Stories indexed with the term ‘contribution in lieu’

Ann Arbor Downtown Development Authority board meeting (Dec. 4, 2013): At its last regular meeting of the year, the board approved the final funding necessary to replace 81 light poles on Main Street, passed a resolution waiving a claim to reimbursement for the DDA’s costs associated with the former Y lot, and formally accepted its audit report for the fiscal year that ended on June 30, 2013 (FY 2013).

The board also considered a resolution added to the agenda on the day of the meeting, related to the contribution-in-lieu (CIL) parking agreement for the 624 Church St. project – but ultimately decided to table that resolution pending further review at the committee level.

The DDA’s Dec. 4 resolution allocating $280,000 for the Main Street light pole replacement ended the political wrangling over who should pay for those downtown Ann Arbor light poles. Replacement of the deteriorating poles was identified by the city as a need in the first half of 2012. The source of an estimated $600,000 required for the project was specified in the city’s CIP (capital improvements plan) that year as coming from the DDA – though the funds were at that time not authorized by the board.

In the spring of 2013, the city council weighed how it might clarify the city’s ordinance that restricts the DDA TIF (tax increment finance) capture. In that context, DDA executive director Susan Pollay told the council that the DDA might not be able to afford to pay for the Main Street light pole project – if the council changed the ordinance language to clarify the calculations in a way that did not favor the DDA. The question of the DDA’s TIF capture was not ultimately settled until the council’s Nov. 18, 2013 meeting.

In the interim, the city council voted at its May 20, 2013 meeting to request that the DDA allocate at least $300,000 for the $580,000 light pole project. After the council then declined at its Oct. 21, 2013 meeting to approve a budget allocation for the remaining $280,000 that was needed for the project, the DDA board passed its Dec. 4 resolution, citing the urgency of replacing at least 36 of the poles as the reason for its decision.

According to the DDA’s resolution, staff will use the DDA funding to begin now with replacement of those poles most in need of being removed, with the remainder replaced in the summer of 2014.

Also at its Dec. 4 meeting – in connection with the city’s pending sale to Dennis Dahlmann of the former Y lot, at William Street and Fifth Avenue – the DDA board passed a resolution that waived claim to $1,439,959 in reimbursements from the sale that the DDA has calculated it might be owed. The city council adopted a policy on Oct. 15, 2012 that included depositing net proceeds (after reimbursements) from the former Y lot sale into the city’s affordable housing trust fund.

So the DDA board’s action is an attempt to increase the amount that will be deposited into the affordable housing trust fund. The resolution passed by the DDA board also calls on the city council to waive the city’s claim to reimbursements. The city purchased the property in 2003 for $3.5 million and has made interest-only payments for the last 10 years on a loan for that amount. The agreed-upon sale price to Dahlmann is $5.25 million.

In another formal action taken on Dec. 4, the DDA board accepted the audit report from the most recently concluded fiscal year – FY 2013, which ended June 30, 2013. The auditor issued an “unmodified” or clean opinion.

The board also considered a request, which was ultimately tabled, from the developer of the 624 Church St. project. The developer is asking for an extension of the contractual agreement under which parking permits could be purchased using the city’s contribution-in-lieu (CIL) program. The program allows a developer to satisfy certain zoning requirements that parking spaces be provided for a project – by purchasing monthly permits in the public parking system at a premium rate, instead of building the spaces on site. The developer of the 624 Church St. project wants the ability to extend the 15-year minimum to cover a 30-year financing period – based on feedback from firms that would be providing the financing. The DDA board ultimately voted to table the question pending further review by the board’s operations committee.

The board’s newest members introduced themselves at the meeting: city administrator Steve Powers and Main Street retailer Cyndi Clark.

Also at its Dec. 4 meeting, the board heard a range of updates on various projects and public commentary. Highlights included a report from the Main Street BIZ (business improvement zone), which has enough money in its fund balance to handle sidewalk snow removal for the coming winter, without collecting the winter tax assessment to which it is entitled. In a separate update, there’s a possibility that downtown ambassadors could be hired by the DDA as soon as the summer of 2014.

