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

Editor’s note: The monthly milestone column, which appears on the second day of each month – the anniversary of The Ann Arbor Chronicle’s launch – is an opportunity for either the publisher or the editor of The Chronicle to touch base with readers on topics related to this publication. It’s also a time that we highlight, with gratitude, our local advertisers, and ask readers to consider making a voluntary subscription to support our work.

I’m fond of using the milestone column as an occasion to highlight some of the work our readers do when they write comments about material we publish.

So I’d like to begin this month’s column with a request: Stop reading the words on this page and fetch yourself a stopwatch.

Now go read some different words – all 972 of them – assembled into a coherent comment by a reader, Richard Murphy, about a recent Chronicle column: Murph’s comment on the purpose of downtown development authorities.

How long did that take you? [Full Story]

Ann Arbor District Library board meeting (Nov. 15, 2010): Two financial issues drew much of the focus at Monday’s AADL board meeting.

Dave Fisher of the accounting firm Rehmann Robson was on hand to review the district’s financial audit for the fiscal year that ended June 30, 2010. He described the library as in solid financial shape, especially in relationship to other entities in Michigan that rely on property tax revenues. The library has no long-term debt and its fund balance is strong, he said. But he added a cautionary note that like other taxpayer-funded entities, the library would likely be grappling with a continued drop in property tax revenues in future years.

Property tax revenues emerged again in a discussion during the director’s report. AADL director Josie Parker drew attention to a Nov. 15 column published in The Ann Arbor Chronicle regarding the ongoing negotiations between the city of Ann Arbor and the Downtown Development Authority. The column pointed out an issue that Parker has been tracking as well: the potential for tax increment financing funds captured by the DDA from public entities, including the AADL, to be used to offset a parking fund deficit caused by striking a new parking deal with the city. The board ultimately passed a resolution at Monday’s meeting, directing Parker to seek legal counsel on the issue.

Board member Ed Surovell said he wanted to make sure the board was defending their right to collect taxes, and that they’re being as responsible as possible to the citizens of the district. “I think this is dead serious business,” he said. “The appropriation and misappropriation of tax revenues is the lifeblood not just of this library, but of a democracy.”

Also during her director’s report, Parker described the results of a site review by staff of the Michigan Commission for the Blind, which manages the federal program that the Washtenaw Library for the Blind and Physically Disabled @ AADL is part of. The review, conducted every two years, is the first one since the AADL took over management of the WLBPD from the county, a transition that occurred in early 2009. AADL received several commendations for its approach to providing WLBPD services.

At the end of the meeting, outgoing board member Carola Stearns – who lost her seat in the Nov. 2 election to challenger Nancy Kaplan – gave a poignant speech, thanking the library staff and her colleagues on the board. In connection with a possible downtown building project, she urged the board to explore alternative funding sources, beyond paying for the project solely with taxpayer funds. [Full Story]

Just before their Thursday post-election meeting on Nov. 4, Ann Arbor city councilmembers heard a work session presentation from the Ann Arbor Downtown Development Authority. The hour-long work session covered the DDA’s proposal for a process to develop city-owned downtown surface parking lots. It’s a process in which the DDA would play a leading role. The DDA’s proposal has evolved in the course of ongoing discussions between the city and the DDA since early summer.

The DDA will make  another work session presentation before the city council’s meeting on Monday, Nov. 15 – this one about the parking contract under which the DDA uses city-owned assets like decks, lots, and streets to manage the city’s parking system. The current $10-million contract runs through 2015. But the DDA has already paid the city $12 million on that contract, and the city wants an even better deal. Although it won’t be part of the parking contract language, the DDA sees the ability to take more leadership in the development of city-owned surface lots as part of the benefit it would get from a renegotiated parking deal with the city.

For the city, the parking deal is crucial for its budget planning for FY 2012. Already at its mid-October meeting, some city councilmembers began to raise questions about projections for FY 2012. The council must approve the FY 2012 budget this coming May. [The city's fiscal year begins on July 1 each year – the current budget year is FY 2011.] This past May, the city’s projected budget deficit for FY 2012 was $5 million, which already assumed an additional $2 million payment from the DDA.

There are likely enough votes on the 12-member DDA board to approve the new deal. And based on the most recent city-DDA discussions, the new arrangement is likely to take the form of a percentage-of-gross arrangement – 17.5% of gross parking revenues would be paid to the city.

But here’s a different way to describe the arrangement: The city of Ann Arbor would impose a 17.5% parking tax on downtown motorists. That is, downtown parking patrons will pay exactly 17.5% more to park than is actually required for the public parking system to sustain itself, in order that general fund revenues for the city of Ann Arbor can be supplemented.

