The agreement is for CAN to continue operating the city’s Bryant and Northside community centers, which the nonprofit has been managing since 2008. The proposed amount is not to exceed $130,000 annually – an increase of $25,000 from the current agreement. The higher amount is included in the FY 2015 general fund budget for parks and recreation that the city council approved on May 19. According to a staff memo, the higher amount will address increases in fixed costs and “assist in retaining quality staff that is at the core of the services that CAN provides.” [.pdf of staff memo]

The staff memo also noted that a request for proposals (RFP) was not issued for this work, because CAN has been the sole respondent to the previous two RFPs and the city is satisfied with its work.

During the May 20 PAC meeting, CAN received praise for its work from several commissioners and Colin Smith, the city’s parks and recreation manager. CAN executive director Joan Doughty and deputy director Derrick Miller were on hand to answer questions. Part of the discussion focused on CAN’s exemption from the city’s living wage requirement, which the city council granted in 2012 for a three-year period through Nov. 8, 2015. Doughty noted that the exemption was sought in part because CAN was paying a living wage to part-time employees who were high school or university students, which limited the nonprofit from paying higher wages to full-time workers. She also pointed out that the city parks and recreation unit isn’t required to pay the living wage to its seasonal workers.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.

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

The sign on the door to the Ann Arbor city council chamber includes Braille.

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

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

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

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

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

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

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

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

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

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

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

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

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

Amend Current Year’s Budget

On June 2 the council will consider a resolution amending the current fiscal year’s budget (FY 2014) to ensure that expenditures do not exceed appropriated amounts. The budget amendment will ensure compliance with Public Act 621 of 1978.

The total requested general fund budget amendment is $60,000. For all other funds, the amendment to be considered by the council on June 2 totals $310,000.

The non-general fund amount will cover right-of-way maintenance and purchase of materials that were necessary to deal with the severe winter weather. The general fund amount was the city’s cost for the Ann Arbor Area Transportation Authority’s special election held on May 6. That amount will eventually be reimbursed by Washtenaw County – which in turn will receive reimbursement from the AAATA to cover the roughly $100,000 cost of the election.

FDD Program Contract Extension

A contract extension with CDM Smith Inc. for continued work as part of Ann Arbor’s footing drain disconnection (FDD) program appears on the June 2 agenda. It had been postponed at the council’s May 5, 2014 meeting.

In the interim, the dollar amount of the contract extension has been reduced from $748,106 to $143,440. That reflects a reduction in the scope of the work. The original May 5 resolution called for the following activities to be funded: citizen support ($36,928); FDD citizens advisory committee meetings ($24,180); information management for sump pump monitors ($93,707); developer offset mitigation (DOM) program support; ($95,213); and multi-family FDD implementation ($498,005).

No longer a part of the scope of work in the revised June 2 resolution are the FDD citizens advisory committee meetings, information management, or the multi-family FDD implementation. The revised memo describes how the funding would only provide a bridge until recommendations from a study group have been received, which will determine the future of the FDD program:

This amendment would provide the services needed to bridge the gap until the SSWWE [Sanitary Sewer Wet Weather Evaluation] Project recommendations have been made. Presently, the anticipated timeline for completion of the SSWWE Project is in the autumn of 2014. That does not allow sufficient time to issue a new RFP, collect and review proposals, award a contract, and bring a new consultant up to speed to manage the remaining FDD and DOM work outlined above. Existing City staff does not currently have the available resources or expertise to perform the inspections required for the DOM program.

By way of additional background, in 2012 the city’s program to disconnect footing drains from the sanitary sewer system was suspended by the council in some areas of the city. Specifically, it was suspended in the Glen Leven and Morehead (Lansdowne neighborhood) areas. The program was allowed to continue in other geographic areas and as part of the city’s developer offset mitigation (DOM) program. The DOM requires owners of new developments to complete a certain number of FDDs to offset the additional flow in the sanitary system caused by new construction.

The CDM contract drew scrutiny at the May 5 meeting because the city is currently undertaking a sanitary sewer wet weather evaluation (SSWWE) study. It’s supposed to yield a recommendation about whether to continue with the FDD program, and if so, in what form. In addition, the city’s ordinance – which requires property owners to undertake FDDs – was challenged in a lawsuit filed earlier this year. That case is pending as the city first removed the case from state to federal court. But the result of a May 28 hearing before a federal judge will be to return the case to the Washtenaw County 22nd circuit court.

The previous three iterations of the CDM contract totaled  about $3.6 million. The money for these contracts is drawn from the city’s sewer fund.

The proposed contract extension drew criticism during public commentary on May 5 from Frank Burdick, a Ward 4 resident who urged the council to reject it. Council deliberations on this item were included as part of The Chronicle’s live updates from the May 5 meeting.

Since the FDD program’s start in 2001, about 1,834 footing drains have been disconnected through the city program and 848 footing drains have been disconnected through the developer offset mitigation program.

Animation of contrast between the pre-FDD configuration and the post-FDD configuration. (Original illustration from screenshots of YouTube video by Milwaukee Metropolitan Sewerage District, modified by The Chronicle.)

Urban Forest

The city’s first comprehensive plan for managing Ann Arbor’s urban forest will be considered at the council’s June 2 meeting. The Ann Arbor park advisory commission recommended adoption of the plan at its meeting on April 15, 2014. [.pdf of Urban & Community Forest Management Plan]

An urban forest is defined as all the trees, shrubs and woody vegetation growing along city streets, in public parks and on institutional and private property. In Ann Arbor, about 25% is on public property, with 75% on private property. Based on a U.S. Dept. of Agriculture Forest Service i-Tree Eco Analysis done in 2012, Ann Arbor’s urban forest has an estimated 1.45 million trees. It creates a 33% tree canopy – the layer of leaves, branches and stems of trees that cover the ground when viewed from above.

The city manages 43,240 street trees and about 6,900 park trees in mowed areas. A tree inventory conducted in 2009 didn’t include natural areas, she noted, so there are thousands of trees that aren’t counted. The urban forest includes over 200 species, representing 82 genera.

Map of selected tree variety by The Chronicle from city of Ann Arbor 2009 survey. Image links to dynamic map hosted on geocommons.com

PAC had been briefed on the 135-page Urban & Community Forest Management Plan at its Feb. 25, 2014 meeting by Kerry Gray, the city’s urban forest & natural resources planning coordinator. The management plan includes 17 recommendations, listed in priority based on community feedback for implementation. Each of the 17 recommendations includes action tasks and implementation ideas, case studies, and resources that are needed, including funding. The recommendations are:

1. Implement proactive tree maintenance program.
2. Strengthen tree planting and young tree maintenance programs.
3. Monitor threats to the urban and community forest.
4. Increase landmark/special tree protections.
5. Secure adequate city‐funding for urban forestry core services.
6. Develop street tree master plans.
7. Pursue grant and philanthropic funding opportunities.
8. Strengthen forestry related ordinances.
9. Update tree inventory and canopy analysis.
10. Develop urban forest best management practices.
11. Increase urban forestry volunteerism.
12. Strengthen relationships with outside entities who impact trees.
13. Implement community outreach program.
14. Obtain the best use of wood from removed trees.
15. Create city staff working groups to coordinate projects that impact trees.
16. Engage the city’s Environmental Commission in urban and community forestry issues.
17. Review the urban forest management plan periodically and update as needed.

The city council has adopted a budget for FY 2015, which starts July 1, 2014 that includes a one-time expenditure of $1 million to address the backlog in maintenance of trees in the public right of way.

Included in the focus of the effort to remove the backlog are trees classified as Priority 1 removals (red dots), Priority 2 removals (yellow dots), Priority 3 removals (blue dots) for large trees and Priority 1 prunings (green dots). [Map by The Chronicle with data from the city of Ann Arbor.]:

City Hall Reskinning

At its June 2 meeting, the council will consider a proposal to recommend to the planning commission that the capital improvements plan (CIP) for FY 2017 and FY 2018 be revised to remove the $4.4 million that is included for a city hall reskinning project. The planning commission is the body that approves the CIP. But the council has budgetary discretion to fund projects in the CIP or not – so the resolution in some sense calls on the planning commission to take an action it does not have the authority to execute. This was a point made during deliberations at the council’s May 19, 2014 meeting when the item was postponed.

According to a staff memo written in response to a councilmember question, reskinning of the Larcom City Hall building would mean replacing the existing exterior walls and windows of the building. The result would be new squared-off exterior, eliminating the inverted pyramid design. The new exterior would hang vertically from the sixth floor.

The focus of the project is on improving energy efficiency. The memo describes existing windows as mostly single-pane glass on aluminum frames, which offer little insulation value. The project would also result in an incremental gain in square footage – because the lower floors would have the same footprint as the sixth floor, which is currently the largest floor of the building. The materials used for the exterior would “blend better” with the recently constructed Justice Center, which adjoins city hall.

Library Lot Sale Proceeds

On June 2 the city council will consider a resolution setting a policy for distribution of the proceeds from the sale of development rights on the Library Lot. The proposed policy would set aside 50% of the net proceeds to the city’s affordable housing trust fund.

The council has already directed the city administrator to hire a real estate broker to explore selling the rights to develop the site – above the Library Lane underground parking structure, which was completed in 2012.

The item was postponed at the council’s April 7, 2014 meeting. The vote was 6-5 to postpone, with dissent from Sabra Briere (Ward 1), Christopher Taylor (Ward 3), Margie Teall (Ward 4), Chuck Warpehoski (Ward 5), and mayor John Hieftje.

State Street Transportation Corridor Study

The June 2 agenda includes a resolution for a $299,911 contract with Parsons Brinckerhoff Michigan Inc. to conduct a study of the South State Street transportation corridor. The 1.3 mile long area of the study extends from the intersection of Ellsworth Road and South State Street north to the intersection of Oakbrook Drive and South State Street. The money to pay for the study will be drawn in equal parts from the current fiscal year and next year’s general capital fund budget. The study will take a year, starting in June 2014.

The goal of the study is focused on transportation needs in the corridor and to provide base conceptual engineering plans for the redesign of the corridor – possibly including a boulevard “Complete Street” design. The redesign would be intended to “address all modes of travel; enhance vehicle flow; improve safety; create an aesthetically pleasing entrance to the City; and, utilize sustainable concepts such as low impact design (‘LID’), and low energy use lighting.”

The study of the area as a transportation corridor comes not long after a recently completed South State Street corridor plan, adopted by the city council into the city’s master plan at its July 15, 2014 meeting. That corridor plan established planning objectives for the land use along the corridor.

Besides Parsons Brinckerhoff, the other bidder for the work was DLZ.

Stone School Road Sidewalk Special Assessment

As part of a road reconstruction project for Stone School Road, the city is planning to install a sidewalk on the west side of the road. To fund the sidewalk construction, part of the cost will come from a special assessment of property owners. The extent of the project on Stone School Road runs from I-94 to Ellsworth Road. Construction is planned for the project during the 2014 and 2015 construction seasons.

The project is being funded in part through a federal surface transportation grant, which can pay about 80% of construction costs, but not engineering, testing or inspection costs. The total project cost is roughly $128,500, of which about $55,000 will be special assessed.

The council will be asked to approve a resolution directing the city assessor to set the roll of properties to be assessed.

Rezoning: Housing Commission Properties

At its June 2 meeting, the city council will consider giving initial approval to the rezoning of three Ann Arbor Housing Commission properties. The planning commission had recommended the rezoning at its May 6, 2014 meeting. The current PL (public land) zoning for some of the properties is a vestige of the AAHC properties’ status as city-owned land. The city council approved the transfer of deeds to the AAHC at its June 2, 2013 meeting. The three sites to be considered on June 2 are part of the housing commission’s major initiative to upgrade the city’s public housing units by seeking private investors through low-income housing tax credits.

Rezoning is recommended for the following public housing sites, two of which are currently zoned as public land:

• Baker Commons: Rezone public land to D2 (downtown interface). The 0.94-acre lot is located at 106 Packard Street, at the intersection with South Main, in Ward 5. It includes a 64-unit apartment building.
• Green/Baxter Court Apartments: Rezone public land to R4A (multi-family dwelling district). The 2-acre site is located at 1701-1747 Green Road and contains 23 apartments in four buildings and a community center. It’s in Ward 2.
• Maple Meadows: Currently zoned R1C (single-family dwelling district), the recommendation is to rezone it as R4B (multi-family dwelling district). The site is 3.4 acres at 800-890 South Maple Road and contains 29 apartments in five buildings and a community center. It’s located in Ward 5.

At the planning commission’s May 6 meeting, AAHC director Jennifer Hall explained that PL zoning doesn’t allow housing to be built on it. As AAHC seeks private funding to rehab its properties, it needs to ensure if a building burns down, for example, it could be rebuilt. In general that’s why the rezoning is being requested. It’s also being requested to align the zoning with the current uses of the property. She stressed that the highest priority properties to be rezoned are Baker Commons, Green/Baxter and Maple Meadows, because investors have already been found to renovate those sites.

For these three sites, planning commissioners also voted to waive the area plan requirements for the AAHC rezoning petitions, because no new construction is proposed and surveys of the improvements have been provided.

For additional background on the AAHC process of renovating its properties, see Chronicle coverage: “Public Housing Conversion Takes Next Step.”

Delta Gamma Site Plan, Rezoning

The city council will be asked on June 2 to give final approval of a rezoning request for 515 Oxford, to convert a house for use as an annex to the Delta Gamma sorority. The main sorority house is located nearby at 626 Oxford. The council gave initial approval to the rezoning at its May 5, 2014 meeting. Also on the June 2 agenda is consideration of the site plan approval for the same project. The site plan was recommended for approval by planning commissioners on April 15, 2014.

Aerial view showing the location of 515 Oxford, south of Geddes and at the eastern end of South University.

The rezoning request, recommended by the planning commission on Jan. 23, 2014, is to rezone the parcel from R4A (multi-family dwelling) to R2B (two-family dwelling and student housing). Most of the surrounding parcels are zoned R2B, although the site immediately to the north is also zoned R4A. Also nearby is public land (PL) where the University of Michigan’s Oxford Houses complex is located.

The two-story house at 515 Oxford includes two one-story wings. It is currently a rental property with three units – a studio apartment, one-bedroom apartment, and four-bedroom apartment – and a maximum occupancy of 8 people. One of the units is in a former garage.

The proposal for a renovation would accommodate a maximum of 20 residents, including a required resident manager.

The building is notable because it was originally designed in 1940 by architect George Brigham, who used it as his home and architectural studio. He designed over 40 houses in Ann Arbor, including many in Arbor Hills and Barton Hills between 1936 and 1958.

Drive-Thru Ordinance: Final Approval

On the city council’s June 2 agenda is final approval of amendments to Ann Arbor’s zoning ordinance related to drive-thrus. Initial approval came at the council’s May 5 meeting. The amendments would add a definition of a “drive-thru facility” to Chapter 55 of the city code. Currently, the term used throughout the code is “drive-in,” which is not explicitly defined in the code.

The proposed revisions define a drive-thru in this way: “Any building or structure, or portion thereof, that is constructed or operated for the purpose of providing goods or services to customers who remain in their vehicle during the course of the transaction.” The revisions also clarify that a drive-thru is an accessory use, not the principle use of the building. A project in which a drive-thru would be the principle use would not be allowed. Basic layout requirements would also be added to the ordinance.

In addition, the changes would require drive-thrus to obtain special exception use permits, which would be allowed only in the O (office), C2B (business service) and C3 (fringe commercial) zoning districts. Drive-thrus would not be allowed in the C1, D1, D2, and other commercial districts.

Currently, drive-thrus are allowed in C3 districts without a special exception use. They are allowed as special exception uses in the C2B district.

When considering whether to grant a special exception use – which does not require additional city council approval – the planning commission considers these issues:

1. Is the location, size and character of the proposed use compatible with the principal uses of the district and adjacent districts? Is it consistent with the Master Plan? Is it consistent with the surrounding area? Will it have any detrimental effects to the use or value of surrounding area, or the natural environment?

2. Is the location, size, character, layout, access and traffic generated by the use hazardous or inconvenient or conflicting with the normal traffic of the neighborhood? Is off-street parking safe for pedestrians? Do the necessary vehicular turning movements block normal traffic flow? Are any additional public services or facilities needed by the use, and will they be detrimental to the community?

3. Is the maximum density and minimum required open space at least equal to the standards normally required by the Zoning Ordinance for the district?

The planning commission recommended the changes at its April 1, 2014 meeting.

The proposed amendments were first reviewed by the commission’s ordinance revisions committee in 2007, but never moved forward to the full commission for consideration. The ORC most recently reviewed these changes in March of 2014. [.pdf of staff memo and proposed amendments]

Ruth’s Chris Site Plan

The site plan for a new Ruth’s Chris Steak House on Fourth Avenue in downtown Ann Arbor is on the June 2 agenda for consideration. The planning commission recommended approval at its April 1, 2014 meeting.

Proposed facade of Ruth’s Chris Steak House at 314 S. Fourth Ave.

The site plan calls for renovating the single-story building at 314 S. Fourth Ave. and putting up a 1,943-square-foot second-floor mezzanine addition over the front part of the existing building. The current structure is 8,024 square feet, and most recently housed the Dream Nite Club, which closed in 2012. The project is estimated to cost $2.2 million. [.pdf of staff report on Ruth's Chris site plan]

Part of the planning commission’s discussion focused on whether there might be outdoor dining in front of the restaurant. The project’s architect indicated that at this point, outdoor seating wouldn’t be appropriate, in part because of bus traffic. The building is located near the Blake Transit Center, a hub for public transportation. The architect also indicated that the restaurant will be using valet parking, with valets positioned in front of the building.

This would be the first Ruth’s Chris Steak House in Ann Arbor. The chain is based in Florida, with locations nationwide.

Utility Rates

The council will consider giving final approval to higher utility rates – for water, sewer and stormwater. Initial approval came at the council’s May 19 meeting.

Water rates will increase across all tiers of consumption. For the first 7 “units” of water, the charge is will increase from $1.35 to $1.40. For the next 21 units, the charge is proposed to increase from $2.85 to $2.96 per unit. And for the 17 units after that, the increase is proposed to be from $4.88 to $5.08. A unit is 100 cubic feet, which is 748 gallons.

Sewer rates will increase from $3.65 to $3.85 per unit. And stormwater fees would increase for all tiers of impervious service. For the middle tier – for more than 2,187 square feet but less than or equal to 4,175 square feet – on a quarterly basis, the increase would be from $24.85 to $26.32.

According to the staff memo accompanying this agenda item, the recommended rate changes in water, sewer, and stormwater would increase revenues to the water, sewer, and stormwater funds by $765,119, $1,171,931 and $410,235 respectively. The reason given for the rate increases is to cover maintenance and debt payments, and to maintain funding for capital improvement requirements. The city calculates the impact to be an additional $6.25 per quarter or $24.98 per year for an average consumer, which is a net increase of 4.2%.

Water consumption for a typical single family is assumed at 19 units per quarter.

History of city of Ann Arbor water rates. The city converted to a tiered system 10 years ago in 2004, based on usage. The 2015 amount is proposed.

Grant to Farmers Market for Food Stamp Recipients

At its June 2 meeting, the city council will consider approval of an agreement with the Fair Food Network to continue administering the Double Up Food Bucks program at the Ann Arbor farmer’s market. Approval would entail acceptance of $32,000 in funding.

