Downtown Development Authority board voted to establish 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, Palio’s lot, Fourth & William parking structure (ground floor), the old Y lot (Fifth & William), and the top of the Fifth Avenue underground parking garage, which … [Full Story]

Land Use, Transit Factor Into Sustainability

How do Ann Arbor’s land use policies affect where people live and work, and the way they get from one place to another? What is the city doing to support sustainable approaches?

Joe Grengs Ginny Trocchio

Joe Grengs, a University of Michigan associate professor of urban and regional planning, and Ginny Trocchio, who manages the city's greenbelt program, were among the speakers at a Feb. 9 sustainability forum.

Issues of land use and accessibility were the topic of a sustainability forum on Feb. 9, the second in a series that’s part of a broader city sustainability initiative. During the forum, city staff also unveiled a set of draft goals for Ann Arbor related to four general sustainability themes: Resource management; land use and access; climate and energy; and community.

Wendy Rampson, head of the city’s planning staff, told the audience that the 15 draft goals were extracted from more than 200 that had been identified in existing city planning documents. The hope is to reach consensus on these sustainability goals, then present them to the city council as possible amendments to the city’s master plan.

Speakers at the Feb. 9 forum included Joe Grengs, a University of Michigan associate professor of urban and regional planning; Susan Pollay, executive director of the Ann Arbor Downtown Development Authority; Eli Cooper, the city’s transportation program manager and member of the Ann Arbor Transportation Authority board; Jeff Kahan of the city’s planning staff; Ginny Trocchio, who manages the city’s greenbelt program; and Evan Pratt of the city’s planning commission.

A Q&A followed presentations by the speakers and covered a wide range of topics, including thoughts on the proposed Fuller Road Station. The following day, Feb. 10, the city and University of Michigan announced plans to halt the initial phase of that controversial project – a large parking structure near the UM medical campus.

The topics of the series of forums reflect four general sustainability themes: Resource management; land use and access; climate and energy; and community. The first forum, held in January, focused on resource management, including water, solid waste, the urban forest and natural areas.

All forums are held at the downtown Ann Arbor District Library and are being videotaped by AADL staff. The videos will be posted on the library’s website. Additional background on the Ann Arbor sustainability initiative is on the city’s website. See also Chronicle coverage: “Building a Sustainable Ann Arbor,” and an update on the project given at the November 2011 park advisory commission meeting. [Full Story]

DDA Reviews Mid-Year Financials, Parking

Ann Arbor Downtown Development Authority board meeting (Feb. 1, 2012): In the one agenda item that required formal action, the DDA board unanimously voted to award an annual management incentive to Republic Parking, the contractor that manages day-to-day operations of the city’s parking system.

Sandi Smith

DDA Quiz: Board member Sandi Smith is illustrating: (a) the "increment" in "tax increment financing," (b) the amount of a parking rate increase, (c) building heights and flood plains, or (d) relative thickness of concrete slabs in parking structures. (Photos by the writer.)

The amount of the award was 90% of the total amount the board could have awarded –$45,000 of $50,000. It’s the same amount the board has awarded in each of the last three years. It’s based on a variety of criteria, including customer satisfaction surveys, independent inspections of the parking facilities, and financial performance.

February’s meeting also included a review of the DDA’s finances at the mid-point of the fiscal year – through Dec. 31, 2011. The DDA’s fiscal year runs from July 1 to June 30. Operations committee chair Roger Hewitt sketched out a picture that portrayed things unfolding pretty much as expected. Although parking revenues are currently about $125,000 under the year-to-date budgeted amount, parking revenues are projected to finish the year at around $672,536 over the budgeted amount. The gross parking revenue now anticipated for FY 2012 is around $16.8 million. But capital costs associated with the new Fifth Avenue parking garage construction are anticipated to put the parking fund expenses over budget.

Part of that parking system revenue will come from rate increases and changes in billing methods, which were approved by the board at its Jan. 4, 2012 meeting. Some of the changes will not be implemented until September 2012 – like hourly rates at parking structures and lots, which will climb from $1.10 per hour to $1.20 per hour.

But other changes were implemented starting Feb. 1, including a change in the billing method at parking structures and hourly lots – from half-hourly to hourly. The board heard criticism of the change during public commentary, from a resident who makes frequent but brief trips downtown as a patron of the downtown location of the Ann Arbor District Library. The billing change amounts to a “surcharge” on his library use of a couple hundred dollars a year, he said.

The board also heard a pitch from the developer of the 618 S. Main project, Dan Ketelaar, who is interested in financing certain elements of the project through the state’s Community Revitalization Program. That’s the successor to the state’s brownfield and historic preservation tax credit program.

The 618 S. Main project, which received a positive planning commission recommendation on Jan. 19, would be a 7-story, 153,133-square-foot apartment building with 190 units for 231 bedrooms. The idea would be for the DDA to forgo a portion of the taxes that it would ordinarily capture on the newly constructed 618 S. Main project. The DDA captures taxes from the increment in value due to new construction within its tax increment authority (TIF) district.