And to derive support for the city of Ann Arbor general fund from the parking system, the DDA’s parking fund will operate at a greater deficit for the next few years than it would if the city honored the current parking contract. During that period, the DDA’s tax increment finance revenues – the amount it captures from other taxing authorities besides the city of Ann Arbor – will need to remain uninvested on behalf of the broader community. The unspent TIF fund balance will be able to offset the parking fund deficit, leaving the DDA still solvent, but barely so.

Two important questions have been ignored in the course of the city-DDA negotiations: (1) Is it appropriate to use non-city TIF funds – from the county, Ann Arbor District Library, Washtenaw Community College and Ann Arbor Transportation Authority – to offset the parking fund deficit caused by striking a new parking deal with the city? and (2) If the city’s public parking system generates more revenue than is required to operate and maintain it, what investment of that excess revenue would yield the greatest and best return for the community? [Full Story]

Ann Arbor Downtown Development Authority board meeting (Nov. 3, 2010): The DDA board passed a single resolution at Wednesday’s meeting: to reorganize its committee structure to include a communications and economic development committee.

But board members heard a series of reports, including a look at the financial picture from the first quarter of FY 2010. Fund balances are lower than they’ve been historically – something the board knew to anticipate with the construction of the new underground parking structure along Fifth Avenue. The report from the capital improvements committee indicated that the project is proceeding apace, with headway being made on solving a problem with de-watering the site. During public commentary, the board heard from proponents of putting a community commons on top of the underground parking garage once it’s completed.

At the meeting, the board indicated that they’d take an extended look at their 10-year budget projections at a board meeting in early 2011. Affecting the DDA’s 10-year plan are at least two major items: (1) the Fifth Avenue underground parking garage construction, and (2) ongoing negotiations with the city of Ann Arbor on the amount of “rent” to be paid by the DDA to the city as part of the parking contract under which the DDA manages the city’s parking system.

Other reports from the meeting with a potential effect on the DDA’s budget included an update on the City Apartments project planned by Village Green and located at First and Washington. The DDA is slated to purchase the parking deck component of the project on its completion – for $9 million. Included with the board’s packet were a series of proposed amendments to the parking agreement between the city of Ann Arbor, Village Green and the DDA. Village Green is scheduled to complete its purchase of the First and Washington parcel in May 2011.

Other potential impacts to the DDA’s budget included a report from the board’s partnerships committee that noted a request for grant funding from the Ann Arbor Housing Commission, plus an additional grant funding request from the Shelter Association of Washtenaw County.

The report from the board’s transportation committee included discussion of enhanced service between Ypsilanti and Ann Arbor, as well as the possibility of adapting the #17 route to serve a partial circulator function for downtown. Also related to transportation, the board received a presentation from Pat Cawley, a city of Ann Arbor traffic engineer, on the installation of a new HAWK pedestrian crossing signal at the intersection of Chapin and Huron.

The board also heard from representatives of the Main Street Business Improvement Zone on the delivery of a blueprint for creating other such zones in the downtown. [Full Story]

Ann Arbor Public Art Commission meeting (Oct. 12, 2010): In a meeting notable for its brevity – lasting one hour, or about a third as long as typical AAPAC monthly meetings – commissioners got updates on several projects, including the Herbert Dreiseitl water sculpture at the municipal center and a new public art installation at West Park.

The West Park project is expected to be installed later this month, as part of a major overhaul of the park that’s still in progress. The artwork by Traven Pelletier of Lotus Gardenscapes includes two metal trees that will bookend one of the seat walls facing the park’s bandshell. According to a budget summary distributed at Tuesday’s meeting, the project cost $12,375.

As for Dreiseitl’s piece, the bids from fabricators who’ll actually build the sculpture came in over budget, so to cut costs it will now be made of bronze rather than weathering steel. Quinn Evans Architects, the Ann Arbor firm that’s overseeing the project on contract with the city, also has suggested creating a $12,180 contingency – above the $737,820 budget that city council has approved – to cover potential, additional unbudgeted costs.

At Tuesday’s meeting, commissioner Cathy Gendron announced plans to revamp AAPAC’s page on the city’s website, and said that the public relations committee decided not to renew the URL for its external website – annarborpublicart.org – which had been maintained by a volunteer. That site is now defunct. Commissioner Elaine Sims noted that the University of Michigan recently launched a website for its public art efforts, and wondered if AAPAC’s page could contain similar elements. “It’s a wonderful site, but we just can’t do that,” Gendron said, adding that they’re constrained by the template used by the city. They can be more flexible on AAPAC’s Facebook page, she added.

