From left: DDA board members Bob Guenzel, Sandi Smith, John Mouat. Smith officiated her last meeting as chair on July 2, and Mouat was elected to serve as chair for fiscal 2015, which began on July 1. (Photos by the writer.)

The board approved a $390,000 grant related to an extended-stay hotel project on the downtown’s west side. The development is by First Martin Corp. at 116-120 W. Huron – the intersection of Huron and Ashley streets. The grant will be used to pay for a new 12-inch water main, sidewalk improvements along Ashley, and landscape maintenance in the public right-of-way.

This was the first grant awarded after the board adopted a grant policy earlier this year.

The board also gave a one-year extension to a previously-awarded $650,000 brownfield grant for the 618 S. Main apartment complex. It was originally awarded in 2012, but the project is not yet completed – in part because of the recent harsh winter. The funds would help pay for upsizing a water main to 12 inches, as well as streetscape improvements and a rain garden for stormwater management.

Also related to infrastructure, the board established a project budget of $100,000 for tree maintenance and sidewalk repairs in downtown Ann Arbor in fiscal 2015.

Related to personnel issues, the board held a closed session to evaluate Susan Pollay, the DDA’s executive director. After about 15 minutes, the board emerged and voted to give Pollay a 5% raise, increasing her salary from $109,119 to $114,570.

In describing the rationale for the raise, Roger Hewitt noted that Pollay had received “good raises” in the last two years, but for the six years before that she had not received a raise because of the difficult economy. Her position as a city employee is in the Level 2 category, which has a salary range from $95,000 to $157,000. Several board members indicated a desire to move Pollay toward the midpoint of that range over the next few years. Sandi Smith characterized it as “catch up” to compensate for the years when Pollay didn’t get a raise. Hewitt said the intent is to bring her up to that midpoint salary of $126,000 “within a fairly short time period.”

Casting the sole vote against the 5% increase was city administrator Steve Powers, who said he’d be more comfortable with a 3% raise, and hoped there would be a more robust evaluation process in the future.

Immediately after its regular monthly meeting, the board held its annual meeting to elect officers for the coming fiscal year. John Mouat was unanimously elected to serve as chair of the board. Other officers are Roger Hewitt (vice chair), Rishi Narayan (treasurer), and Keith Orr (secretary). Outgoing chair Sandi Smith was thanked for her service, and received a gift from staff – a small pin from the former Selo/Shevel Gallery, which Pollay indicated evoked a cityscape of tall buildings. Pollay said it was inspired by a trip that several DDA staff and board members took last year to New York City for the International Downtown Association conference.

Also at the July 2 meeting, the board dissolved its two existing committees and created four new committees: (1) marketing, (2) partnerships/economic development, (3) finance, and (4) operations (parking/transportation/construction).

In supporting the idea of a separate marketing committee, Narayan noted that if a staff member is hired to focus on marketing and communications, “this area might become more fleshed out very quickly.” Previously, a marketing subcommittee had been part of the partnerships committee. The new finance committee was created in part in anticipation of the DDA’s growing budget, and a desire for more financial oversight.

During updates, Hewitt reported that work continues on a possible north/south commuter rail between Ann Arbor and Howell known as WALLY – the Washtenaw and Livingston Line. A recommendation will be coming soon to locate a stop on the east side of the railroad tracks between Liberty and Washington streets, opposite of the former city maintenance yard. He stressed that this transportation service is probably a significant way off from being offered. If the project moves forward, the recommended stop wouldn’t be a full station – it would simply be a platform with canopies, and would be built entirely within the railroad right-of-way. Hewitt plans to make a short formal presentation about the recommendation at a future DDA board meeting.

Also related to transportation, Orr reported that the new Greyhound ticket office at the Fourth & William structure will be opening next week – ahead of schedule. Next week also will be the grand opening of the nearby Blake Transit Center, operated by the Ann Arbor Area Transportation Authority.

In other updates, Hewitt noted that members of the DDA’s operations committee continue to work on a downtown ambassadors program, and are likely to bring two potential service providers in for interviews by the end of this summer.

Grants

Grants for two projects appeared on the DDA board’s July 2 agenda: a one-year extension for a previous brownfield grant to the 618 S. Main Street project, and a new grant to the 116-120 W. Huron Street hotel project.

Grants: 618 S. Main

The 618 S. Main project is an apartment complex that Dan Ketelaar’s Urban Group Development Co. intends to market to young professionals. The 7-story building, between Mosley and Madison, would include 190 units for 231 bedrooms, plus two levels of parking for 121 vehicles.

The original $650,000 brownfield grant to the 618 S. Main project was approved by the DDA board at its June 6, 2012 meeting, a week before the city council gave its approval to the project on June 18, 2012.

The $650,000 total breaks down as follows:

 $85,000 Streetscape costs (sidewalk adjacent to project on Mosley/Main)
$384,500 Streetscape costs (sidewalk on west side of Main north of project)
$100,000 Rain garden to infiltrate stormwater, rather than detain and release
$ 80,500 Upsizing the water main under Ashley Street to a 12” pipe

$650,000 TOTAL

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That total is to be disbursed over four years in the following amounts: $100,000, $225,000, $225,000, and $175,000. None of the money is to be awarded before the taxes are paid each year. The DDA will use the tax increment finance capture from the project to make the grant payments.

In introducing the resolution on July 2, Joan Lowenstein noting that there’s sunsetting language in the DDA’s grant policy:

The DDA’s grant will automatically expire by June 30th at the end of the fiscal year following the fiscal year the grant was approved by the DDA if a developer has not requested and received all necessary City construction permits, and the project footings/foundations are not completely installed. The DDA grant will automatically expire by June 30th at the end of the third fiscal year following the fiscal year the grant was approved by the DDA if construction has not been completed and a CO issued for the project.

The project is underway, Lowenstein said, but it has been delayed by the harsh winter. Without an extension of the grant, it would expire automatically. The length of the extension, to receive all construction permits and to complete the project, is one year. The partnerships committee reviewed the extension and recommended that it be granted.

John Mouat said he’d read that the site next to 618 S. Main, where Happy’s Pizza had been located, is going to be redeveloped. The building where Happy’s Pizza was housed had been destroyed by fire earlier this year. The site is at the southwest corner of Main and Madison.

Mouat said that’s a great sign, because the DDA had hoped that the whole area along South Main “would start to rise.” He called the changes at the Happy’s Pizza site a “fortuitous happenstance, in some ways.”

Keith Orr joked that it was rising from its ashes.

There was no other discussion.

Outcome: The vote on the 618 S. Main grant one-year extension was unanimous.

Grants: First Martin Hotel Project

John Mouat brought forward a proposal for a $390,000 grant related to an extended-stay hotel project. The development is by First Martin Corp. at 116-120 W. Huron, at the intersection of Huron and Ashley streets.

Rendering of proposed hotel at the northeast corner of West Huron and Ashley. The One North Main building is visible to the east.

The new building will be an 88,570-square-foot structure with a ground-floor restaurant or retail space. The extended-stay hotel will occupy the upper five levels and will be operated by Marriott. The city council gave approval to the site plan at its June 16, 2014 meeting. The project also had been reviewed and recommended for approval by the city’s planning commission on May 20, 2014.

The grant was recommended by the DDA’s partnerships committee.

Mouat said that First Martin had been very patient while the partnerships committee developed its grant policy over the past few months. The First Martin project will be used as a kind of test for the new policy, he added.

The $390,000 breaks down like this:

$340,000 New 12” water main on Ashley Street, and related hardscape 
$ 10,000 Sidewalk enhancements on Ashley Street 
$ 40,000 Right-of-way landscape maintenance (20-year commitment) 

$390,000 TOTAL

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The $390,000 amount is to be distributed over three years – $100,000 (Year 1); $145,000 (Year 2); and $145,000 (Year 3).

The maximum amount that can be awarded to a project under the DDA grant policy – adopted by the DDA board at its June 2, 2014 meeting – is 25% of the tax increment capture due to the project that the DDA receives for the first 10 years after the project is built. That amount is about $390,000, according to First Martin Corp. based on an annual figure of $156,515. But the DDA’s resolution indicates the figure has not yet been verified by the city assessor. Grants are not awarded until after the taxes are paid.

Grants: First Martin Hotel Project – Board Discussion

Mouat reported that the partnerships committee had focused on two factors in considering the grant. The first was whether this was an area where the DDA would like to promote development. The committee felt that the area had been lacking, so the project met that criteria, he said. The second factor was whether the grant would result in benefits for the community, he said, such as opportunities for other sites to be developed, or for the street to be improved. It met that criteria, too, he said.

Mike Martin of First Martin Corp.

The public benefits are the new 12-inch water main on Ashley, sidewalk enhancements on Ashley, and right-of-way landscape maintenance for 20 years. Mouat said the bulk of the grant – $340,000 for the water main – isn’t very sexy, but it would help future development in that block.

Regarding the landscape maintenance contract, Mouat said that street trees in Ann Arbor suffer. They aren’t always cared for, and sometimes they die and are unsightly, he said. So the owners of the site will be responsible for those trees and landscape features. Mouat hoped it would serve as a nice precedent for projects in the future.

Board chair Sandi Smith invited First Martin’s Mike Martin and Darren McKinnon to the podium. Martin described the location where improvements are proposed along the street and alley. He highlighted the minimum amount of work that would have been required, compared to what First Martin is actually doing.

Roger Hewitt agreed that the water main and sidewalk improvements are clear public benefits. He expressed caution about the right-of-way landscape maintenance commitment. In this case, he said, he had no concern – because First Martin has a superb reputation for maintaining its properties. But for future grants, unless the DDA has a way to monitor and enforce the agreement, he would be less interested in doing it.

Martin replied that it’s his understanding that there would be an agreement to cover those details and allay Hewitt’s concerns. Hewitt again stressed that he wasn’t worried about First Martin, but “I just don’t know if other developers will be as conscientious.” Smith said she assumed there’d be a remedy for default, if the developer didn’t follow through on maintenance.

Steve Powers said it was a great example of the DDA being part of a public/private partnership that will help improve downtown. He assumed that the partnerships committee was satisfied that the grant meets the criteria that the DDA spent several months developing.

Smith passed out copies of the grant policy. It states that the project should address significant elements of these 12 criteria:

1. Addresses a documented gap in the marketplace or underserved markets of commerce within this sector of downtown.

2. Demonstrated that the project will act as a catalyst for additional revitalization of the area in which it is located which will trigger the creation of additional new tax revenue.

3. Is “connected” to the adjacent sidewalk with uses on the first floor that are showcased using large transparent windows and doorways to give pedestrians a point of interest to look at as they walk by the project.

