Stories indexed with the term ‘mutually beneficial committee’

Land use is frequently a dominant theme of Ann Arbor city council meetings – and the July 1, 2013 meeting agenda fits that pattern.

The council will be giving final consideration to an ordinance change that expands the definition of “sidewalk” – to include any sidewalks the city has formally accepted for public use. The change has implications for owners of property adjacent to several “cross-lot paths” in the city – which are on the meeting agenda for acceptance for public use.

One consequence of the definition change is that those property owners will not be responsible for the repair of those paths – because the paths will be eligible for sidewalk millage repair funds. But the adjacent property owners would become responsible for clearing snow from the paths.

Also related to land use on the meeting agenda are rezoning requests associated with two proposed developments. Up for an initial vote is the rezoning from PUD (planned unit development) to D2 (downtown interface) for the parcels on North Main and Fourth Avenue where Kerrytown Place is planned. The 18-unit townhouse development is much smaller than The Gallery, for which the PUD zoning had originally been approved.

Also up for initial consideration is a rezoning request for 2271 S. State St., where the owner would like to be able to sell automobiles. The planning commission recommended denial of that request, in part because that land use was not felt to be consistent with the draft South State Street corridor plan. At its July 1 meeting, the council will also be asked to adopt that corridor plan.

The re-establishment of a citizens advisory committee on changes to R4C zoning in the city also appears on the meeting agenda. The origins of that committee date back to 2009. The reconstitution of the 12-member committee comes as the planning commission has recommended changes to R4C zoning that the council will be weighing – to decide if ordinance language should be drafted to reflect those changes.

Another committee with its origins in 2009 is set to be reconstituted at the council’s July 1 meeting, but it’s not related to land use. The council will be asked to re-establish a “mutually beneficial” committee to work through recommendations to changes in the city ordinance that regulates the Ann Arbor Downtown Development Authority’s tax increment finance (TIF) capture. The council has already given initial approval to some ordinance changes. Committee members will be working with their DDA counterparts with a two-month window of time – because the council has postponed final action on DDA ordinance changes until Sept. 3.

The council will also be asked to take an initial vote on a video privacy ordinance, having postponed that initial vote several times previously.

And finally, Ward 2 will not have a city council primary election a month from now, but it appears on the agenda in connection with polling places. The Precinct 2-8 polling location will be changed for all future elections to the First United Methodist Church on Green Road.

Details of other meeting agenda items are available on the city’s Legistar system. Readers can also follow the live meeting proceedings on Channel 16, streamed online by Community Television Network.

The Chronicle will be filing live updates from city council chambers during the meeting, published in this article “below the fold.” The meeting is scheduled to start at 7 p.m. [Full Story]

At a Wednesday, May 25, 2011 joint meeting of the “mutually beneficial” committees – one from the Ann Arbor city council and the other consisting of Ann Arbor Downtown Development Authority board members – committee members agreed on language that would serve to “underwrite” the DDA’s combined fund balances for the next five years. A special DDA board meeting has been set for Friday, May 27 to ratify the agreement.

The underwriting was a necessary condition of the DDA’s ratification of a new contract with the city, under which the DDA would continue to operate the city’s public parking system. At a special meeting last Friday, May 20, the full DDA board had approved a contract that would transfer 17% … [Full Story]

Ann Arbor Downtown Development Authority special board meeting (May 20, 2011): A special meeting held by the board of the DDA on Friday was meant to give some final resolution to the DDA’s side of a new contract under which it would continue to operate the city’s public parking system.

It was also intended to settle the matter of excess capture of TIF (tax increment finance) revenue in the DDA district – an issue raised by the city of Ann Arbor just before the DDA board had originally planned to vote on the new parking contract on May 2.

The board did vote on Friday to affirm a calculation by DDA staff that roughly $473,000 of excess TIF capture since 2004 would be divided among the following taxing authorities, which have a portion of their tax revenues captured in the DDA TIF district: Washtenaw County; Washtenaw Community College; and the Ann Arbor District Library.

Based on a representation at the special meeting by mayor John Hieftje – who has a statutory seat on the DDA board – the city of Ann Arbor is likely to agree to “forgive” the $711,767 in excess TIF capture that would be due to the city. More than that amount has effectively already been returned to the city, in the form of a roughly $0.5 million annual grant to the city to help make bond payments on its new municipal center, and a $1 million expenditure to demolish the old YMCA building, as well as other grants. In total, around $7.5 million has gone to the city, according to the DDA.