There was some discussion about recruiting new commissioners, and it was noted that mayor John Hieftje recently made a nomination to fill an AAPAC vacancy – not all commissioners had been aware of this action. Though he wasn’t mentioned by name during Tuesday’s meeting, that nominee is Malverne Winborne, director of Eastern Michigan University’s Charter Schools Office, with a background in organizational development. The city council is expected to vote on his appointment at their Oct. 18 meeting. AAPAC will have an additional vacancy when Jim Curtis resigns – he announced his intent to step down in July and has stopped attending meetings, but hasn’t yet officially resigned. [Full Story]

Ann Arbor Downtown Development Authority board meeting (Oct. 6, 2010): In its main business, the DDA board approved a $218,050 grant from its housing fund to The Shelter Association of Washtenaw County for improvements at the Delonis Center on Huron Street. The money will pay for new washers and dryers, lockers and chairs, an emergency generator, energy conservation measures, medical equipment and software. The board is still weighing approval of more than $113,210 for installation of solar panels and for computer hardware. By board policy, the DDA housing fund receives an annual $100,000 transfer from TIF (tax increment financing) revenues.

Another main topic of discussion was transportation, which came in the context of recent transportation committee talks with the Ann Arbor Transportation Authority. The discussion with AATA dealt with the possible return of a downtown circulator service [formerly The LINK] and improved service to Ypsilanti, as well as an initial study of bicyclist habits in the downtown area. Related to bicyclists, the board heard from one downtown merchant during public commentary about dissatisfaction with the “art” bicycle hoops, as one example of the DDA’s lack of success in considering the end user in some of its decisions.

The board also mulled over a possible restructuring of its committee structure – currently the board has a transportation committee, a partnerships committee, an operations committee, and a capital improvements committee.

Restructuring those committees is being considered in the context of the possibility that the DDA could begin to take a more active role in development of city-owned surface parking lots downtown. That more active role is one possible outcome of the ongoing city-DDA discussions about the parking agreement under which the DDA operates the city’s parking system. The new structure under discussion would add an economic development and communications committee, while merging the operations and capital improvements committees. [Full Story]

At a three-hour retreat Wednesday morning, the Ann Arbor Downtown Development Authority board met to discuss ongoing negotiations about the city-DDA parking agreement. The DDA manages the city’s parking system under an agreement last amended in 2005, which provides for a total payment of $10 million in rent through 2015. This May, the DDA agreed to make an additional $2 million not required by that contract.

Wednesday morning’s retreat was meant to focus on the role of the DDA in future development of the downtown area and the role of the DDA in parking enforcement.

The outcome of the retreat was essentially that the DDA is interested in cleaning up various aspects of the parking agreement language, but not in pursuing a role for the DDA in the enforcement of parking regulations. Further, greater support was expressed for the DDA as a facilitator of process, rather than as a driver of development through land acquisition and sale. [Full Story]

On Monday morning, the respective “mutually beneficial” committees (MBCs) of the city council and the Ann Arbor Downtown Development Authority continued their work on renegotiating the parking agreement under which the DDA manages the city’s parking system.

The discussion provided some clarity about what’s feasible with respect to the DDA’s role in enforcing parking regulations. And though parking enforcement appeared ready to slide completely off the table at the last committee meeting due to practical concerns, it appears now that the issue could be back in play, at least from the perspective of technical feasibility.

Concerns of Main Street merchants were also aired at the meeting, with Maura Thomson, executive director of the Main Street Area Association, addressing the two committees to suggest that any additional payment by the DDA to the city be partially earmarked for downtown public safety – that is, downtown police patrols.

But the highlight of the meeting was a more fleshed-out version of an outline that DDA executive director Susan Pollay provided, which describes a process by which the DDA would lead the community in comprehensive site-planning for the downtown’s city-owned surface parking lots, based on work that’s been done over the last half-decade – including the Calthorpe process, the A2D2 rezoning process, and the downtown plan.

DDA board member Russ Collins wanted to know if the process addressed any specifics regarding payments from the DDA to the city. Pollay responded to Collins by acknowledging that DDA board member Newcombe Clark – who does not serve on the DDA’s MBC – was keen to see the DDA purchase land from the city as part of the process. She indicated that would be a topic addressed by the DDA at its retreat, scheduled for Sept. 22.

However, the focus for Monday morning’s meeting, said Pollay, was not on the idea of land purchases, but rather on a comprehensive site-planning process: If the process feels like it resonates, she said, then the discussion could move on later to include land purchases. City councilmember Carsten Hohnke then zeroed in on a crucial question: “How do we come to a conclusion it’s resonating?” [Full Story]

Ann Arbor Downtown Development Authority board meeting (Sept. 1, 2010): On its surface, the first regular meeting of the DDA board after its July election of new officers seemed to be a relatively uneventful gathering. Two topics that could have prompted extended deliberations were handled in short order.

The first issue, handled with relatively little comment, was the report out from the DDA’s “mutually beneficial” committee, given by Roger Hewitt. The committee has been meeting over the course of the summer with a corresponding committee from the Ann Arbor city council to renegotiate the parking agreement under which the DDA manages the city’s parking system.

While board members Newcombe Clark and Russ Collins commented in a general way on the status of the conversations, it did not lead to any specific directive to the DDA’s committee for its next meeting, which will take place on Sept. 13 at 8:30 a.m.