4. Creates a large office floor plate.

5. Will facilitate the creation of a large number of new permanent jobs.

6. Is a mixed use development, that will encourage activity in the daytime, evening, and weekend, such as a development with a mix of commercial and residential.

7. Adds to downtown’s residential density.

8. Reuses vacant buildings, reuses historical buildings, and/or redevelops blighted property.

9. Number of affordable housing units created on site or funded by the project elsewhere in the community, which are beyond what is required by the City.

10. Environmental design is at or above a Gold LEED certification, or an equivalent environmental assessment.

11. Architecturally significant building or project design.

12. Strengthens Ann Arbor’s national visibility.

Smith said she wanted to review the grant process at the partnerships committee’s July 9 meeting, to make sure everyone is comfortable with it after this first grant has been awarded using the new policy. They wouldn’t change the grant itself, she noted, but they might recommend tweaks to the guidelines.

Bob Guenzel and Keith Orr also supported the grant, saying it benefited that area and the entire downtown. Orr said he was thrilled that the DDA is again awarding partnership grants, saying it’s what the DDA’s mission is about, especially related to infrastructure.

Mouat noted that the project meets all the elements outlined for eligible improvements in the grant policy. The policy states:

To be eligible, the public improvements should include elements that extend beyond the public ROW directly adjacent to the site; this may include streetscape enhancements (and on-going maintenance), street and crosswalk resurfacing, crosswalk and bike lane pavement marking upgrades, innovative public stormwater treatments, and upsizing water, storm or sewer mains. Inclusion of any of the above elements may then allow site adjacent public improvements to be eligible as well.

Mouat also highlighted the fact that the project met 8 out of the 12 elements mentioned in the policy, which he called “quite extraordinary.” Smith said there were two additional elements – adding to the downtown’s residential density, and strengthening Ann Arbor’s national visibility – that could have easily been considered as benefits that the project brought. The partnerships committee discussed whether having a national hotel chain located downtown raises the city’s visibility, she said. The hotel will be operated by Marriott.

Martin reported that a lot of people locally are excited about the project. Raising the site’s visibility within the community isn’t part of the DDA’s list, he said, but people locally are excited about having another hotel option for out-of-town guests.

Outcome: On a 9-0 vote, the board awarded the grant to First Martin’s hotel project. Al McWilliams abstained on the vote, but did not indicate why. Russ Collins and Cyndi Clark were absent.

Funds for Sidewalks, Trees

The July 2 agenda included a resolution to establish a project budget of $100,000 for tree maintenance and sidewalk repairs in downtown Ann Arbor in fiscal 2015. The item was introduced by Roger Hewitt, and had been recommended by the DDA’s operations committee.

This list of DDA board priorities is now posted on the boardroom wall.

The work will include repairs like displaced bricks and uneven sidewalk flags, as well as pruning of trees. The money to pay for the work will be drawn from tax increment finance (TIF) revenue, which the DDA is authorized to capture under state statue.

Hewitt noted that traditionally, the DDA has done sidewalk maintenance – things like repairing cracks and replacing slabs. There are numerous trip hazards and other minor maintenance issues for the sidewalks, especially after such a harsh winter, he said. Many of the thousand or so trees downtown are not in good shape, he added, and haven’t been pruned in many years. Some trees are dead and need to be replaced.

There’s money set aside in the DDA’s FY 2015 budget for sidewalk work, Hewitt noted. This $100,000 would be specifically designated for sidewalk repairs and tree maintenance or replacement.

Sandi Smith pointed out that a list of projects generated from DDA board retreats is posted on the boardroom wall, to remind them about their priorities. She said the resolution clearly aligns with some of the priorities that the DDA board has identified.

Al McWilliams stressed that by doing the work now, it will save money in the future – because the problems will only get worse if left unaddressed.

John Mouat asked whether the board could consider approving a budget for a three-year period – $100,000 for each year. Hewitt said the intention is that the DDA will spend at least this much every year. But since they haven’t approved the budgets beyond fiscal 2015, it’s better just to designate the amount for this year. He noted that in the somewhat distant past, the DDA budget had a separate fund for this kind of work, but eliminated it because it was cumbersome from a reporting standpoint, he said.

Mouat observed that one-year timeframes are tight, if the DDA is coordinating with the city for this kind of work. Hewitt again stated that it was the intent to spend money on this kind of thing in the future, and that the $100,000 for FY 2015 wouldn’t address all the problems, because maintenance has been deferred for years. “This will be a first step,” he said.

Outcome: The board vote was unanimous in support of the allocation.

Executive Director Raise

The July 2 agenda included a closed session for “a periodic personnel evaluation.” The agenda also included a resolution regarding compensation for the DDA executive director, Susan Pollay. The resolution for a salary adjustment was drafted prior to the closed session, and included this whereas clause: “Whereas, The DDA Executive Committee recommends that Ms. Pollay be provided with a salary adjustment beginning July 1, 2014 to increase her salary from $109,119 to $XXX,XXX; …”

The executive committee members are Sandi Smith (chair), John Mouat (vice chair), Keith Orr (secretary) and Roger Hewitt (treasurer). Pollay serves as a non-voting ex officio member.

Susan Pollay, Mike Martin, Darren McKinnon

Before going into closed session, board member Keith Orr noted that a closed session isn’t required unless the person being reviewed requests it. He said the review was being conducted in closed session at Pollay’s request. The closed session was held in Pollay’s office.

The board emerged after about 15 minutes and Roger Hewitt brought forward the resolution for her salary adjustment. Board chair Sandi Smith said the evaluation of Pollay was extremely positive, saying that Pollay worked well with board members, general community entities, and is “a wonderful ambassador for the city.”

Hewitt noted that Pollay’s current salary is $109,119. He said she had received “good raises” in each of the last two years. However, she did not take a raise during the six years before that, he added, and that had been at her request because of the difficult economy. Hewitt said her eight-year average raise comes out to about 1.9% annually, which he said is below the rate of inflation. “It’s actually a losing position versus the cost of living,” he said.

Pollay is a Level 2 in the city’s pay range, Hewitt reported, which has a salary range from $95,000 to $157,000. The midpoint is $126,000 annually, he noted. Given her evaluations, he added, Pollay should be receiving a salary that’s closer to the midpoint.

However, even though Ann Arbor is doing well, the state is still not doing very well, Hewitt said. So he suggested giving her a 5% raise, which would be about $5,456 – bringing her total salary to $114,570. About half of the raise would cover cost of living increases, he said, and the other half would be to move her more toward the midpoint of the Level 2 pay range.

Board chair Sandi Smith said she hoped that future executive committee members would keep that record in mind when they evaluate Pollay’s salary in the coming years, saying there’s some “make up” that needs to happen.

Bob Guenzel asked if there was any consideration given to doing a longer-term look at her salary, for the next two or three years. Hewitt replied that the executive committee didn’t discuss it, but “the intention is that there will be continued raises above the cost of living to bring her up to a level that is appropriate for her responsibilities.” Guenzel said it would be nice to see Pollay reach the midpoint. Hewitt replied that the intention is to bring her up to that midpoint salary of $126,000 “within a fairly short time period.”

From left: DDA board members Steve Powers and Rishi Narayan.

Steve Powers said he would not support a 5% raise. He understood the reasons given for it. He thought the movement of Pollay’s salary to a midpoint level, which is being tied to her performance, needs to be part of a more robust evaluation process. Also, according to a University of Michigan economic report, he noted, inflation has been between 1.7% to 1.9%. Powers said he was more comfortable with a 3% raise.

Smith replied that Pollay hadn’t received a raise in 8 of the past 10 years, “and I think there’s some opportunity for some catch-up.” She characterized a 5% raise as “extremely modest.”

Al McWilliams asked Powers if there were precedent for this raise compared to other positions within the city. Powers replied that the management employees of the city received a 3% increase this year. Last year they also got 3%. Prior to that there’d been a one-time adjustment, he said, and salary freezes during the recession.

The resolution regarding the increase states that “a number of important DDA projects were undertaken in FY 2014 under Ms. Pollay’s leadership, including opening the new First and Washington parking structure, creating a Street Framework planning initiative in partnership with the City, and working with the City Council to approve amendments to the DDA ordinance.”

The resolution also states that board members provided reviews of Pollay’s work in FY 2014, and the reviews “noted how effectively she works with the DDA Board to support board member involvement and effectiveness, how effectively DDA programs and projects are managed, and that Ms. Pollay serves as a vital resource for downtown stakeholders, and the community at large…”

Pollay has served as the DDA’s executive director since 1996.

Outcome: On a 9-1 vote, the board approved a 5% increase to Pollay’s salary, over dissent from Steve Powers. Russ Collins and Cyndi Clark were absent.

Annual Meeting

Immediately after its regular monthly meeting on July 2, the DDA board held its annual meeting to elect officers and form committees.

Annual Meeting: Election of Officers

John Mouat was nominated to serve as chair of the board for the coming fiscal year, which began on July 1, 2014. The nomination of Mouat as chair was made in accordance with the custom of the DDA board over the last several years – to elect the vice chair from the preceding year as chair. Mouat is a partner in the downtown firm of Mitchell & Mouat Architects.

Mouat’s term on the DDA board runs through Sept. 6, 2015. He was first appointed in 2007.

Other officers nominated by the board included Roger Hewitt as vice chair, Rishi Narayan as treasurer, and Keith Orr as secretary. Outgoing chair Sandi Smith was thanked for her service. She presided over the annual meeting until the end, as Mouat’s term began at the conclusion of the meeting.

There were no competing nominations.

Outcome: All officers were elected unanimously.

The executive committee consists of these four officers: chair, vice chair, treasurer and secretary. They serve in those positions for one-year terms. Given the custom of the board, Hewitt is now in a position to become the next chair. He has served on the DDA board since 2004 and his current term runs through Aug. 19, 2016. He owns two businesses in downtown Ann Arbor – Red Hawk restaurant, and Revive + Replenish shop.

Annual Meeting: Committee Structure

In other business at the annual meeting, the board discussed what committees it wanted to create or continue in the coming year.

The board’s bylaws state that committees can be created to advise the board. From the bylaws:

Committee members shall be members of the Board, any board member may serve on any committee of the Board. The Chair of the Board shall appoint the members and select the chair of the Board committees and will solicit volunteers to chair the standing committees. The committees may be terminated by vote of the Board. At the annual meeting, the committees will be evaluated and reappointed or dissolved.

Sandi Smith noted that for the last several years, all members of the board served on every committee. That way, she said, everyone got the meeting notices and packets. “I don’t know whether that’s a good practice or a bad practice, but it’s time that we bring that forward,” she said. Smith added that she believed she got the opportunity to appoint the committee chairs, as board chair.