The Double Up name stems from the fact that it provides a match of up to $20/person/day for people using SNAP (Bridge cards/EBT/food stamps) to purchase Michigan-grown produce at farmers markets in Michigan.

The city of Ann Arbor has received Double Up Food Bucks grant funding since 2010.

Partnership with Community Action Network

A proposal for a five-year partnership with the nonprofit Community Action Network is on the June 2 agenda. The partnership was recommended for approval by the Ann Arbor park advisory commission at its May 20, 2014 meeting.

The agreement would be for CAN to continue operating the city’s Bryant and Northside community centers, which the nonprofit has been managing since 2008. The proposed amount is not to exceed $130,000 annually – an increase of $25,000 from the current agreement. The higher amount is included in the FY 2015 general fund budget for parks and recreation that the city council approved on May 19. According to a staff memo, the higher amount will address increases in fixed costs and “assist in retaining quality staff that is at the core of the services that CAN provides.” [.pdf of staff memo]

The staff memo also noted that a request for proposals (RFP) was not issued for this work, because CAN has been the sole respondent to the previous two RFPs and the city is satisfied with its work.

During the May 20 PAC meeting, CAN received praise for their work from several commissioners and Colin Smith, the city’s parks and recreation manager. CAN executive director Joan Doughty and deputy director Derrick Miller were on hand to answer questions. Part of the discussion focused on CAN’s exemption from the city’s living wage requirement, which the city council granted in 2012 for a three-year period through Nov. 8, 2015. Doughty noted that the exemption was sought in part because CAN was paying a living wage to part-time employees who were high school or university students, which limited the nonprofit from paying higher wages to full-time workers. She also pointed out that the city parks and recreation unit isn’t required to pay the living wage to its seasonal workers.

LDFA Extension

On the council’s June 2 agenda is an item that would express city council support of the local development finance authority’s application to the Michigan Economic Development Corp. to extend the life of the tax capture arrangement for up to 15 years. Without an extension, the LDFA would end in 2018.

Ann Arbor’s local development finance authority is funded through a tax increment finance (TIF) district, as a “certified technology park” described under Act 281 of 1986. The Michigan Economic Development Corp. (MEDC) solicited proposals for that designation back in 2000. The Ann Arbor/Ypsilanti “technology park” is one of 11 across the state of Michigan, which are branded by the MEDC as “SmartZones.”

The geography of the LDFA’s TIF district – in which taxes are captured from another taxing jurisdiction – is the union of the TIF districts for the Ann Arbor and the Ypsilanti downtown development authorities (DDAs). It’s worth noting that the Ypsilanti portion of the LDFA’s TIF district does not generate any actual tax capture.

The LDFA captures Ann Arbor Public Schools (AAPS) operating millage, but those captured taxes don’t diminish the school’s budget. That’s because in Michigan, local schools levy a millage, but the proceeds are not used directly by local districts. Rather, proceeds are first forwarded to the state of Michigan’s School Aid Fund, for redistribution among school districts statewide. That redistribution is based on a per-pupil formula as determined on a specified “count day.” And the state reimburses the School Aid Fund for the taxes captured by SmartZones throughout the state.

In FY 2013, the total amount captured by the LDFA was $1,546,577, and the current fiscal year forecast is for $2,017,835. About the same amount is forecast for FY 2015.

The extension of the LDFA is made possible by Public Act 290 of 2012, which amended the Local Development Financing Act to allow a SmartZone to capture school taxes for an additional five years or an additional 15 years. The staff memo accompanying the resolution describes the five-year extension as possible “upon approval of the MEDC President and the State Treasurer, if the Ann Arbor/Ypsilanti SmartZone LDFA agrees to additional reporting requirements and the LDFA requests, and the city councils of Ann Arbor and Ypsilanti approve, the amendment of the LDFA tax increment financing (TIF) plan to include regional collaboration.”

A 15-year extension is possible, according to the memo, “if, in addition to the above requirements, Ann Arbor and Ypsilanti, as the municipalities that created the SmartZone, enter into an agreement with another LDFA [a "Satellite SmartZone"] that did not contain a certified technology park to designate a distinct geographic area, as allowed under Section 12b of the Act…”

The council’s resolution states that if the MEDC approves the extension, the city of Ann Arbor will work with the LDFA and the city of Ypsilanti to identify another LDFA – called the “Satellite SmartZone LDFA.” The arrangement will allow the Satellite SmartZone LDFA to capture local taxes in its own distinct geographic area for the maximum 15 years allowed by statute.

Responding to an emailed query from The Chronicle, Sally Petersen (Ward 2) – who sponsored the resolution on the agenda and serves as the council appointee to the LDFA board– wrote that possibilities for an LDFA satellite for Ann Arbor’s SmartZone include Adrian (Adrian College) or Brighton and Livingston County (with Cleary University).

4:07 p.m. The public speaking line-up for reserved speaking slots is now available on the agenda. Four people are signed up to talk about the policy for distributing proceeds from the sale of the development rights to the Library Lane site: Amanda Carlisle, Jean Carlberg, Jim Mogensen, and Seth Best.

Two people are signed up to talk about the routine adjustment to the city’s budget for the current fiscal year: Thomas Partridge and Jeff Hayner. Two people are signed up to talk about the resolution supporting the LDFA application for a 15-year extension: David Jsa and Gregg Hammerman.

Signed up to talk about the footing drain disconnection contract with CDM Smith is Frank Burdick. And Henry Herskovitz is signed up to talk about Israel’s attack on the USS Liberty in 1967. Signed up as an alternate speaker on the topic of engine powered heating is Kermit Schlansker.

5:08 p.m. Staff responses to councilmember questions about agenda items are now available: [.pdf of staff responses]

6:33 p.m. Council chambers are set up with the dividers already moved back to create more room and about 40 additional folding chairs are set up. The item involving the policy on the proceeds from the sale of development rights for the Library Lane lot is expected to draw a large number of people. About a dozen people have already arrived.

6:42 p.m. Jack Eaton (Ward 4) is the first councilmember to arrive. Two dozen people now in the audience in support of affordable housing. They include former councilmember and planning commissioner Jean Carlberg, who has signed up to speak during public commentary. Round yellow sticker read “Homes for the Homeless Now!”

6:49 p.m. Sally Petersen (Ward 2) has arrived. She’s talking to people in the audience, which now numbers about 40 people.

6:53 p.m. Jane Lumm (Ward 2) has arrived. She’s chatting with Paul Fulton of the city’s IT services staff.

6:54 p.m. Mayor John Hieftje has arrived. He’s chatting with Jack Eaton. City attorney Stephen Postema is here.

6:54 p.m. Jim Mogensen has arrived. He’s signed up to speak tonight on affordable housing.

6:54 p.m. Pre-meeting activity. The scheduled meeting start is 7 p.m. Most evenings the actual starting time is between 7:10 p.m. and 7:15 p.m.

7:01 p.m. Remaining councilmembers are starting to filter in. Stephen Kunselman (Ward 3) is here. Chuck Warpehoski (Ward 5), Sabra Briere (Ward 1) and Sumi Kailasapathy (Ward 1) have also arrived.

7:02 p.m. City administrator Steve Powers is here, along with the city clerk, Jackie Beaudry.

7:06 p.m. Not yet here are Mike Anglin (Ward 5) and Christopher Taylor (Ward 3).

7:06 p.m. Ann Arbor SPARK CEO Paul Krutko has arrived. He’s talking to John Hieftje.

7:09 p.m. Call to order, moment of silence, pledge of allegiance. We’re off.

7:10 p.m. Roll call of the council. Taylor, Anglin and Margie Teall (Ward 4) are absent.

7:10 p.m. Hieftje reports that Teall and Taylor will likely be along later. Anglin, however, is sick.

7:12 p.m. Approval of the agenda Eaton moves the closed session to just before DS-1 – that’s the footing drain disconnection contract with CDM Smith.

7:12 p.m. The council has approved the evening’s agenda.

7:12 p.m. Communications from the city administrator.

7:13 p.m. City administrator Steve Powers is ticking through some upcoming events, including his favorite – Red Fish, Blue Fish, which teaches kids how to fish. It’s on June 8 from 9:30 to 11 a.m. at the Gallup Park livery.

7:13 p.m. Hieftje says Petersen represented the city well in the half-marathon of the Dexter-Ann Arbor Run that was held on Sunday, June 1. [She ran a sub-2-hour race.]

7:13 p.m. Proclamation honoring the University of Michigan International Center as volunteer of the month. The proclamation honors students, scholars and families affiliated with the center who have volunteered their service in city parks.

7:16 p.m. Public commentary. This portion of the meeting offers 10 three-minute slots that can be reserved in advance. Preference is given to speakers who want to address the council on an agenda item. [Public commentary general time, with no sign-up required in advance, is offered at the end of the meeting.]

Four people are signed up to talk about the policy for distribution of proceeds from the sale of the development rights to the Library Lane lot: Amanda Carlisle, Jean Carlberg, Jim Mogensen, and Seth Best.

Two people are signed up to talk about the routine adjustment to the city’s budget for the current fiscal year: Thomas Partridge and Jeff Hayner. Two people are signed up to talk about the resolution supporting the LDFA application for a 15-year extension: David Jsa and Gregg Hammerman.

Signed up to talk about the footing drain disconnection contract with CDM Smith is Frank Burdick. And Henry Herskovitz is signed up to talk about Israel’s attack on the USS Liberty in 1967. Signed up as an alternate speaker on the topic of engine powered heating is Kermit Schlansker.

7:19 p.m. Amanda Carlisle is executive director of the Washtenaw Housing Alliance. That’s a coalition of more than 30 organizations working to end homelessness, she says. She invites people to stand if they’re here to support affordable housing. [Just about everyone in the center section and the additional chairs set up is standing is support.]

Carlisle says she visited people living under bridges last week, not a mile away from where she’s standing – and they need housing, she says. We can’t rely on state and federal funding, she says, so we need to find local solutions. She’s calling for support of DC-1, a resolution that would allocate 50% of the proceeds from the sale of development rights for the Library Lane lot to the city’s affordable housing trust fund.

7:22 p.m. David Jsa is a web developer and chief technology officer at Seelio. About 2.5 years ago, that company was invited into SPARK’s incubator – a company of four people. They were barely going to make it, he said. But they’ve now grown to a company of 15 employees. So they’ve moved into a larger office space. They’re indebted to the LDFA SmartZone and SPARK for helping the business grow. He says they expect to add around another 20 people. They love Ann Arbor and love to tell stories about how great a place Ann Arbor is to start up a company. He refers to people to the services his company received from the LDFA. He supports the extension of the term for the LDFA SmartZone.

7:25 p.m. Jean Carlberg is a former city councilmember and former city planning commissioner. She says she’s been working on affordable housing and housing for the homeless for 30 years. It’s not often you get a chance to put a “pile of money” to put into the affordable housing trust fund, she says. Affordable housing is at best a break-even proposition, she says. There are over 4,000 who need assistance in one year, she says. Councilmembers have all said they think that affordable housing is critical to the community, she notes. Carlberg urges the council to take the step of putting the proceeds from the Library Lane development rights into the affordable housing trust fund. She calls it a rare opportunity. Their actions should match their values and the values of the community, she says.

7:28 p.m. Jim Mogensen is speaking on the Library Lane resolution. He’s speaking for Religious Action for Affordable Housing. Back in the 1990s, one of the subgroups was looking for additional funds. That’s why RAAH was set up, he explains. They’ve raised about a half-million dollars, he says. Mogensen notes that it sounds like a lot of money, but it’s not. They compete with Habitat for Humanity and other organizations, so it’s difficult to raise money, he says. It’s important to have a trust fund available when projects happen, he says. For every complex problem there’s a simple solution – and it’s wrong, he quips. Putting all the affordable housing in Ypsilanti is one such “simple” solution, he says.

7:31 p.m. Seth Best apologizes for his attire. At the house on Stone School Road, they’ve been doing some renovating work, and he didn’t have a chance to change. He’s speaking in support of the Library Lane lot resolution. For every 100 people who are searching for affordable housing in the U.S., there are 30 homes available, he says. Affordable housing takes time, he says. He suggests that some of the money should support a community center or a warming center: Where do people go tonight? he asks. It’s national LGBT month, he says – and if you send people down South, that could put people’s lives in danger.

7:34 p.m. Frank Burdick introduces himself as a Ward 4 resident. He’s encouraging the council to vote no on the contract extension for CDM Smith for footing drain disconnection work. He says the city council has for the last 13 years listened only to the city staff and the city attorney, but not their constituents. He tells the council they have “married” the consultant, CDM. He talks about unhappy and anxious citizens who have failing sump pumps and frozen, improperly installed pipes. The city’s developer offset mitigation (DOM) program should be 100% funded by developers, he says. He contends that the DOM program is in serious legal jeopardy. He suggests that developers should deposit money into an escrow account instead of continuing the DOM program. He challenges mayoral candidates to consider their vote on the resolution.

7:37 p.m. Thomas Partridge introduces himself as a recent candidate for various public offices. He calls on the mayor and council to re-open the city budget to allow for more housing for affordable housing and community development for the most vulnerable residents of the city. Protections under existing city policies are not adequate, he says. He calls for a change in attitude to bring about rules changes so that the public could have greater lobbying access to city hall. He wants public participation periods during the meeting, not just at the start and at the end. He supports the resolution on the Library Land lot sale proceeds, but says that all of the money should go into the trust fund, not just 50%.

7:40 p.m. Gregg Hammerman is cofounder of Larky – a mobile, web-based service that helps people keep track of discounts and perks to which they’re entitled through professional associations, alumni associations, credit cards, health insurance, shopping clubs, community groups, museums and the like. He graduated from UM in 1994 and started his first company then, called Techstreet. At that time, Ann Arbor SPARK didn’t exist, he says. Still, they managed to persevere and Techstreet was finally purchased – and it now has $30 million in revenue and about 25 employees. Now there’s a real start-up culture here in Ann Arbor, which he attributes to LDFA and SPARK. His new company has eight employees, which had been achieved in a two-year cycle, instead of the nine years that his first company required.

7:43 p.m. Jeff Hayner is speaking against voting on the LDFA resolution tonight and encourages the council not to approve it until more information on the efficacy of SPARK’s programs is available. He’s arguing that the SmartZones statewide amount to a geographic transfer of wealth.

7:46 p.m. Henry Herskovitz begins by asking: What if you heard through the news media that fighter jets from South Korea were used to attack a U.S. ship? Our answer would be clear – that the U.S. would not tolerate an attack by an ally. South Korea has not done that, but that’s what happened in 1967 with the USS Liberty when Israel [mistakenly] attacked the ship. U.S. citizens should take it seriously when a foreign government can influence U.S. foreign policy, he says.

7:46 p.m. Christopher Taylor (Ward 3) has now arrived.

7:46 p.m. Communications from the council. This is the first of two slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

7:47 p.m. Sally Petersen (Ward 2) says that the topic of the work session on June 9 will be ethics and council rules.

7:49 p.m. Jane Lumm (Ward 2) thanks everyone who has come in to license their dogs. She was here on Friday afternoon and there was a long line at the clerk’s office. Everyone wants to do the right thing, she says.

7:52 p.m. Stephen Kunselman (Ward 3) thanks staff for the repaving of the St. Aubin service drive near Platt Road. He announces he’ll be bringing forth a resolution at a future meeting to tender an offer on 8 acres where the Burton Commons affordable project is proposed. [The idea would be to use open space millage money.] Here’s an animated .gif of the aerial photos of the property: Burton Commons land. He’s arguing for the purchase based on climate change and the adjacency of Sylvan Park to the north. The resolution would direct staff to make an offer to purchase at fair market value.

7:53 p.m. Eaton conveys Anglin’s regrets that he can’t attend.

7:53 p.m. Appointments: Confirmation. Tonight the council is voting on nominations to city boards and commissions made at the council’s May 19 meeting. Larry Eiler was nominated to the Economic Development Corporation, replacing Daniel Blakemore. Andy Baker-White and Amanda Carlisle were nominated to the housing and human services advisory board to fill vacancies.

7:54 p.m. Outcome: The council has unanimously approved all the appointments.

7:54 p.m. Appointments: Nominations. Being nominated tonight for reappointment to the city planning commission are Wendy Woods and Eleanore Adenekan. Being nominated for reappointment to the commission on disability issues are Linda Evans and Larry Keeler. Their appointments will be voted on at the council’s next meeting.

7:54 p.m. Hieftje asks Lumm how many openings still remain on HHSAB. Lumm thinks there are still three vacancies.

7:54 p.m. Public hearings. All the public hearings are grouped together during this section of the meeting. Action on the related items comes later in the meeting. Five public hearings are scheduled tonight: PH-1 Ordinance to raise water, sewer, and stormwater rates; PH-2 Ordinance to amend drive-thru facilities and permitted uses; PH-3 Rezoning 515 Oxford (Delta Gamma); PH-4 Site plan for 515 Oxford (Delta Gamma); PH-5 Site plan for Ruth’s Chris.

7:55 p.m. PH-1 Ordinance to raise water, sewer, and stormwater rates.

7:56 p.m. Thomas Partridge asks that rates be revised so that the impact on the most vulnerable residents is ameliorated.

7:57 p.m. Margie Teall (Ward 4) has now arrived.

8:01 p.m. Jeff Hayner says that water rates have gone up every year. He notices it as homeowner, he says. He cites some Sierra Club information that indicates that only three Michigan municipalities operate water services as a utility, including Detroit and Ann Arbor. He questions why the fourth heavy use tier has been dropped – and wonders if it resulted from an effort to accommodate the University of Michigan. He asks the council to please keep Ann Arbor affordable.

8:01 p.m. PH-2 Ordinance to amend drive-thru facilities and permitted uses. No one speaks on this hearing.

8:02 p.m. PH-3 Rezoning 515 Oxford (Delta Gamma).

8:04 p.m. Thomas Partridge says the property needs to be accessible to disabled students.

8:05 p.m. PH-4 Site plan for 515 Oxford (Delta Gamma).

8:05 p.m. No one speaks at this public hearing.

8:06 p.m. PH-5 Site plan for Ruth’s Chris. Steve Fry, who is representing Ruth’s Chris, tells the council that he’s here if there are questions.

8:07 p.m. Thomas Partridge calls on the council to require the restaurant to be truly accessible to those who are disabled and to seniors and those who need to use public transportation. He says there should be menu items that are affordable to those with lower incomes.

8:09 p.m. Approval of minutes. Outcome: The council has approved the minutes of the previous meeting.

8:09 p.m. Consent agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. This meeting’s consent agenda includes …

8:09 p.m. Councilmembers can opt to select out any items for separate consideration. Kunselman pulls out CA-4. It’s a resolution authorizing $28,444 in sanitary sewer and water improvement charges for 3980 Platt Road.

8:09 p.m. Outcome: All items on the consent agenda except for CA-4 have now been approved.

8:10 p.m. CA-4 Authorize sanitary sewer and water improvement charges for 3980 Platt Road. ($28,444). Kunselman says the property has been under construction for some time. If this resolution is approved, he wonders if the builder will be pursuing this more diligently. Craig Hupy, the city’s public services area administrator, says that he won’t comment on the builder’s intent, but this will remove one hurdle.