At Friday’s special meeting, the DDA board also voted to ratify its side of a new contract under which it would continue to operate the city’s public parking system. Among other features, the new contract would obligate the city of Ann Arbor to report regularly on how it is using public parking system revenues for street repair in the downtown, and how it is enforcing parking regulations downtown.

More controversially, the new contract would allow the DDA to set parking rates. Currently, the DDA forwards proposed rate changes to the city council, which can then veto the DDA’s proposal if it acts within 60 days. If the council does not act to block the rate change, the change is enacted. Although Hieftje said at the DDA board meeting he felt there was adequate support on the council to approve such a contract, there are currently at least five likely no votes on the 11-member council.

Also controversial is the exact percentage of gross revenues the city would receive from the public parking system. Before the issue of the excess TIF capture arose, the DDA board was poised to ratify a parking contract that would transfer 17% of gross parking revenues to the city of Ann Arbor’s general fund. At Friday’s special meeting, the resolution before the board dropped that number to 16%. Hieftje proposed an amendment to raise the figure to 17%. That amendment was attached to a contingency that the city council would provide a plan amendable to the DDA in which the city would “underwrite” the DDA’s fund balances. It was the 17% with a contingency that the DDA board passed.

So the special DDA board meeting did not settle with finality either the issue of the excess TIF capture or the DDA’s side of the parking contract. For the TIF capture issue, the relevant taxing authorities – especially the city of Ann Arbor – will need to affirm the solution that the DDA board approved.

For the parking contract issue, the DDA’s contingency means that the city council’s Monday, May 23 meeting – which is a continuation of its May 16 meeting, when it was supposed to approve the FY 2012 budget – will likely be recessed and continued again on May 31.

One possibility for how events would unfold is this: (1) May 23 – the city council ratifies the city’s side of the parking contract and provides the plan for underwriting DDA fund balances; city council also deliberates and amends FY 2012 budget but does not take a final vote on it; (2) May 24-27 – DDA schedules a special meeting to accept the parking contract contingency; and (3) May 31 – city council resumes the meeting started May 16 and previously continued on May 23, and approves FY 2012 budget. [.pdf of draft parking contract] [Full Story]

Ann Arbor city council meeting (March 7, 2011) Part 1: The city council’s Monday meeting lasted nearly until midnight, with most of the five hours devoted to discussion of a proposed medical marijuana ordinance, which the council ultimately elected to postpone. The meeting included other significant business as well, and Part 1 of this meeting report is devoted to just those non-marijuana-related business items.

Also postponed – until the council’s first meeting in April – was a resolution that would outline a way for the Ann Arbor Downtown Development Authority to lead the process of transforming surface parking lots currently owned by the city of Ann Arbor to alternate uses.

The resolution, which articulates the so-called “parcel-by-parcel plan,” had already been postponed once before. In explaining the rationale for the postponement, Christopher Taylor (Ward 3) cited the desire of the DDA to ensconce the parcel-by-parcel plan in a contractually binding agreement, which he said had not been previously indicated.

Not postponed was a vote on appointing a hearing officer for appeals of recommendations that liquor licenses not be renewed. The original resolution was to appoint the members of the council’s liquor license review committee to a hearing board, but it was amended at the table – to the surprise of some councilmembers – to allow for appointment of just one hearing officer: Tony Derezinski (Ward 2). Derezinski also serves on the liquor license review committee. Voting against the amendment, as well as the final appointment, were three councilmembers, including Stephen Rapundalo (Ward 2). Rapundalo chairs the council’s liquor license committee and has served on it since it became a permanent council committee in 2008, as well as before that, when it was an ad-hoc committee.

The council also approved the city’s Parks and Recreation Open Space (PROS) plan – an inventory, needs assessment and action plan for the city’s parks system, which is required by the state for certain grant applications. The deadline faced by the council to renew the five-year plan was April 1, 2011.

In other non-marijuana business, the council approved a “complete streets” policy, authorized a stormwater study in the Swift Run drain system, established a loan loss fund for the Property Assessed Clean Energy (PACE) program, and authorized the purchase of LED streetlight fixtures.

The council also heard its usual range of public commentary and communications from its own members. A public hearing was held on the establishment of a Washtenaw Avenue corridor improvement authority (CIA), during which Ypsilanti mayor Paul Schreiber spoke. The Chronicle will cover the mayor’s comments as part of a future report on a CIA public meeting conducted by city planning staff. [Full Story]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ann Arbor Downtown Development Authority board meeting (May 5, 2010): During the DDA board’s monthly meeting, mayor John Hieftje and city councilmember Sandi Smith found themselves briefly sidelined from the board on which they sit.