The two existing committees were (1) partnerships/economic development/communications, and (2) operations. The partnerships committee includes a subcommittee on marketing. The board first considered whether to dissolve these committees.

Annual Meeting: Committee Structure – Partnerships, Marketing

Keith Orr advocated for keeping the partnerships/economic development/communications committee as is, with its marketing subcommittee working as needed. He didn’t think there needed to be a separate marketing committee.

Al McWilliams said he tended to agree with Orr. While marketing and communications activity is “picking up steam,” he didn’t think it was mature enough yet to need its own full committee.

The Ann Arbor DDA board.

Rishi Narayan pointed out that the partnerships meetings are getting unwieldy, so it might be better to pull out marketing and communications. If it turns out that a separate marketing/communications committee eventually isn’t needed, the board could dissolve it, he noted. This would allow there to be two separate meetings, each one shorter than the current combined committee.

Orr advocated for keeping it unchanged, and noted that the board can create a separate marketing committee during the year, if they feel they need it.

Joan Lowenstein agreed with Orr, saying she didn’t think the partnerships meeting was unwieldy. She noted that the board members are volunteers, and creating new committees requires yet another block of time to devote to the work. She thought it worked better for people’s schedules to consolidate as much as possible.

McWilliams then suggested creating separate committees, but holding back-to-back meetings.

Narayan said that in the future, if there’s a staff member focused on marketing and communications, “this area might become more fleshed out very quickly.” He noted that there’s been talk about hiring another employee for that purpose in the future, although he characterized that possibility as a “fantasy” at this point.

Smith picked up on McWilliams’ suggestion – having the partnerships meeting run from 11 a.m. to 12:30 p.m., then a marketing committee could meet as needed at 12:30 p.m. People attending the partnerships meeting could stay for marketing if they’re interested, she said.

Mouat encouraged board members to arrive at committee meetings on time, saying it would help save time and make the meetings more efficient.

Steve Powers asked that the DDA board chair or executive director remind the partnerships committee members who represent other taxing jurisdictions about the purpose of the committee and the changes that are being made, “so that their expectations are in line with the DDA board’s expectations for that committee.”

Smith said it sounded like there was consensus for a new marketing committee. She asked that McWilliams serve as chair. She asked anyone who was interested in serving on the committee to raise their hand. She, McWilliams and Narayan raised their hands.

At this point, DDA executive director Susan Pollay asked whether the board was going to vote to dissolve the existing partnerships/economic development/communications committee, and vote to create the marketing committee.

Orr repeated his preference to keep the current committee structure.

Outcome: The board voted to dissolve the partnerships/economic development/communications committee.

Roger Hewitt then moved to create a partnerships committee and a marketing committee. As a friendly amendment, Keith Orr suggested that the partnerships committee be named partnerships/economic development.

Outcome: The board voted to create a partnerships/economic development committee and a marketing committee.

Sandi Smith asked Joan Lowenstein and Al McWilliams to serve as co-chairs of the partnerships/economic development committee. Other board members who volunteered to serve on the committee are Bob Guenzel, John Mouat, Rishi Narayan, Keith Orr, Sandi Smith, John Splitt.

Smith noted that “committee participants” of the partnerships/economic development committee are: Ken Clein (city planning commission); Jane Lumm and Margie Teall (Ann Arbor city council); Charles Griffith (Ann Arbor Area Transportation Authority); and Jason Morgan (Washtenaw Community College). Based on an emailed response to a Chronicle query to Pollay, the DDA’s position appears to be that historically, membership on the partnerships committee was always restricted to DDA board members – because it has been a “board committee” under the DDA bylaws.

By way of background, however, the DDA bylaws provide for a second committee type – “advisory committees” – that do not have a requirement that members be DDA board members. It’s been assumed by at least some city councilmembers that those who are now being described as “committee participants” have been actual “members” of the partnerships committee and that the partnerships committee has been an “advisory committee” under the bylaws. To the extent that the DDA board committees function without taking formal votes or observing rules on quorum, the issue of committee membership as compared to “participation” could be considered moot.

At the July 2 meeting, Smith added that there was an “ongoing invitation” for representatives from Washtenaw County government and the Ann Arbor District Library to participate. “They know that they’ve been invited to come and share during the update time” during the partnerships meetings, she said.

By way of background, the DDA captures taxes from the following jurisdictions that collect taxes in the DDA district: the city of Ann Arbor, Washtenaw County, Washtenaw Community College, the Ann Arbor Area Transportation Authority, and the Ann Arbor District Library. The partnerships committee includes representatives from each of those entities, with the exception of the AADL and Washtenaw County. Until last year, county commissioner Leah Gunn was a DDA board member and served on the partnerships committee. Former county administrator Bob Guenzel is on the DDA board and the partnerships committee.

When queried by The Chronicle via email, AADL director Josie Parker stated that she hadn’t been formally invited to join the committee. She said she did participate on the partnerships committee several years ago, but hasn’t been part of it at all in the last few years. That was her choice, she said.

Annual Meeting: Committee Structure – Operations, Finance

Roger Hewitt noted that the DDA has a budget of about $24 million. During the operations committee meetings, there’s a lot going on, he said, and the financial piece tends to not get the attention that it needs, given the size of the budget. Having a separate committee that focuses strictly on the financial aspects of the organization would be beneficial, he said.

DDA board members Roger Hewitt and John Splitt.

So Hewitt preferred two separate committees. He suggested that operations could continue to meet at 11 a.m., then would break for lunch and continue with a meeting of the finance committee. Anyone who’s on operations could attend the finance committee meeting, he said, but it would focus in more detail on the organization’s financial records and reports.

Keith Orr said he thought it made sense to have separate committees for operations and finance. Finance is an important enough subject to warrant its own committee, especially as the DDA’s budget continues to grow, he said. It’s important to develop people on the DDA board who are comfortable with the financial oversight role – especially since there are now term limits, he said. [The city council voted last year to impose a limit of three terms for DDA board members, which amount to 12 years.]

Hewitt then brought forward one resolution to: (1) dissolve the existing operations committee, and (2) form two new committees: the finance committee, and the operations (parking/transportation/construction) committee.

Outcome: The resolution passed unanimously.

Smith appointed the new board treasurer, Rishi Narayan, as chair of the finance committee. Other board members who volunteered for the committee were Bob Guenzel, Roger Hewitt, John Splitt and Keith Orr.

Smith then appointed John Splitt as chair of the operations committee. Other board members who volunteered to serve on the operations committee are Bob Guenzel, Roger Hewitt, Joan Lowenstein, Rishi Narayan, Keith Orr.

Annual Meeting: Committee Structure – Executive

Sandi Smith noted that the executive committee consists of the board officers: chair John Mouat, vice chair Roger Hewitt, secretary Keith Orr, and treasurer Rishi Narayan. Smith, as the most recent former board chair, is a non-voting member. The DDA’s executive director, Susan Pollay, is a non-voting ex officio member.

Annual Meeting: Committee Structure – Membership

Committee membership was determined by board members volunteering for the committees on which they wanted to serve. The committee chairs were appointed by outgoing DDA board chair Sandi Smith. The four new committees have the following membership:

• Marketing committee: Al McWilliams (chair), Rishi Narayan and Sandi Smith.
• Partnerships/economic development committee: Joan Lowenstein and Al McWilliams (co-chairs), Bob Guenzel, John Mouat, Rishi Narayan, Keith Orr, Sandi Smith, John Splitt. Listed as “committee participants” of the partnerships/economic development committee on the agenda are: Ken Clein (city planning commission); Jane Lumm and Margie Teall (Ann Arbor city council); Charles Griffith (Ann Arbor Area Transportation Authority); and Jason Morgan (Washtenaw Community College).
• Finance committee: Rishi Narayan (chair), Bob Guenzel, Roger Hewitt, John Splitt and Keith Orr.
• Operations (parking/transportation/construction) committee: John Splitt (chair), Bob Guenzel, Roger Hewitt, Joan Lowenstein, Rishi Narayan, Keith Orr.

Two board members – Cyndi Clark and Russ Collins – were absent, and will likely be joining one or more of the committees.

Steve Powers noted that he hadn’t volunteered for any of the committees, but he’d try to attend meetings if assistance is needed. He encouraged the committee members to make sure that the purpose of the committees is clearly understood by committee members, staff and the public. It’s important to be aligned regarding the role of the committees, he said, and to maintain the positive relationship between the DDA board, staff, and the other jurisdictions.

Smith agreed, saying that in September each committee should kick off their meeting with a re-introduction of members, and a discussion of purpose.

Powers said he appreciated that the board priorities were posted on the DDA boardroom wall, saying that it’s a powerful reminder about why the DDA is here and what they’re focusing on. He suggested doing something similar for the committees. Smith joked that “it’s easy to be swayed by shiny objects.”

Annual Meeting: Committee Structure – Coda, Future Meetings

The board discussed the possibility of canceling its committee meetings for July. Roger Hewitt indicated a possible need to meet to discuss renovations at the Fourth & William parking structure, but that might be handled by a subcommittee. Sandi Smith wanted to have a partnerships meeting in July but not August. She wanted to evaluate the partnerships grant policy, after awarding its first grant under the new policy. She thought the committee should review the policy while the action was still fresh, rather than waiting until August or September.

After further discussion, the board decided to leave the July committee meetings in place.

According to the DDA’s website, upcoming committee meetings will take place at the DDA offices, 150 S. Fifth, Suite 301:

• Partnerships & Economic Development: Wednesday, July 9 at 9 a.m.
• Marketing: Wednesday, July 9 at 10:30 a.m.
• Operations: Wednesday, July 9 at 1 p.m. and Wednesday, July 30 at 11 a.m.
• Finance: Wednesday, July 30 at 12:30 p.m.

In addition, the board has scheduled a meeting on Wednesday, July 9 at 11:30 a.m. to discuss the design of the Fourth & William stair tower & elevator tower. All committee meetings are open to the public.

Communications, Committee Reports

The board’s July 2 meeting included the usual range of reports from its standing committees and the downtown citizens advisory council, as well as public commentary. Here are some highlights.

Comm/Comm: Downtown Area Citizens Advisory Council

Reporting out from the downtown area citizens advisory council, Ray Detter said the group recently welcomed two potential new members who live and work downtown. He said the advisory council would welcome the participation of others who live or work in the downtown area and who are interested in shaping developments downtown. There are three more membership openings. The group meets on the first Tuesday of every month except August at 7 p.m. in city hall.

He noted that by next fall, new developments will open that bring hundreds of residential units to the downtown, and “amazingly, our group is in full support of most of them.” Those developments that avoid having a negative impact are being undertaken by local developers, he noted.