The board also heard a pitch from Jody Lanning, with Lanning Outdoor Advertising, for a way to finance murals on the city’s parking structures and other public buildings. The board also entertained its usual set of updates from boards and commissions. [Full Story]

DDA Awards Incentive to Republic Parking

At its Feb. 1, 2012 meeting, the Ann Arbor Downtown Development Authority board approved a management incentive under the terms of its contract with Republic Parking, which manages day-to-day operations of the public parking system. The board voted to award $45,000 out of the $50,000 that it can award on a discretionary basis. The other $150,000 of the $200,000 total incentive is not discretionary, and is paid to Republic monthly.

The management incentive is paid based on customer satisfaction surveys and independent inspections of the parking facilities. The free responses section of the survey included a range of sentiments, from enthusiastic praise of specific Republic Parking employees (“Staff is always very friendly” and “Teri and Cathy are the greatest!!”), complaints about employee … [Full Story]

DDA Lifts Parking Rates, Sets 2012 Calendar

Ann Arbor Downtown Development Authority board meeting (Jan 4, 2012): The DDA board dispatched with its January meeting in just under a half hour. The discussion by the board and the public about its main agenda item – parking rate increases – had already taken place at previous meetings.

Roger Hewitt

Ann Arbor Downtown Development Authority board member Roger Hewitt cleans his spectacles before the start of the DDA’s Jan. 4 meeting. (Photos by the writer.)

The parking rate increases that will affect many downtown visitors will not take effect until Sept. 1. Among the increases to take effect eight months from now are an increase in on-street metered parking from $1.40/hour to $1.50/hour and an increase in the hourly rate for parking structures from $1.10/hour to $1.20/hour.

Other increases are set to take effect on Feb. 1: an increase in the premium permit parking rate by $5/month (from $175 to $180); an increase in the Ann & Ashley and Liberty Square structure evening/Saturday rates by $1/entry (from $2 to $3); a $1 increase in the 415 W. Washington lot entry (from $3 to $4) and a $5 increase in monthly permit rates (from $80 to $90/month) there; and an increase in First & William lot permits by $10/month (from $105 to $115).

A change of the effective start date – from Feb. 1 to Jan. 21 – will apply only to the meter bag rates. They’re set to increase by $5/day (from $15 to $20).

Also at Wednesday’s meeting, the board approved its 2012 calendar. Board meetings are set for the first Wednesday of the month, when they’ve typically been held, except for July 4. That meeting date was shifted to Monday, July 2.

The board also heard the usual set of reports from various subcommittees covering a range of topics, from the future of the midtown area – which includes the AATA’s Blake Transit Center and the Ann Arbor District Library building – to electric charging stations.

During his regular report from the downtown area citizens advisory council, Ray Detter remembered Ray Fullerton, a former member of that body, who passed away on Dec. 18. [Full Story]

Ann Arbor Parking Rate Increases OK’d

At its Jan. 4, 2012 meeting, the board of the Ann Arbor Downtown Development Authority voted unanimously to increase parking rates – some effective starting Jan. 21 and Feb. 1, 2012, with others starting Sept. 1. Among the increases to take effect eight months from now are an increase in on-street metered parking from $1.40/hour to $1.50/hour and an increase in the hourly rate for parking structures from $1.10/hour to $1.20/hour.

The mid-January and early February rate changes are estimated to generate a total of $133,000 in additional revenue annually. Increases and anticipated revenues are: raise meter bag rates by $5/day ($68,800); increase the premium parking rate by $5/month ($3,300); increase Ann & Ashley and Liberty Square structure evening/Saturday rates by … [Full Story]

2011: Ann Arbor $1.6M Better than Planned

Editor’s note: Before this article was finalized for publication, it was inadvertently posted for a brief time, then removed from the website. Between versions, some added material gave more precision to the planned expenditures and use of fund balance in the city of Ann Arbor’s FY 2011 budget.

Ann Arbor city council audit committee 2011

The Ann Arbor city council audit committee met on Dec. 19 to review the audit for FY 2011, which ended June 30, 2011. Clockwise, starting with Stephen Kunselman (Ward 3), with his back to the camera, are Sabra Briere (Ward 1), Sandi Smith (Ward 1), city administrator Steve Powers, auditor Alan Panter, accounting services manager Karen Lancaster, and Margie Teall (Ward 4). Carsten Hohnke (Ward 5) was absent. (Photo by the writer.)

In mid-December, the audit committee of the Ann Arbor city council received what could be considered good news from the final audit for the last fiscal year. It was clean. The city also managed to add incrementally to its fund balance, instead of using more than $1 million from that balance, which it had anticipated doing.

The council’s audit committee met on Monday, Dec. 19 at 6 p.m. just before the council’s last meeting of the year, which started at 7 p.m. Last year, the committee did not meet at all, a point of complaint made by committee member Stephen Kunselman (Ward 3) at a recent council meeting.

Alan Panter of the accounting firm Abraham & Gaffney, P.C. presented the audit committee with an overview of his findings for fiscal year 2011, which were summarized in the report as “an unqualified (‘clean’) opinion on the City of Ann Arbor financial statements for the year ended June 30, 2011.”