Other topics covered in updates included the effort to save the State Theater, the NHL’s Winter Classic on New Year’s Day, and The Puck Drops Here festivities on New Year’s Eve. [Full Story]

Ann Arbor Downtown Development Authority board meeting (Nov. 6, 2013): Two voting items were considered by the board: (1) an award of a consulting contract to SmithGroupJJR and Nelson\Nygaard to develop a streetscape framework plan; and (2) approval of monthly permits in the public parking system for the 624 Church St. project.

Both items were approved on unanimous votes at the meeting, which featured perfect attendance by the 11 current members of the board. The following evening, on Nov. 7, the Ann Arbor city council confirmed the appointment of Cyndi Clark, owner of Lily Grace Cosmetics, to fill a vacancy on the 12-member DDA body. At its Nov. 6 meeting, the board did not discuss either Clark’s appointment or the other council agenda item affecting the DDA – a revision to the city ordinance that regulates the DDA TIF (tax increment financing) capture.

The sale of monthly parking permits for the 624 Church St. development was an issue that the DDA board had previously considered – for an earlier version of the project, which had actually completed the city approval process. It had gone through planning commission review and recommendation, with a site plan approved by the city council on March 4, 2013. For that earlier version, the project was required to provide 42 parking spaces for the additional residential square footage it contained beyond the by-right density under the city’s zoning code. Instead of providing the parking spaces on-site, the owner of the project sought to satisfy the requirement through the contribution in lieu (CIL) program – a request that was granted by the DDA.

For this revised and expanded version of the project – made possible through additional land acquisition – a greater number of parking spaces is required. And the project owner again sought to meet that requirement through the CIL program. So at its Nov. 6 meeting, the DDA board granted the project owner the ability to purchase 48 monthly parking permits in the Forest Avenue parking structure.

The DDA board also acted on its streetscape framework project. The contract awarded to SmithGroupJJR and Nelson\Nygaard is meant to provide guidance for developing future streetscape projects, not to design any specific streetscape project. The most recent streetscape improvement undertaken by the DDA was the Fifth and Division project, which included lane reconfigurations and bump-outs.

In addition to its voting items, the board received a raft of updates, which included reports on the first quarter financials. The DDA is essentially on course to realize $4.5 million in TIF capture revenue and about $19 million in parking revenue. Other updates included reports on preparations for the NHL Winter Classic hockey game, debriefing on the International Downtown Association conference attended by some board members and staff, Freedom of Information Act issues, and public commentary.

The board heard from Ray Detter, speaking on behalf of the downtown area citizens advisory council, about the ongoing downtown zoning review. Detter’s remarks were countered by DDA board members. Detter reprised his comments at the city planning commission meeting later that evening. So that back-and-forth will be reported out in more detail as a part of The Chronicle’s Nov. 6, 2013 city planning commission report. [Full Story]

A revision to a proposed residential development at 624 Church St. in downtown Ann Arbor has resulted in approval by the Ann Arbor Downtown Development Authority board for the purchase of additional monthly parking permits – up to 48 such permits. The action was taken at the DDA board’s Nov. 6, 2013 meeting. The spaces will be provided in the Forest Avenue parking structure.

The original proposal for 624 Church, which received site plan approval from the city council at its March 4, 2013 meeting, was for a 13-story, 83-unit apartment building with approximately 181 beds. And for that version, the Ann Arbor DDA had authorized the project to purchase up to 42 monthly permits through the city’s contribution-in-lieu (CIL) … [Full Story]

Ann Arbor Downtown Development Authority monthly board meeting and annual meeting (July 3, 2013): In its voting business, the DDA board allocated a total of $550,000 for capital projects – either planning for future work or actual current projects.

The board also approved a $59,200 grant to support the formation of a business improvement zone in the South University area. A “trolley” for the upcoming art fairs also received $10,000 worth of support, in action taken by the board.

The capital projects included $50,000 for repair of sidewalk-related amenities that aren’t covered by the city’s sidewalk millage. In addition, the board allocated $200,000 for a streetscape framework planning project. Board action also included $300,000 for the replacement of light poles on Main Street.

The light pole replacement is one source of current friction between the city and the DDA – as the expectation of the city had been that the entire $516,000 project would be paid for by the DDA. But the result of wrangling over the DDA’s FY 2014 budget – given approval by the council on May 20 – was a transfer of $300,000 from the DDA’s TIF fund to the DDA’s housing fund. So the DDA’s position is that it can’t fund the entire light pole replacement project, because of that transfer to the housing fund.