But most of the advisory council’s July 1 meeting had been focused on the future of the Library Lane site, Detter reported, where a current surface parking lot is located atop the underground parking structure there. He noted that the city council provided direction to the city administrator to hire a broker to explore selling the development rights for that site, while reserving a portion of the property for a downtown park.

Members of the advisory council strongly support a significantly sized public plaza on the Fifth Avenue side of that location, Detter said. They also support pedestrian walkways to Liberty Plaza, and believe that all future development should take into consideration the needs of the Ann Arbor District Library and possible connections to the Blake Transit Center as well as nearby historic properties, and businesses. They encourage the possibility of a new tax-generating private or public development on the major part of that Library Lane property, he said.

Detter noted that the issue of improving Liberty Plaza has apparently been moved to the city’s park advisory commission. He said most of the citizens advisory council believe that changes to Liberty Plaza should be part of a larger plan for the entire block. The city about a decade ago spent $250,000 on redesigning Liberty Plaza – with $50,000 from the city’s parks department, and the rest provided by the DDA, he said. It’s a beautiful park, Detter added, and he hoped it would be part of a larger plan for the block.

Comm/Comm: Streetscape Framework Project

John Mouat noted that there was no agenda item for an update on the DDA’s streetscape framework project. He asked Amber Miller, the DDA’s planning and research specialist, to provide an update.

Miller said the staff and consultants had done some on-the-ground outreach, getting feedback from people who were using the streets downtown. They heard from over 200 people and got a lot of good feedback. She said they’ve also pulled in an “economics team” that focuses on retail and ground-floor uses, to make sure that any streetscape improvements would benefit those active uses. That team made its visit on July 1 and July 2, she said, meeting with some DDA board members and walking around the downtown district. More information would be provided at the project’s next advisory committee meeting, Miller said.

The next advisory committee meeting is Tuesday, July 8 at 9 a.m. at the DDA’s office, 150 S. Fifth, Suite 301. The meeting is open to the public.

By way of background, at its Nov. 6, 2013 meeting, the DDA board authorized the consulting contract SmithGroupJJR and Nelson\Nygaard to manage the project. According to the project’s website, a “comprehensive set of design, construction, and maintenance standards can enhance and maintain the high quality experience provided by some streets and improve the identity and functionality of others. A framework plan will be a tool to ensure downtown streets provide a high quality of place for all users, while also meeting broader community goals.”

Feedback is also being collected via an online survey and a wiki mapping tool.

Comm/Comm: Connector Study

Roger Hewitt reported on the status of the connector study. [By way of background, an alternatives analysis is currently being conducted by the Ann Arbor Area Transportation Authority for the corridor running from US-23 and Plymouth southward along Plymouth to State Street, then further south to I-94. The alternatives analysis phase will result in a preferred choice of transit mode (e.g., bus rapid transit, light rail, etc.) and identification of stations and stops.]

The technical oversight committee met last week, Hewitt said, and are very close to wrapping up its preliminary conclusions. A public meeting is planned for Sept. 17, he reported. That will take place in the evening at the Ann Arbor District Library to bring the public up to date, with two sessions – at 4 p.m. and 6:30 p.m.

Hewitt described it as a long and arduous process, going through reams of data. They’re close to making recommendations, depending on public input, he said.

Comm/Comm: WALLY

Roger Hewitt also gave an update on the federally funded study regarding a railroad station for a north/south commuter rail running between Ann Arbor and Howell. [The project is known as WALLY – the Washtenaw and Livingston Line.]

View looking south toward Liberty along the railroad tracks between Washington and Liberty. If the commuter rail project known as WALLY moves forward, a proposed train stop might be located here, in the railroad right-of-way east of the tracks – on the left side of this photo.

Hewitt said this service is probably a significant way off from being offered, but there had been funding for a study to recommend station locations. The consultants evaluated “every possible location” between North Main Street south to where Fingerle Lumber is located, he said.

The final site recommendation for a stop is for the east side of the railroad tracks between Liberty and Washington streets, Hewitt reported – opposite of where the former city maintenance yard was located [at 415 W. Washington]. He said it wouldn’t be a full station – it would simply be a platform with canopies and a ramp to Washington Street to the north and a sidewalk connection to the south onto Liberty.

The stop would be built entirely within the railroad right-of-way, he explained – there would be no taking of public or private property.

Hewitt said he’d like to make a short formal presentation about the recommendation at a future DDA board meeting.

Comm/Comm: Communications & Marketing

Rishi Narayan reported that the marketing/communications subcommittee was still collecting data to determine what the DDA’s place might be in marketing the downtown. Traditionally, marketing hasn’t been part of the DDA’s role, he noted, so if they decide to do it, they need to make sure it’s efficient in time, money and staff energy.

Narayan said they’re working with a company, at no cost to the DDA, to develop a plan that would give the DDA some macro-economic data. They’ve also started talking with Republic Parking, which oversees the city’s parking system under contract with the DDA, to see if there’s a way to extract information from Republic’s data.

Because the art fairs are approaching, people don’t have a lot of time to talk about this, Narayan noted. He hoped to come back with recommendations in the coming months. It might mean partnering with the downtown area associations and the Ann Arbor Convention and Visitors Bureau to do more, such as grants for events.

Al McWilliams noted that the CVB is doing data collection during the art fairs, to show what the impact of those events are. The CVB will be sharing that data with the DDA.

Comm/Comm: Fourth & William Renovations

John Splitt reported that the subcommittee for renovations at the Fourth & William parking structure had met with the design team. Construction drawings for the elevator and stair tower are moving forward. By way of background, the board had approved the $5 million project budget at its May 2, 2014 meeting, with Carl Walker Inc. handling the design.

Image from preliminary drawings by the Carl Walker Inc. design team for renovated southwest elevator and stair tower for the Fourth & William parking structure.

The subcommittee is still fleshing out general concepts about the rest of the potential build-out along Fourth and Williams, Splitt said. They want to be as flexible as possible, and would like to see wheelchair access, awnings and ways to break up the horizontal surfaces. Architect Carl Luckenbach has come up with some different concepts that the subcommittee is considering.

They haven’t decided where bathrooms might be installed, and aren’t certain how much space they can build out without triggering city code issues for ventilation and fire suppression, Splitt reported. The subcommittee is meeting with the design team again in the next week, and might emerge with answers to some of these questions.

John Mouat said they’d be reaching out to “our realtor friends” to get advice about what the “white box” might be for this build-out, to make sure that it’s viable for potential tenants.

Roger Hewitt reported that the subcommittee already had one meeting with real estate professionals. The feedback was that there’s big demand for business incubator start-up space, he said.

Keith Orr told the board that construction of the Greyhound ticket office at the Fourth & William structure is underway, and the bus company will be relocating there next week – ahead of schedule. The office was previously located at the site on West Huron where First Martin is now constructing an extended-stay hotel.

Comm/Comm: Ambassadors

Reporting out from the operations committee, Roger Hewitt noted that a meeting had been held with several representatives of local social service agencies, as well as Ann Arbor police chief John Seto and Mary Kerr from the Ann Arbor Convention & Visitors Bureau. They discussed how an ambassador program might be integrated into existing efforts, and complement those efforts.

Now they’re trying to figure out how to frame an RFP (request for proposals), Hewitt said. They’d like to bring the two potential providers here for interviews, he added. A meeting is set for Wednesday, July 9 at 1 p.m. to discuss exactly how to structure the interview process.

Hewitt expected to set up interviews sometime before the end of this summer.

Comm/Comm: Parking Update

Roger Hewitt said there was nothing new to report, other than the monthly permit data that was provided in the board packet.

Comm/Comm: City Updates

City administrator Steve Powers gave a couple of updates that related to the DDA district. The city council, as part of its approval of the fiscal 2015 budget, has authorized hiring three new police officers. Two of the three positions will be community engagement officers who’ll be starting by the end of July, he said. Downtown will be a priority area for their work over the summer.

Sandi Smith asked Powers to elaborate on the nature of the community engagement work. Powers described it as an initiative that police chief John Seto has been advocating since he took that position. Currently there is one officer doing community engagement – Sgt. Tom Hickey. The additional officers will help Hickey engage with three areas of emphasis: downtown businesses, neighborhoods and public schools. Their work will contrast with patrol activity or calls for service, Powers said, in that they’ll be more pro-active.

Powers also noted that during this year’s art fairs, the city’s police, fire and emergency management staff will be using Liberty Plaza – on the southwest corner of Liberty and Division – as staging area and a cooling station for the public. There will be misting and water available, as well as shade, he said. Red Cross will be participating, as will the city’s volunteer community emergency response team (CERT).

Comm/Comm: Real-Time Parking Data

During public commentary, Ed Vielmetti noted that in 2009, he’d approached the board with ideas and a prototype of a system to monitor and provide real-time information about the city parking system. At the time, the DDA board was not interested in supporting it, he said, and the DDA removed access to the real-time information. He said he’s recently spoken to staff at Republic Parking, which manages the city’s parking system under contract with the DDA, and showed them some prototypes. They’d been receptive to some of the ideas, he said, but had made it clear that a good first step would be to talk with the DDA board.

Vielmetti said his system could provide real-time alerts when parking structures are full, for example, among other features. He said he’s built all of this on his own, mostly as a demonstration project. He’d be happy to share the results of the prototype with board members. He’s doing a similar project for a solar energy-monitoring system.

Sandi Smith suggested that Vielmetti talk with DDA executive director Susan Pollay, as well as the board’s operations committee.

Comm/Comm: TiniLite

Changmin Fan introduced himself as the owner of TiniLite World. He said the company is registered in Ann Arbor, and he has a factory in China that’s building a prototype. He’d like to manufacture the product here, however. He said all four mayoral candidates are great, but noted that Sally Petersen has pointed out the city’s economic development needs. The economic ecosystem isn’t very good for him, Fan said. Small businesses and people – not just the University of Michigan – are the engine for economic development in this city. Communications are also important, he added, and there needs to be smart signs on the street. The DDA can take a leadership position on this, he concluded.

Comm/Comm: BTC Open House

Nancy Shore, director of the getDowntown program, invited board members to the Blake Transit Center grand opening on Monday, July 7 at 10 a.m. There will be tours, food and “dignitaries aplenty,” she said. The getDowntown office is located on the second floor, and she urged them to drop by.

Shore also reported that there is a community space within that facility where meetings can take place. It might be a nice location for a retreat, she said.

The Blake Transit Center is the downtown hub for the Ann Arbor Area Transportation Authority. It’s located north of William Street between Fourth and Fifth avenues.