One finding that was not deemed a “material weakness” – but was nonetheless described as a “significant” deficiency in internal controls – involved adequate documentation of employee purchase card (P-Card) use. It’s an issue familiar to the city from previous audits.

In terms of the overall financial state of the city, as reflected in the audited numbers, the city added around $127,000 to its general fund balance.

That’s significant, because the city council-approved FY 2011 budget had anticipated drawing around $1.5 million from the fund balance reserve to help cover about $81.5 million in planned general fund expenditures. So on balance, the city appears to have done at least $1.6 million better than it had planned for FY 2011. No single factor was identified during the audit committee’s discussion to account for the better performance.

At the end of FY 2011, the city’s fund balance reserves stood at around 13.6% of expenditures – which is within the range of 12-15% that Panter said was recommended.

The audit committee’s discussion included the fact that the city’s audit is required by the city charter to be completed by Sept. 30 each year – within 90 days of the end of the fiscal year. This year’s audit was not completed until Dec. 9. Based on discussion among the audit committee members and accounting services manager Karen Lancaster, missing the charter’s deadline has become routine. Lancaster indicated that the first year she’d worked for the city, in the early 1990s, that deadline had been met.

In order for the city’s overall audit to be completed, the audits from the component units have to be done first. Lancaster attributed at least part of the now-routine delay to the fact that two such units – the Ann Arbor Downtown Development Authority and the city employees’ retirement system – have their own accounting staff. That was not the case when she first began working for the city. Because the auditor first works with those separate staff to complete their individual audits, the overall process is slower than it might otherwise be, she said.

The audit committee voted to recommend acceptance of the auditor’s report.

Based on its responsibilities described in the 2006 council resolution creating the committee, next up for committee members in 2012 will be working to come up with a recommendation on the selection of an auditing firm – the contract with Abraham & Gaffney expires with this year’s audit. [Full Story]

DDA Wraps Up Parking Rate Hearing, Audit

Ann Arbor Downtown Development Authority board meeting (Dec. 7, 2011): At its last monthly meeting of the year, the DDA board continued a public hearing on proposed parking rate changes that it had begun at its November meeting. Only two people appeared for the continued hearing on Wednesday – nine people had addressed the board for its Nov. 2, 2011 meeting.

Nassif, Gunn, Hieftje

Front to back: Ann Arbor Downtown Development Authority board members Nader Nassif, Leah Gunn, John Hieftje. (Photos by the writer.)

The board will not vote on the rate increases until its Jan. 4, 2012 meeting. Some of the rate changes are scheduled for implementation in February 2012, but the increases affecting most downtown Ann Arbor parkers would not be implemented until September 2012. The September changes include an increase from $1.40 to $1.50 per hour for on-street metered spaces and an increase from $1.10 to $1.20 per hour for spaces in parking structures.

Some insight into the DDA’s interest in raising parking rates can be found in the DDA’s finances, as reflected in its annual audit. Acceptance of its annual audit report was the one action item on the agenda for Wednesday’s meeting. The board voted to accept its audit report done by the firm Abraham & Gaffney, P.C. for the fiscal year ending June 30, 2011.

Auditor Alan Panter had presented the report to a subset of DDA board members at a Nov. 30 meeting of the DDA’s operations committee.

The report notes an instance of expenditures exceeding the amount of funds appropriated that is inconsistent with Michigan’s Uniform Budgeting and Accounting Act (UBAA) of 1968. At Wednesday’s meeting, DDA board members characterized it as a “technical violation.” At the operations committee meeting, the $337,478 overage was attributed by DDA staff to the submission of a bill forwarded to the DDA in June by its construction management consultant (Park Avenue Consultants Inc.) – connected to the underground parking garage and streetscape improvement projects currently under construction.

For the fiscal year 2011, the DDA showed $18,806,765 in revenues against $20,796,665 in expenses, drawing $1,989,900 from the fund balance reserve. The planned draw on fund balance is related to the underground parking garage construction payments as well as a new contract, signed this year, under which the DDA operates the city’s public parking system. That contract assigns 17% of gross parking revenues to the city of Ann Arbor. At the Nov. 30 committee meeting, DDA board member Newcombe Clark was keen to confirm the inclusion of the new contract as a note in the audit.

In his presentation to the operations committee on Nov. 30, Panter highlighted the fund balance reserve for the parking fund as a concern, saying that the fund was near deficit – it shows a fund balance reserve of less than 1% of operating expenses. A recommended fund balance level, said Panter, is 15-20%.

Another still outstanding issue for the DDA’s finances is the correct interpretation of the city’s ordinance (Chapter 7) specifying how the DDA tax increment finance (TIF) capture works. At Wednesday’s meeting, the board held its third closed session on the topic since July, to discuss the written opinion of its legal counsel on the issue. Taxing authorities that have their taxes captured under the Ann Arbor DDA TIF district have questioned the DDA’s legal position – the DDA contends that Chapter 7 does not place limits on its TIF capture. Depending on how the issue is resolved, it could mean as much as $600,000 less per year in TIF capture, compared with the budget planning the DDA is currently doing.