However, at the suggestion of DDA executive director Susan Pollay, the board will schedule a retreat between now and its monthly board meeting in October – but likely after Sept. 13 – to focus on the “mutually beneficial” issue. In the meantime, the DDA’s committee will request of its city council counterparts that they provide their own assessment of the status of the negotiations. The Sept. 13 meeting of the two committees will also be the occasion when Pollay provides a detailed version of the outline, which she’d provided at the last committee meeting on Aug. 23, for a possible role for the DDA in the development of city-owned surface lots.

The second issue dispatched by the board with little overt controversy was a resolution that Newcombe Clark had brought through the operations committee last Wednesday to allocate $50,000 for support of skatepark facilities. Clark himself suggested that the resolution be tabled, alluding to the “prism through which everything is looked at this time of year.” DDA board members went along with that suggestion.

The prism to which Clark alluded is a political one. Clark is running an independent campaign for the Ward 5 city council seat currently held by Democrat Carsten Hohnke. Hohnke has positioned himself as a champion of the skating community’s efforts to construct a skateboarding facility at Veterans Memorial Park, which is in Ward 5.

At Wednesday’s meeting, the newest member of the board, former Washtenaw County administrator Bob Guenzel, and the member he replaced, Jennifer S. Hall, were acknowledged by chair Joan Lowenstein – but neither was present. The board passed a resolution of appreciation for Hall’s service, and Lowenstein welcomed Guenzel “in absentia.”

Other business at Wednesday’s meeting included the usual updates from the board’s committees. Notable from the transportation committee was an effort to collaborate with the Ann Arbor Transportation Authority to enhance bus service between Ann Arbor and Ypsilanti. And from the partnerships committee came a summary of a presentation they’d received from the chief of police – there’s a difference between being statistically safe and the perception of safety. [Full Story]

The “mutually beneficial” committees of the city and the Ann Arbor Downtown Development Authority met on Monday for the second time this month. The committees are charged with re-negotiating the contract under which the DDA manages the city’s parking system.

At the meeting, the committees focused on the question of how the DDA might take on responsibility for enforcement of parking regulations. The DDA would like the ability to manage parking enforcement, so that it can implement an approach to enforcement that complements a demand management pricing strategy and a customer-service approach to downtown. However, the city has identified a number of ways in which it believes the DDA would be constrained in its ability to enforce parking regulations.

At Monday’s meeting, those constraints had accumulated to the point where it became a fair question: Would the DDA still find parking enforcement an attractive proposition, given the constraints? The meeting did not settle the question, with some hope maintained on the DDA side – by Sandi Smith, specifically – that the DDA might play some role in enforcement.

However, if parking enforcement is not something the DDA takes on, it’s not clear what the basis will be for the additional payments the city would like the DDA to make, beyond what is required by the current parking contract. That contract was renewed in 2005. It required a $1 million per year payment by the DDA to the city, with the provision that the city could request $2 million in any given year, and that the total amount did not exceed $10 million from 2005-2015. The city requested $2 million for the first five years, and the DDA agreed unilaterally this past May to make an additional $2 million payment to the city.

When the discussion at Monday’s meeting moved from parking enforcement – which seemed like it had been pushed to the edge, if not completely off the table – to the calculation of a formula for a DDA payment to the city, Susan Pollay, executive director of the DDA, questioned on three separate occasions: Where is the benefit to the downtown in this?

Also at the meeting, the committees got a preview of an outline sketch regarding how the DDA might play an active role in the development of city-owned downtown surface parking lots.

The committees are scheduled to meet next on Sept. 13. Their twice-monthly meeting schedule was adopted starting in July, when it became apparent that the target date of Oct. 31 for a new contract ratified by the respective bodies would not be achieved with a once-monthly schedule. [Full Story]

Ann Arbor Planning Commission meeting (July 20, 2010): Parking is a frequent topic for planning commissioners, though often tangentially, as it relates to specific developments. The issue was brought up more directly at their July 20 meeting, when Susan Pollay – executive director of the Ann Arbor Downtown Development Authority – made a guest appearance.

Pollay was on hand to describe and answer questions about a DDA proposal for a payment-in-lieu-of-parking program, known as a PILOP. The planning commission won’t be acting on the proposal, which sets out options for developers to meet the city’s parking requirements for new buildings. But Pollay was asking for feedback, before crafting a resolution that council will likely consider later this year. The proposal that Pollay presented would have developers pay for parking permits, plus a monthly surcharge. Some commissioners voiced preference for taking payments from developers to support the parking system, but not including parking permits as part of the deal.

Commissioners also approved a site plan for a drive-thru pharmacy at the Kroger on South Maple, and as well as rezoning for the Ann Arbor Guest House, a proposed residence on Dhu Varren Road for people with relatives in the hospital.