Comm/Comm: Bill’s Beer Garden

Board chair Sandi Smith noted that the DDA board would be gathering that night at Bill’s Beer Garden at 6 p.m. She joked that the purpose was “to have some very serious discussions about Original Gravity, IBUs and things like that.” She said it would be open to the public, and is a celebration of hard work by a lot of volunteers.

Comm/Comm: Staff Thank You to Board Members

At the end of the annual meeting, executive director Susan Pollay made a presentation to the board, saying it was the staff’s chance to thank the board. DDA board members are volunteers, she said. “I don’t know that that’s widely understood out in the community.” She thanked the board for their service.

Pollay also said that it’s a tradition for the staff to present a small gift to the outgoing board chair. This year, the gift was inspired by a trip to New York, she said. “It was a wonderful moment for many of us to actually be in one of the most fabulous cities in the world.” [The trip was for the International Downtown Association conference in October 2013.] The gift comes from Selo/Shevel Gallery on Main Street in Ann Arbor, which closed earlier this year. It’s a pin that evokes a cityscape of tall buildings, Pollay said.

Smith received a round of applause from staff and the board.

Present: Al McWilliams, Bob Guenzel, Roger Hewitt, Steve Powers, John Splitt, Sandi Smith, Rishi Narayan, Keith Orr, Joan Lowenstein, John Mouat.

Absent: Russ Collins, Cyndi Clark.

Next board meeting: The board does not meet in August. The next board meeting is at noon on Wednesday, Sept. 3, 2014, at the DDA offices, 150 S. Fifth Ave., Suite 301. [Check Chronicle event listings to confirm date.]

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This is another edition of the go!pass, subsidized by the Ann Arbor Downtown Development Authority. A swipe through the fare box of an AAATA bus lets its holder ride AAATA buses an unlimited number of times.

Their fares will be paid by the Ann Arbor Downtown Development Authority – out of $674,264 that the DDA board has authorized to support the Ann Arbor Area Transportation Authority’s getDowntown program.

That amount includes operational and administrative overhead as well as reimbursements for fares. DDA board action came at its April 2, 2014 meeting. DDA board member Al McWilliams abstained from the vote, noting that getDowntown is a client of his marketing firm, Quack!Media.

The DDA has funded the program for more than a decade.

Under the rules of the program, a business or organization located within the DDA’s tax capture district can purchase bus passes for its employees for a nominal $10 apiece.

However, an “all-in” rule of the program requires that passes must be purchased for all employees, whether the passes will be used by every employee or not.

The DDA reimburses the AAATA based on the actual use of go!passes, which has shown steady increases over the last 10 years:

Fixed-route AAATA ridership by year for rides taken under the getDowntown go!pass program (red). (Data from AAATA, charted by The Chronicle.)

As a fraction of total rides taken on the AAATA, go!pass rides account for about 10%. The amount reimbursed by the DDA per go!pass use is $0.90. A “use” is a boarding of a bus, not a “connected trip.”

If a go!pass holder has a commute that involves a transfer from one bus route to another, then commuting both ways to work – which would count as just two connected trips – would generate a total of four boardings. The $0.90 go!pass cost per boarding is based on the number of boardings an average holder of the AAATA’s 30-day pass makes – divided into the cost for such a pass. A 30-day pass, with unlimited boardings, is available to anyone and costs $58. A holder of a 30-day pass who commutes both ways to work five days a week, using routes that require a transfer, would effectively be paying $0.64 per boarding [58/(22.667*4)]. Transfers don’t cost any extra on the AAATA system – so compared to the $1.50 full fare, such a rider would be paying $1.30 per trip.

A breakdown of the specific costs the DDA board agreed to fund in its April 2 action includes the following, which amounts to $674,264 for FY 2015, compared to $610,662 in FY 2014. The amounts allocated last year for each item are indicated in square brackets. Descriptions are summarized from getDowntown descriptions.

• getDowntown: [$40,488] $40,000. Support for programs, services, outreach and marketing to encourage downtown employers/employees to use transportation alternatives. 2015 Survey of Decision Makers and Employers.
• go!pass: [$479,000] $529,000. Transit incentive for employees. Cost increase due to estimated 5% increase in ridership over FY 2014. Reimbursement is $.90 per ride.
• NightRide improvements and go!pass discount: [$18,233] $20,500. For evening employees who depend on transit to get to work. Increase in amount reflects an increased demand for service and increase in ridership.
• Route #4 Washtenaw enhanced service: [$56,363] $57,772. Bus route with highest downtown employee ridership. The increase reflects a 2.5% cost of living increase due to increase in diesel fuel cost and operator wages.
• Route #5 Packard enhanced service: [$16,578] $16,992. Route used by significant numbers of downtown employees. The increase reflects a 2.5% cost of living increase due to increase in diesel fuel cost and operator wages.
• ExpressRide go!pass discount: [$0] $10,000. Service from Canton and Chelsea to Ann Arbor.

This brief was filed from the DDA offices at 150 S. Fifth Ave., where the DDA board holds its meetings. A more detailed report of the meeting will follow: [link]

Baker Commons is a 64-unit building located at the southeast corner of Packard and Main, within the DDA district. Miller Manor is a 103-unit building on Miller Avenue outside the DDA district, but within a quarter-mile of the district boundary. That conforms with the DDA’s policy on use of its tax increment finance (TIF) funds for housing.

The $600,000 – which is to be paid in three $200,000 annual installments starting this year – was approved at the DDA board’s April 2, 2014 meeting. The grant will support planned capital improvements at the two public housing facilities. [.pdf of Baker Commons plan] [.pdf of Miller Manor plan] DDA board member John Mouat abstained from the vote, noting that the AAHC is a longtime client of his business, Mitchell & Mouat Architects.

The $600,000 amount will push the total contribution by the DDA to AAHC – from 2012 through 2016 – to at least $1.16 million. The April 2 board action comes in addition to a $300,000 grant made by the DDA board to AAHC for Baker Commons a year ago at its March 6, 2013 meeting. That grant was for driveway and sidewalk replacement and repair; installation of energy-efficient lighting; insulation and air sealing; window replacement; adding a second entrance; door replacement; upgrade of fixtures appliances, flooring and cabinetry; replacement of heating and cooling units; generator replacement, elevator replacement, upgrade of common area furniture, and installation of additional security cameras. As part of the DDA board’s April 2 action, it extended the term of the $300,000 grant, as the AAHC has not yet used the funds.

Prior to that, at its Oct. 3, 2012 meeting, the DDA board had granted $260,000 to the AAHC for the replacement of the roof on Baker Commons.

For many DDA board members, the $600,000 grant to AAHC this year was contingent on action by the city council  to grant a similar $600,000 request made by AAHC of the city of Ann Arbor. At its March 3, 2014 meeting, the council directed the city administrator to develop a budget amendment that would allocate $600,000 from the city’s affordable housing trust fund to help the AAHC pay for capital improvements.

Approval of that amendment by the city council would be contingent on the upcoming closing of the sale of city-owned property at Fifth & William in downtown Ann Arbor – the former Y lot. Net proceeds of the sale, at around $1.4 million, are to be deposited in the affordable housing trust fund. The closing on the property was scheduled for April 2, 2014.

This brief was filed from the DDA offices at 150 S. Fifth Ave., where the DDA board holds its meetings. A more detailed report of the meeting will follow: [link]

• Accept three-year $300,000 supplemental grant from the U.S. Department of Justice to enhance countywide efforts to prevent domestic violence, effective Sept. 12, 2013 through Sept. 30, 2016. Of the grant total, $181,000 will reimburse the city for the salaries for a full-time domestic violence probation officer, a half-time system coordinator, and a part-time data entry clerk. Another $5,000 will reimburse the city for training expenses required by the U.S. Dept. of Justice. The remaining $114,000 will reimburse the city for a contract with SafeHouse Center to provide domestic violence prevention services.
• Authorize contract with SafeHouse to provide domestic violence prevention services ($114,000). Under terms of the contract, SafeHouse Center will provide confidential support, information and referrals for victims of domestic violence cases in the 15th District Court, 14A District Court and 14B District Court; monitor court and probation activity as it relates to victim safety; work collaboratively to enhance victim safety; and offer advice and training to judges, magistrates, probation and compliance officers and community partners.
• Accept Michigan Supreme Court drug court grant ($144,000). The 15th District Court’s sobriety court is “hyper-intensive probation,” which follows sentencing. The court assigns a full-time probation officer to the sobriety court for a program that lasts 18-24 months and includes monitoring of participants’ attendance at treatment programs, their progress in treatment, how they’re spending their time at work and doing community service. Reporting requirements are extensive. Participants must take frequent portable breath tests (PBTs) and urine tests. The majority of sobriety court participants are second-offender DWI cases, but offenses need not be driving-related. Also eligible to participate in sobriety court are, for example, retail fraud (shoplifting) offenders and misdemeanor drug possession offenders. Some of that grant money will fund a contract with Dawn Farm.
• Authorize contract with Dawn Farm ($88,000). The contract is for out-patient drug abuse counseling as part of the 15th District Court’s sobriety court.
• Accept Michigan Supreme Court veterans treatment court program grant ($92,279).

[For background on the 15th District Court and some of its functions, see Chronicle coverage: "Round 1 FY 2014: 15th District Court"]

Also at its Nov. 7 meeting, the authorized the basic approach that it has taken to human services funding in the past, but with some modifications. The funds would continue to be managed through Washtenaw County’s office of community & economic development, using the coordinated funding approach.

The city of Ann Arbor is one of five partners in the coordinated funding approach. Other partners are Washtenaw County, United Way of Washtenaw County, Washtenaw Urban County, and the Ann Arbor Area Community Foundation. It began as a pilot program in 2010; this is the second time that the program has been extended.

The coordinated funding process has three parts: planning/coordination, program operations, and capacity-building. The approach targets six priority areas, and identifies lead agencies for each area: (1) housing and homelessness – Washtenaw Housing Alliance; (2) aging – Blueprint for Aging; (3) school-aged youth – Washtenaw Alliance for Children and Youth; (4) children birth to six – Success by Six; (5) health – Washtenaw Health Plan; and (6) hunger relief – Food Gatherers.

Last year, TCC Group – a consulting firm based in Philadelphia – was hired to evaluate the process. As a result of that review, several changes were recommended. One of those changes is that funding would not necessarily be allocated to the six priority areas based on the proportion of funding allocated in the past. Instead, allocations among the six priority areas would be based on identified community-level outcomes, the strategies that align with them, and how each are prioritized. An additional change would broaden the pre-screening process so that smaller nonprofits could be accommodated.

Recommendations for specific funding allocations will be made in spring 2014. In addition, the RNR Foundation – a family foundation that funded TCC Group’s evaluation of the coordinated funding approach – will now be an additional funder in this process. One of the goals of coordinated funding is to attract more partners, such as private foundations.