Also at the Dec. 7 meeting, during the opportunity for public commentary, the DDA board heard from Jim Kosteva –University of Michigan director of community relations – about a request to eliminate two on-street parking spaces on Monroe Street. With the imminent opening of the newly constructed South Hall, on the south side of Monroe, it’s anticipated that students will attempt to cross mid-block. The elimination of the parking spaces would be intended to make students who are crossing mid-block more visible to motorists. Based on the verbal exchange with Kosteva at the podium, it appears possible, but not guaranteed, that some kind of arrangement could be reached before the start of the next semester. [Full Story]

DDA Accepts Audit, Violation Noted

At its Dec. 7, 2011 meeting, the board of the Ann Arbor Downtown Development Authority voted to accept its annual audit for the year ending June 30, 2011.

The report from the auditing firm Abraham & Gaffney, P.C. notes an instance of expenditures exceeding the amount of funds appropriated that is inconsistent with Michigan’s Uniform Budgeting and Accounting Act (UBAA) of 1968. Auditor Alan Panter presented the report to a subset of DDA board members at a Nov. 30 meeting of the DDA’s operations committee. At that meeting, the $337,478 overage was attributed by DDA staff to the submission of a bill forwarded to the DDA in June by its construction management consultant (Park Avenue Consultants Inc.) for the underground parking garage … [Full Story]

Parking Rate Hearing Done, January Vote

At its Dec. 7, 2011 meeting, the Ann Arbor Downtown Development Authority board continued a public hearing begun at its Nov. 2, 2011 meeting on proposed parking rate changes, and then formally closed the hearing. A vote on the rate changes won’t come until the board’s Jan. 4, 2012 meeting.

The details of proposed parking rate increases were announced in late October, 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]

The public hearing on parking rate increases came at the same meeting when the board voted to accept the audit from the previous fiscal year (2011), which included some concern expressed by the auditor that the … [Full Story]

Public Hearing Starts Without Aparkolypse

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.

DDA public hearing

Deanna Relyea spoke to the Ann Arbor DDA board at the Nov. 2 public hearing on behalf of the Kerrytown District Association. (Photos by the writer.)

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]

DDA Announces Parking Rate Hearing

In a document that began circulation in the community on Oct. 27, the Ann Arbor Downtown Development Authority has detailed proposed parking rate increases, most of which would be implemented starting in September 2012.

Highlights of the proposed changes 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.

No extensions of enforcement hours are a part of the proposal.

At its Nov. 2, 2011 meeting, the DDA board will formally announce its intent and open a public hearing on the … [Full Story]

DDA Updated: Parking, Panhandling, Parcels

Ann Arbor Downtown Development Authority board meeting (Oct. 5, 2011): At its regular monthly meeting, the DDA board had no voting items on its agenda, but received the usual set of reports from its committees and the public.

Bob Guenzel chair of DDA board

Bob Guenzel chaired his first meeting of the Ann Arbor Downtown Development Authority board on Wednesday. (Photos by the writer.)

Those included the monthly parking report, which showed use of the city’s public parking trending upward compared to last year, as well as an annual report on the structure-by-structure breakdown of the parking system.

The reports presented to the DDA board at their meeting – together with a recent report delivered to the city’s environmental commission about parking trends dating back to the mid-2000s – provide reason for some cautious optimism. The number of people getting access to downtown Ann Arbor by driving there and parking suggests an overall slight upward trend, despite a reduced number of number of hourly patrons earlier this year.

Also related to parking, the board received a presentation on a communications plan that the DDA is developing, targeted at downtown evening employees. That communications plan is meant to make sure those employees are aware of low cost alternatives to using on-street parking spaces. The communications strategy would be part of a possible plan to extend enforcement hours for on-street parking meetings past 6 p.m. The DDA will present its tentative proposal for revisions to parking policies to the city council at a joint working session of the board and the council to be held on Nov. 14.

In response to some of the individual success stories that were presented in connection with parking alternatives, DDA board member Russ Collins said, “I wonder how this positive message will play in the media.”

Collins’ remark could have applied to much of the rest of the meeting as well. The board took the report on the basic current financial health of the parking system as an occasion to talk about the overall economic strength of the downtown. Despite the recent closing of some smaller stores, board members gave reports of strong performances by other businesses.

That positive report contrasted with public commentary about ongoing problems with aggressive panhandling and drug dealing and other fringe behavior exhibited downtown. Mayor John Hieftje, who sits on the DDA board, described how some response is being developed by the Ann Arbor police department.

The construction updates on the Fifth and Division streetscape improvement project and the underground parking garage on Fifth Avenue converged on the Ann Arbor District Library. The projects will result in modifying the downtown library building’s front porch, to facilitate access from the new east-west mid-block street – Library Lane – into the library.

As the underground parking garage nears expected completion in the spring of 2012, brief discussion unfolded among DDA board members on the near-term use of the top of that garage. Also related to potential development in the “midtown area” was a report from the partnerships committee. A steering committee comprising DDA board members and community members will be leading the effort to explore alternative uses of specific city-owned parcels downtown, including the top of the underground parking structure (aka the Library Lot).