And while they initially seemed poised to approve revisions to their bylaws, commissioners ultimately postponed that vote, hoping to bring someone from the city attorney’s staff to an upcoming meeting to answer questions about some of the proposed changes. [Full Story]

As John Splitt walked in to greet me at the Espresso Royale on State Street, his familiarity with the shop and street was immediately apparent.

Splitt strolled into the cafe, having walked from his dry-cleaning business, Gold Bond Cleaners. “It’s located on Maynard Street, just on the other side of the arcade,” he said, motioning toward Nickels Arcade, a covered passage connecting Maynard and State.

State Street holds a special significance for Splitt as the gateway to his community involvement. In 2004, Splitt joined the board of the State Street Area Association, an experience he described as an educational process, that “opens your eyes to some of the larger downtown issues.” Once on the association’s board, his interest in community service continued, and in 2006 he was appointed to the board of the Ann Arbor Downtown Development Authority (DDA). [Full Story]

The Ann Arbor Downtown Development Authority manages the city’s parking system under a contract last revised in 2005 to extend through 2015.

In early summer 2010, committees from the DDA board and the Ann Arbor city council set out a schedule of monthly meetings to renegotiate that contractual parking agreement.

Faced with a target of Oct. 31, 2010 for a completed contract, the two groups – known as the mutually beneficial committees – have now increased the frequency of their meetings to twice-monthly. At the June 14 meeting, it was agreed that staff members from both the city and the DDA would attend future committee meetings, and that staff would prepare a matrix of policy points related to the parking system.

But at the July 12 meeting of the two committees, the matrix of policy points had not yet been prepared and no city staff were present. Susan Pollay, executive director of the DDA, attended the July 12 meeting as the DDA staff representative. And Pollay led the committees through a calculation backward from the Oct. 31, 2010 target date, which showed that an outline of the agreement needed to be ready by the very next monthly meeting – then scheduled for Aug. 9.

When committee members apparently teetered on the edge of abandoning the Oct. 31 target, Pollay gave them a nudge, tilting them back to terra firma. She was prepared to work with a sense of urgency, if that is a priority, Pollay told them – but if they already wanted to push past the deadline, then she was content to take it easy, too.

Committee members responded by deciding to add extra meetings to the schedule. Besides scheduling issues, the July 12 meeting also focused on: (i) contractual aspects of the current parking agreement that had possibly been overlooked in recent city council decision-making; and (ii) the appropriate length of the term and monetary consideration in the new contract.

On July 26, the two committees held an extra meeting, this time joined by Sue McCormick, the city’s public services area administrator. The task of creating the parking policy matrix had been taken on by Pollay, who had then worked with McCormick to produce a chart that included the city’s recommendations along with DDA suggestions.

The next regular meeting – the second Monday of the month – falls on Aug. 9, with an additional meeting planned for Aug. 23. [Full Story]

Ann Arbor Downtown Development Authority board meeting (July 7, 2010): In the main business at its regular monthly meeting, the DDA board approved a grant of up to $407,000 in support of a brownfield application by Zingerman’s Deli, which the deli is making to the state of Michigan. The board’s deliberations focused on the public improvements to sidewalks, curb ramps and signage as contrasted with the funding for LEED certification costs – a question of public versus private benefit.

The board also approved a recommendation for details of a payment-in-lieu-of-parking (PILOP) program that allows developers to build fewer parking spaces than otherwise prescribed by the zoning code. The program recommended by the DDA allows for developers to replace required on-site spaces with monthly permits – plus a 25% surcharge – in parking structures managed by the DDA.

The DDA made the recommendation to the city’s planning department because the department had requested the DDA’s input on PILOP after the city’s new rezoning of downtown A2D2 was approved last year by city council.

The board also approved revisions to the FY 2010 budget so that expenditures do not exceed budgeted amounts.

Immediately following the regular monthly meeting, the board held its annual meeting, during which executive director Susan Pollay ticked through the significant accomplishments of the board over the last year. Officers elected for the next year are: chair, Joan Lowenstein; vice chair, Gary Boren; treasurer, Roger Hewitt; secretary, Russ Collins.

Board member Newcombe Clark pointedly abstained from each of the four officer votes. [Full Story]

When The Chronicle first reported that the one-block stretch along South Fifth Avenue – between Liberty and William – would be closing on Aug. 1, the Ann Arbor Downtown Development Authority hadn’t yet finalized contingency plans for the change, which will affect one of the city’s main southbound arteries through most of 2011.

This week, the DDA – which is managing the closure as part of the construction of the underground parking structure on South Fifth – released more information about changes in traffic routes and parking, related to the closure.

Those changes include the closing of the downtown post office’s public parking lot, allowing truck traffic on southbound Main Street, and installing a new turn arrow at the intersection of Fifth and William, to allow AATA buses to turn north onto Fifth. Read on for more details about these and other changes to expect after Aug. 1. [Full Story]

Ann Arbor District Library board meeting (June 21, 2010): Construction in the area surrounding the downtown library came up in a couple of ways during the library board’s June meeting held this week.