The Washtenaw County board of commissioners gave final approval to the continued use of the coordinated funding approach at its Nov. 6, 2013 meeting.

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.

Al McWilliams, newest member of the Ann Arbor Downtown Development Authority board. (Photos by the writer.)

Called PowerArt, the project is proposed as a way to beautify downtown as well as deter graffiti. The proposal was developed by the DDA – working with the Ann Arbor-based Arts Alliance and the Ann Arbor public art commission. The art commission had voted at its Sept. 25, 2013 meeting to support this first phase of the project with the same amount as the DDA – $20,500. While the first phase of the project would wrap 14 traffic signal boxes, the Arts Alliance is proposing two more phases, for a total of 42 wrapped boxes, and a total cost of $121,000.

The Arts Alliance will administer the project, taking an administrative fee of 30% for the first phase and 25% for the second two phases, if the first phase is judged to be successful. The $41,000 cost of the pilot includes the 30% administrative fee for the Arts Alliance. [.pdf of PowerArt proposal]

The relatively brief board meeting featured an introduction of new board member Al McWilliams as he participated in his first meeting after winning confirmation for service from the city council on a 6-5 vote.

The board also heard various updates from its two standing committees on topics that included the bike share program, the streetscape framework planning project, the connector study, parking structure repairs, and National Hockey League-related events on New Years Eve and New Year’s Day.

PowerArt

The board considered a funding proposal to wrap downtown Ann Arbor traffic signal electrical boxes with vinyl imprinted with artwork. The grant considered by the board was for $20,500.

Corrected after initial publication: Not an example of a vinyl-wrapped traffic box with artwork by David Spear. This image was included in the Arts Alliance proposal for the PowerArt project. This image was actually hand-painted by Spear.

The proposal was developed by the DDA, working with the Ann Arbor-based Arts Alliance and the Ann Arbor public art commission.

The art commission, at its Sept. 25, 2013 meeting, had voted unanimously to support this first phase of the project with the same amount as the DDA – $20,500.

While the first phase of the project would wrap 14 traffic signal boxes, the Arts Alliance is proposing two more phases, for a total of 42 wrapped boxes, and a total cost of $121,000.

The Arts Alliance will administer the project, taking an administrative fee of 30% for the first phase and 25% for the second two phases, if the first phase is deemed a success. The $41,000 cost of the pilot includes the 30% administrative fee for the Arts Alliance. [.pdf of PowerArt proposal]

Deb Polich, executive director for the Arts Alliance, is married to Russ Collins, a member of the DDA board. Collins did not attend the Oct. 2 DDA board meeting.

The PowerArt proposal from the Arts Alliance indicates that the program was modeled on one that has been implemented in Boise, Idaho, where city officials there contend that vinyl art wraps have helped deter graffiti, even on traffic signal boxes that are not wrapped with art.

PowerArt: Public Commentary

During public commentary reserved time at the start of the meeting, Kathy Griswold led off her remarks by characterizing the project as a “transfer of taxpayer money to an art project.” She felt the project would be “extremely dangerous” and called it ill-conceived, as well as posing a conflict of interest. [That was an allusion to the fact that DDA board member Russ Collins is married to Deb Polich, executive director for the Arts Alliance. Collins did not participate in the vote on the resolution, because he was absent from the meeting.]

Griswold pointed out that the number of pedestrian-vehicle crashes in Ann Arbor had increased during the past two years – 60 in 2012 and 63 in 2011, compared to 45 in 2010 and 42 in 2009. She called that increase extremely troubling, but would not say why it was happening – because she felt the reason is not known. But she said the last thing that we should do is to decorate utility boxes, which are in the sight lines for intersections. She contended that it would violate the city’s own ordinances. In Boulder, Colorado, she said, a very aggressive local ordinance does not allow any utility boxes or vegetation taller than 30 inches.

Griswold characterized the PowerArt program as using utility boxes within the sight lines of intersections to “camouflage” pedestrians. She had seen one example that looked to her like the artwork depicted body parts. She could not think of anything worse than a utility box depicting body parts with a pedestrian standing behind it. She allowed that Ann Arbor has a very vibrant downtown, but a lot of people on weekends are downtown “under the influence” and the last thing we want, she said, is more pedestrian crashes.

Deb Polich also addressed the DDA board on the topic of the PowerArt program. She told board members that she was a resident of Ann Arbor’s Ward 5. She introduced herself as director of the Artrain and the Arts Alliance. She described the Arts Alliance’s mission as representing the creative industries, creative individuals and creative organizations in Washtenaw County – to ensure that the county remains a great place to live, work, play and visit. The Arts Alliance represents thousands of creative individuals, she said. Instead of a public art project, she said, she preferred to think of PowerArt as city beautification, and an investment in the downtown area.

The idea of wrapping traffic signal utility boxes with vinyl wraps is not new, she allowed. It had been done in lots of other cities, she said – cities to which Ann Arbor would compare itself or would like to be like. She compared the traffic signal utility boxes to a “canvas.” The project provides an opportunity for community engagement, and would be attractive to visitors. In connection to a similar project that had been implemented in Boise, Idaho, she continued, graffiti had decreased on the utility boxes that had been wrapped with art – as well as other boxes in the vicinity. She noted that the project cost is meant to be shared between the Ann Arbor DDA and the Ann Arbor public art commission. The Arts Alliance, she said, would be administering the project.

Reporting out from the downtown area citizens advisory council, Ray Detter conveyed the CAC’s strong support for the Arts Alliance PowerArt proposal. He called it “local art on urban canvases.” He called it a very carefully developed plan, using local artists, that would result eventually in the wrapping of 42 traffic signal utility boxes with art. He allowed that the concept was not anything new – saying that everyone remembered Bob Dascola’s efforts in connection with fire hydrant and traffic signal utility boxes. Right now that previous work was “a little bit down,” Detter said, and he suggested it needed to be “pepped up” a little bit. Detter reported that at the previous day’s meeting of the downtown marketing task force, Ann Arbor police Sgt. Tom Hickey had described a new police-community engagement program, which involves using convicted taggers who remove graffiti as part of their required public service.

PowerArt: Board Deliberations

The resolution making a grant award to the Arts Alliance PowerArt program was introduced by Roger Hewitt. He noted that the resolution would fund the first of potentially three rounds of the program. He described the other half of the funding as deriving from “other arts organizations.” [The other half of the funding has been identified as coming from Ann Arbor's public art commission.] Each round of the program would wrap 14 traffic signal utility boxes, he said – if the project progressed beyond the first-year pilot. He referred board members to the informational packet, which he said contained a great deal of detail.

Mayor John Hieftje, who sits on the DDA board, offered some comments on the PowerArt program. He said a couple of years ago the city has seen a “plague” of graffiti. A comprehensive response had been called for, he said. He reported that he visited with young people who’d been working with Mary Thiefels at the Neutral Zone, painting the railroad underpass – between First and Second streets on West Washington. He’d also visited with the AAPD’s Tom Hickey and the youth under his supervision working on graffiti cleanup. That had resulted from police detective follow-through, tracking down the perpetrators who had caused tens of thousands of dollars worth of damage, Hieftje said. The PowerArt project continues with that comprehensive approach, he said, adding that the project would provide a creative outlet for people who would otherwise possibly be damaging property. [According to the PowerArt proposal, the intent of the project is to enlist artists, but not necessarily people who might otherwise engage in graffiti tagging.]

“Goddess of Traffic Signals” on this traffic signal control box is signed by Sophie Grillet on the reverse side. It was part of a previous beautification effort mentioned at the Oct. 2, 2013 DDA board meeting. The box is located near the northwest corner of the intersection at State and Liberty streets in downtown Ann Arbor.

Hieftje felt that the program would enhance the walking experience in the downtown. Referring to Kathy Griswold’s public commentary, Hieftje said it was hard for him to see how the PowerArt project would aggravate safety concerns. If the traffic signal utility boxes need to be moved and a better place needs to be found for them, that’s something that the city’s signs and signals staff could look into. About the value of such improvements, Hieftje contended, “If it’s quirky, if it’s artistic, people love it.”

Hewitt echoed Hieftje’s comments. He again mentioned Bob Dascola’s efforts a few years ago, to decorate traffic signal boxes as well as fire hydrants. He called the PowerArt program “picking up where [Dascola] left off.”

As far as safety, Hewitt said, he did not see how artwork could be more dangerous than graffiti on a utility box. So Hewitt said he would support the first-year pilot project and see what kind of results they get.

John Mouat said he was impressed by the thoughtfulness of the selection process described in the information packet. He thought it would be very positive for the downtown and he would support the resolution.

Outcome: The resolution was approved unanimously. Russ Collins was not in attendance.

PowerArt: Additional Background – Art, Graffiti

When Roger Hewitt described Bob Dascola’s efforts in the past, he was referring in part to a project that the Michigan Daily reported on back in 2004 as originating from the International Downtown Association’s conference that year. From the Daily’s “Firing Up Downtown“:

It all began when members of several of Ann Arbor’s downtown associations attended an International Downtown Association conference in Cleveland, Ohio, last year. Bob Dascola, an Ann Arbor native and University alum, tells of the project’s origin: “We brought this project down from Cleveland. They had professional paint (work) there.

“We discussed it over three hours on the way back and had all the details worked out by the time we got to Ann Arbor.”

[The Ann Arbor DDA is sending some members to this year's IDA conference in New York City, which runs from Oct. 6-9, 2013.]

Ann Arbor News coverage of that previous signal box painting project describes some of the locations and artists who painted them.

The box by city hall at North Fifth Avenue and Ann Street suddenly boasts eye­-popping red poppies painted on a light green background by local artists Stephanie Staley and Carla Thompson. Artist Tomoko Ogawa covered the box at the Diag entrance at South State Street and North University Avenue in eye-catching abstract designs and bold colors. Dascola, a State Street barber shop owner and longtime downtown booster, led the project, in which local artists are painting designs on some nine traffic control boxes downtown. (Other box artists include Mary Thiefels, Joyce Tinkham, Barb Goodsitt, Sophie Grillet, Connie McKinney, Vickie Elmer, Mike Hahn and Tim Douthit.) [July 3, 2006 Ann Arbor News article "Signal boxes now traffic in public art"]

About five years ago, on Jan. 20, 2009, the Ann Arbor city council also enacted changes to the city’s graffiti ordinance. Those changes established a framework under which property owners would be required to remove graffiti on their property within a specific timeframe, with the city empowered to charge removal costs to the property owner if the owner does not remove the graffiti.

PowerArt: Follow-up Questions

Although Deb Polich, the executive director of the Arts Alliance, attended the Oct. 2 DDA board meeting and indicated to board members that she was available to answer questions, board members did not ask any questions at that time.