They were at the table, however, for the final vote on whether to pay $2 million to the city, which the DDA is not obligated to pay under terms of its existing parking system agreement.

The 7-4 outcome of that vote on the 12-member body, of which 11 were present, was enough to write a $2 million check to the city. Voices of opposition to the fund transfer came not only from inside the board itself, but also from the business community during public commentary. Two former DDA board members were in the audience.

An initial opinion given at the meeting by DDA legal counsel Jerry Lax was that Hieftje and Smith could participate in the deliberations. But when an amendment was proposed, which had a side-effect of removing the basis for Lax’s earlier advice, Smith recused herself. As it became apparent that Hieftje intended to remain at the table, board member Jennifer Hall raised the point of order again, and Lax indicated Smith’s recusal was appropriate and that Hieftje should follow suit. Finally, Hieftje accepted the opinion of the DDA’s legal counsel and took a seat in the audience, but contended that he’d been given different advice from the city attorney’s office. When the amendment failed, Smith and Hieftje were back at the table.

Another board resolution that generated animated discussion, but was ultimately tabled, involved a systematic re-allocation of funds, in $60,000 increments, to a reserve to pay for the restoration of downtown police beat patrols. The re-allocation would have come from monies previously slated to fund the Howell-Ann Arbor commuter rail project (Washtenaw Livingston Rail Line – WALLY).

The committee reports to the board did not involve the kind of blunt talk that emerged during discussions of the two resolutions. But two topics reported out from the board’s transportation committee can be expected to receive wider visibility in the coming months: (i) Where will the two employees of the getDowntown program be housed? and (ii) Can there be an express Ann Arbor-Ypsilanti bus?

In this meeting report, we focus exclusively on the $2 million transfer from the DDA to the city of Ann Arbor. [Full Story]

At their Wednesday morning meeting, the Ann Arbor Downtown Development Authority’s operations committee decided to recommend to the full board that the DDA pay the city of Ann Arbor $2 million. The payment is not legally required of the DDA under terms of an existing parking agreement that was struck in 2005.

A draft of the resolution with the recommendation was to be sent to all board members for review late Wednesday. If the full DDA board approves the resolution at its next meeting on May 5, city councilmembers who are up for re-election this year may not have to campaign under the shadow of police and firefighter layoffs. The $2 million from the DDA would allow the city council some flexibility in amending the FY 2011 city budget, before it is adopted at the council’s second meeting in May. That budget was formally introduced at the council’s April 19 meeting and showed a roughly $1.5 million deficit. It also included some police and firefighter layoffs.

But how much of the $2 million will be put towards avoiding layoffs versus offsetting the deficit is far from clear. Two city councilmembers attended the DDA operations committee meeting: Sandi Smith, who also serves on the DDA board; and Margie Teall, who serves on the council’s sub-committee appointed for the purpose of renegotiating the parking agreement between the city and the DDA. Last year, the city council and the DDA board each appointed a committee for the purpose of renegotiating that agreement.

At Wednesday’s meeting, Smith said it was not certain whether layoffs could be avoided with the $2 million payment or if so, how many could be avoided. Smith’s contention that there was no guarantee the $2 million would avert layoffs came in response to one of several sharp questions put to his fellow DDA board members by Newcombe Clark. Clark began the discussion by asking if the $2 million was tied to anything.

In the course of the discussion, it was made clear that the $2 million would be tied neither to a promise of no layoffs at the city, nor made contingent in any way on specific progress towards a renegotiation of the parking agreement between the DDA and the city.  It would also not be tied to the implementation of any part of a “term sheet” that will form the basis of the city-DDA discussions in the coming months.

Key aspects of that “term sheet” are the idea that regular payments will be made to the city, that the DDA will assume some responsibility for parking enforcement, and that the city will be “held harmless” in any revenue loss associated with cessation of its enforcement activities.

But by the end of the discussion, Clark had eked out a victory of sorts: a provision in the draft resolution that ties the $2 million to a public process, from this point forward, for the city-DDA negotiations. They have been going on a few months now out of public view. In that regard, the resolution can be fairly be analyzed as a fresh commitment to the committee structure, with its associated expectations of public process, that the two bodies had already adopted, but not implemented for discussing the parking agreement. [Full Story]