Vibrations from work on the Fifth Avenue underground parking structure, just to the north of the library building, have caused problems with the building’s HVAC system – the library temporarily lost air-conditioning as a result. In a related move, the library board voted to award a contract for HVAC maintenance and repair to Pace Mechanical, despite arguments that it should go to a local company.

And in her director’s report, Josie Parker noted that a public parking lot used by library patrons will close as early as next spring, due to the rebuilding of the AATA’s Blake Transit Center. The city-owned surface lot is located at the northwest corner of Fifth and William, directly across from the library.

The Chronicle followed up with the Ann Arbor Downtown Development Authority, which oversees management of the surface lot for the city, for more details on possible contingencies for patron parking, as well as other access issues that could arise when Fifth Avenue along that block is closed for at least a year, starting Aug. 1.
[Full Story]

Almost a year ago, the city council appointed members to a committee that was to talk with a corresponding committee of the Ann Arbor Downtown Development Authority board about amending the contract under which the DDA manages the city’s parking system.

The two groups are known as the “mutually beneficial” committees, reflecting the language of a January 2009 city council resolution that called upon the DDA to begin a conversation about revising the parking contract in a “mutually beneficial” way.

On Monday morning, for the first time in public view, members of the DDA board and the city council met to discuss the contract.

The basis of these further discussions was a term sheet that had been produced in late April by some members of the city council and the DDA working outside of either body’s committee structure.

That term sheet had been the good faith basis on which the DDA board, on a 7-4 vote in May, voted to amend the parking contract. That unilateral amendment amounted to a payment from the DDA to the city of an additional $2 million that had not been required under the existing contract.

The specific outcomes of Monday’s meeting between the two committees were: (i) staff for the DDA and the city would be asked to develop a list of policy points that would need to be addressed in order for the DDA to assume responsibility of enforcing parking rules, but not other codes; and (ii) the DDA would be asked to develop a detailed plan by Sept. 13, 2010 describing the role of the DDA in the development of city-owned surface parking lots within the DDA district.

The planned schedule for meetings between the two committees will be the second Monday morning of each month at 8:30 a.m. at the DDA offices on Fifth Avenue. Members of the council’s committee are Margie Teall (Ward 4), Christopher Taylor (Ward 3) and Carsten Hohnke (Ward 5). Representing the DDA are Sandi Smith, Russ Collins, Roger Hewitt and Gary Boren. [Full Story]

Ann Arbor Downtown Development Authority board meeting (June 2, 2010): At its regular monthly meeting, the DDA board voted to approve three years worth of funding for the getDowntown program and the go!pass bus passes, which getDowntown administers for downtown employees.

The program is currently in a transition year as the four-way partnership that supports it was reduced to three partners when the Ann Arbor Area Chamber of Commerce dropped out last year, citing financial pressures. That leaves the city of Ann Arbor, the Ann Arbor Transportation Authority, and the Ann Arbor DDA as getDowntown funding partners.

In other business, the board approved the application of LEED certification for its underground parking garage on South Fifth Avenue, currently under construction.

The board began a discussion on a payment-in-lieu program for required onsite parking (PILOP) for downtown developments.

The board also heard a pitch from Tamara Real for additional support for a web portal currently under development by the Arts Alliance. [Full Story]

Friday morning before the Memorial Day weekend marked the first public meeting of the city council’s so-called “mutually beneficial” committee – first created and appointed back in July 2009.

And later in the afternoon, the board of the Ann Arbor Downtown Development Authority met for a retreat to give direction to its own “mutually beneficial” committee.

The two committees are charged with the task of redefining the agreement between the city and the DDA that allows the DDA to manage the city’s parking system.

From the city councilmembers’ perspective, the ball was in the DDA’s court. They were hoping that the DDA’s retreat later in the day would reduce the items on the term sheet that is supposed to underpin the city-DDA conversation.

At their retreat, the DDA board did eliminate an item on the term sheet – code enforcement, other than parking regulations, was not something for which they wanted to assume responsibility. The remaining three term sheet items – parking enforcement, provision of services, and development of city-owned property – stayed on the white board. The clearest consensus among board members seemed to be around the idea that the DDA should focus on development.

But a couple of additional items were added into the mix – issues related to Village Green’s City Apartments project. That project, located at First and Washington, has previously seen its site plan approval option to purchase extended through June 30, 2010. City council action would be required in the next month, if it’s to be extended again.

Downtown police beat patrols were also left on the board as an additional item of discussion.

At Friday’s retreat, the board heard the same message from Susan Pollay, the DDA’s executive director, that she’d conveyed at a partnerships committee meeting two weeks earlier – the reason for the DDA’s existence was to spur private investment in the downtown.

But as a group, there was an uneven embrace of that message. Some board members preferred to identify “development” as meaning something broader than building new infrastructure, suggesting that a more general “economic development” approach might also be appropriate for the DDA.