The Chronicle followed up with Polich by email with some questions. Questions are in bold, with responses from Polich in italics.

1. Is there a contract between the DDA and the Arts Alliance related to the PowerArt grant funding? The approval of the DDA sets in motion further discussions on project development and protocols for all details pertaining to the PowerArt! program. At this moment there is not a contract between the DDA and the Arts Alliance.
2. Will payment by the DDA to the Arts Alliance be made to reimburse documented actual costs up to $20,500, or will the grant simply be provided to the Arts Alliance as a lump sum? Per #1 above, we are working out the details – for example: what items on the full estimated budget are covered by the AADDA and what are covered by other funders is still be determined.
3. The Arts Alliance proposal indicates that the maintenance estimate of $50 per installation is included as a precautionary measure. What happens to the DDA’s portion ($350) of that if no maintenance is required? The budget estimates on the costs of installation and maintenance are based on inquiries to three vendors. Further negotiations, including a final vendor and average cost per box (boxes are different sizes) will be determined in the coming months. In regards to maintenance, the Arts Alliance recommends that a vendor or the City of Ann Arbor be responsible for general cleaning and maintenance. Per #2 above, the cost share between funders is still to be determined.
4. The Arts Alliance presentation includes a calculation of a 30% administrative fee that totals $9,100. However, 30% of 31,900 – which the total project cost for phase one – is $9,570, which should result in a total project cost of $41,470, which is more than the $41,000 indicated by the Arts Alliance proposal. In addition, for phase two, the 25% charged on $63,800 should result in $15,950 of administrative fees for a total project cost of $79,750, which is less than the $80,000 calculated by the Arts Alliance. It appears that the dollar amount of the administrative fee has been adjusted – in one case upwards and in one case downwards – to allow for rounding to the nearest thousand. Yes, the Arts Alliance did round the fees. Its presentation should have indicated that the fee was “about” 30% and “about” 25% respectively for the pilot cycles 1 phase and the following 2 cycles. To be more precise, its Cycle 1 fee is actually 28.52% and its Cycle 2 & 3 fee is calculated at 25.39% for a combined fee on the whole project calculating to 26.437% of project costs.
   Question 4.1: Given the rounding tolerances evident in the proposal – which suggest that the Arts Alliance may not conceive of the administrative fee amount as related to covering actual costs – why is the administrative fee so high, relative to the 8% the city of Ann Arbor used for its Percent for Art program? I encourage you to contact the AAPAC administrator to research how the Percent for Art the administrative fee is calculated and what is included. The Arts Alliance is an independent nonprofit responsible for earning or raising every dollar necessary to further its mission, operate and manage its projects. The Arts Alliance must pay direct in-house and overhead costs such as rent, insurance, legal counsel, finance, telephone, audits, printers, computers, IT, staff compensation, licensing etc. plus much more. Perhaps a more apt comparison is the fee the Michigan Council for Arts & Cultural Affairs pays the Arts Alliance to administer the Region 4 Regranting program. MCACA pays the Arts Alliance $9,720 or 29.28% of the $33,200 allocation.
   Question 4.2: What, if any, documentable cash or in-kind contribution will the Arts Alliance itself be making to this project? At a fee averaging $8,433.33 per year, the Arts Alliance expects that it will accumulate a reasonable amount of in-kind expenses to contribute to this project. The Arts Alliance will do its best to manage its resources effectively and efficiently.
   Question 4.3: Beyond a potential Arts Alliance contribution to the project, is there any private investment associated with support for PowerArt? Not at this time but the possibility does exist.

Communications, Committee Reports

The DDA board’s Oct. 2 meeting included the usual range of reports from its standing committees and the downtown area citizens advisory council.

Comm/Comm: New Board Member – Al McWilliams

Ann Arbor DDA board chair Sandi Smith led off her communications time by inviting the newest appointee to the board, Al McWilliams, to introduce himself. McWilliams responded by saying that he runs Quack!Media, describing it as an advertising agency on Main Street, located right above Conor O’Neill’s. Quack!Media also does a lot of television development, he said, and is currently writing a television show for Disney Channel primetime.

Comm/Comm: Support for DDA

Reporting out from the downtown area citizens advisory council, Ray Detter stated that the CAC highly values the DDA’s mission – strong leadership and strategic planning in shaping the vision of downtown. That creative vision requires a focus, he said, that goes beyond political control. The downtown requires special attention, he said. Only the DDA is uniquely equipped with a creative focus and economic tools necessary for the strategic planning that would help to realize long-term community goals for the downtown area. At its meeting held the previous evening, the CAC had reviewed the draft five-year project plan of the DDA, Detter said. He indicated the citizens advisory council’s strong support of that proposed draft five-year plan and a willingness to participate in the public process that would implement the plan.

Comm/Comm: Bike Share

Keith Orr reported out on the bike share project. [The Ann Arbor city council voted on Aug. 8, 2013 to support the bike share program with $150,000.] He said there had been some personnel changes associated with the bike share program over the last several months. However, the project was still on track, he said. He described the DDA as “out of the loop” for a couple of months but the DDA is now back in the loop. He described the funding as coming from the University of Michigan and the city of Ann Arbor, plus federal CMAQ (congestion mitigation and air quality) grant money. He identified the Clean Energy Coalition as the group that is pushing the project forward. The coalition had approached the DDA in the past to talk about an in-kind donation, he said. The specifics are still being worked out, he reported.

Orr reported that there would be a walk-around on Oct. 15 and Oct. 16 with the people who will actually be installing the bike stations. That would allow the fine-tuning of the CEC’s request for the use of parking spaces. Not all of the bike stations will fit in off-street locations, he said. Orr ventured that four or five parking spaces would be requested. They would only be used from the spring through the fall, he said – and the equipment would be stored in the wintertime. That specific request would come to the DDA’s operations committee at the end of the month, with a proposal for the full board at the November board meeting.

Another request associated with the program, Orr continued, has been on-again-off-again: storage during the off-season. The request was now “on again,” he said. The challenge, Orr continued, is that it’s not just the bikes that need to be stored, but also the equipment. The current estimate is about 1,700 square feet – which the DDA does not have available on its own. He said that initially it was thought that the lower levels of the new Library Lane underground parking structure might be available for that purpose – but the demand for use of that structure had exceeded initial expectations, which precluded that as an option.

The bike share program is on target to launch in April 2014, Orr said, with 12-14 stations. One of the stations would be located on the University of Michigan north campus. The rest would be centered around central campus and as far west as Ashley Street.

Responding to a question from board member John Mouat, Orr indicated that the mid-October walk-around would not include installation of any stations, but simply would be the final site analysis. He also explained that some storage would be needed between February and April of next year. Mouat wondered if an advertising program had been developed to make people aware of what is happening. Orr indicated that a recent meeting had covered that topic – which had included discussion of branding. The bikes would be blue, he said, which lent itself to slogans like “Go Blue Bike” or “Go Bike,” but apparently there are trademark issues related to several of those kinds of phrases, he said.

Comm/Comm: Abandoned Bikes

Related to bikes, Keith Orr mentioned that the DDA had been in discussions with the city about the removal of abandoned bikes. There had been some concern about what constitutes a “junk bike” – as opposed to a bike of value that would need to be held for certain claim period. The city is finally getting some answers to those kind of questions, Orr reported. So some bikes that have been sitting for years at a single location will likely be removed sometime soon, he said.

Comm/Comm: Streetscape Framework

The streetscape framework plan, Keith Orr reported, is still moving forward. A request for qualifications (RFQ) process has resulted in four responses. [At its July 3, 2013 meeting, the DDA board authorized $200,000 over the next two years for consultants and other costs associated with developing a plan for future streetscape work.]

Comm/Comm: Connector Study

Roger Hewitt reported on the connector study. By way of background, the Ann Arbor Area Transportation Authority is currently conducting an alternatives analysis study for the corridor running from US-23 and Plymouth southward along Plymouth to State Street, then further south to I-94. The alternatives analysis phase will result in a preferred choice of transit mode (e.g., bus rapid transit, light rail, etc.) and identification of stations and stops. A previous study established the feasibility of operating some kind of high-capacity transit in that corridor.

Hewitt participates on the technical committee for that study, he said at the DDA’s Oct. 2 meeting. The committee had reviewed a preliminary draft of a video about the connector, which would try to inform people about the project. The video still needs a little bit of polishing, he said, but it should be ready within the next month. He felt it would probably be ready for presentation at the next DDA board meeting. He described it as about 4.5 minutes long. A meeting of stakeholders in the project could take place on Oct. 24, he said.

Another public meeting is also scheduled sometime in November, he said, ensuring that it would probably be scheduled sometime before Thanksgiving. The committee continues to review the multitude of possible alignments for the route, he said, noting that it measures about 8 miles from end to end. So the committee has broken the distance into segments. For some of the segments, it’s fairly clear that only a couple of different options would be feasible.

However, the downtown area is the most challenging segment, Hewitt said. After a lot of back-and-forth at the previous day’s committee meeting, he said, the committee had settled on six different alternatives of the route through the downtown. Those alternatives would be presented at a public meeting in November, he said, with the date still to be determined. About five months remain in the study period, he concluded. After the path of the route is identified, station locations would be considered, he said.

Comm/Comm: Parking Structure Repairs

Reporting out on the topic of parking structure repairs, Roger Hewitt said that over the past few years the DDA had not done much in routine maintenance of the parking structures – while the Library Lane underground structure was under construction. But this year, he said, the DDA had “come back with a vengeance.” Work is being done in almost every parking structure, he reported. Structural repairs are being done, including replacing concrete where there has been corrosion or deterioration.

A lot of sealing work is also being done, he said. He thought that the work in the Maynard structure was nearly complete and Liberty Square and Forest structures were also nearly finished, if not already done. Hewitt ventured that by the end of October all of the repair work would be done. Next year, the same level up intensity of repair work would continue, he concluded.

Comm/Comm: First & Washington Structure

Responding to a question from John Mouat, Susan Pollay – the DDA’s executive director – reported that the First and Washington parking structure, in the bottom two floors of the City Apartments residential development, was now in possession of the city. There had been some delays, she allowed. Originally it had been anticipated that when the garage was accepted into the possession of the city, at that same time the garage would be open for public parking.

Now, the opening of the garage appears to be more likely to be timed to coincide with the moving of the first tenants into the building – which is expected to be in early December. Pollay explained that until the tower crane is moved away, the sidewalk cannot be poured, and without sidewalks, parking patrons would not be able to get in and out of the structure very comfortably or safely.