8:11 p.m. Outcome: All items on the consent agenda have now been approved.

8:11 p.m. B-1 Increase water, sewer, and stormwater rates. The council will consider giving final approval to higher utility rates – for water, sewer and stormwater. Initial approval came at the council’s May 19 meeting.

Water rates will increase across all tiers of consumption. For the first 7 “units” of water, the charge is will increase from $1.35 to $1.40. For the next 21 units, the charge is proposed to increase from $2.85 to $2.96 per unit. And for the 17 units after that, the increase is proposed to be from $4.88 to $5.08. A unit is 100 cubic feet, which is 748 gallons. [For additional background, see Utility Rates above.]

8:13 p.m. Hieftje says he’s been following this for several years. And the city does a comparison with other communities. He calls the rate increases middle-of-the-pack and appropriate for a city with infrastructure the age of Ann Arbor’s. Hieftje is comparing the issue with roads – that to maintain the infrastructure, it requires money. He says the city’s departments are efficient with their use of money.

8:15 p.m. Kailasapathy asks about the four tiers of the previous approach: Why did the city move from a four-tier system to a three-tier system? Hupy says that those tiers are residential tiers. That was done in response to customers and councilmembers – and that fourth tier hit the large residential users. Powers adds that the commercial rates – including institutional uses – have a different rate structure.

8:16 p.m. Briere notes that years ago, the council used to receive the comparative analysis with other communities and asks that it be provided. Hupy will forward it to councilmembers.

8:17 p.m. Lumm reviews the elimination of the fourth pricing tier – and describes how it affected people who were watering their lawns. She describes the previous rates as involving “ungodly sums.” She notes that the rate increases will translate to $2.3 million in additional revenue. No one wants to increase prices, unless it’s absolutely necessary, and that standard is met, she says.

8:20 p.m. Kunselman asks if it will be possible to slow the rate of increase in future years. Hupy indicates he’s pessimistic that could happen for water rates, given that about half of the drinking water treatment plant might need to be replaced. Hupy expects at a minimum that water rate increases will be similar to what the city is doing for sewer rates.

8:20 p.m. Outcome: The council has voted to give final approval to the increase in water, sewer and stormwater rates.

8:20 p.m. B-2 Ordinance to amend regulations regarding drive-thru facilities and permitted uses. On tonight’s agenda is final approval of amendments to Ann Arbor’s zoning ordinance related to drive-thrus. Initial approval came at the council’s May 5 meeting. The amendments would add a definition of a “drive-thru facility” to Chapter 55 of the city code. Currently, the term used throughout the code is “drive-in,” which is not explicitly defined in the code. [For additional background, see Drive-Thru Ordinance: Final Approval above.]

8:23 p.m. Eaton asks planning manager Wendy Rampson how this change differs from the standard the city has in the code now. Rampson describes how the new standard makes it clear that all drive-thrus are subject to planning commission review for special exception use. And windows can’t face the right-of-way, she says. Eaton ventures that this means that planning commission and the council have discretion to grant the special exception use. Rampson notes that he’s correct, but adds that the planning commission has purview on the special exception use. Eaton asks what the standards are for exercise of that discretion. Rampson points to the relevant section of the code.

8:26 p.m. Eaton raises the specter of a long line of cars extending into a neighborhood. Could anything be done about that? Rampson says that the planning commission has discretion on a case-by-case basis – and the commission could deny the application. Eaton ventures that the denial would not be required. Eaton says it would be easy to write this kind of requirement into the code – to prevent that kind of impact on a neighborhood. He revises “easy” to “plausible.”

8:26 p.m. Warpehoski says he’s glad to see this going through. Changing from by-right to discretionary is a good step, he says.

8:28 p.m. Briere says that she can send councilmembers the section of the ordinance that deals with special exception uses. There’s always the risk of making one size fit all, she says. The language in the ordinance revision is flexible enough that each site can be considered on a case-by-case basis.

8:29 p.m. Eaton says he wants to send this back to the planning commission to write into the ordinance what will happen when a drive-thru window is adjacent to a residential neighborhood.

8:30 p.m. The motion in front of the council is to refer this back to the planning commission. Warpehoski says he doesn’t think this needs to be sent back to the planning commission in order for Eaton’s goal to be realized. He doesn’t want to hold up the effort now.

8:31 p.m. Hieftje says he’s siding with Warpehoski, and wants to see the council pass what is good, instead of holding it up until it is perfect.

8:33 p.m. Briere says if there are concerns about drive-thru windows operating near residential neighborhoods, they should be looked into, but says there are already a lot of protections in the code.

8:34 p.m. Outcome on Eaton’s motion to refer it back to the planning commission: It fails on a 3-7 vote with support only from Eaton, Lumm and Kailasapathy. Anglin is absent.

8:34 p.m. Taylor says he’d also like to see the additional criteria, but adds that the changes in front of the council tonight already move the ball in the right direction.

8:34 p.m. Outcome: The council has voted to give final approval to the revised regulations on drive-thrus.

8:34 p.m. B-3 Rezone 515 Oxford (Delta Gamma). The city council is being asked tonight to give final approval of a rezoning request for 515 Oxford, to convert a house for use as an annex to the Delta Gamma sorority. The main sorority house is located nearby at 626 Oxford. The council gave initial approval to the rezoning at its May 5, 2014 meeting. Later on tonight’s agenda is consideration of the site plan approval for the same project. The site plan was recommended for approval by planning commissioners on April 15, 2014. [For additional background, see Delta Gamma Site Plan, Rezoning above.]

8:36 p.m. Briere says that for many people, this is a landmark building, designed by an architect for his home and studio.

8:36 p.m. Outcome: The council has voted to give final approval to the rezoning required as part of the Delta Gamma project.

8:37 p.m. Recess. We’re in recess.

8:45 p.m. We’re back.

8:45 p.m. C-1 Rezone Green/Baxter (AAHC).  At tonight’s meeting, the council will consider giving initial approval to the rezoning of three Ann Arbor Housing Commission properties. The planning commission had recommended the rezoning at its May 6, 2014 meeting. The current PL (public land) zoning for some of the properties is a vestige of the AAHC properties’ status as city-owned land.

The three sites to be considered are part of the housing commission’s major initiative to upgrade the city’s public housing units by seeking private investors through low-income housing tax credits. [For additional background, see Rezoning: Housing Commission Properties above.] First up is the AAHC property at Green/Baxter Court Apartments from PL (public land) to R4A (multi-family dwelling district). The 2-acre site is located at 1701-1747 Green Road and contains 23 apartments in four buildings and a community center. It’s in Ward 2.

8:46 p.m. Outcome: The council has voted without discussion to give initial approval of the rezoning of the AAHC property at Green/Baxter.

8:46 p.m. C-2 Rezone Baker Commons (AAHC). This would rezone the property from PL (public land) to D2 (downtown interface). The 0.94-acre lot is located at 106 Packard Street, at the intersection with South Main, in Ward 5. It includes a 64-unit apartment building.

8:48 p.m. Kunselman has a question. Rampson comes to the podium. He ventures that Baker Commons would exceed the 60-foot height limit in D2. Rampson says they don’t have an official height of the building, but agrees that it could be taller than 60 feet. She says that this would be a non-conforming structure. AAHC has been notified, and she says it’s not an issue as far as she understands. There’s not really a viable alternative zoning, she says. There was not a planning commission discussion of the possible non-conformance, Rampson tells Kunselman.

8:49 p.m. Outcome: The council has voted to give initial approval to the rezoning of the AAHC property at Baker Commons.

8:49 p.m. C-3 Rezone Maple Meadows (AAHC). This item would rezone the property from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site is 3.4 acres at 800-890 South Maple Road and contains 29 apartments in five buildings and a community center. It’s located in Ward 5.

8:49 p.m. Outcome: The council has voted to give initial approval to the rezoning of the AAHC property at Maple Meadows.

8:49 p.m. DC-1 Establish policy for distribution of proceeds from sale of Library Lane lot development rights. Tonight the city council will consider a resolution setting a policy for distribution of the proceeds from the sale of development rights on the Library Lane lot. The proposed policy would set aside 50% of the net proceeds to the city’s affordable housing trust fund. [For additional background, see Library Lot Sale Proceeds above.]

8:52 p.m. Hieftje says he wants to talk about some history. Several years ago, Michael Appel of Avalon Housing had come and talked with him about a pot of money that was available from the feds. [Appel was here earlier, but has departed.] That effort by Avalon had led to a partnership with the nonprofit Food Gatherers and the creation of Carrot Way on Dhu Varren Road.

But the funding landscape has changed a lot since then, Hieftje says. He doesn’t think anything can get done without a “pot of money” here locally. The community’s plans were set back during the Great Recession, he says. Now is an opportunity to create that pot of money, he says, but the exact way the money will be spent can be decided later.

8:55 p.m. As one example, Hieftje floats the idea of creating something like a Carrot Way – that could be located on Platt Road, where Washtenaw County’s former juvenile court facility was located. Hieftje says that the number of people in attendance reflects how well the proposal has been received. He ventures that the sale price might be around $8-10 million, which would mean the city’s general fund would receive several million dollars.

8:59 p.m. Kailasapathy says she’s heard from constituents that they’d like to see an “Arrowwood Part II” and calls it a worthy goal. But she says that there needs to be criteria set for the use of the affordable housing trust fund. It’s there to create new capital assets, she says. It’s not for recurring expenses. She wants to protect this fund for capital assets and says it shouldn’t be used as a slush fund.

Kailasapathy also has mixed feelings about the Library Lane lot. She was the one vote in the 10-1 vote on the hiring of a real estate broker to sell the development rights. She says she’ll support this resolution, and she knows millions of dollars are needed and this is just a start. She’d support 100% of a Palio Lot sale going to affordable housing, she says.

9:00 p.m. Petersen agrees with Kailasapathy that this doesn’t end the conversation about the Library Lane lot. She looks forward to the conversation. It’s more than a great cause, she says – it’s one of the council’s budget priorities and supports economic development.

9:05 p.m. Kunselman says it’s nothing more than a “teaser” resolution, as it’s non-binding. The number of $8-10 million is different from the number that Jim Chaconas had given, he notes – it seems inflated. The same people who sponsored this resolution are the same people who voted to bond for a $50 million underground parking structure, he says. “We’ve spent more money housing cars than housing people.” He points toward a June 4, 2007 vote when the council had rescinded a previous affordable housing policy as part of a land sale – because the council needed the money from the sale of the First & Washington property to build the police/courts facility. When the sale is actually done, he’ll support putting that money into affordable housing.

9:06 p.m. Taylor says he’s delighted to be a co-sponsor. He says the resolution is a moral commitment to use the money for an important community need. Local government can’t wave a magic wand to make things affordable, he says.

9:09 p.m. Briere says that after Kunselman brought forward the resolution to sell the development rights, she’s had a conversation with Hieftje about what percentage should go to affordable housing. The council’s budget committee had recommended 10% at a minimum. She cautioned that she didn’t want to see the community benefit of affordable housing used as an argument for a project on the top of the Library Lane lot that might not be a community benefit. She’s recounting the contributions that the council has made to the affordable housing trust fund – including from the former Y lot and from a strip of land associated with that parcel, as well as general fund contributions.

9:11 p.m. Briere asks if it’s political or if it’s good policy – and she concludes it’s not a political circus, saying that it’s an attempt to make good policy.

9:14 p.m. Lumm is concerned about the percentage and the timing of the decision. She’d supported the minimum 10% of the council’s budget committee, she says. This was first brought up on April 7, she says. The 50% amount is not unreasonable, she adds. But she says that the city’s general fund reserves are currently on the low side. She wouldn’t support any more than 50%. Chaconas’ estimate of $6-7 million would go down as chunks were taken away for public space, she says. Lumm is also concerned about other needs the city might have. She ventures that it might make sense to postpone again.

9:14 p.m. Lumm says she could go either way on this.

9:17 p.m. Eaton says this decision is premature. He notes that it’s not clear that the council has decided that the Library Lane lot development rights will be sold. This would put pressure on the council to sell those development rights, and cautions that it would possibly taint a decision to sell those rights. He’s also concerned about a lack of clear criteria for use of money in the affordable housing trust fund. It should be restricted to capital investments, he says. So he resists the idea of accumulating such large sums. He’d expressed those concerns when the council had sold the former Y lot. So he won’t support the resolution, he says.

9:19 p.m. Kunselman said he’d detailed some problems at a previous meeting about the bonding used for the construction of the underground parking garage. [The issue relates to how many spaces can be dedicated to private use.] He wants to know if staff now has an analysis of how many spaces are available for private use. Powers says that some of that information is still being compiled, but notes that some of the issues were addressed in a confidential memo to councilmembers from the city attorney. Powers allows that the answer to the question probably affects how valuable the property is.

9:23 p.m. Warpehoski notes that some councilmembers have wanted to lock down the amount of space designated as public open space before moving forward – and didn’t feel that it was premature to make that determination. Similarly, he doesn’t think that locking down a percentage for affordable housing is premature. Warpehoski will support the resolution.

9:23 p.m. Lumm says that her point is that things do change and that she wants to see how much money the sale actually generates.

9:24 p.m. Lumm is reviewing the changing in funding strategies by MSHDA – the Michigan State Housing Development Authority.

9:26 p.m. Kunselman proposes an amendment, saying that the Ann Arbor Housing Commission is the largest affordable housing provider in the city. He wants to stipulate that 25% of all proceeds go to the AAHC – in addition to the 50% that would go to the affordable housing trust fund.

9:28 p.m. Briere gets clarification that Kunselman that he’s not confining the AAHC allocation to just downtown AAHC properties. She notes that money from the affordable housing trust fund has been used in the past for AAHC properties. She doesn’t think this amendment is necessary.

9:30 p.m. Briere says she’s heard the concern that too much money would be used for the AAHC. Kunselman says it’s important that the AAHC be given money “straight up” without having to come ask. He doesn’t think they should have to go through hoops – saying that AAHC shouldn’t have to go before the HHSAB.

9:32 p.m. Kunselman says the council has neglected the AAHC for so many years, trying to engage in speculative development. He cites the former Y lot, Near North and Burton Commons. He points out that AAHC is also looking to increase their number of units.

9:33 p.m. Teall appreciates Kunselman’s concern for the AAHC, but doesn’t think that AAHC has been neglected. It’s good for the process that when the AAHC needs funds, they come and request the funds and explain what the funds are needed for, she says.

9:37 p.m. Hieftje agrees with Teall and Briere that the AAHC can come and ask for money when they need it.

9:37 p.m. Outcome on the amendment: The council has voted to reject Kunselman’s amendment with support only from Kunselman, Kailasapathy and Eaton.

9:39 p.m. Briere speaks in support of the resolution, saying she’ll carry the concerns she’s heard back to HHSAB. Kunselman says he won’t support this for reasons he’s already described. He noted that he’d been the one to push forward the Y lot sale and he’d also been the one to push for the sale of Library Lane lot development rights. The resolution tonight is premature. He wants the council to have concrete information instead of making “grand gestures” to appease people.

9:42 p.m. Hieftje is now unable to resist responding to Kunselman’s remarks about using public TIF (tax increment finance) dollars to support parking – saying it’s an important economic development tool. He’s giving others on the council credit for some of the good things that have happened – reacting to Kunselman’s previous remarks about his own role.

9:43 p.m. Outcome: The council has voted to approve the policy on designating proceeds from sale of development rights on the Library Lane lot. Voting for it were Taylor, Teall, Warpehoski, Hieftje, Kailasapathy, Briere and Petersen. Anglin was absent. Kunselman, Lumm and Eaton voted against it.

9:43 p.m. DC-2 Remove funding for Larcom reskin. This is a proposal to recommend to the planning commission that the capital improvements plan (CIP) for FY 2017 and FY 2018 be revised to remove the $4.4 million that is included for a city hall reskinning project. The council postponed this item from its May 19, 2014 meeting. According to a staff memo written in response to a councilmember question, reskinning of the Larcom City Hall building would mean replacing the existing exterior walls and windows of the building. The result would be new squared-off exterior, eliminating the inverted pyramid design. The new exterior would hang vertically from the sixth floor. [For additional background, see City Hall Reskinning above.]

9:45 p.m. Lumm is reading aloud a prepared statement about other capital needs in the city. She describes the reskin of the Larcom building as being something that “might be nice” and expresses skepticism that the energy savings would translate to a positive business case.

9:48 p.m. Briere says that she has a bureaucratic problem with the resolution: The council can remove the funding, but the planning commission approves the content. The resolution asks the planning commission to remove the funding. So she had to ask what would happen if the planning commission removed the Larcom reskin from the CIP. Briere wants to remove the reference to the $4.4 million, but Petersen says that it’s merely an adjectival modifier of the project.

9:50 p.m. Petersen says that the council isn’t voting on the bureaucratic issue – and she’s going to support this resolution. She’s urging the council to explore the energy improvements. Hieftje says that he’ll support this resolution, because the city doesn’t have $4.4 million lying around. He recalls efforts the city had made to find federal dollars for the energy improvements.

9:52 p.m. Kailasapathy says that she doesn’t believe that there’s “free money” even if it comes from the federal or state government, because it’s all taxpayer money. She wants the cosmetic components of the project removed. “I just want to see this gone,” she says.

9:53 p.m. Teall won’t support this tonight. Energy efficiency is and should be a priority, she says. She recognizes that she’s fighting a losing battle. She’s concerned not just about the windows, but also about the insulation in the walls. Having the project in the CIP doesn’t mean we’re spending the money, Teall notes. She’s citing a common sentiment of Kunselman that the council shouldn’t tie the hands of future councils.

9:56 p.m. Kunselman says it’s ironic that he’d tried to fight the airport runway extension by removing it from the CIP, but he wasn’t sure he wanted to adopt that approach here. He wants to know more about the windows: Did they date from the 1960s? Powers notes that this is a project in the 2017 year of the CIP. Hupy confirms that it’s a very conceptual budget at this point. He confirms that the windows are original. Kunselman ventures that the title of the project can be changed from “reskinning” to something involving energy efficiency. He doesn’t think this resolution will do anything, but now suggests an additional resolved clause to address a title that will be more limiting in scope.

9:57 p.m. Hieftje suggests a recess to craft the language Kunselman is trying to come up with.

9:57 p.m. Recess.

10:05 p.m. Samuel McMullen, Ward 3 candidate for council, has arrived at the meeting.

10:05 p.m. We’re back.

10:09 p.m. Kunselman reads aloud the additional “resolved” clause that expresses a council desire that an energy-efficiency project be developed for city hall. Lumm is now arguing against the amendment based on skepticism that there’d be adequate payback. Kunselman allows that window replacements don’t pay back in energy savings, but it does affect the comfort for building occupants. It’s also a strain on the HVAC system, he ventures.

10:12 p.m. Kunselman says that if the building is going to be around for a few more decades, it might be worth putting in some new windows. Petersen says that she’ll support Kunselman’s amendment, characterizing it as formally asking what councilmembers have been talking about. Briere says that Kunselman’s amendment suggests a more cost-effective approach to the problems with the walls and windows. Briere notes that the building has historic status now that it is older than 50 years. She’s not particularly fond of the building, though.