And one other idea was thrown up on the white board, but did not stick: altering the DDA district boundaries. [Full Story]

At its May 5 board meeting, the Ann Arbor Downtown Development Authority approved a $2 million payment to the city of Ann Arbor. And about two weeks later, at its May 17 meeting, the city council used the additional revenue in the city’s FY 2011 budget to help reduce the number of planned layoffs in its police and fire departments from 35 to 5.

The $2 million payment was based on a term sheet that a “working group” of councilmembers and DDA board members had put together out of public view over the first four months of the year. The term sheet was adequate to convince a 7-member majority of the 12-member DDA board that the $2 million should be paid by the DDA to the city in advance of a long-term revision to the city-DDA contract, under which the DDA manages the city’s parking system.

The parking contract was most recently renegotiated in 2005 and provided for a maximum payment by the DDA to the city of $10 million over the period from 2005 to 2015. The city drew $10 million in the first five years and had requested in January 2009 that the DDA open discussions to renegotiate the contract.

With the term sheet now out in the open, it’s clear that its content is problematic for councilmembers and DDA board members who were not part of the working group that produced it. Several councilmembers and DDA board members alike have expressed strong opposition to one of the key ideas in the term sheet – that the DDA would assume responsibility for parking violations and other code enforcement.

But based on the term sheet discussion at the May 12 meeting of  DDA’s partnerships committee, the piece of the term sheet of most interest to DDA board members is one that is also the most politically controversial: The DDA would be acknowledged as the engine for developing city-owned land in the DDA district.

The DDA partnerships committee conversation on May 12 came against the backdrop of recent questions raised by the mayor and the city council about what kind of legal authority a DDA has in the context of the city’s system of governance.

And the outcome of the partnerships committee meeting was a decision to hold another full board retreat, this one on May 28 at 2 p.m. at the DDA board room. The general topic of the retreat, which is open to the public, will be the term sheet. The DDA already held its semi-annual retreat about two months ago, on March 16. [Full Story]

Ann Arbor City Council meeting (May 17, 2010): By its second meeting in May, the city of Ann Arbor’s charter stipulates that the city council must adopt a budget for the coming fiscal year, which starts on July 1.

On Monday night, the council unanimously adopted its roughly $78 million general fund budget – as amended to reflect new revenue items. Those new revenue items allowed the council to eliminate five firefighter positions and no police jobs. As originally proposed, the budget would have eliminated 35 fire and police positions combined.

Next year’s work will not be any easier. CFO Tom Crawford said at the meeting that he’s projecting a $5 million deficit in FY 2012.

Deliberations on the budget did not begin until late in the evening. Occupying more of the council’s time than the city’s FY 2011 budget were two issues related to the Ann Arbor Downtown Development Authority. One of those issues was a sidewalk occupancy ordinance applicable only within the DDA district. The ordinance, which legalizes the use of sandwich board signs, passed after a failed attempt by Marcia Higgins (Ward 4) to get it postponed.

The second DDA issue on the agenda involved a $2 million payment from the DDA to the city, which helped the council to amend its budget to reduce layoffs of fire and police. In approving the $2 million payment, the DDA board had included in its resolution a requirement to have a future public process for continued conversations between the city and the DDA about renegotiating a parking agreement between the two entities. From January through April of this year, conversations on that topic between the city and the DDA took place out of public view.

On Monday, the council considered a resolution thanking the DDA for the money and providing a commitment to public process for conversations about the parking agreement – parallel to the public process explicated in the DDA’s resolution. The council resolution passed – stripped of its language about open and transparent process on the grounds that it was redundant – after a brief attempt by Carsten Hohnke (Ward 5) to get the resolution tabled.

In other significant business, mayor John Hieftje nominated a replacement for Ted Annis on the Ann Arbor Transportation Authority board: Roger Kerson, who in 2008 contemplated a run for a Ward 5 council seat, but decided against it.

Anya Dale had been nominated by the mayor to replace Paul Ajegba on the AATA board at the council’s previous meeting. On Monday, confirmation of her appointment included one hitch – Sabra Briere (Ward 1) cast a vote against it. [Full Story]

Ann Arbor Downtown Development Authority board meeting (Feb. 3, 2010): The DDA board passed two resolutions at its Wednesday meeting. The first authorized a $45,000 discretionary part of the management fee in Republic Parking’s contract.

The second resolution amended the DDA bylaws. The change eliminates the ability of the executive committee to act on behalf of the board between regular board meetings, and clarifies the role of the executive director in relationship with the board. Efforts to change the bylaws have accumulated over two years worth of history, and still need the approval of the Ann Arbor city council to take effect.

Another main theme of Wednesday’s meeting was finances – from parking revenues to tax increment finance (TIF) capture, to the housing fund.