It was the first board meeting chaired by Bob Guenzel, who was elected to that position at the DDA’s last meeting, which he was unable to attend. [Full Story]

Committee Briefed on Downtown Sidewalks

As the Nov. 8, 2011 general election approaches, the Ann Arbor Downtown Development Authority is considering the implications that a ballot question might have on the DDA’s tax increment finance (TIF) district. The ballot question asks voters to approve a sidewalk repair millage that would levy a new tax of 0.125 mills. A mill is $1 for every $1,000 of a property’s taxable value.

2-inch-rule

Part of the discussion at the DDA transportation, operations and construction committee meeting included the “two-inch” rule on vertical sidewalk displacement. A law working its way through the state legislature would establish that a city is presumed to have maintained a sidewalk properly, but that can be rebutted by evidence showing that the proximate cause of an injury was a “vertical discontinuity” defect of 2 inches or more in the sidewalk. (Photo by the writer.)

Members of the DDA’s transportation, operations and construction committee were briefed on that and a number of other issues at its regular monthly meeting on Wednesday, Sept. 28. (The committee has a combined function for what were at different times in the past three separate committees.)

The committee was also briefed on: (1) the status of the getDowntown program; (2) a parking communications plan aimed at evening employees; (3) the financial picture for the city’s public parking system; and (4) the results of a parking customer satisfaction survey.

Committee members were somewhat surprised and disappointed to learn that the city council’s policy on the use of proceeds from the proposed sidewalk millage would place restrictions on using millage money inside the boundaries of the DDA’s TIF district.

The city council’s Aug. 4 resolution authorizing ballot language for the proposed 0.125 mill tax places a limitation on the use of funds inside the TIF district, though the wording on the ballot does not include the limitation. The resolution states that inside the DDA district, only those sidewalks adjacent to single- and two-family houses (but not other commercial properties) would be included in a millage-supported sidewalk repair program.

A resolution of intent on the use of the sidewalk millage, which includes the restriction inside the DDA TIF district, was postponed from the council’s Sept. 19 meeting, and will be taken up by the council again on Oct. 3.

At their Wednesday meeting, DDA committee members were also apprised that the getDowntown program, which draws the majority of its funding from the DDA, will not be folded into the DDA as had previously been planned. Instead, the program’s two staff members will remain employees of the Ann Arbor Transportation Authority. The getDowntown program’s status has been a question since the Ann Arbor Area Chamber of Commerce (now the Ann Arbor/Ypsilanti Regional Chamber) two years ago pulled out of the four-way partnership that supported getDowntown. The remaining three partners are the city of Ann Arbor, the DDA and the AATA.

The committee was also briefed on elements of the DDA’s communications plan that’s aimed at downtown evening employees, in connection with possibly extending parking meter enforcement hours past 6 p.m. Other parking-related issues on the committee’s agenda included a structure-by-structure breakdown of the financial performance of the city’s parking garages, as well as an overview of the results of a regular parking system survey used to evaluate Republic Parking, the DDA’s parking contractor.

This report focuses on sidewalks and getDowntown. [Full Story]

DDA Gives More Time To Near North

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.

Russ Collins Gary Boren

Russ Collins (left) shakes hands with former board member Gary Boren, who was recognized for his service at the DDA's Sept. 7, 2011 board meeting. (Photos by the writer.)

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]

DDA Renews Near North Housing Grant

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]

DDA Expresses Support for RiverUp!

At its Sept. 7, 2011 meeting, the board of the Ann Arbor Downtown Development Authority passed a resolution expressing support of RiverUp!, a collaborative effort among several organizations – including the Huron River Watershed Council, the National Wildlife Federation, and the Michigan League of Conservation Voters – to improve the Huron River corridor.

The resolution states that the DDA will assist in wayfinding efforts that would help connect the river with visitors to the downtown, but it does not specify a budget for that effort. [For background on the RiverUp! initiative, see Chronicle coverage: "RiverUp! Focuses on Revitalizing Huron River"]

This brief was filed from the DDA offices at 150 S. Fifth Ave., where the board holds its meetings. A … [Full Story]

DDA to County: Levy Econ Dev Tax

At its Sept. 7, 2011 meeting, the Ann Arbor Downtown Development Authority board passed a resolution urging the Washtenaw County board of commissioners to use Act 88 of 1913 to levy a tax to support economic development in the county. A public hearing on the tax is scheduled for the county board’s meeting tonight.

At its Aug. 15 meeting, the Ann Arbor city council passed a similar measure urging county commissioners to levy the tax.

For the last two years, the county board has levied the tax – at a rate of 0.043 mill. (One mill is $1 for every $1,000 of a property’s taxable value.) Because Act 88 predates the state’s Headlee legislation, the county board does not need to put the issue before voters … [Full Story]

Guenzel to Chair DDA; Boren is Thanked

At its Sept. 7, 2011 meeting, the Ann Arbor Downtown Development Authority board voted unanimously to name Bob Guenzel as board chair and Leah Gunn as vice chair.