10:14 p.m. Eaton says that the message to the planning commission is that the council won’t support anything that has the scope of a $4.4 million project. Teall says she’ll support the amendment, but not necessarily the main question. Hieftje reiterates his support for the main question and for the amendment as well.

10:15 p.m. Outcome on the amendment: The council has voted to approve the amendment.

10:16 p.m. Lumm is happy that it appears this will pass.

10:16 p.m. Outcome: The council has voted to approve this resolution, over the dissent of Teall.

10:16 p.m. DC-3 Approve a five-year partnership agreement with Community Action Network for Operation of Bryant and Northside community centers. This is proposal for a five-year partnership between the city and the nonprofit Community Action Network. The partnership was recommended for approval by the Ann Arbor park advisory commission at its May 20, 2014 meeting. [For additional background, see Partnership with Community Action Network above.]

10:18 p.m. Taylor is reviewing the resolution. [Taylor is a council appointee to the park advisory commission.] Taylor says that CAN is uniquely qualified to provide this service. He encourages support of the resolution.

10:18 p.m. Outcome: The council has voted to approve the operating agreement with CAN for Northside and Bryant community centers.

10:18 p.m. DC-4 Approve application to MEDC for extension of LDFA term. This resolution would support the LDFA’s application to the MEDC for an extension of its current 15-year term, ending in 2018. The length of the extension would be for at least five years, and possibly as long as 15 years. [For additional background, see LDFA Extension above.]

10:21 p.m. Petersen is reviewing some points in a letter from the LDFA board to the council. First is that LDFA SmartZones are enabled by state statute. Second is that the LDFA has had its contract with SPARK audited. SPARK’s financials are now on SPARK’s website, she says. She notes that the LDFA has heard the council’s interest in high-speed telecommunications networks.

10:22 p.m. Carrie Leahy, chair of the LDFA board, has come to the podium to answer questions. She tells Lumm that the most serious conversations about who might be the satellite are Adrian and Brighton. She says that Flint is no longer on the table. She’s explaining that a satellite LDFA would set up its own TIF capture.

10:24 p.m. Lumm wants to know what the impact would be on the Ann Arbor Ypsi SmartZone. Leahy says the Ann Arbor Ypsi SmartZone funds wouldn’t be spent outside of Ann Arbor and Ypsi.

10:27 p.m. Hieftje ventures that Lumm is raising a good question: Why does the MEDC want to do this? SPARK CEO Paul Krutko says that MEDC worked with the legislature to see how to allow the LDFA program to continue. Currently there are 15 SmartZones, each with an opportunity to extend for five years. Three of the 15 have the chance to extend for 15 years. One of the three is already decided – Marquette. There’s a deadline set by the state, Krutko says, of June 30 and Sept. 30. The effort reflects the state’s emphasis on regional cooperation.

10:29 p.m. Leahy stresses that tonight’s resolution is just the first step. The application will then go to the MEDC. Then it will come back to the council. Krutko says that the LDFA wanted to come to the council early, because the other communities have a lot of steps to complete. Both of the communities still on the table are very interested, Krutko says.

10:32 p.m. Kailasapathy is returning to the topic of “windfall” gains that the LDFA had realized due to increased valuation in the TIF district. She’d proposed a budget amendment on May 19, when the council adopted next year’s budget, that would have reserved some of that windfall for construction of a high-speed telecommunications network. That amendment hadn’t succeeded. Kailasapathy wants to know if the LDFA can provide audited job creation numbers.

10:34 p.m. Leahy tells Kailasapathy that the LDFA has heard the council’s interest in infrastructure improvements and has begun to reach out to other communities and the MEDC to get more information about that.

10:35 p.m. Leahy says that the LDFA does not ask an independent party to verify the job creation numbers in an audit. “Why don’t you just do it?” Kailasapathy asks. Leahy says that the LDFA board has not had a meeting since the last council meeting.

10:37 p.m. Eaton is getting clarification from Leahy about the council’s options for denying an extension in the future. It sounds like the council could opt to extend only for five years, even if the MEDC approved an extension for 15 years.

10:38 p.m. Lumm says she doesn’t see any justification not to apply, because it would mean sending money elsewhere in the state.

10:42 p.m. Hieftje says he’s fully in support of this. He says that the city is interested in the best performance it can get out of Ann Arbor SPARK. Hieftje says that if the LDFA were to cease to exist, it would have no impact on the School Aid Fund.

Taylor is delighted to support this resolution. Both Ann Arbor SPARK and the LDFA do an excellent job, he says. About the drive for metrics, he says it’s the council’s obligation to oversee the money that is spent. It’s important to note, he says, that job creation statistics are not a science. It’s multivariable, he says.

10:46 p.m. Kunselman says he’s sitting on the fence. He doesn’t understand why the five-year extension is being discussed now five years ahead of the expiration of the LDFA. Kunselman expresses skepticism about the state’s reimbursement of the School Aid Fund, saying that the state has consistently underfunded the School Aid Fund. Powers quips that CFO Tom Crawford can’t speak for the governor except for the fact he’s not wearing a tie. Krutko corrects Kunselman’s understanding – pointing out that we’re only three years away from the expiration of the current LDFA.

10:47 p.m. Crawford is clarifying for Kunselman how the state reimburses the School Aid Fund.

10:47 p.m. Outcome: The council has voted to support the LDFA’s application for the extension of its term, over dissent from Kailasapathy.

10:47 p.m. DC-5 Approve Bravo Brio Restaurant Group Inc. for a new Resort Class C liquor license. The restaurant is located at 760 Briarwood Circle.

10:49 p.m. Lumm is reporting out the liquor license review committee’s work on considering these license applications.

10:49 p.m. Outcome: The council has voted to recommend approval of Bravo Brio’s application for a liquor license.

10:49 p.m. DC-6 Approve P.F. Chang’s China Bistro Inc. for a new Resort Class C liquor license. The restaurant is located at 720 Briarwood Circle.

10:49 p.m. Outcome: The council has voted to recommend approval of P.F. Chang’s application for a liquor license.

10:50 p.m. Closed Session. The council has voted to go into closed session to discuss pending litigation.

11:30 p.m. We’re back.

11:30 p.m. Recess. The council immediately takes a break.

11:36 p.m. We’re back.

11:38 p.m. DC-7 Community Events Fund Disbursements. This allocates $1,972 from the FY 2014 Community Events Fund to the African-American Downtown Festival scheduled for June 7, 2014.

11:38 p.m. Outcome: The council has unanimously approved the allocation.

11:39 p.m. DB-1 Approve 515 Oxford (Delta Gamma) site plan. This is the same project for which the zoning was given final approval earlier in the meeting.

11:39 p.m. Outcome: The council has voted to approve the Delta Gamma site plan.

11:39 p.m. DB-2 Approve Ruth’s Chris Site Plan This is the site plan for a new Ruth’s Chris Steak House on Fourth Avenue in downtown Ann Arbor. The planning commission recommended approval at its April 1, 2014 meeting. The site plan calls for renovating the single-story building at 314 S. Fourth Ave. and putting up a 1,943-square-foot second-floor mezzanine addition over the front part of the existing building. The current structure is 8,024 square feet, and most recently housed the Dream Nite Club, which closed in 2012. The project is estimated to cost $2.2 million. [.pdf of staff report on Ruth's Chris site plan] [For additional background, see Ruth’s Chris Site Plan above.]

11:39 p.m. Outcome: Without discussion, the council has voted to approve the Ruth’s Chris site plan.

11:39 p.m. DS-1 Approve amendment No. 4 to the contract with CDM Smith Michigan Inc. for the footing drain disconnect (FDD) program. This item is an extension of a contract with CDM Smith Inc. for continued work as part of Ann Arbor’s footing drain disconnection (FDD) program. It had been postponed at the council’s May 5, 2014 meeting.

In the interim, the dollar amount of the contract extension has been reduced from $748,106 to $143,440. That reflects a reduction in the scope of the work. The original May 5 resolution called for the following activities to be funded: citizen support ($36,928); FDD citizens advisory committee meetings ($24,180); information management for sump pump monitors ($93,707); developer offset mitigation (DOM) program support; ($95,213); and multi-family FDD implementation ($498,005). No longer a part of the scope of work in the revised June 2 resolution are the FDD citizens advisory committee meetings, information management, or the multi-family FDD implementation. [For additional background, see FDD Program Contract Extension above.]

11:41 p.m. Eaton says he’s glad to see that the amount in the contract has been pared down. But he does not think the city should be spending money on the DOM, saying that the DOM should be funded by the developers. Residents in Ward 4 have expressed concern about the quality of work done by CDM Smith, Eaton says. When the work isn’t done right, water can freeze, he adds.

11:43 p.m. Eaton contends that about 1/3 of the houses that have had FDDs done don’t have a proper air gap in the discharge pipe. Eaton doesn’t think the city should continue to spend money to this consultant, when it should be funded by the developers, not taxpayers.

11:43 p.m. Teall says she doesn’t share the same level of distrust of the consultant that Eaton does. She allows that she’s heard from constituents who’ve had these issues. She says that the council hears a lot from only a few constituents.

11:46 p.m. Hupy is now at the podium. Teall asks him to respond to Eaton’s remarks. Hupy says there are simply not 1/3 of the houses with FDDs that don’t have proper air gaps. He says that the city is working through various complaints. Out of the nearly 600 installations the city has done, only five were frozen this past winter, he says. So the issue is not as widespread as it’s been reported, Hupy says. The city is now looking at solving the root causes of any problems, he notes.

11:48 p.m. Hupy describes what CDM Smith does: When a developer identifies a candidate for an FDD, they go in and verify that it’s a viable candidate and also verify that the work was done properly. Hupy doesn’t know why the program is set up so that the city pays for the administration of the DOM program. Hupy says that going forward, that would be an obvious aspect of the program to consider changing.

11:51 p.m. Teall asks what the impact on city staff would be if the resolution were not approved. Nick Hutchison says it would require about half the time of two full-time employees – that is, one FTE. And some workloads would need to be moved around. Summer road projects would need to be managed with outside resources, he says. Teall characterizes the situation as substituting different consultancies for the consultancy with CDM Smith. Teall says she’ll support the resolution. She’s dismayed by some of the communication that the council has been receiving from some people. There hasn’t been a balance from other members of the citizens advisory committee, she says.

11:53 p.m. Eaton says that his 1/3 figure was based on the results of a survey done by the committee – Question 18. Hupy says that residents who reported that don’t understand what they’re looking at. Hupy adds that when the city inspects those situations, they don’t find 1/3 with inadequate air gaps.

11:55 p.m. Back and forth between Eaton and Hupy ensues. Eaton ventures that the survey documents a great deal of dissatisfaction. Hupy says that a question about whether you’d recommend the procedure to a neighbor had a 70% positive response.

11:57 p.m. Warpehoski says he understands and hears the concerns. He’s also a satisfied participant in the DOM program, he says. For him, it had worked well – as part of a basement renovation program. CDM Smith had answered his questions and worked with his general contractor. Warpehoski says that the council has approved site plans that have development agreements requiring FDDs, so he thinks the council needs to approve this resolution.

11:59 p.m. Lumm thanks Eaton for his work on this issue. She’s glad to see the reduced amount in the contract. The recommendation from the committee won’t be coming back until the fall, she notes. She doesn’t think it makes sense to stop all the development projects that are currently in process.

12:01 a.m. Kunselman gets confirmation that the DOM program is voluntary from the point of view of the homeowner.

12:03 a.m. Kunselman asks if there are houses in the queue for the DOM. Yes, about 13. But there are about 350 that are on the books as required. About 150-160 are at some point in the process. Kunselman asks if anyone who is paying $100 a month instead of doing an FDD. Yes, there are two.

12:04 a.m. Hieftje says he appreciates the light that Eaton’s work has shone on the issue. But the consequences of not approving this resolution would be onerous, he says.

12:06 a.m. Briere notes that the DOM program does not mandate FDDs, but rather that the flow mitigate in some way. Hupy confirms that. She wants to know if the city encourages alternatives to FDDs. Hupy says that the city reviews any ideas that developers have. He cites how some developers own enough fixtures that they can reduce flow in those and achieve the needed offset – e.g., Ann Arbor Public Schools and University of Michigan.

12:07 a.m. Briere asks if there’d be a benefit to having developers pay cash in lieu. Hupy isn’t sure.

12:08 a.m. Briere notes that some alternatives will need to be found, because there’s only a finite number of footing drains. Hupy agrees that there will be a point of diminishing returns.

12:09 a.m. Outcome: The council has voted to approve the CDM Smith contract for FDD work, over dissent from Eaton and Kailasapathy.

12:09 a.m. DS-2 Resolution No. 2 for special assessment district for Stone School Road reconstruction project. As part of a road reconstruction project for Stone School Road, the city is planning to install a sidewalk on the west side of the road. To fund the sidewalk construction, part of the cost will come from a special assessment of property owners. This resolution sets the roll of properties to be special assessed. [For additional background, see Stone School Road Sidewalk Special Assessment above.]

12:10 a.m. Kunselman says he’s very excited that this project is moving forward. He’s also excited that about 80% of the cost of the special assessment is being covered by public dollars.

12:10 a.m. Outcome: The council has voted to set the assessment roll for the Stone School sidewalk special assessment.

12:10 a.m. DS-3 Approve contract with Parsons Brinckerhoff Michigan Inc. South State Street transportation corridor study. This item would approve a $299,911 contract with Parsons Brinckerhoff Michigan Inc. to conduct a study of the South State Street transportation corridor. The 1.3 mile long area of the study extends from the intersection of Ellsworth Road and South State Street north to the intersection of Oakbrook Drive and South State Street. [For additional background, see State Street Transportation Corridor Study above.]

12:10 a.m. Outcome: The council has voted to approve the contract with Parsons Brinckerhoff for the State Street transportation corridor study.

12:10 a.m. DS-4 Adopt the City of Ann Arbor urban and community forest management plan. This item would adopt the first comprehensive plan for managing Ann Arbor’s urban forest. The Ann Arbor park advisory commission recommended adoption of the plan at its meeting on April 15, 2014. [.pdf of Urban & Community Forest Management Plan] [For additional background, see Urban Forest above.]

12:12 a.m. Lumm says that it represents a huge amount of work. She’s thanking those who were responsible for its development. She says she agrees that the urban forest is a defining and highly-valued characteristic of the community.

12:14 a.m. Taylor says that the plan was presented to the park advisory commission a while ago. [He's a council appointee to the PAC.] PAC was extremely impressed with the plan, he says.

12:14 a.m. Outcome: The council has voted to adopt the urban forestry plan.

12:14 a.m. DS-5 Accept a Fair Food Network grant for the Ann Arbor Farmer’s Market. This item would approve an agreement with the Fair Food Network to continue administering the Double Up Food Bucks program at the Ann Arbor farmer’s market. Approval would entail acceptance of $32,000 in funding. [For additional background, see Grant to Farmers Market for Food Stamp Recipients above.]

12:14 a.m. Outcome: The council has voted to accept the Fair Food Network grant.

12:15 a.m. DS-6 Amend Ann Arbor City budget for fiscal year 2014. This resolution would amend the current fiscal year’s budget (FY 2014) to ensure that expenditures do not exceed appropriated amounts. The budget amendment will ensure compliance with Public Act 621 of 1978. The total requested general fund budget amendment is $60,000. For all other funds, the amendment to be considered by the council on June 2 totals $310,000. [For additional background, see Amend Current Year's Budget above.]

12:15 a.m. Outcome: The council has voted to amend the FY 2014 budget.

12:15 a.m. Communications from council. Teall notes that Cinetopia is starting. It runs from June 4-8 at the Michigan Theater in Ann Arbor and also in Detroit.

12:16 a.m. Hieftje notes that the Ozone House celebrated its 45th anniversary, and there was a recent celebration for the 50th anniversary of the city’s Elizabeth Dean trust fund.

12:16 a.m. Clerk’s report. Outcome: The clerk’s report has been received.

12:16 a.m. Public comment. There’s no requirement to sign up in advance for this slot for public commentary.

12:18 a.m. Thomas Partridge salutes the council for passing the resolution on the distribution of proceeds from the sale of development rights for the Library Lot. It would have been better to have dedicated 100% of the money to affordable housing instead of 50%, he adds. Partridge says we need a new governor. He calls for the election of Democrat Mark Schauer.

12:22 a.m. Mark Koroi says he’s here to address the “debacle” that had occurred in the Bob Dascola lawsuit. The judge had excoriated the city in his opinion, and the city would now be paying tens of thousands of dollars in attorney’s fees, he notes. Koroi says that Jack Eaton has stated publicly that the council had not given authorization for the city attorney’s action, so who did? Koroi says he’s endorsing McMullen in the race, but felt that Dascola should not have been denied access to the ballot.

12:25 a.m. Caleb Poirier is addressing the council on the challenge of dealing with the homeless population and those who are living under bridges. There are some unmet needs: toileting and trash removal. It’s the desire of his nonprofit to deal with the trash. He has a two-part request – to get trash into city dumpsters and to keep fecal matter out of the river. So he’d support port-a-potties at those locations.

12:28 a.m. Elizabeth Kurtz says she’s presentable because she just got her hair cut. Having lived on the streets for about 14 months, she’d been able to get into temporary housing. Generally she has little access to laundry and bathing facilities, she says. Despite the council’s resolution tonight, there’s little attention to immediate needs, she says. She describes herself as living a Third World existence. She was part of a Detroit Public Schools layoff – up until then, she was part of the middle class. We’ve got to get our priorities straight, she says.

12:31 a.m. Judy Bonnell-Wenzel is lamenting the fact that a friend of hers, Alan Haber, is away for the summer and is not here to speak in favor of a public commons on the Library Lot. She also says that people who have no place to sleep and unmet basic needs have no democracy. She worries about gentrification – pushing people out. She and her husband pay $527 a month for their housing, she says.

12:31 a.m. Adjournment. We are now adjourned. That’s all from the hard benches.

A sign on the door to the Ann Arbor city council chambers gives instructions for post-meeting clean-up.

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Screenshot of Legistar – the city of Ann Arbor’s online agenda management system. Image links to the June 2, 2014 meeting agenda.

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

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

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

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

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

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

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

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

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

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

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

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

Amend Current Year’s Budget

On June 2 the council will consider a resolution amending the current fiscal year’s budget (FY 2014) to ensure that expenditures do not exceed appropriated amounts. The budget amendment will ensure compliance with Public Act 621 of 1978.

The total requested general fund budget amendment is $60,000. For all other funds, the amendment to be considered by the council on June 2 totals $310,000.

The non-general fund amount will cover right-of-way maintenance and purchase of materials that were necessary to deal with the severe winter weather. The general fund amount was the city’s cost for the Ann Arbor Area Transportation Authority’s special election held on May 6. That amount will eventually be reimbursed by Washtenaw County – which in turn will receive reimbursement from the AAATA to cover the roughly $100,000 cost of the election.

FDD Program Contract Extension

A contract extension with CDM Smith Inc. for continued work as part of Ann Arbor’s footing drain disconnection (FDD) program appears on the June 2 agenda. It had been postponed at the council’s May 5, 2014 meeting.

In the interim, the dollar amount of the contract extension has been reduced from $748,106 to $143,440. That reflects a reduction in the scope of the work. The original May 5 resolution called for the following activities to be funded: citizen support ($36,928); FDD citizens advisory committee meetings ($24,180); information management for sump pump monitors ($93,707); developer offset mitigation (DOM) program support; ($95,213); and multi-family FDD implementation ($498,005).