And in a nod to the Bill Murray film “Groundhog Day,” we note that The Chronicle’s report of the DDA board’s February meeting from last year also featured a big drill as lead art. Both drills are related to the construction of the underground parking garage along Fifth Avenue. The board received updates on that and other construction projects, as well as on planning and development downtown. [Full Story]

At its Friday morning meeting, the committee responsible for evaluating development proposals for the Library Lot agreed to reconsider two of the proposals previously rejected.

The suggestion for reconsideration had been brought to the committee by two of its members, Margie Teall and Stephen Rapundalo, who also serve on the city council.  Monday’s city council meeting had included conversation about the issue.

The committee will now re-include in the interview process the two proposals it had eliminated at its December meeting. Representatives for all six proposals to develop the top of the Fifth Avenue underground parking structure will be interviewed in a little less than two weeks. On Jan. 19, the two that had been dropped previously – proposals that call for predominantly open space in that area – will be interviewed, followed on Jan. 20 by interviews of the other four proposers.

Related to this process, at its Wednesday meeting the Downtown Development Authority had approved up to $50,000 for a consultant to assist with the review of proposals. So on Friday, the committee was also briefed on the request for qualifications (RFQ) for the consultant, which has now been released – and no candidates with operations in Washtenaw County will be considered. [Full Story]

Downtown Development Authority board meeting (Jan. 6, 2010): The DDA authorized money for a range of different projects at its regular monthly board meeting on Wednesday.

Biggest on the list of one-time expenditures was $2.28 million spread over three years for 150 additional multi-space pay stations to replace on-street parking meters. Twenty-five such pay stations were already installed over the summer.

Next-largest was $600,000 for water main replacement, timed to coincide with the Fifth and Division street improvements. That was followed by as much as $500,000 for the Near North affordable housing project. Near North has won site plan approval from the city council and now faces the challenge of obtaining tax-credit financing.

Smallest on the list of authorized one-time money was up to $50,000 for consultant support for the Library Lot RFP review process.

Also in the mix was the authorization to redirect revenue from the 350 S. Fifth Ave. (former YMCA) surface parking lot to the city of Ann Arbor. On Dec. 21, 2009 the city council voted to request the DDA take that action. What the DDA board actually authorized is a payment to the city per year of whichever amount is greater: (i) $100,000 or (ii) the net revenue from the lot, after installation and operational costs are recovered by the DDA.

The meeting also included the precursors of some eventual conversation about the role of the DDA’s executive committee and its ability to act on behalf of the whole board. That recalled a related issue still left over from last summer: Can the mayoral line of succession be invoked to fill the mayor’s spot at a DDA board meeting?  [Full Story]

At the Dec. 16 meeting of the Ann Arbor Downtown Development Authority’s operations committee, DDA board member Sandi Smith previewed a city council resolution on parking she said she expected would be on the Dec. 21 city council agenda. Smith also serves on the city council.

Key elements of the draft resolution that Smith shared with fellow DDA board members included: (i) net revenues from the Fifth and William (old YMCA) lot would go into city rather than DDA coffers, (ii) downtown parking meters would operate and be enforced until 10 p.m., which is later than their current cutoff of 6 p.m., and (iii) the city would discontinue its plan to install its own parking meters in neighborhoods near the downtown.

The city’s plan to install its own parking meters in neighborhoods near downtown was formulated as part of the city’s FY 2010 budget (the current fiscal year), but implementation was not immediate. Reference to the city’s installation of “its own meters” alludes to the fact that the DDA manages the public parking system via an agreement with the city – the new meters would not fall under that agreement.

Although the specific wording of the draft differed in parts from the resolution that was added to council’s agenda on Friday, the key points remained.

Within hours of its appearance on the agenda, the Ann Arbor Area Chamber of Commerce had sent a memo to city councilmembers asking for postponement of the resolution.

Smith’s resolution puts one question that’s been simmering for nearly a year closer to the front burner: Will the parking agreement between the city and the DDA be renegotiated as part of the FY 2011 budget? [Full Story]

The Chronicle arrived about an hour late to the Oct. 19, 2009 board meeting for the Ann Arbor District Library, which began before the conclusion of an earlier meeting of the Ann Arbor Public Art Commission.

When we arrived, however, the board was not in the downtown library’s fourth-floor conference room where these meetings are held – they’d moved into a closed executive session. Waiting for their return were Susan Pollay, executive director of the Ann Arbor Downtown Development Authority, and Adrian Iraola, project manager for the DDA’s Fifth Avenue underground parking project.

Pollay and Iraola were there to talk to the board about the city’s request for a utility easement on library property, to the east of the library’s downtown building. The easement is needed so that the DDA can install a new water main leading to a fire hydrant on Library Lane, a proposed east-west street that would lie between the library on the south and the DDA parking structure on the north.

When the board returned from their executive session, Pollay and Iraola got an unanticipated response – one that’s resulting in an adjustment of the DDA’s construction schedule on the project. [Full Story]