The light pole question is related to the general issue of DDA finances and the revenue it receives through tax increment finance (TIF) capture of taxes – from entities that levy those taxes in the DDA district. Elected as chair at the annual meeting – which immediately followed the board’s monthly meeting – Sandi Smith will face the resolution of the TIF revenue issue as one of her first challenges.

The outstanding issue concerns the way that the DDA administers Chapter 7 of the city code of Ann Arbor – which regulates the DDA’s TIF capture. This spring the Ann Arbor city council gave initial approval to a revision to Chapter 7. The council’s action, if given final approval, would prevent the DDA from giving the code an interpretation that doesn’t recognize a cap on TIF revenue that is expressed in Chapter 7. The amendment to the ordinance would return several hundred thousand dollars a year to other taxing authorities from which the DDA captures taxes. Those entities include the Ann Arbor District Library, Washtenaw Community College, Washtenaw County and the city of Ann Arbor.

The council has postponed final action on the matter until Sept. 3, 2013. Between now and then, the council’s expectation is that a joint DDA-council committee will meet and make recommendations on the Chapter 7 issue.

At its July 1 meeting, the city council appointed four members to its committee: Christopher Taylor (Ward 3), Stephen Kunselman (Ward 3), Jane Lumm (Ward 2) and Sally Petersen (Ward 2). And at the July 3 monthly meeting, outgoing DDA board chair Leah Gunn appointed the DDA’s committee: Bob Guenzel, Roger Hewitt, Joan Lowenstein and Sandi Smith.

Another point of recent budgetary friction between the city and the DDA was raised briefly at the July 3 board meeting. In a formal resolution, the city council had encouraged the DDA to allocate money to fund downtown beat patrol police officers. For its part, the DDA has for a few years already been mulling the question of some kind of additional security – either in the form of ambassadors, community standards officers or police officers. At the July 3 meeting, DDA board members indicated they would continue to mull that range of options, but seemed disinclined to commit to funding police officers.

The board also heard a range of routine reports on July 3, including the monthly parking revenue report. The DDA manages the city’s public parking system under a contract with the city of Ann Arbor. In the future, it was announced, the report will be delivered only on a quarterly basis. Also related to parking policy, a tentative pilot project was announced that could change the basic approach the DDA takes to selling monthly parking permits. The idea would be to assign permit eligibility only to property owners in a defined geographic area. The number of permits would depend on the number of square feet of property – independent of uses such as office, residential, retail, etc. Currently, the DDA uses a first-come-first-served system for individuals, with a waiting list.

The DDA’s monthly meeting marked a transition on the board, as two board members were bid farewell. Newcombe Clark served one four-year term. He’s making an employment-related move to Chicago. Leah Gunn concluded nearly 22 years of service on the board. She finished out her time on the board as chair. [Full Story]

A change to the development agreement between the city and The Varsity – a 13-story, 177,180-square-foot apartment building containing 181 dwelling units (415 bedrooms) – has been given approval by the Ann Arbor city council. The council’s action – to confirm an Ann Arbor Downtown Development Authority decision to award the right to purchase a total of seven monthly permits, at a 20% premium cost – came at the council’s June 17, 2013 meeting.

The Varsity is located at 425 E. Washington St. in downtown Ann Arbor. Based on zoning requirements, 76 off-street parking spaces are required. Only 69 were provided onsite. The others were provided through the contribution in lieu (CIL) program. The seven spaces were approved by the Ann … [Full Story]

The Varsity, a residential high-rise building at 425 E. Washington St. in downtown Ann Arbor, has been granted the right to purchase five additional monthly parking permits in the public parking system, bringing its total to seven.

The right to purchase monthly parking permits – under the city’s “contribution in lieu” program – is administered by the Ann Arbor Downtown Development Authority. The action came at the DDA board’s June 5, 2013 meeting.

The DDA had previously approved two permits for The Varsity, which is a 13-story, 173-unit, 178,380-square-foot apartment building for approximately 418 people. Construction is nearing completion, with plans to open by the fall.

The project needs to provide a total of 76 parking spaces. That parking is required in … [Full Story]

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

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

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