No longer a part of the scope of work in the revised June 2 resolution are the FDD citizens advisory committee meetings, information management, or the multi-family FDD implementation. The revised memo describes how the funding would only provide a bridge until recommendations from a study group have been received, which will determine the future of the FDD program:

This amendment would provide the services needed to bridge the gap until the SSWWE [Sanitary Sewer Wet Weather Evaluation] Project recommendations have been made. Presently, the anticipated timeline for completion of the SSWWE Project is in the autumn of 2014. That does not allow sufficient time to issue a new RFP, collect and review proposals, award a contract, and bring a new consultant up to speed to manage the remaining FDD and DOM work outlined above. Existing City staff does not currently have the available resources or expertise to perform the inspections required for the DOM program.

By way of additional background, in 2012 the city’s program to disconnect footing drains from the sanitary sewer system was suspended by the council in some areas of the city. Specifically, it was suspended in the Glen Leven and Morehead (Lansdowne neighborhood) areas. The program was allowed to continue in other geographic areas and as part of the city’s developer offset mitigation (DOM) program. The DOM requires owners of new developments to complete a certain number of FDDs to offset the additional flow in the sanitary system caused by new construction.

The CDM contract drew scrutiny at the May 5 meeting because the city is currently undertaking a sanitary sewer wet weather evaluation (SSWWE) study. It’s supposed to yield a recommendation about whether to continue with the FDD program, and if so, in what form. In addition, the city’s ordinance – which requires property owners to undertake FDDs – was challenged in a lawsuit filed earlier this year. That case is pending as the city first removed the case from state to federal court. But the result of a May 28 hearing before a federal judge will be to return the case to the Washtenaw County 22nd circuit court.

The previous three iterations of the CDM contract totaled  about $3.6 million. The money for these contracts is drawn from the city’s sewer fund.

The proposed contract extension drew criticism during public commentary on May 5 from Frank Burdick, a Ward 4 resident who urged the council to reject it. Council deliberations on this item were included as part of The Chronicle’s live updates from the May 5 meeting.

Since the FDD program’s start in 2001, about 1,834 footing drains have been disconnected through the city program and 848 footing drains have been disconnected through the developer offset mitigation program.

Animation of contrast between the pre-FDD configuration and the post-FDD configuration. (Original illustration from screenshots of YouTube video by Milwaukee Metropolitan Sewerage District, modified by The Chronicle.)

Urban Forest

The city’s first comprehensive plan for managing Ann Arbor’s urban forest will be considered at the council’s June 2 meeting. The Ann Arbor park advisory commission recommended adoption of the plan at its meeting on April 15, 2014. [.pdf of Urban & Community Forest Management Plan]

An urban forest is defined as all the trees, shrubs and woody vegetation growing along city streets, in public parks and on institutional and private property. In Ann Arbor, about 25% is on public property, with 75% on private property. Based on a U.S. Dept. of Agriculture Forest Service i-Tree Eco Analysis done in 2012, Ann Arbor’s urban forest has an estimated 1.45 million trees. It creates a 33% tree canopy – the layer of leaves, branches and stems of trees that cover the ground when viewed from above.

The city manages 43,240 street trees and about 6,900 park trees in mowed areas. A tree inventory conducted in 2009 didn’t include natural areas, she noted, so there are thousands of trees that aren’t counted. The urban forest includes over 200 species, representing 82 genera.

Map of selected tree variety by The Chronicle from city of Ann Arbor 2009 survey. Image links to dynamic map hosted on geocommons.com

PAC had been briefed on the 135-page Urban & Community Forest Management Plan at its Feb. 25, 2014 meeting by Kerry Gray, the city’s urban forest & natural resources planning coordinator. The management plan includes 17 recommendations, listed in priority based on community feedback for implementation. Each of the 17 recommendations includes action tasks and implementation ideas, case studies, and resources that are needed, including funding. The recommendations are:

1. Implement proactive tree maintenance program.
2. Strengthen tree planting and young tree maintenance programs.
3. Monitor threats to the urban and community forest.
4. Increase landmark/special tree protections.
5. Secure adequate city‐funding for urban forestry core services.
6. Develop street tree master plans.
7. Pursue grant and philanthropic funding opportunities.
8. Strengthen forestry related ordinances.
9. Update tree inventory and canopy analysis.
10. Develop urban forest best management practices.
11. Increase urban forestry volunteerism.
12. Strengthen relationships with outside entities who impact trees.
13. Implement community outreach program.
14. Obtain the best use of wood from removed trees.
15. Create city staff working groups to coordinate projects that impact trees.
16. Engage the city’s Environmental Commission in urban and community forestry issues.
17. Review the urban forest management plan periodically and update as needed.

City Hall Reskinning

At its June 2 meeting, the council will consider a proposal to recommend to the planning commission that the capital improvements plan (CIP) for FY 2017 and FY 2018 be revised to remove the $4.4 million that is included for a city hall reskinning project. The planning commission is the body that approves the CIP. But the council has budgetary discretion to fund projects in the CIP or not – so the resolution in some sense calls on the planning commission to take an action it does not have the authority to execute. This was a point made during deliberations at the council’s May 19, 2014 meeting when the item was postponed.

According to a staff memo written in response to a councilmember question, reskinning of the Larcom City Hall building would mean replacing the existing exterior walls and windows of the building. The result would be new squared-off exterior, eliminating the inverted pyramid design. The new exterior would hang vertically from the sixth floor.

The focus of the project is on improving energy efficiency. The memo describes existing windows as mostly single-pane glass on aluminum frames, which offer little insulation value. The project would also result in an incremental gain in square footage – because the lower floors would have the same footprint as the sixth floor, which is currently the largest floor of the building. The materials used for the exterior would “blend better” with the recently constructed Justice Center, which adjoins city hall.

Library Lot Sale Proceeds

On June 2 the city council will consider a resolution setting a policy for distribution of the proceeds from the sale of development rights on the Library Lot. The proposed policy would set aside 50% of the net proceeds to the city’s affordable housing trust fund.

The council has already directed the city administrator to hire a real estate broker to explore selling the rights to develop the site – above the Library Lane underground parking structure, which was completed in 2012.

The item was postponed at the council’s April 7, 2014 meeting. The vote was 6-5 to postpone, with dissent from Sabra Briere (Ward 1), Christopher Taylor (Ward 3), Margie Teall (Ward 4), Chuck Warpehoski (Ward 5), and mayor John Hieftje.

State Street Transportation Corridor Study

The June 2 agenda includes a resolution for a $299,911 contract with Parsons Brinckerhoff Michigan Inc. to conduct a study of the South State Street transportation corridor. The 1.3 mile long area of the study extends from the intersection of Ellsworth Road and South State Street north to the intersection of Oakbrook Drive and South State Street. The money to pay for the study will be drawn in equal parts from the current fiscal year and next year’s general capital fund budget. The study will take a year, starting in June 2014.

The goal of the study is focused on transportation needs in the corridor and to provide base conceptual engineering plans for the redesign of the corridor – possibly including a boulevard “Complete Street” design. The redesign would be intended to “address all modes of travel; enhance vehicle flow; improve safety; create an aesthetically pleasing entrance to the City; and, utilize sustainable concepts such as low impact design (‘LID’), and low energy use lighting.”

The study of the area as a transportation corridor comes not long after a recently completed South State Street corridor plan, adopted by the city council into the city’s master plan at its July 15, 2014 meeting. That corridor plan established planning objectives for the land use along the corridor.

Besides Parsons Brinckerhoff, the other bidder for the work was DLZ.

Stone School Road Sidewalk Special Assessment

As part of a road reconstruction project for Stone School Road, the city is planning to install a sidewalk on the west side of the road. To fund the sidewalk construction, part of the cost will come from a special assessment of property owners. The extent of the project on Stone School Road runs from I-94 to Ellsworth Road. Construction is planned for the project during the 2014 and 2015 construction seasons.

The project is being funded in part through a federal surface transportation grant, which can pay about 80% of construction costs, but not engineering, testing or inspection costs. The total project cost is roughly $128,500, of which about $55,000 will be special assessed.

The council will be asked to approve a resolution directing the city assessor to set the roll of properties to be assessed.

Rezoning: Housing Commission Properties

At its June 2 meeting, the city council will consider giving initial approval to the rezoning of three Ann Arbor Housing Commission properties. The planning commission had recommended the rezoning at its May 6, 2014 meeting. The current PL (public land) zoning for some of the properties is a vestige of the AAHC properties’ status as city-owned land. The city council approved the transfer of deeds to the AAHC at its June 2, 2013 meeting. The three sites to be considered on June 2 are part of the housing commission’s major initiative to upgrade the city’s public housing units by seeking private investors through low-income housing tax credits.

Rezoning is recommended for the following public housing sites, two of which are currently zoned as public land:

• Baker Commons: Rezone public land to D2 (downtown interface). The 0.94-acre lot is located at 106 Packard Street, at the intersection with South Main, in Ward 5. It includes a 64-unit apartment building.
• Green/Baxter Court Apartments: Rezone public land to R4A (multi-family dwelling district). The 2-acre site is located at 1701-1747 Green Road and contains 23 apartments in four buildings and a community center. It’s in Ward 2.
• Maple Meadows: Currently zoned R1C (single-family dwelling district), the recommendation is to rezone it as R4B (multi-family dwelling district). The site is 3.4 acres at 800-890 South Maple Road and contains 29 apartments in five buildings and a community center. It’s located in Ward 5.

At the planning commission’s May 6 meeting, AAHC director Jennifer Hall explained that PL zoning doesn’t allow housing to be built on it. As AAHC seeks private funding to rehab its properties, it needs to ensure if a building burns down, for example, it could be rebuilt. In general that’s why the rezoning is being requested. It’s also being requested to align the zoning with the current uses of the property. She stressed that the highest priority properties to be rezoned are Baker Commons, Green/Baxter and Maple Meadows, because investors have already been found to renovate those sites.

For these three sites, planning commissioners also voted to waive the area plan requirements for the AAHC rezoning petitions, because no new construction is proposed and surveys of the improvements have been provided.

For additional background on the AAHC process of renovating its properties, see Chronicle coverage: “Public Housing Conversion Takes Next Step.”

Delta Gamma Site Plan, Rezoning

The city council will be asked on June 2 to give final approval of a rezoning request for 515 Oxford, to convert a house for use as an annex to the Delta Gamma sorority. The main sorority house is located nearby at 626 Oxford. The council gave initial approval to the rezoning at its May 5, 2014 meeting. Also on the June 2 agenda is consideration of the site plan approval for the same project. The site plan was recommended for approval by planning commissioners on April 15, 2014.

Aerial view showing the location of 515 Oxford, south of Geddes and at the eastern end of South University.

The rezoning request, recommended by the planning commission on Jan. 23, 2014, is to rezone the parcel from R4A (multi-family dwelling) to R2B (two-family dwelling and student housing). Most of the surrounding parcels are zoned R2B, although the site immediately to the north is also zoned R4A. Also nearby is public land (PL) where the University of Michigan’s Oxford Houses complex is located.

The two-story house at 515 Oxford includes two one-story wings. It is currently a rental property with three units – a studio apartment, one-bedroom apartment, and four-bedroom apartment – and a maximum occupancy of 8 people. One of the units is in a former garage.

The proposal for a renovation would accommodate a maximum of 20 residents, including a required resident manager.

The building is notable because it was originally designed in 1940 by architect George Brigham, who used it as his home and architectural studio. He designed over 40 houses in Ann Arbor, including many in Arbor Hills and Barton Hills between 1936 and 1958.

Drive-Thru Ordinance: Final Approval

On the city council’s June 2 agenda is final approval of amendments to Ann Arbor’s zoning ordinance related to drive-thrus. Initial approval came at the council’s May 5 meeting. The amendments would add a definition of a “drive-thru facility” to Chapter 55 of the city code. Currently, the term used throughout the code is “drive-in,” which is not explicitly defined in the code.

The proposed revisions define a drive-thru in this way: “Any building or structure, or portion thereof, that is constructed or operated for the purpose of providing goods or services to customers who remain in their vehicle during the course of the transaction.” The revisions also clarify that a drive-thru is an accessory use, not the principle use of the building. A project in which a drive-thru would be the principle use would not be allowed. Basic layout requirements would also be added to the ordinance.

In addition, the changes would require drive-thrus to obtain special exception use permits, which would be allowed only in the O (office), C2B (business service) and C3 (fringe commercial) zoning districts. Drive-thrus would not be allowed in the C1, D1, D2, and other commercial districts.

Currently, drive-thrus are allowed in C3 districts without a special exception use. They are allowed as special exception uses in the C2B district.

When considering whether to grant a special exception use – which does not require additional city council approval – the planning commission considers these issues:

1. Is the location, size and character of the proposed use compatible with the principal uses of the district and adjacent districts? Is it consistent with the Master Plan? Is it consistent with the surrounding area? Will it have any detrimental effects to the use or value of surrounding area, or the natural environment?

2. Is the location, size, character, layout, access and traffic generated by the use hazardous or inconvenient or conflicting with the normal traffic of the neighborhood? Is off-street parking safe for pedestrians? Do the necessary vehicular turning movements block normal traffic flow? Are any additional public services or facilities needed by the use, and will they be detrimental to the community?

3. Is the maximum density and minimum required open space at least equal to the standards normally required by the Zoning Ordinance for the district?

The planning commission recommended the changes at its April 1, 2014 meeting.

The proposed amendments were first reviewed by the commission’s ordinance revisions committee in 2007, but never moved forward to the full commission for consideration. The ORC most recently reviewed these changes in March of 2014. [.pdf of staff memo and proposed amendments]

Ruth’s Chris Site Plan

The site plan for a new Ruth’s Chris Steak House on Fourth Avenue in downtown Ann Arbor is on the June 2 agenda for consideration. The planning commission recommended approval at its April 1, 2014 meeting.

Proposed facade of Ruth’s Chris Steak House at 314 S. Fourth Ave.

The site plan calls for renovating the single-story building at 314 S. Fourth Ave. and putting up a 1,943-square-foot second-floor mezzanine addition over the front part of the existing building. The current structure is 8,024 square feet, and most recently housed the Dream Nite Club, which closed in 2012. The project is estimated to cost $2.2 million. [.pdf of staff report on Ruth's Chris site plan]

Part of the planning commission’s discussion focused on whether there might be outdoor dining in front of the restaurant. The project’s architect indicated that at this point, outdoor seating wouldn’t be appropriate, in part because of bus traffic. The building is located near the Blake Transit Center, a hub for public transportation. The architect also indicated that the restaurant will be using valet parking, with valets positioned in front of the building.

This would be the first Ruth’s Chris Steak House in Ann Arbor. The chain is based in Florida, with locations nationwide.

Utility Rates

The council will consider giving final approval to higher utility rates – for water, sewer and stormwater. Initial approval came at the council’s May 19 meeting.

Water rates will increase across all tiers of consumption. For the first 7 “units” of water, the charge is will increase from $1.35 to $1.40. For the next 21 units, the charge is proposed to increase from $2.85 to $2.96 per unit. And for the 17 units after that, the increase is proposed to be from $4.88 to $5.08. A unit is 100 cubic feet, which is 748 gallons.

Sewer rates will increase from $3.65 to $3.85 per unit. And stormwater fees would increase for all tiers of impervious service. For the middle tier – for more than 2,187 square feet but less than or equal to 4,175 square feet – on a quarterly basis, the increase would be from $24.85 to $26.32.

According to the staff memo accompanying this agenda item, the recommended rate changes in water, sewer, and stormwater would increase revenues to the water, sewer, and stormwater funds by $765,119, $1,171,931 and $410,235 respectively. The reason given for the rate increases is to cover maintenance and debt payments, and to maintain funding for capital improvement requirements. The city calculates the impact to be an additional $6.25 per quarter or $24.98 per year for an average consumer, which is a net increase of 4.2%.

Water consumption for a typical single family is assumed at 19 units per quarter.

History of city of Ann Arbor water rates. The city converted to a tiered system 10 years ago in 2004, based on usage. The 2015 amount is proposed.

Grant to Farmers Market for Food Stamp Recipients

At its June 2 meeting, the city council will consider approval of an agreement with the Fair Food Network to continue administering the Double Up Food Bucks program at the Ann Arbor farmer’s market. Approval would entail acceptance of $32,000 in funding.

The Double Up name stems from the fact that it provides a match of up to $20/person/day for people using SNAP (Bridge cards/EBT/food stamps) to purchase Michigan-grown produce at farmers markets in Michigan.

The city of Ann Arbor has received Double Up Food Bucks grant funding since 2010.

Partnership with Community Action Network

A proposal for a five-year partnership with the nonprofit Community Action Network is on the June 2 agenda. The partnership was recommended for approval by the Ann Arbor park advisory commission at its May 20, 2014 meeting.

The agreement would be for CAN to continue operating the city’s Bryant and Northside community centers, which the nonprofit has been managing since 2008. The proposed amount is not to exceed $130,000 annually – an increase of $25,000 from the current agreement. The higher amount is included in the FY 2015 general fund budget for parks and recreation that the city council approved on May 19. According to a staff memo, the higher amount will address increases in fixed costs and “assist in retaining quality staff that is at the core of the services that CAN provides.” [.pdf of staff memo]

The staff memo also noted that a request for proposals (RFP) was not issued for this work, because CAN has been the sole respondent to the previous two RFPs and the city is satisfied with its work.

During the May 20 PAC meeting, CAN received praise for their work from several commissioners and Colin Smith, the city’s parks and recreation manager. CAN executive director Joan Doughty and deputy director Derrick Miller were on hand to answer questions. Part of the discussion focused on CAN’s exemption from the city’s living wage requirement, which the city council granted in 2012 for a three-year period through Nov. 8, 2015. Doughty noted that the exemption was sought in part because CAN was paying a living wage to part-time employees who were high school or university students, which limited the nonprofit from paying higher wages to full-time workers. She also pointed out that the city parks and recreation unit isn’t required to pay the living wage to its seasonal workers.

LDFA Extension

On the council’s June 2 agenda is an item that would express city council support of the local development finance authority’s application to the Michigan Economic Development Corp. to extend the life of the tax capture arrangement for up to 15 years. Without an extension, the LDFA would end in 2018.

Ann Arbor’s local development finance authority is funded through a tax increment finance (TIF) district, as a “certified technology park” described under Act 281 of 1986. The Michigan Economic Development Corp. (MEDC) solicited proposals for that designation back in 2000. The Ann Arbor/Ypsilanti “technology park” is one of 11 across the state of Michigan, which are branded by the MEDC as “SmartZones.”

The geography of the LDFA’s TIF district – in which taxes are captured from another taxing jurisdiction – is the union of the TIF districts for the Ann Arbor and the Ypsilanti downtown development authorities (DDAs). It’s worth noting that the Ypsilanti portion of the LDFA’s TIF district does not generate any actual tax capture.

The LDFA captures Ann Arbor Public Schools (AAPS) operating millage, but those captured taxes don’t diminish the school’s budget. That’s because in Michigan, local schools levy a millage, but the proceeds are not used directly by local districts. Rather, proceeds are first forwarded to the state of Michigan’s School Aid Fund, for redistribution among school districts statewide. That redistribution is based on a per-pupil formula as determined on a specified “count day.” And the state reimburses the School Aid Fund for the taxes captured by SmartZones throughout the state.