Comm/Comm: NHL New Year’s Day

DDA executive director Susan Pollay gave the board an update on planning and logistics for the upcoming NHL hockey game on Jan. 1, 2014 – to be held in the University of Michigan football stadium. Typically on New Year’s Day, she said, all of the public parking structures as well as the UM parking structures are open to the public, so there is no staff on-site. The Ann Arbor Area Transportation Authority buses also do not ordinarily run on New Year’s Day, she said, and neither do the UM blue buses.

But thousands of people would need to be able to find a way to get to Michigan Stadium, she said. Buses would be arriving from the east – from Ontario and the Detroit area, she said. The difference between the hockey game and a typical home football game, she explained, is that for football games, a large number of the fans are not attending their first game and are familiar with the area. In addition, she said, many of the fans could walk to the game from campus, and everyone knows where they are going. But the hockey game would include many fans who had never even been to Ann Arbor before, she said. She had wanted the operations committee to begin thinking about planning.

Pollay felt it might be necessary to charge for parking on New Year’s Day – as a way to encourage people to reserve a parking space in advance. [The DDA works with Park n Party to allow art fairs patrons to reserve parking in public spaces.] That way, the demand for parking could be spread out as broadly across the community as possible, she said. Adding to the challenge was the potential that the weather might require the postponement of the game to the following day.

Also adding to the complication, Pollay said, was a planned “hockey puck drop” at the intersection of Main and Liberty streets on New Year’s Eve. The Ann Arbor Area Convention and Visitors Bureau is coordinating that event, which Pollay felt would draw its own audience. The public parking structures typically do fill up on New Year’s Eve anyway, she said.

Comm/Comm: Joint Economic Collaborative Task Force

Joan Lowenstein give an update on a joint economic collaborative task force established by a city council resolution passed earlier this year. The group is currently focused on looking at overlap between the DDA’s work and Ann Arbor SPARK‘s five-year strategic plan.

Comm/Comm: D1 Zoning Review

The DDA’s partnerships committee had received a presentation from city of Ann Arbor planning manager Wendy Rampson, Joan Lowenstein reported.

DDA board member Joan Lowenstein.

The city planning commission had been directed by the city council to review the D 1 zoning designation on the north side of Huron, the south side of William, and the south side of Ann Street, as well as the city’s development premiums. The project consultants had conducted a number of rounds of public feedback, she said – with attendance starting to wane at some of the events. Draft recommendations are anticipated by the end of the week, she said. [.pdf of draft recommendations]

The final recommendations to the city council were anticipated later in October, Lowenstein concluded.

Comm/Comm: BTC

Joan Lowenstein gave an update on construction of the new Blake Transit Center by the Ann Arbor Area Transportation Authority, saying that it was expected to open in December. She ventured there would be some kind of grand opening.

Comm/Comm: New York City IDA Conference

Joan Lowenstein reported that the next meeting of the DDA’s partnership committee would not be held the week following the board meeting, which is the typical schedule. That’s because many of the members will still be in New York City at the International Downtown Association’s conference. So the partnerships committee meeting would take place on Oct. 23, she said.

Present: Rishi Narayan, Bob Guenzel, Roger Hewitt, John Hieftje, John Splitt, Sandi Smith, Keith Orr, Joan Lowenstein, John Mouat, Al McWilliams.

Absent: Russ Collins.

Next board meeting: Noon on Wednesday, Nov. 6, 2013, at the DDA offices, 150 S. Fifth Ave., Suite 301. [confirm date]

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The resolution approved by the DDA board on a unanimous vote states that the money will support renovations to the building at 110 N. Fourth in Ann Arbor (known as the Annex) so that it can house the county’s Community Support & Treatment Services (CSTS) department. [.pdf of DDA resolution on Annex] The cost of the renovations at the Annex, which would include a new lobby and “client interaction” space, would be about $1 million, according to the DDA board resolution.

CSTS provides a variety of client services to individuals with mental illness, developmental disabilities and substance abuse disorders. The Annex has housed the county’s office of community and economic development, office of infrastructure management, and the public defender’s office. In the space plan approved by the Washtenaw County board of commissioners at its July 10, 2013 meeting, those offices are being moved to other leased and county-owned space.

When the county board approved the renovations associated with the county’s space plan, they were briefed that the total cost of all the renovations – not limited to those at the Annex – would be around $5 million. At the time Greg Dill, the county’s infrastructure management director, said no general fund dollars would be used for the projects. Funding would come from several sources, Dill explained: (1) $1 million from the 1/8th mill fund balance; (2) $650,000 from the facilities operations & maintenance fund balance; (3) $650,000 from the office of community & economic development reserves; (4) $500,000 from the tech plan fund balance; and (5) $2.2 million from the county’s capital reserves.

According to the county’s website about the space plan, the Washtenaw Community Health Organization (WCHO) – which has a contract with CSTS to provide treatment services – was planning to fund the entire build-out of the Annex as well as the relocation of CSTS staff to the Annex.

The DDA became involved when county administrator Verna McDaniel and other senior staff met with DDA executive director Susan Pollay within the past few weeks to talk about how the DDA might help address the county’s projected structural budget deficit of $3.9 million in 2014. The county pays the DDA nearly $400,000 annually for parking permits, and had proposed the possibility of opening up a long-term parking agreement to renegotiate that amount. McDaniel told The Chronicle that the DDA proposed offering the grant for the Annex renovations instead.

Bob Guenzel, former Washtenaw County administrator, is a member of  the DDA board. Guenzel was absent from the Sept. 4 meeting but the resolution was unanimously approved by the seven board members who were present. That’s the minimum number the board needs to establish a quorum on the 12-member body.

This brief was filed from the DDA offices at 150 S. Fifth Ave., Suite 301, where the DDA board holds its meetings. A more detailed report of the meeting will follow: [link]

A BIZ is a self-assessment district that can be established under Public Act 120 of 1961 by agreement of a sufficient number of property owners in the district – to generate sufficient funds to pay for additional services not provided by the city. If it’s established, the South University Area BIZ would be the second such district in downtown Ann Arbor. In 2010 such a district was established for a three-block stretch of Main Street, between William and Huron streets – to provide sidewalk snow clearing, litter pickup and poster removal. [See Chronicle coverage from 2009: "Ann Arbor Main Street BIZ Clears Hurdle"]

The Ann Arbor DDA also provided a grant to assist with the formation of the Main Street BIZ, voting on April 1, 2009 to award $83,270 to defray various costs associated with the formation of the BIZ. Those included accounting, auditing, operations and legal services.

At that time, DDA board members reflected on the fact that they did not necessarily want to be signaling – through their support of the Main Street BIZ – that the DDA would be inclined to support all other subsequent efforts to establish business improvement zones in other areas of the downtown. Partly to address that concern, the board asked that the Main Street BIZ produce a “blueprint” for the formation of a BIZ, which could be used by other groups to help navigate the lengthy required process.

At a May 29, 2013 meeting of the DDA’s operations committee, South University Area Association executive director Maggie Ladd and consultant Betsy Jackson pitched the grant to the committee. Jackson, president of The Urban Agenda Inc., told the committee that while the blueprint was a useful fill-in-the-blank document, it was important to have someone with sufficient expertise to fill in those blanks. Jackson was also the consultant hired for the Main Street BIZ.

At the DDA board’s July 3 meeting, board member Joan Lowenstein also described the considerable legwork that’s required for deciding on the method of assessment for any specific BIZ.

According to the DDA board resolution, South University property owners are contributing a total of $25,000 toward the start-up costs.

This brief was filed from the DDA offices at 150 S. Fifth Ave., Suite 301 where the DDA board holds its meetings. A more detailed report of the meeting will follow: [link]

New grants include: $11,332 from the Ann Arbor PTO Thrift Shop for SchoolMessenger, a parental notification system; $15,000 from the Ann Arbor Public Schools Educational Foundation (AAPSEF) for the Community Builders program; and $8,900 from Toshiba America to purchase Lego Mindstorms for Pioneer High School.

AAPSEF is also providing renewal grants for the following: $15,679 for Great Ideas; $4,000 for 5th grade instrumental music instrument repairs; $21,000 for SchoolMessenger; and $22,644 for the Environmental Education Program. Secondary Perkins III is providing a renewal grant of $143,022 for the Career and Technical Education program.

The entire cost of SchoolMessenger will be covered by the two grants from the Ann Arbor PTO Thrift Shop and AAPSEF.

The board had been initially briefed on the grants at its April 10, 2013 meeting.

This brief was filed the day following the April 24, 2013 AAPS board meeting. A more detailed report of the meeting will follow: [link]

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

This grant for $300,000 to Baker Commons comes in addition to a recent $260,000 grant from the DDA – authorized by the board at its Oct. 3, 2012 meeting – primarily for the replacement of the Baker Commons roof.

Jennifer Hall, executive director of the Ann Arbor Housing Commission, estimates that Baker Commons needs about $3 million in capital investments. She made the request of the DDA in conjunction with a request to the city of Ann Arbor – for $500,000. The DDA’s contribution taps its housing fund, which gets its revenue from the DDA’s tax increment finance capture (TIF) fund.

The city of Ann Arbor is being asked to tap the fund balance in the city affordable housing trust fund – for half the $500,000. That use of the city’s affordable housing trust fund has been recommended by the city’s housing and human service advisory board (HHSAB). The other half is hoped to come from federal community development block grant (CDBG) funding, allocated through the Washtenaw Urban County.

The redevelopment of Baker Commons comes in the context of an effort Hall is undertaking to redevelop all of the Ann Arbor Housing Commission’s 360 units, distributed across the city. Baker Commons is the only AAHC housing complex in the downtown area. The overall redevelopment effort being pursued by Hall would privatize Ann Arbor’s public housing, converting the properties to project-based vouchers, which would make them eligible for low-income housing tax credit financing. For detailed coverage of this effort, see: “Round 3 FY 2014: Housing Commission.”

This brief was filed from the Ann Arbor DDA offices located at 150 S. Fifth Ave., Suite 301, where the DDA board holds its meetings. A more detailed report of the meeting will follow: [link]

The items are: (1) the Michigan Works! system plan for 2013 [.pdf of 2013 MWSP]; (2) $20,000 in federal funding (Community Services Block Grant discretionary funds) to conduct a needs assessment of the New West Willow Neighborhood Association, supplemented with $5,000 in county matching funds; and (3) $20,000 in federal funding (Community Services Block Grant discretionary funds) for tax preparation services to low-income customers, in partnership with Avalon Housing, Catholic Social Services of Washtenaw County, Housing Bureau for Seniors and Women’s Center of Southeastern Michigan.

These items had received the board’s initial approval at a meeting on Feb. 6, 2013.

This brief was filed from the boardroom of the county administration building at 220 N. Main. A more detailed report will follow: [link]