The board had been without a chair, because board member Gary Boren, who had been elected to that post by his board colleagues at their July 6, 2011 meeting, was not nominated by mayor John Hieftje for reappointment to the board after his term expired on July 31. Boren was replaced on the board by local attorney Nader Nassif.

Guenzel, who retired last year as Washtenaw County administrator, was elected vice chair of the board at the July meeting and, according to the bylaws, would perform all the duties of the chair. Gunn’s other … [Full Story]

Guenzel To Be Tapped as Ann Arbor DDA Chair

At its Sept. 7, 2011 meeting, the board of the Ann Arbor Downtown Development Authority will consider a resolution that names Bob Guenzel as board chair and Leah Gunn as vice chair.

The board is currently without a chair, because board member Gary Boren, who had been elected to that post by his board colleagues at their July 6, 2011 meeting, was not nominated by mayor John Hieftje for re-appointment to the board. Boren was replaced on the board by local attorney Nader Nassif.

Guenzel, who retired last year as Washtenaw County administrator, was elected vice chair of the board at the July meeting and, according to the bylaws, would perform all the duties of the chair. Gunn currently serves on the … [Full Story]

Column: Video Replay Review for City Council

When the University of Michigan Wolverines play Big Ten opponents in football, the video record of some plays can be reviewed by game officials – under conditions set forth by the conference. One kind of reviewable play is the completion of a forward pass: Did that player actually receive the ball from the quarterback in a way that, under the rules of American football, constitutes a completed pass than can be carried forward on the field of play?

city council audio tape

Audio tape recording of the Feb. 17, 2009 Ann Arbor city council meeting – even though the Community Television Network video has gone missing, it's still possible to review what was said at the meeting. The Ann Arbor city clerk's office makes audio recordings of council meetings to ensure the accuracy of minutes. (Photo illustration by The Chronicle.)

For its proceedings, the Ann Arbor city council does not have a video replay rule.

But if it did, here’s the kind of play that might be reviewable: Did a city council-appointed board receive advice from the city’s financial quarterback in a way that, under ordinary rules of plain American English discourse, constitutes a recommendation that should be carried forward in a future board policy?

At issue is whether two seasons ago, back in February 2009, city of Ann Arbor CFO Tom Crawford recommended to the Ann Arbor Downtown Development Authority that the DDA have a policy to maintain a minimum fund balance as a reserve, and specifically, whether a minimum reserve amount was specified.

The question was important over the last two years in the course of negotiations between the DDA and the city about the contract under which the DDA manages Ann Arbor’s public parking system.

The remarks made by Crawford – which everyone seems to recall (albeit differently) – took place in plain view on the public field of play, at the Feb. 17, 2009 city council meeting.

What made the public conversation remarkable in the waning stages of contract negotiations, was that it was based on what the different players (including Crawford) recalled Crawford saying. Why not just take an approach familiar to the Big Ten college football conference, and review the tape to find out exactly what Crawford said? [Full Story]

AADL Hears from “Library Green” Advocates

Ann Arbor District Library board meeting (Aug. 15, 2011): A brief library board meeting on Monday night included a relatively rare occurrence – multiple people spoke during the time allotted for public commentary.

Mary Hathaway

Mary Hathaway spoke to the Ann Arbor District Library board about efforts to create a public gathering place atop the underground parking structure adjacent to the downtown library. (Photo by the writer.)

The commentary focused on what’s now being called the “Library Green” – an effort to create a public park atop the underground parking structure that’s being built on South Fifth Avenue, adjacent to the downtown library building. Advocates for the park conveyed that they’ve taken to heart the concerns of the library, and hope to partner with AADL to develop an area that benefits the public and helps the library to thrive.

The board began its meeting with a closed session, in part for the purpose of getting advice from AADL’s legal counsel. In her written report to the board, AADL director Josie Parker noted that the library is considering the legal and financial implications of the Ann Arbor Downtown Development Authority’s decision regarding “excess” taxes captured in the DDA’s tax increment finance (TIF) district.

Board members did not discuss this issue, but voted to schedule another closed session at their Sept. 19 meeting again to hear advice from legal counsel. [Full Story]

Boren Not Reappointed to DDA Board

At the Aug. 15, 2011 Ann Arbor city council meeting, mayor John Hieftje placed nominations before the city council for appointments to the Ann Arbor Downtown Development Authority board. John Mouat and Joan Lowenstein were nominated for reappointment, but Gary Boren, who was elected this July by his colleagues as chair of the DDA board for the coming year, was not reappointed. Nominated to replace Boren is Nader Nassif.

In an email to The Chronicle, Boren wrote that Hieftje had met with him a few weeks ago and at that meeting the mayor had told him he was not inclined to reappoint Boren. Boren acknowledged that he and the mayor had philosophical differences about the role of the DDA. About … [Full Story]

Library Weighs DDA Excess Tax Decision

During her written director’s report for the Ann Arbor District Library’s Aug. 15, 2011 board meeting, AADL director Josie Parker noted that the library is considering the legal and financial implications of the Ann Arbor Downtown Development Authority’s decision regarding “excess” taxes captured in the DDA’s tax increment finance (TIF) district. The AADL board began its meeting with a closed session to discuss the opinion of its legal counsel, as well as for labor negotiations. The board did not discuss the issue during the public portion of its meeting, but scheduled another closed session to hear the opinion of legal counsel at its Sept. 19 meeting.