In FY 2013, the total amount captured by the LDFA was $1,546,577, and the current fiscal year forecast is for $2,017,835. About the same amount is forecast for FY 2015.

The extension of the LDFA is made possible by Public Act 290 of 2012, which amended the Local Development Financing Act to allow a SmartZone to capture school taxes for an additional five years or an additional 15 years. The staff memo accompanying the resolution describes the five-year extension as possible “upon approval of the MEDC President and the State Treasurer, if the Ann Arbor/Ypsilanti SmartZone LDFA agrees to additional reporting requirements and the LDFA requests, and the city councils of Ann Arbor and Ypsilanti approve, the amendment of the LDFA tax increment financing (TIF) plan to include regional collaboration.”

A 15-year extension is possible, according to the memo, “if, in addition to the above requirements, Ann Arbor and Ypsilanti, as the municipalities that created the SmartZone, enter into an agreement with another LDFA [a "Satellite SmartZone"] that did not contain a certified technology park to designate a distinct geographic area, as allowed under Section 12b of the Act…”

The council’s resolution states that if the MEDC approves the extension, the city of Ann Arbor will work with the LDFA and the city of Ypsilanti to identify another LDFA – called the “Satellite SmartZone LDFA.” The arrangement will allow the Satellite SmartZone LDFA to capture local taxes in its own distinct geographic area for the maximum 15 years allowed by statute.

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The agreement would be for CAN to continue operating the city’s Bryant and Northside Community Centers, which the nonprofit has been managing since 2008. The proposed amount is not to exceed $130,000 annually – an increase of $25,000 from the current agreement. The higher amount is included in the FY 2015 general fund budget for parks and recreation that the city council approved on May 19. According to a staff memo, the higher amount will address increases in fixed costs and “assist in retaining quality staff that is at the core of the services that CAN provides.” [.pdf of staff memo]

The staff memo also noted that a request for proposals (RFP) was not issued for this work, because CAN has been the sole respondent to the previous two RFPs and the city is satisfied with its work.

During the May 20 meeting, CAN received praise for their work from several commissioners and Colin Smith, the city’s parks and recreation manager. CAN executive director Joan Doughty and deputy director Derrick Miller were on hand to answer questions. Part of the discussion focused on CAN’s exemption from the city’s living wage requirement, which the city council granted in 2012 for a three-year period through Nov. 8, 2015. Doughty noted that the exemption was sought in part because CAN was paying a living wage to part-time employees who were high school or university students, which limited the nonprofit from paying higher wages to full-time workers. She also pointed out that the city parks and recreation unit isn’t required to pay the living wage to its seasonal workers.

The recommendation will be forwarded to the city council for consideration.

This brief was filed from the second-floor council chambers at city hall, 301 E. Huron. A more detailed report will follow.

From left: Ann Arbor housing commission board members Christopher Geer, Ron Woods and Marta Manildi at the AAHC Jan. 15, 2014 meeting, held at Baker Commons. Not pictured here is Tim Colenback, the newest appointment to the AAHC board. Gloria Black, who represents AAHC residents, was absent. (Photos by the writer.)

At their first meeting of the year, commissioners were briefed about the impact and aftermath of a Jan. 8 fire at Green Baxter Court, a public housing complex on Green Road next to Baxter Park on the city’s east side. They heard from Joan Doughty, executive director of Community Action Network, which operates a community center at that complex under contract with the city. CAN staff are helping AAHC provide support for families who were displaced by the fire.

At their Jan. 15 meeting, board members authorized up to $9,000 in extra funds to help pay for that emergency work. CAN is also seeking additional donations from the community.

In separate action, the board amended Chapter 14 of its housing choice voucher administrative plan to include a preference for families that have been involuntarily displaced due to a fire, natural disaster or any other reason. The vouchers would be used to subsidize rental housing, if no units are available in the city’s public housing system.

The Jan. 15 meeting also included an update from Lori Harris, vice president with Norstar Development, on a major initiative to upgrade the city’s public housing units. Specifically, she presented Norstar’s recommendation for an equity partner to purchase low-income housing tax credits awarded by the state to AAHC late last year. The board approved the recommended firm, Red Stone Equity Partners.

Investors had responded positively to Norstar’s request for proposals, Harris said, with higher-than-expected offers. “You have a very, very good story here, and it’s played very, very well in this process,” she told the board. The tax-credit transaction will provide the majority of funding for renovating five public housing complexes: Miller Manor, South Maple, Baker Commons, Hikone and Green Baxter. These properties make up the majority of public housing units in the AAHC portfolio – 248 out of a total 326 units.

However, AAHC executive director Jennifer Hall told the board that additional funding will still be required. As part of that, the AAHC is requesting $600,000 from the Ann Arbor Downtown Development Authority. Hall said she expects the DDA board to make a decision on that by March or April. The DDA previously gave the housing commission a $300,000 grant for capital improvements at Baker Commons, which is located within the DDA district. That approval came in March of 2013. And in October 2012, the DDA had provided a $260,000 grant primarily for replacing the Baker Commons roof.

In other action, the AAHC board approved a 3% cost-of-living adjustment for Hall, in line with other COLA increases given to city employees. The board also authorized changing the way its minutes are kept in order to begin using the city’s online Legistar system. The new approach will be less detailed in reporting deliberations, and will primarily provide a report on the outcome of action items. Currently, AAHC board minutes and board packets aren’t part of Legistar, but are provided on the AAHC page of the city’s website. Minutes from the AAHC board meetings are also attached to the city council agenda as an item of communication.

And near the end of the meeting, commissioner Marta Manildi reported that she is not seeking reappointment. Her term ends this spring, but she has offered to step down early. She was praised for her work in helping lead the AAHC through a difficult transition several years ago. Speaking during public commentary, Doughty said Manildi “really led the charge for a turnaround that’s been amazing to witness.”

A week later, at the Ann Arbor city council’s Jan. 21 meeting, mayor John Hieftje nominated Daniel Lee to serve out the rest of Manildi’s term. A confirmation vote is expected at the council’s Feb. 3 meeting. Hieftje described Manildi’s service on the commission as profound and beneficial.

Aftermath of Green Baxter Court Fire

Commissioners were briefed on aftermath of a fire in the early morning of Jan. 8 at Green Baxter Court, a public housing complex on Green Road next to Baxter Park. They had also received a written update in their board packet for the meeting. [.pdf of Green Baxter fire update]

Jennifer Hall, AAHC’s executive director, reported that it started around 4 a.m. in one unit and spread to all but one of the six units in that building. In some units, almost everything was completely destroyed. Even in other units where some items are salvageable, she said, everything is damaged by smoke and water.

The fire department is investigating the cause of the fire, Hall said, but they haven’t yet indicated what they’ve found. She reported that the buildings are covered by the AAHC insurance policy, and will pay for either demolition and rebuilding or rehabilitation. The city’s building inspector will make a determination about whether the structure needs to be demolished. If it does need to come down, Hall hoped to do that as soon as possible so that it’s not a safety hazard. However, emergency demolition would require approval by the U.S. Dept. of Housing & Urban Development (HUD), which provides funding for AAHC.

None of the residents were seriously injured, Hall said. Almost everyone left the building in bare feet, because it was very early morning, so a couple of people got frostbite on their feet. At least one child had some problems with smoke inhalation. Everyone who needs medical attention is getting it, she said.

Hall noted that AAHC has partnered very closely with the nonprofit Community Action Network, which runs the community center for Green Baxter Court under contract with the city. The staff of CAN have spent many hours working with residents trying to help them rebuild their lives, Hall said, including 14 children – the youngest of whom is two years old. At this point, residents are staying at an extended stay hotel while AAHC works to find more permanent homes for them. That means reaching out to landlords in the area that accept Section 8 vouchers. AAHC hopes to find housing in that same neighborhood, Hall said, but it’s one of the city’s highest-cost areas, so there are very few places that fit within the AAHC budget.

Aftermath of Green Baxter Court Fire: Update from CAN

Joan Doughty, executive director of Community Action Network, attended the AAHC board meeting and gave an update on how CAN and others are helping to deal with the aftermath of the Jan. 8 fire. She had emailed an update earlier in the day to commissioners, the media, and other members of the community, which was later posted on CAN’s website.

Joan Doughty, executive director of the nonprofit Community Action Network, gave an update to Ann Arbor housing commissioners about the response to the Green Baxter Court fire.

“Obviously this was uncharted territory,” she said. Doughty described the initial response, and how one of the first things they did was to contact the traumatic events response network (TERN). Members of that group met that same day, she said, and included the fire marshal and Liz Margolis of the Ann Arbor Public Schools. CAN staff also spent the day getting clothing and footwear for the residents, most of whom had emerged from the building barefoot and in their pajamas. CAN also put together a “what you need to know” handout that was distributed to residents on Jan. 8 – a four-page list of answers to questions.

The Red Cross paid for three days of hotel rooms at the Hampton Inn on Green Road, and the AAHC is paying for extended stay accommodations at the Microtel on Plymouth Road. For residents, getting that information about housing “settled a lot of fears almost immediately,” Doughty said. People were also very concerned about getting their children to school. It was helpful to have Margolis there to assure residents that the schools would provide transportation, Doughty said, and that no matter where they moved, the children would be able to complete the academic year at the same school they’d been attending.

People were affected by the fire to different degrees, Doughty reported, both in terms of their physical possessions, but also in their ability to cope with the situation. Two of the households had renters insurance, she noted, but they didn’t know what it covered or how to deal with making claims. So CAN is helping with that.

Doughty described several other groups that helped with the aftermath. Volunteers came to remove items from the burnt building before things were even further damaged by the elements. The Rotary Club of Ann Arbor North, which she described as a “godparent” to Green Baxter Court, is paying for storage of items that could be salvaged from the apartments. Rotary North also offered to replace one toy per child.

An interior view of the aftermath of a Jan. 8, 2014 fire at Green Baxter Court. (Photo courtesy of Joan Doughty.)

The Kiwanis Club of Ann Arbor, which runs a thrift shop, is helping families replace furniture and household items. Aaron’s Restoration has offered free cleaning for one large trash bag of clothes per household. MLive’s Warm the Children program gave $90 vouchers for every affected child to get clothing at Target, and shoes were purchased with Payless Shoes gift cards that CAN had received.

Other work in the aftermath included replacing eyeglasses, prescription drugs and dealing with other medical needs. Home-cooked meals had been served every night at the Green Baxter community center, which CAN operates. It provides a place where people can come together and support each other, Doughty said. CAN also has tried to be respectful of cultural differences, she noted. For example, one family is from Somalia and eats halal foods, so they were given gift cards to go to restaurants that serve this kind of food.

It’s been amazing to see the generosity between residents, she added, and how much they’re supporting each other. She said that one of CAN’s slogans is that their services start where the ability of the client stops. So the staff will help out based on each resident’s needs. That includes things like helping people turn off their cable TV service and other utilities, and contacting caseworkers from the Dept. of Human Services.

Now, CAN is moving into the next phase, Doughty said, which is to help residents rebuild their lives. She’s been documenting the lessons they’ve learned in this process, so that if something similar happens again, they’ll be better prepared. “Of course I hope these lessons will never have to be used,” she added.

Jennifer Hall, AAHC executive director, praised CAN as well as Beth Yaroch, AAHC residency manager, who oversees the Green Baxter Court complex. Doughty thanked Ron Woods, president of the AAHC board, for coming out to the site and taking an interest in the situation. She also thanked commissioners who had made donations to support CAN’s response to this emergency.

Ron Woods, president of the Ann Arbor housing commission board.

Woods in turn praised everyone involved in the response, including the Ann Arbor fire department, the trauma team, and CAN staff for helping people see, even in the midst of trauma, that there is some way forward. He also thanked the residents, who he said have responded with resilience, hope and support for each other.

Woods asked Hall to explain the protocol that AAHC has put in place to deal with this kind of emergency. Hall replied that there is a 24-hour on-call staff member to respond to potential emergencies. Typically the calls are for things like a water pipe or toilet breaking. There’s also 24-hour on-call maintenance, she said. AAHC pays a call center to take calls at any hour from residents, and the call center then contacts the AAHC manager who’s on call. That person then decides how to respond, Hall explained. For the Jan. 8 fire, residency manager Reggie Dalton was on call and was the first to respond for AAHC.

In the case of a fire, which is extremely unusual, Hall said, the fire department is obviously the first emergency responder. In that case, AAHC’s role is to keep people away from the building and out of harm’s way. Red Cross came out to make sure tenants had short-term housing and food, while AAHC staff and CAN staff worked through what needed to happen next.

Christopher Geer asked if there’s ever been an emergency of this magnitude at a housing commission site. Hall replied that there are constant issues and tragedies with tenants – like shootings, medical emergencies or small cooking fires – but those typically just affect one person or household. Geer said he only asked because it seemed like CAN and AAHC staff were veterans at handling this emergency. He praised their professionalism. Hall said the staff is accustomed to responding to crisis every day, but not to such a large degree all at one time.

Marta Manildi said she’d recently read that fires are more common than people think, so Doughty’s efforts to document the response is a good idea.

Aftermath of Green Baxter Court Fire: AAHC Resolution – Emergency Voucher

A resolution added to the agenda at the start of the Jan. 15 meeting was to amend Chapter 14 of the AAHC housing choice voucher administrative plan to include a preference for families who have been involuntarily displaced due to a fire, natural disaster or any other reason. It also would amend the plan to enable the AAHC executive director to suspend the waitlist preference system in cases of a federally declared disaster or other emergencies.

Because AAHC doesn’t have available units of its own for families who are displaced by the Jan. 8 fire, the commission wants to use its housing choice vouchers to find rental units for these residents. However, HUD requires amending AAHC’s voucher administrative plan in order to do that. The amendment also would allow AAHC to use the voucher program for people who aren’t in the public housing system, if there’s an emergency.

Any change to the administrative plan requires a 30-day public comment period. So the changes would take effect on Feb. 15, 2014. [.pdf of resolution]

Hall said that for tenants who find housing before Feb. 15, AAHC would pay the rent until the voucher is in place.

There was no board discussion on this item.

Outcome: Commissioners unanimously approved the amendments to the housing choice voucher administrative plan.

Aftermath of Green Baxter Court Fire: AAHDC Resolution – CAN Funding

AAHC is currently undertaking a process to convert its public housing complexes to a public/private partnership. To facilitate that process, in  2012 a separate entity was created by the housing commission, called the Ann Arbor Housing Development Corp.  The board of the AAHDC consists of the AAHC board members, plus AAHC executive director Jennifer Hall. Its meetings are held immediately after the AAHC board meetings.

Only one resolution appeared on the Jan. 15 AAHDC meeting agenda – for $9,000 in emergency funding to CAN to offset the cost of extra staff time used to deal with the Green Baxter Court fire emergency.

CAN provided a breakdown of estimated expenses:

• $1,000: Assistance with insurance claims (estimated 40 hours at $25/hour)
• $6,000: Assistance in searching for permanent housing, completion of applications, applying for security deposits, arranging for replacement furniture, moving in assistance, completing paperwork related to the move. (estimated 360 hours at $16.50/hour)
• $500: Misc. expenses, including gas for transportation of children to and from hotels to after-school programs, and for residents to new housing and other locations.
• $500: Additional administrative costs, including progress reports, billings, tracking of donations and expenses, etc.

A memo from CAN executive director Joan Doughty indicates that CAN will seek about $5,000 in community donations for “extra psycho-social support and activities to the affected children,” as well as for food and dinners served at community centers for the displaced residents, and other activities.

Before the vote, Hall gave an update on AAHDC finances. [.pdf of AAHDC financial statement] The main expense for AAHDC so far has been to pay the law firm Dykema, which is working to establish 501(c)3 status for the organization. That status will better prepare AAHDC to access funding in the future, Hall said. The application has been submitted to the IRS, she reported, but it could take several months to get approval, and might not happen until 2015.

Hall reported AAHDC has a fund balance of $50,440. She was requesting authorization from the board to pay CAN up to $9,000 for its work with Green Baxter Court tenants, to offset whatever funding isn’t received from the community.

Outcome: The AAHDC board unanimously voted to authorize up to $9,000 for CAN’s work.

Aftermath of Green Baxter Court Fire: Next Steps

An email sent on Jan. 15 by CAN executive director Joan Doughty includes a section that describes how the community can help with additional support for the families displaced by the fire. From the email:

For those who would like to help the families cope with the constraints of hotel residency, gift cards to movie theaters, Jump City, Zapzone and Jungle Java would be very welcome donations.

As the Extended Stay hotel has only microwaves, and to continue to provide a healing place for families to come together, CAN is providing full meals in its community center for the displaced families Monday through Friday evenings. Restaurants or individuals willing to help with this are encouraged to contact CAN directly – at info@canannarbor.org.

Thank you to the Rotary Club North, Kiwanis, Ann Arbor Public Schools, Clague PTSO and King PTO, Payless shoes, MLive/Ann Arbor.com Warm the Children, Ann Arbor Thrift Store, Michigan Municipal League employees, and Java Jungle who have all provided some assistance to these families, and to Frita Batidos and Zingerman’s for promising to donate a meal.

Please spread the word that if people are moved to help, they can make a donation directly on CAN’s website at canannarbor.org and CAN will use the funds to help these families rebuild their lives. Donors should write “GBC Fire” in the memo line. The AAHC and CAN do not have the capacity to store household goods or clothing, please make those types of donations to Kiwanis or the Ann Arbor Thrift Shop so families can select the items they need from organizations that specialize in managing these types of donations.

Public Housing Conversion

Lori Harris, vice president with Norstar Development, attended the Jan. 15 meeting to give an update on a major initiative to upgrade the city’s public housing units. Specifically, she presented Norstar’s recommendation for an equity partner to purchase low-income housing tax credits that the state awarded to AAHC late last year. The recommended firm is Red Stone Equity Partners. The firm is a “syndicator,” managing this kind of investment on behalf of its clients.

Lori Harris, vice president with Norstar Development.

By way of background, in 2012 the city was accepted into a new rental assistance demonstration program, known as RAD, offered by the U.S. Dept. of Housing and Urban Development (HUD). The program allows residents in selected housing units to receive rental assistance through long-term Section 8 subsidy vouchers that are tied to the buildings, rather than individuals. The RAD program also enables entities like the AAHC to partner with private-sector developers on housing projects – something the AAHC couldn’t previously do. The Ann Arbor city council gave necessary approvals in connection with the RAD program at its June 3, 2013 meeting.

The approach allows public housing entities to tap private investment for new developments or rehab of existing public housing, by converting current public housing units into units that are owned by the public/private partnership.

The main source of funding to upgrade the housing units is through low-income housing tax credits (LIHTC), awarded through the Michigan State Housing Development Authority (MSHDA). Tax credits are awarded for projects, and are in turn sold to investors who provide funding for construction or renovation. The pricing on those credits depends on market conditions and other factors, but Norstar originally expected to get roughly 83 cents on the dollar.

The AAHC board took a significant step when it selected Buffalo, N.Y.-based Norstar as a co-developer for this overhaul in January of 2013. The board was briefed on Norstar’s progress at a June 19, 2013 meeting covered by The Chronicle.