At issue is the interpretation of a city ordinance about TIF capture in the DDA’s downtown district, … [Full Story]

DDA Letter: “No funds should be returned…”

On request from The Chronicle, the Ann Arbor Downtown Development Authority has provided the text of a letter sent by its executive director, Susan Pollay, to the taxing authorities in its tax increment finance (TIF) district, explaining the DDA’s position on the issue of redistributing TIF revenue. From the letter text: “There can be no doubt that as long as the DDA is spending its TIF monies according to its plan, no funds should be returned to the taxing units. All of the DDA TIF is now committed to debt service for the existing downtown development projects and the administration ofthose projects.”

Earlier this year, in May – after city of Ann Arbor staff pointed out a provision in Chapter 7 … [Full Story]

Ann Arbor DDA: No Redistribution Required

Ann Arbor Downtown Development Authority special board meeting (July 27, 2011): At a special meeting, the Ann Arbor Downtown Development Authority board passed a resolution stating that it was accepting the general guidance of its legal counsel, Jerry Lax: The DDA does not believe that any redistribution of captured taxes to relevant taxing authorities is required.

At issue is the interpretation of a city ordinance about tax increment finance (TIF) capture in the DDA’s downtown district.

The decision at the special meeting, which was unanimously approved by the nine board members present, came after a closed session with Lax that lasted nearly an hour. The language of the resolution is somewhat vague, citing the city’s ordinance only in general terms and stating that “no redistribution to relevant taxing authorities is required.”

In separate phone interviews with The Chronicle following the meeting, three board members confirmed that the DDA’s position, as expressed in the resolution, is that the city’s ordinance does not require the DDA to redistribute TIF money to other taxing authorities. The DDA’s interpretation would render moot any argument about the method used in calculating that redistribution.

Earlier this year, the DDA had calculated that the city of Ann Arbor – as one of the taxing authorities – was owed $711,767, but the city waived payment of that amount. The DDA did return a total of $473,000 to Washtenaw County, Washtenaw Community College, and the Ann Arbor District Library. The resolution passed at Wednesday’s special meeting is consistent with the DDA’s position that the return of that money was not actually required.

Executives from the library and WCC, in phone interviews with The Chronicle following Wednesday’s meeting, indicated that they’ll be following up with a response to the DDA board’s decision. [Full Story]

DDA: No TIF Recalculation

At a special meeting held on July 27, 2011, the Ann Arbor Downtown Development Authority board passed a resolution stating that it was accepting the general guidance of its legal counsel, Jerry Lax: The DDA will not be changing the calculations on which it based the return (earlier this year) of excess taxes captured through its tax increment finance (TIF) district. The decision came after a closed session with Lax that lasted nearly an hour. The language of the resolution is somewhat vague, stating that “no redistribution to relevant taxing authorities is required.”

Some background: At its May 2, 2011 meeting, as it was poised to ratify a new contract with the city of Ann Arbor, under which it … [Full Story]

Column: Tax Capture Is a Varsity Sport

On July 7, 2011 at the Michigan League on the University of Michigan campus, representatives of “The Varsity at Ann Arbor” hosted a gathering of citizens to introduce them to the planned 13-story building. The project is proposed for Washington Street, between the 411 Lofts building and the First Baptist Church, and will be purpose-built to house 418 students in 173 rental units.

Graph on a football

When you drop the ball, even if it's shaped more like a rugby ball than a football, you still have a chance to recover the fumble.

To me, the highlight of that meeting had nothing to do with the site plan or the building design – which has evolved somewhat since The Varsity’s review on June 22 by the city’s newly created design review board.

Instead, I think the most exciting play of the citizen participation game was a kind of Hail Mary forward pass flung down the field by John Floyd, a former candidate for city council. The ball was snagged out of the air, just before it hit the turf, by Tom Heywood, executive director of the State Street Area Association.

I don’t think Floyd and Heywood play for the same team – nobody was wearing numbered jerseys at the meeting – so that might count as an interception, not a completed forward pass.

Floyd’s Hail Mary was this question: What is the benefit to Ann Arbor’s bottom line, if the new taxable value from The Varsity is subject to “capture” through the Ann Arbor Downtown Development Authority’s TIF district? [Full Story]

Downtown Planning Poised to … Pause

The July 13 partnerships committee meeting of the Ann Arbor Downtown Development Authority drew an audience of around 35 people, many of them prominent community members.

Kit McCullough, Peter Allen, Mary Hathaway, Vivienne Armentrout

Before the start of the July 13 DDA partnerships committee meeting. Back row: Kit McCullough, Peter Allen. Front row: Vivienne Armentrout (partially obscured), Mary Hathaway. (Photo by the writer)

Based on the committee’s May and June meetings, many in the audience expected the committee to come up with some kind of recommendation for a public engagement process that would ultimately lead to alternate uses of some downtown city-owned parcels. The parcels currently serve as part of the public parking system. The context of the DDA’s planning for the public engagement effort is a city council resolution, approved on April 4, 2011, that outlined a detailed plan for the DDA to lead the process.