Then in August of 2013, AAHC made two applications for the low-income housing tax credits. The credits covered five public housing properties in two groupings: Maple Towers Ann Arbor LLC for one group (the complexes of Miller Manor and South Maple); and River Run Ann Arbor LLC for the other group (the Baker Commons, Hikone and Green/Baxter complexes). These properties make up the majority of public housing units in the AAHC portfolio – 248 out of a total 326 units.

At the AAHC board’s Jan. 15, 2014 meeting, Harris reported that she had “very good news” about the process. Norstar solicited proposals from seven different potential equity partners that had shown some interest in this project. Out of the seven, five proposals were made from the following firms: Great Lakes Capital Fund, Hunt Capital Partners, RBC Capital, Stratford Capital Group, and Red Stone Equity Partners.

Norstar evaluated these proposals based primarily on three factors, Harris explained. First, how much were the entities offering per credit? The offers ranged from 84 cents to 90.5 cents, Harris reported. That’s the amount that the investors would pay for every credit given to AAHC by the state, she explained. Norstar had estimated that the amount would be 83 cents, so the offers were better than expected.

It’s important that they’ll be receiving more than originally projected, Harris said, because the renovation costs are also higher than projected. [AAHC executive director Jennifer Hall had originally estimated that Ann Arbor’s public housing stock would need about $40,000 per unit in repairs and renovations over the next 15 years.]

The second factor used to evaluate these proposals is the “guarantee structure.” This is the amount that the equity partner would require from AAHC to ensure that investors are financially protected. The third factor relates to operating reserves: How much is the equity partner requiring to be set aside during the term of their investment? This would ensure that investors are paid even if operating revenues aren’t as high as projected – for example, if a property isn’t generating enough rental revenue because its units aren’t filled.

Harris provided charts to compare the various elements of the proposals from different potential equity partners. [.pdf of chart for River Run] [.pdf of chart for Maple Towers]

Based on an evaluation of the proposals, Norstar recommended choosing Red Stone Equity Partners for both projects. Red Stone is offering $9,154,455 in total equity for River Run, and $12,168,966 for Maple Towers. That amount is based on 89.5 cents on the dollar for each of the tax credits held by AAHC.

Other aspects of Red Stone’s proposal for River Run includes:

• A pay-in of 8.33% at closing, 35% at completion of the renovations, 51.67% when the properties are converted, and 5% when the IRS issues Form 8609, which finalizes the tax credit cycle.
• A tax credit price of 89.5 cents on the dollar. Harris noted that Red Stone had increased its offer to match a competitive bid. That price will bring in $803,953 more than the amount that Norstar originally estimated, which had been based on 83 cents per dollar.
• Asset management fees of $5,000 per year, increasing 3% annually.
• A requirement to keep an operating reserve of $225,000.

Red Stone’s proposal for Maple Towers includes:

• A pay-in of 7.92% at closing, 35% at completion of the renovations, 52.08% when the properties are converted, and 5% when the IRS issues Form 8609, which finalizes the tax credit cycle.
• A tax credit price of 89.5 cents on the dollar. Harris noted that Red Stone had increased its offer to match a competitive bid. That price will bring in $1,046,071 more than the amount that Norstar originally estimated, which had been based on 83 cents per dollar.
• Asset management fees of $5,000 per year, increasing 3% annually.
• A requirement to keep an operating reserve of $275,000.

Harris said that even though the pricing is great, she thought the best part of Red Stone’s proposal is the guarantee structure. Normally, investors would ask Norstar and the AAHC to provide a significant guarantee – either money set aside in a bank, or a corporate guarantee – over the 15 years of the tax credits. For each of the two projects, Red Stone asked for a $3 million net worth guarantee, which Norstar will provide. That means that Norstar must maintain a corporate net worth of at least $3 million until the project is “stabilized,” she explained, in case something goes wrong before the project is completed. In addition, Red Stone wants a $1 million liquidity requirement, which Norstar will also provide.

Jennifer Hall, executive director of the Ann Arbor housing commission.

But after the projects are completed and have shown three months of positive cash flow, the only guarantee for the remainder of the 15 years is the amount of the AAHC developer fee. That means resources will be freed up for additional projects, Harris explained. “It allows you to play another day.”

The other important aspect of the deal is the requirement for operating reserves. Norstar is putting in an operating reserve equal to four months of expenses – which is an underwriting requirement from MSHDA. Red Stone isn’t requiring additional reserves, Harris said. Other proposals asked for additional amounts.

Based on all these factors, Norstar recommended the selection of Red Stone for both the Maple Towers and River Run projects. Harris noted that Norstar closed its last deal with Red Stone about six months ago – a family housing project in Watertown, N.Y. She described Red Stone as having very skilled asset managers. “I hold them in highest regard,” she said.

If the AAHC board approves the selection of Red Stone, then Norstar will update the budgets for these projects. Red Stone would then issue a letter of interest (LOI) that would be submitted to the AAHC board for approval.

AAHC executive director Jennifer Hall reported that the proposals were reviewed by Rochelle Lento, a real estate attorney with Dykema’s Detroit office who is working on this project. Lento agreed with the recommendation, Hall said.

Public Housing Conversion: Board Discussion

Christopher Geer clarified with Harris that Norstar is guaranteeing completion of these projects. The guarantees would cover a shortfall in tax credits or a “recapture event.” He asked about the level of risk involved.

Regarding a tax credit shortfall, Harris explained that MSHDA has committed the tax credits to these projects, but won’t actually provide the tax credits until they are earned through eligible costs that are expended on the projects. A shortfall would occur if the projected eligible costs weren’t as high as anticipated, and therefore the projects didn’t get the amount of tax credits that are in the budget. “I don’t see any risk in these projects,” she told commissioners. “These are very expensive rehabs, and we’ll have plenty of eligible costs.”

Ann Arbor housing commission board member Tim Colenback.

Harris also explained the “recapture event.” For example, if a resident was thought to be at 50% area median income, but was in fact at 120% AMI, then that person would be over-income for living in these complexes. If that mistake isn’t caught, it might result in the IRS taking back some of the tax credits that were awarded. For Maple Towers, the AAHC’s guarantee requirement to cover that possibility is limited to $450,000 over 15 years. For River Run, the amount is $330,000. “It’s that limit that’s making [Red Stone's offer] so attractive,” she said.

Geer clarified that the operating reserve is what needs to be kept on the balance sheet. Harris explained that there will be two operating reserve accounts: $275,000 for Maple Towers, and $225,000 for River Run. It could be used to cover costs if, for example, federal funding is delayed. The next step, Harris said, will be to negotiate the partnership agreement that describes “all the rules we’re going to live by.” That agreement will explicitly state the conditions under which the operating reserves can be tapped.

Geer wondered if the deal with Red Stone affects the existing development agreement between AAHC and Norstar. Harris replied that this new arrangement is consistent with the existing development agreement.

“I can’t stress enough how people have responded so well to your project,” Harris told commissioners.

Outcome: Commissioners voted unanimously to approve Red Stone Equity Partners as an equity partner.

Public Housing Conversion: Next Steps

After the vote, Geer noted that the board has been briefed previously about increased cost estimates. He wondered if the higher-than-anticipated tax credit offer helped offset those costs. “Absolutely,” Hall replied.

At this point, if AAHC had more funding, “we could do more,” Hall said. “We don’t have unlimited resources to do everything we want to do.” For example, it would be great to replace the flooring and cabinetry in every building, she said, but they don’t have the budget for that. Each housing unit is being evaluated to assess what needs to be done, on a ranking of 1 to 5. “We’re trying to be more frugal in figuring out where best to put our funds,” Hall told commissioners.

Ann Arbor housing commission board member Christopher Geer.

All structural deficiencies will definitely be addressed, she said. For example, Miller Manor needs an upgrade to its electrical system. If possible, energy efficiency upgrades will be completed as well. In terms of aesthetic, “quality of life” renovations, Hall acknowledged that residents care a lot about that and as much as possible will be done.

There’s still a gap between the renovation costs and the amount of funding that AAHC will receive through the tax credit investments. Hall said they’ll continue to work with the Federal Home Loan Bank, providing as much information as possible to secure $500,000 for Maple Towers. “That’s still on the table,” she said.

Hall also reported that she’d met with the Ann Arbor Downtown Development Authority staff and the DDA board’s partnerships committee that morning to request $600,000 for the projects. She didn’t think the DDA would make a decision on that until March or April.

If all of that funding comes through, then the gaps in funding would be filled, Hall said, with an anticipated closing for these first two projects in May of 2014. She cautioned that AAHC didn’t want to tap too many community resources for this first phase, because there will be other properties to renovate or rebuild in later phases. She said discussions are happening with the city about what AAHC will need for the next phase, similar to the kind of gap financing that the DDA might do for this first phase.

Marta Manildi asked whether the AAHC properties are located within the DDA district. Baker Commons, at Packard and South Main, is within the DDA boundaries, Hall replied. Miller Manor is within a quarter-mile of the DDA district – within that area, the DDA board allows investments in affordable housing, she said.

Next month, the AAHC board will receive a new revised scope for these two first-phase projects, Hall said.

For the second-phase projects, Hall said she hopes to apply for tax credits in August of 2014. It would be beneficial to have site plan approval from the city by then, so AAHC is working with architects and engineers to get ready for that process. There will be a citizen participation meeting for that soon, likely in early February, she said.

The second phase involves two AAHC complexes: (1) North Maple Estates at 701-739 North Maple – north of Dexter Avenue, on the west side of North Maple; and (2) 3451-3457 Platt – on the east side of Platt Road, north of Belvidere.

In a follow-up phone interview with The Chronicle, Harris said the second phase will result in 71 units, including 46 at North Maple Estates. Regarding the Platt Road properties, four single-family houses on the east side of Platt will be demolished, and replaced with structures totaling 21 units in a slightly different location on that site to avoid flooding issues. There’s also a strip of vacant city-owned land on the west side of Platt, north of Verle and south of Sharon. The land runs from Platt over to Springbrook. In that location, the plan calls for building four single-family homes.

The project’s team includes architect John Mouat of the Ann Arbor firm Mitchell & Mouat, and Scott Betzoldt of Midwestern Consulting. [Mouat serves on the board of the Ann Arbor Downtown Development Authority.] Harris said there’s not yet a firm estimate on the budget for this second phase – that is currently being developed. They hope to start the city’s site plan approval process in February.

A future phase will involved the housing commission’s Broadway Terrace at 504-1506 Broadway, as well as the building along Henry Street, between South State and White Street. The addresses are 1514 and 1520 White St., 1521 S. State St., and 701-719 Henry St.

Administrative Items

Two items on the Jan. 15 agenda related to administrative issues.

Administrative Items: Cost-of-Living Adjustment

One resolution authorized a 3% cost-of-living adjustment for AAHC executive director Jennifer Hall. Labor contracts include this increase for union employees. According to Hall, city administrator Steve Powers gave the same increase to non-union employees at the start of the current fiscal year, on July 1, 2013. Hall reported that she also gave her staff the same increase, but it requires board approval for the increase to apply to her own salary.

According to the city’s human resources staff, Hall’s base salary is $88,000.

Outcome: Commissioners unanimously approved the cost-of-living adjustment for Hall.

Administrative Items: Meeting Minutes

Hall asked for feedback on changing the way AAHC board minutes are kept, in order be consistent with the way minutes of other city commissions are kept in the city’s Legistar system. The approach would be less detailed in reporting deliberations, and primarily provide a report on the outcome of action items.

Margie Teall, a Ward 4 representative on city council, attended the Jan. 15 housing commission meeting. She serves as the council’s liaison to AAHC.

Currently, AAHC minutes and board packets aren’t part of Legistar, but are provided on the AAHC page of the city’s website. Minutes are attached to the city council agenda as an item of communication. Hall said her preference would be for more of a summary approach.

Tim Colenback felt it was important that the minutes are accessible to the public. Marta Manildi said she’d defer to Hall on this issue. But as a citizen, Manildi added, she’s always hated summary minutes, “because I feel like I have no idea what really happened.” So her own personal bias would be for more detailed minutes, Manildi said. Others might have a different view, she added. “I know Leigh Greden would!” [Greden is a former city councilmember who until last year served on the AAHC board.]

Christopher Geer said he came out on the opposite end of the spectrum from Manildi. Despite all the commentary that takes place during deliberations, he said, the impact ultimately comes from the decision that’s made, so that’s what is important. It can be a very subjective process to decide what to put in more detailed minutes, he noted. “That’s why most organizations just stick to the factual stuff that occurs during the meetings.”

Ron Woods felt that more detailed minutes provide a more complete understanding, and as a reader of minutes, he finds it helpful to see how decisions were made. However, he said he’d be quite comfortable to align with the rest of the city.

Outcome: Commissioners voted unanimously to switch the approach for taking minutes to an action-item format.

Changing Commission Membership

Near the end of the Jan. 15 meeting, commissioner Marta Manildi announced that it might be her last meeting before her term ends on the housing commission. Her term is ending, and she is not seeking reappointment. [A city council resolution that appointed her in 2010 states that her term ends on April 30, 2014. The AAHC website indicates that her term ends on May 5, 2014.]

Manildi said she’s told mayor John Hieftje that she’d be willing to step down earlier if he can find someone to fill the seat. Housing commission board members are nominated by the mayor, with a confirmation vote by the full city council. [At the city council's Jan. 21 meeting, Hieftje nominated Daniel Lee to serve the remainder of Manildi's term. Hieftje also said he expects to nominate Lee after that for a full term later this year. A confirmation vote by the city council is expected on Feb. 3.]

Manildi said she wanted to say that she’s felt very privileged to serve on the board. When she joined the board, “the housing commission was in quite serious trouble,” Manildi said. Through a lot of effort by many people, as well as some amount of luck, the commission has come far and that’s wonderful to see, she added.

Marta Manildi, a local attorney and an Ann Arbor housing commissioner whose term ends this spring. She is not seeking reappointment.

The relationship with the city is much stronger now, Manildi said, and that’s better for the housing commission. She’s learned a lot from the staff, from other commissioners, from AAHC partners and residents. The fire at Green Baxter Court was a terrible thing, she noted, but it’s also shown how effective the AAHC staff and partners are in handling a crisis.

Manildi also praised the effort to renovate the AAHC properties, which she said is key to providing better, sustainable housing to low-income residents. “It’s really promising, and everybody involved deserves a tremendous amount of credit.”

She received a round of applause from staff and other commissioners. Ron Woods said they’ll miss her unique skill set and institutional knowledge. She is the longest-serving current commissioner, initially appointed in June of 2009.

Joan Doughty of the nonprofit Community Action Network also praised Manildi during public commentary. “When Marta first started, it was a very difficult place to work and it was a dark day for the housing commission,” Doughty said. “She has been very modest in not taking credit for the turnaround. At some point she was the only member standing. She was incredibly brave and passionate and compassionate in making sure that the housing commission started being much more responsive and responsible. She’s really led the charge for a turnaround that’s been amazing to witness.”

By way of background, at its May 18, 2009 meeting, the Ann Arbor city council approved $117,040 to hire the consulting firm Schumaker & Company to conduct a needs assessment of the housing commission. The outcome of that work was presented to the city council by consultant Kerry Laycock at its Jan. 11, 2010 working session. [See Chronicle coverage: "Housing Commission Reorganizes" – a .pdf file of the Schumaker report is downloadable here.]

The Schumaker report described the housing commission as “an agency that is chronically underfunded, focused on crisis management, offering poorly maintained and outdated housing, and insufficient supportive services for a population with significant life challenges.”

A confidential five-page memo to councilmembers from city administrator Roger Fraser – dated Feb. 27, 2010, and obtained by The Chronicle in response to a FOIA request – maintained that board members at the time had failed to address the commission’s chronic problems, and were mishandling the selection process of a permanent executive director. The memo did not explicitly call for the removal of board members, but it seemed clearly designed to lay the groundwork for that move.

A resolution to remove the board and appoint new members was approved by the city council council at its March 15, 2010 meeting. New members included Jayne Miller, a former senior administrator with the city, and Mark McDonald, a property manager for large multifamily residences. Only two members of the previous board were reappointed: Manildi, who is an attorney with Hooper Hathaway; and Deborah Gibson, a resident of the city’s public housing who was reappointed only to a one-month term. Gibson resigned the following day.

Soon after, the council appointed two additional board members: Ron Woods, an Eastern Michigan University professor, and Sasha Womble, a resident commissioner to replace Gibson. Woods and Manildi are the only remaining board members from 2010. Others who have been appointed but are no longer on the commission include Andy LaBarre, who resigned after winning an election for Washtenaw County commissioner in 2012, and former city councilmember Leigh Greden, who was not re-appointed when his first term on AAHC expired last year.

There has also been turnover in the executive director’s position. Betsy Lindsley retired in the summer of 2009 and was replaced by Marge Novak – first as interim director, then as the permanent replacement. However, Novak resigned in July of 2011.

Jennifer Hall has served as executive director since she was hired in the fall of 2011. Hall previously was housing manager for the Washtenaw County office of community development.

Housing commissioners present: Tim Colenback, Christopher Geer, Marta Manildi, Ron Woods (president). Also: AAHC executive director Jennifer Hall.

Absent: Gloria Black.

Next board meeting: Tuesday, Feb. 25 at 6 p.m. at Miller Manor, 727 Miller Ave, Ann Arbor.

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CAN is a nonprofit dedicated to improving communities in underprivileged Washtenaw County neighborhoods, and receives allocations from the city through the city’s coordinated funding process to support human services. For fiscal year 2013, CAN was allocated $105,809 by the city for its Y.E.S. You CAN! program. Because those annual allocations exceed $10,000, CAN is subject to the city’s living wage ordinance, which currently requires that a minimum of $12.17/hour be paid to employees by employers who provide health insurance and $13.57/hour by those employers not providing health insurance.

However, Ann Arbor’s living wage ordinance has a mechanism by which the minimum requirements can be waived – if conformance would cause economic harm to a nonprofit. And it’s that waiver provision that the Ann Arbor city council used in granting CAN a living wage exemption at its Nov. 8, 2012 meeting. The vote was 8-2 with dissent from mayor John Hieftje and Carsten Hohnke (Ward 5).

One condition of the waiver is that a plan for eventual compliance within three years must be submitted to the city. CAN’s plan highlights the programs that it would need to cut, in order to conform with the ordinance. [.pdf of CAN's compliance plan]

Jane Lumm (Ward 2) also announced at the Nov. 8 meeting that in the near future she would be bringing forward an ordinance revision to exempt nonprofits from the living wage ordinance permanently. That echos a previous attempt two months ago by the council to exempt some nonprofits from the living wage ordinance. On the council’s agenda for Sept. 17, 2012 had been a resolution that would have exempted from the living wage ordinance those nonprofits receiving city human services funding.

That appeared to be an attempt to invoke the ordinance’s waiver provision, but it did not name a specific nonprofit and no plans for eventual conformance had been submitted by any nonprofits at that time. So the agenda item was withdrawn as it was deemed to be tantamount to changing an ordinance through a simple council resolution – which is not a legal way to proceed. At that time it was indicated that an ordinance revision would be forthcoming.

The Sept. 17 agenda item appears to have targeted CAN, although that organization was not specifically mentioned in the council’s resolution or in discussion at the table. Email correspondence sent in February 2012 by CAN director Joan Doughty to the city/county office of community development Mary Jo Callan and councilmember Christopher Taylor (Ward 3) made a plea for some kind of accommodation with respect to the living wage ordinance: “We’re going to be hurting, and paying summer camp counselors living wage is sort of ridiculous. The city doesn’t do it either. …. so …. Please? I’m begging you – do something!”

At the Nov. 8 meeting Lumm indicated that CAN’s city funding has been withheld pending resolution of this issue. Doughty said at the meeting that many other nonprofits don’t meet the conditions of the living wage ordinance, but there is no enforcement. But that’s not the way that CAN conducts its business, she said. They wanted to pursue the waiver option to do it the right way.

Doughty’s correspondence in the summer of 2012 – provided by the city to The Chronicle in the context of a broader request made under Michigan’s Freedom of Information Act – also mentions the fact that the city’s ordinance is likely on dubious legal grounds. As The Chronicle has previously reported, a Michigan Supreme Court order from April 7, 2010 left in place an unpublished court of appeals opinion that found a Detroit living wage law to be unenforceable. Doughty appears to indicate in her correspondence that city attorney Stephen Postema had related in conversation with Doughty’s husband, Washtenaw County prosecutor Brian Mackie, that Postema felt if the city’s living wage ordinance were to be challenged in court, it would be struck down.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link]

The 2011 taxes on the property were estimated at $1,400, which will be eliminated from the city’s tax base. The parcel is expected to be used to expand the community center’s programming services. It could also be used in other ways in support of the city’s parks and recreation system.

During her staff report given to the city planning commission on June 5, 2012, city planner Alexis DiLeo said the property contains a single-family home that will be used by the community center to expand its operations. Eventually, the center would like to renovate the interior and build an addition to connect the two buildings, she said. The center is managed under contract with the nonprofit Community Action Network. CAN gave an update on its activities most recently at the Aug. 21, 2012 meeting of the city’s park advisory commission.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link]

Jerry Hancock, Ann Arbor's stormwater and floodplain programs coordinator, explains how soil composition in the Bryant neighborhood factors in the area's water problems. (Photos by the writer.)

A major project to replace water mains and resurface roads in the Bryant neighborhood will get under way this spring, part of a broader plan to address the area’s chronic drainage problems and other issues.

At a Jan. 14 neighborhood meeting, Ann Arbor city staff gave an overview of the project, which included an historical look at the subdivision off  Stone School Road, just south of I-94.

The meeting at the Bryant Community Center – organized by the nonprofit Community Action Network and attended by residents, city and county elected officials and staff, among others – is the latest in a series of efforts to deal with a wide range of challenges to one of the city’s predominantly low-income neighborhoods.

At the end of Thursday’s two-hour session, a question raised by one of the residents – “Is there a happy ending to all of this?” – might best be summarized by the answer, “It depends.”

Water Mains, Roads

Anne Warrow, a civil engineer and project manager for the city of Ann Arbor, presented details of the $1.1 million water main replacement, set to begin in mid-May. Over the past few years, more than 25 water main breaks have been reported in the subdivision of 259 homes, built between 1969-71. The city plans to replace 9,000 feet of corroding cast-iron pipe with polyethylene-encased ductile iron pipe. Typical projects are smaller, in the 4,000-foot range, Warrow said. [Link to map showing water main breaks and location of planned water main replacement.]

The new water mains will run along Champagne, the primary street through the subdivision, from Stone School Road to Shadowood Drive, as well as in most of the small courts off of Champagne. Mains will also be replaced on Hemlock and its small courts. Only four courts off of Champagne – Santa Rosa, Blain, Jay Lee and Burlingame – won’t be receiving replacement water mains, Warrow said, because existing mains aren’t causing problems there.

In addition, four new fire hydrants will be installed in Metroview, Faust, Trowbridge and West Eden courts, on the north side of the subdivision. Warrow said a general rule of thumb is to have hydrants no more than 250 feet apart, and there are currently no hydrants in those courts.

The city expects to pay for the water main replacements with low-interest loans, Warrow said. The project will be funded from the drinking water revolving fund, administered by the Michigan Department of Environmental Quality. The loans will be repaid out of the city’s water utilities fund.

Funding for the second part of the project – street resurfacing, estimated at about $3 million – would come from the city’s street reconstruction millage. However, it’s unclear how much funding will be available from the millage. That question hinges on whether the city is successful in getting federal funding to replace the East Stadium bridges. If the city doesn’t get a federal grant that it has applied for, then millage funds will be used for the bridges and other street projects will be postponed. Depending on how this plays out, street resurfacing in the Bryant neighborhood could happen in phases, Warrow said.

Anne Warrow, a civil engineer and project manager for the city of Ann Arbor, explains how water mains will be replaced in the Bryant neighborhood, starting this spring.

To prepare for the entire project, city staff took soil borings throughout the area, including 32 on road surfaces and another 25 in unpaved spots, boring down as deep as 20 feet. The findings were consistent throughout, Warrow said – the soil is primarily silty clay, with some sand.

That news wasn’t a surprise to residents, confirming what they already suspected. It also means that one of the strategies they’d considered to help manage drainage problems – installing French drains to funnel water away from the houses – wouldn’t be effective, because clay soil takes so long to absorb water runoff.

During the entire project, on-street parking will be limited, Warrow said, though residents will have access to their homes throughout construction. Roads will be dug up to put in the new pipes, then the trenches will be backfilled with stones. Workers will pressure-test the new water main, and flush it to test the quality of the water, making sure it’s clean. The testing phase will take a couple of weeks, she said. Then they’ll do the final tie-in, transferring each home’s water connection to the new main.

Residents won’t be without water except for a short period during the tie-in to their homes, Warrow said. However, she added, “the unforeseen may occur.” One of the risks is potential breaks in the old water main as the new one is being constructed, she said.

As part of the project, the public storm sewer system in the neighborhood will be cleaned. However, Warrow acknowledged that many of the drainage problems experienced in the area were caused by issues with the subdivision’s private drainage system, which hooks into the city’s storm sewer system. Those private systems won’t be part of the upcoming project.

Another challenge is that the land is virtually flat – a 1% slope on most properties doesn’t allow water to drain well.

An Historical View

Why isn’t there more of a slope on these lots? “That’s how it was designed, unfortunately,” Jerry Hancock told the group on Thursday. Hancock is the city’s stormwater and floodplain programs coordinator, and gave a presentation that included an historical look at the neighborhood to explain why water problems exist.

He first showed an aerial photo of the area taken in 1947, before it was developed. The west portion was an orchard, the eastern section appeared to be lightly wooded. To the south was a gravel pit. The next aerial photo, taken in 1960, showed only one major change: a wide east-west stretch of I-94 now appeared in the photo. The interstate was built just north of the land that would later become the Arbor Oaks subdivision, known as the Bryant neighborhood.

Hancock then pulled out yet another map showing pre-development soil compositions. One theory to explain the neighborhood’s chronic water problems is that the development had been built on wetlands, but Hancock said that doesn’t appear to be the case. Pre-development, there were a range of soil types recorded, from sandy loam to silty clay loam – more variety than was indicated when the city recently took soil samples. The fact that most of the soil in the neighborhood now is silty clay supports the theory that when the subdivision was constructed, soil from one section was spread throughout the entire area by construction workers.

Looking at these and other maps, Hancock said some things stand out. The land is essentially flat, and the lots weren’t graded so that water would drain away from the houses. In many cases, the crawl spaces are below grade, he said. There’s also a high water table on the east side of the neighborhood, which contributes to water problems. Given all of this, Hancock said it’s not surprising to see a high number of houses with mold and drainage problems.

For some of the homes located on the northern edge of the subdivision, it might be possible to redirect water toward culverts running along the I-94 expressway, Hancock said. However, he cautioned that it would only address a few lots: “It’s not going to solve everyone’s problem.”

City vs. Homeowner Responsibility

One of the themes that emerged from Thursday’s meeting was the distinction between what the city can do, and what remains the homeowner’s responsibility.

Several residents brought up the issue of drains on the individual lots, which were intended to feed into the city’s storm sewer system. Over the years, those drains – many located in backyards – have become covered or clogged. In some cases, city staff said it’s unclear if the drains shown on the developer’s proposed site plan ever got built.

Don Wakefield, a resident of the Bryant neighborhood, said problems with the drains in many backyards contribute to the area's flooding problems.

Molly Wade, the city’s water quality manager, said that over the next few weeks workers would be coming into the neighborhood and cleaning the city’s storm water and sewer systems. As part of that work, they’d also be running a camera through the city’s pipes to get a better idea about the condition of the system, she said.

Resident Don Wakefield said part of the issue is that there aren’t sufficient openings into the city’s system to be able to identify where problems are occurring. He said the drain in his backyard isn’t working, but there’s no manhole opening on the street to allow him to get access to the pipes on his property.

Paul Cartman, a resident who also owns several rental properties in the neighborhood, asked about the possibility of the city putting in edge drains as part of its water main and road resurfacing project. It was an issue he raised at a previous neighborhood meeting as well. [See Chronicle coverage: "Bryant Neighbors Dig Into Drainage"]

Anne Warrow, a city project manager, said that because most homes in the neighborhood don’t have footing drains, which are designed to divert water away from a house’s foundation, installing edge drains wouldn’t have a significant impact on the drainage problems.

Other Options: Homeowner Rehab

Also at Thursday’s meeting were representatives from the Office of Community Development, a joint city/county department that offers a variety of services to low-income residents. Jon Van Eck, an OCD housing rehab specialist, described a housing rehabilitation program for owner-occupied homes of families earning 80% or less of the area median income – or about $56,000 for a family of four.

Every house has different needs, he said, and priority is given to remedy health and environmental issues, like mold, lead paint and asbestos. The federally funded program provides up to $25,000 per house in a deferred low-interest loan – after taking care of higher-priority items, they also address water issues if sufficient funds remain, he said.

Strategies to deal with flooding in crawl spaces or standing water on a property might include installing footing drains, sealing the crawl space walls, diverting gutters away from the house, and putting in humidistats to monitor moisture, among other things. “We fight the water in multiple ways,” Van Eck said.

Another option to get help for the neighborhood might come from the University of Michigan. Krista Trout-Edwards from the county treasurer’s office told residents at Thursday’s meeting that the county was hoping to interest graduate students at the UM School of Natural Resources and Environment (SNRE) in taking on the neighborhood as a master’s degree project. SNRE professor Joan Nassauer, who has taken an interest in the neighborhood and made a presentation to residents this summer about ways to deal with the area’s drainage issues, would be involved as well, Trout-Edwards said. If students are interested, they’d begin planning their year-long project this spring.

Susan Baskett, a Bryant resident who’s also a board member for the Ann Arbor Public Schools, said the best time to do community outreach would be in the spring, when people are more likely to be outside. They don’t answer their doors to strangers in the winter, she said. Derrick Miller, director of the Bryant Community Center, said the spring would also be a good time for students to see the kinds of water issues that need to be addressed.

A Community Effort

Janis Bobrin, Washtenaw County’s water resources commissioner, attended the Bryant neighborhood meeting and said she was impressed with the city’s efforts to deal with the water problem. Drainage issues aren’t just endemic to Ann Arbor, she said: “This is not an uncommon problem countywide.”

The advantage that Bryant residents have is their strength as a community, she added. Usually, when the county is called in to deal with drainage problems on individual properties, people might not even know their neighbors. Taking a broader, community-wide approach is important, she said.

Derrick Miller, director of the Bryant Community Center, and Joan Doughty, executive director of Community Action Network. CAN has a contract with the city to provide support services to Bryant and other low-income neighborhoods. In addition to addressing water issues, other projects include a Buy Bryant business directory, work with Habitat for Humanity to rehab houses in the area, and possibly a workshop for residents on how to start a business.

Joan Doughty, executive director of the nonprofit Community Action Network, asked what other solutions the neighborhood might be able to take collectively. CAN has a contract with the city to provide support services to the Bryant neighborhood and other low-income communities, and has been facilitating the effort to tackle water-related problems. A survey of residents showed that this is a major concern.

Jon Van Eck of the city/county Office of Community Development suggested that if several adjacent properties built a rain garden on a portion of their lots, that might address some common water problems.

Baskett told the group that she was discouraged by the meeting, asking “Is there a happy ending to all of this?” Paul Cartman joked that they’d at least been served free bagels.

Resident Judy Gardner, who’s also a CAN board member, said her main concern is for residents who don’t have the wherewithal to take advantage of some of the help being offered. Outreach was important, she said.

Jennifer Hall, housing program coordinator for the Office of Community Development, cautioned that not everyone can be helped immediately, and that some people would remain unhappy. “This is going to require more talking and more effort,” Hall said. “We’re not going to solve everything today.”

But John Ramirez, an agent with Real Estate One, said he felt positive about the progress they’d made. “I see a whole slew of solutions here,” he said. “We’ve come a long way from where we started.”

No one violated the Bryant Community Center rules at a recent meeting there, though you could argue there was a bit of mild horseplay.

If you made a list of people who can get things done, you’d end up with one that looked a lot like the actual people attending a recent meeting at the Bryant Community Center. Two current city councilmembers and a former one. The county treasurer and chief deputy clerk. A school board member. A cop. Nonprofit leaders, city staff and residents.

They gathered on Thursday to talk about ways to improve this neighborhood on Ann Arbor’s southeast side, north of Ellsworth and east of Stone School Road. The effort is being led by the Community Action Network, a nonprofit group that provides support services to people in low-income neighborhoods. CAN was hired earlier this year to manage Bryant and Northside community centers, and also works with Hikone and Green Baxter Court neighborhoods. Joan Doughty, CAN’s executive director who organized the Dec. 11 meeting, told the group that her staff had done a needs assessment of the neighborhood and found that safety was the biggest concern for residents. She noted that the assessment was done around the time of the multiple break-ins in that area, which might have been a factor. (The police arrested three teens in April who were charged with those crimes.)

Joan Doughty, executive director of the Community Action Network, a nonprofit which manages Bryant Community Center.

The mortgage crisis is another major concern. The neighborhood has been a place where you could find some of the lowest-priced single-family homes in Ann Arbor. Many of these homeowners are in fragile financial circumstances, made worse by current economic conditions.

Catherine McClary, Washtenaw County treasurer, didn’t have specific data for the Bryant neighborhood, but gave an overview of the foreclosure situation countywide. in 2006, 703 properties were foreclosed for non-payment of mortgage (as opposed to non-payment of taxes, another type of foreclosure). Last year, that number rose to 1,151, and so far in 2008, there have been 1,300 mortgage foreclosures.

Tax delinquencies are typically a prelude to foreclosure, McClary said. Those, too, are on the rise – in Ann Arbor, they are up 43% this year compared to 2007. “I do think Ann Arbor’s not immune,” she said. McClary also highlighted some of the resources that are available for preventing both mortgage and tax foreclosures. The county is partnering with other local groups as part of this effort, including the Housing Bureau for Seniors, the Washtenaw County MSU Extension program, and Legal Services of South Central Michigan – all of those groups had representatives at Thursday’s meeting.

Jennifer L. Hall, housing manager for the city/county office of community development, described several programs with federal funding that are available for down payment assistance, rehab of single-family homes and infrastructure improvements, such as sidewalk repair. Since Bryant has a lot of low-income housing, Hall said the city would be focusing on that neighborhood.

Hall also mentioned that the city and county would be forming a land bank, and McClary elaborated on what that would entail. The land bank, which would be managed by the treasurer’s office, would identify condemned, blighted properties – that weren’t owner-occupied, she stressed – and demolish them to prepare for other uses, such as community gardens. When she stated that she didn’t think there was such a property in the Bryant neighborhood, several residents said, “Oh yeah, there’s one.”

At one point, Doughty observed that there seem to be a wealth of resources available, but a bit of a disconnect in getting those resources to the people who need them. She suggested that they compile a list of the resources mentioned during the meeting, and make it available for everyone in the group.

Derrick Jackson, Washtenaw County's chief deputy clerk, talked about the West Willow neighborhood revitalization project, which could be a model for similar efforts in the Bryant area.

Derrick Jackson, Washtenaw County’s chief deputy clerk, was on hand to tell the group about a project he’d been involved with in the West Willow neighborhood of Ypsilanti Township. He said that unlike this meeting, with community stakeholders at the table, the West Willow effort started with residents, including himself. “If you really want to get the word out,” he said, “it’s the neighbors.”

Jackson passed out copies of the West Willow Neighborhood Improvement Strategy, a 33-page document prepared by the consulting firm Hamilton Anderson of Detroit, based on work done by their community group. [5MB .pdf] The report gives an overview of the process used to develop the revitalization plan, a description of the neighborhood demographics, and lists of opportunities for making physical improvements to the area. There’s also an extremely detailed three-year action plan, which sets out steps to be taken by subcommittees on safety, housing/physical improvements, and parks and recreation.

Jackson said that after the neighbors had developed this plan, they then looked for resources to help them achieve their goals.

Judy Gardner, a resident of the Bryant neighborhood.

Judy Gardner, who lives in the Bryant neighborhood, said that getting residents engaged in some kind of community-wide project was a struggle. “That has been a huge barrier,” she said. She asked Jackson for advice, based on his West Willow experience.

Jackson said that West Willow had a couple of “opportunities” – referring to some high-profile crimes there – which motivated people to get involved. He suggested that for Bryant, concerns about foreclosures might serve a similar purpose. He also said that it sometimes takes a couple of people to just take action, then when others see that improvements are being made, they’ll join in.

Hall noted that almost everyone in the neighborhood has a drainage issue, and she suggested that addressing this problem might be a way to get residents involved. Houses were built on a wetland, and driving through the streets on Thursday proved that point – frozen water covered many stretches, making conditions hazardous.

PV Roby of the Homeplace Community Land Trust said that accessing adults through their children might work, too. She said that organizing outreach based by going cul-de-sac by cul-de-sac could be another approach.

Jackson said that one of the things they did at West Willow was to ask kids how they’d spend $20,000 for improving the neighborhood. Even though the question was theoretical, people got excited and started generating all sorts of ideas, he said. The concept resonated with several people at Thursday’s meeting, and some suggested that if the ideas were really good, they might even be able to come up with the $20,000.

Jennifer Hall with the city/county office of community development; Pat Simmons with First United Methodist Church; and Susan Baskett, a school board member and resident of the Bryant neighborhood.

Susan Baskett, a Bryant resident and board member for the Ann Arbor Public Schools, said that one possible first step would be to find someone from each of the neighborhood’s 17 cul-de-sacs and bring them together for a meeting. She said it would be helpful to have the list of Neighborhood Watch block captains from the police department, but they seemed reluctant to release that information. Leigh Greden, one of the two Ward 3 councilmembers who represent that neighborhood, said he could get the list for her.

As the meeting wrapped up, Doughty suggested they divide into two groups to tackle some of these issues: One led by McClary to focus on the foreclosure issue, and another led by Hall that addressed infrastructure. At the same time, they’d work on organizing a meeting of residents to get their input. The meeting adjourned with plans to reconvene in February.

From left: Councilmembers Christopher Taylor and Leigh Greden, who both represent Ward 3, and Damon Thompson from the city/county office of community development.