The so-called parcel-by-parcel plan emerged in late 2010 as part of “mutually beneficial” committee meetings that handled negotiations lasting over a year between the city of Ann Arbor and the DDA on a new parking contract. Under the new contract, which the two bodies finally ratified in May 2011, the DDA will continue to operate the city’s public parking system for the next 11 years.

The city council’s approval of the parcel-by-parcel plan in April and DDA partnerships committee meetings in May and June – the three months prior to Wednesday’s meeting – had provided some momentum towards translating the city council resolution into an actual timeline with action steps.

In fact, two attendees of Wednesday’s meeting had pitched their professional services to the DDA to lead that public engagement process, with events tied to tentative calendar dates. Doug Kelbaugh, former dean of the University of Michigan’s college of architecture and urban planning, and Kit McCullough, a lecturer at the college, had provided a detailed timeline of meetings they could host during the fall, with delivery of a concept plan in January 2012, which could then be used to craft requests for proposals from developers.

If the process would not be led by Kelbaugh and McCullough, the committee was expected by many in attendance at its Wednesday meeting to chart some other path forward. But that’s not where the conversation led. DDA board member John Mouat described it as a “far-reaching, vague conversation,” which he had expected it would be. At one point, committee members even expressed uncertainty about whether the DDA or the city council would lead the process.

Typically, DDA executive director Susan Pollay gleans specific direction from the vaguest of conversations by her board’s committees. But when asked by Mouat at the conclusion of the meeting if she had clear direction, Pollay allowed only that she felt like she had more direction than before the meeting.

Based on the conversation at the meeting, part of that direction is that some kind of timeline for the process – which committee members thought would take at least a year – should, if possible, be included in an October 2011 city council working session.

In a follow-up phone interview, Pollay told The Chronicle that having the October 2011 working session as a target for a proposed plan would allow the committee and the full board to use their meetings over the next two months to work on the content of that presentation to the council. Checking in with the council on the public process before settling on it, she said, was important to the board. [Full Story]

DDA Elects Officers, Gets More Parking Data

Ann Arbor Downtown Development Authority board meeting and annual meeting (July 6, 2011): Other than the ritual cancellation of its monthly meeting for August, the DDA board did not have any items on its agenda for July that required a board vote.

Bag of Rocks

To honor her past year of service as chair of the Ann Arbor Downtown Development Authority board, Joan Lowenstein was presented with a plastic bag full of gravel. (That was only part of the token of appreciation.) To Lowenstein's left is Gary Boren, who was elected chair for the next year. (Photos by the writer.)

But during the meeting, parking issues were a focus, as they usually are.

First, board member Roger Hewitt reported to the board that additional data on usage of the city’s public parking system will now be available from Republic Parking. The DDA manages the city’s public parking system under a contract with the city of Ann Arbor – the DDA subcontracts out the day-to-day operations to Republic Parking. The new kind of data measures the number of total parking hours used by parkers against the total number of parking hours that are available in the system. Based on that measure, the parking system has seen a 1.72% increase in usage over the first five months of 2011, compared with the same five months of 2010.

Second, one of the major allocations of public parking revenue the DDA makes is to the getDowntown program, a partnership among the DDA, the Ann Arbor Transportation Authority and the city of Ann Arbor. As part of a three-year funding plan for the getDowntown program approved in June 2010 for fiscal years 2011-13, the program will receive roughly $500,000 from the DDA for FY 2012 and FY 2013, the bulk of which is to subsidize the cost of rides for holders of a go!pass. The go!pass is a card that allows employees of downtown businesses to board AATA buses on an unlimited basis without paying a fare.

The getDowntown program employs two people, including director Nancy Shore. At Wednesday’s meeting, Shore gave the full board the same presentation she’d given the board’s transportation committee earlier in the month. Part of the board discussion involved which of the three funding partners – the DDA, the city of Ann Arbor or the AATA – would employ the two getDowntown staffers in the future. One possibility, which based on Wednesday’s meeting seemed likely, would be for the DDA to add the two getDowntown staffers to its administrative payroll.

At its annual meeting, convened just after the monthly board meeting, the board elected new officers for the coming year, all with unanimous consent: Gary Boren, chair; Bob Guenzel, vice chair; Keith Orr, secretary; and Roger Hewitt, treasurer.

In recognition of her service, outgoing chair Joan Lowenstein was presented with a token of appreciation by the DDA staff: a plastic bag of gravel, and a necklace featuring a lump of gravel as its centerpiece.

The connection to gravel in Lowenstein’s gift was the underground parking structure on Fifth Avenue, which is currently under construction. The board got its regular update on the status of that project, as well as commentary from the owners of two immediately adjacent restaurants – Jerusalem Garden and Earthen Jar – which have seen their business drop by 30-50% during the construction.  [Full Story]