The council’s first regular meeting in September was shifted from Monday to Tuesday in order to accommodate the Labor Day holiday.

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

The Sept. 2 agenda is relatively light and is dominated by land use and development issues, several of them related to the Ann Arbor housing commission’s (AAHC) extensive plan to renovate many of its existing properties.

In other significant business, the council will consider giving direction to the city administrator to negotiate operating agreements with transportation networking companies like Uber and Lyft.

And the council will consider authorizing up to a 15-year extension of the local development finance authority (LDFA), based on collaborating with a satellite arrangement in Adrian and Tecumseh.

Separate from site plan and zoning issues associated with the AAHC’s renovations, the council will also consider transferring $729,879 from the affordable housing trust fund to the Ann Arbor housing commission. The fund transfer would support the “West Arbor” portion of the renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit into the trust fund the net proceeds of the sale of the former Y lot.

Two projects associated with the West Arbor part of the AAHC plan appear on the council’s Sept. 2 agenda. First, the council will consider initial approval of rezoning for the 3451 Platt Road property – from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district). That was forwarded to the council with a recommendation of approval from the planning commission. However, commissioners postponed consideration of the site plan for the five-building, 32-unit project, amid concerns about the site’s location in the floodplain and stormwater management. The site plan may be able to “catch up” to the zoning approval – because the council will need to give the rezoning a second and final approval at a meeting following the Sept. 2 session.

Second, the North Maple Estates site plan, which requires just one council vote, will be considered on Sept. 2. The rezoning required for the AAHC project – a 4.8-acre site at 701 N. Maple Road – has already been given final approval by the city council, at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which was shifted to the Sept. 2 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms.

A non-AAHC land development item on the council’s Sept. 2 agenda is final approval of the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). The site plan, which also appears on the Sept. 2 agenda, calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit.

Even though the council rejected one proposed change to its taxicab ordinance at its Aug. 18 meeting – which would have regulated all drivers for hire in the city – initial approval was given to another change in the part of the ordinance that regulates rates. So the council will be giving final consideration to that change on Sept 2. The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

As an alternative to requiring all drivers for hire to be registered with the city and to affix commercial plates to their vehicles, the council will consider whether to establish operating agreements with companies like Uber and Lyft. The council’s Sept. 2 agenda includes a resolution that would direct the city administrator to negotiate operating agreements with transportation network companies (TNCs) in lieu of developing a local law. The resolution does not define in specific terms what a TNC is.

In other business on Sept. 2, the council will consider a large contract with Ultimate Software Group, worth $250,000 for payroll software to cover the period as the city transitions to NuView, a different software system. Another large contract to be considered by the council on Sept. 2 is with Northwest Consultants Inc. for $930,822 – to do design work for the Stadium Boulevard reconstruction project from Kipke Drive to Hutchins.

A smaller contract to be considered by the council, as part of the consent agenda, is with Hinshon Environmental Consulting Inc. for additional facilitation services for the technical oversight and advisory group (TOAG). That group is overseeing and coordinating multiple wet weather-related projects in the city. The $10,000 contract amendment would bring the total contract value to $35,000.

The council will also consider the confirmation of several nominations to boards and commissions, including a reappointment of John Splitt to the board of the Ann Arbor Downtown Development Authority. It would be Splitt’s third four-year term on the board.

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

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

Affordable Housing Fund Transfer

The council will be considering a $729,879 transfer from the affordable housing trust fund to the Ann Arbor housing commission to support the “West Arbor” portion of the AAHC’s renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit the net proceeds of the sale of the former Y lot into the trust fund.

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

According to the memo accompanying this item, out of the $16,564,370 project budget for West Arbor, low-income housing tax credits and permanent debt are expected to cover $14,091,491. That leaves a gap of $1,472,879. The AAHC has secured $50,000 from Michigan State Housing Development Authority (MSHDA) and $293,000 from a Community Challenge Planning Grant. So the AAHC has requested up to $729,879 in capital funding support from the Ann Arbor housing trust fund for the West Arbor portion of the RAD conversion.

A project included in West Arbor is the Lower Platt Road project, which will entail demolishing four 5-bedroom units – because of their current placement in the floodplain – and constructing 32 townhomes and a community center. A second project included in West Arbor is North Maple Estates, which currently offers 19 units. All those units would be demolished and replaced with 42 townhomes.

The final component of West Arbor is the renovation of the four 3-bedroom units known as the North Maple Duplexes.

AAHC: 3451 Platt Road Rezoning

The council will give initial consideration to the rezoning that’s necessary for the Lower Platt portion of West Arbor: from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district).

The planning commission sent the rezoning request for the 3451 Platt Road property to the city council with a recommendation of approval – in a vote taken at its Aug. 6, 2014 meeting. However, commissioners postponed consideration of the site plan for the five-building, 32-unit project, amid concerns about the site’s location in the floodplain and stormwater management. The postponement is supposed to allow time to address staff concerns regarding the impact on natural features.

Zoning and site plan approval must ultimately be given by the city council. However, the zoning approval will require two votes by the council at two separate meetings – because changes to the zoning code are actually changes to a city ordinance. So the site plan’s delay would not necessarily delay the project, as long as the site plan is put in front of the council for consideration by the time the council takes a second vote on the rezoning.

The site includes a property currently owned by AAHC, as well as an adjacent parcel that’s being purchased by the city on behalf of AAHC.

The project calls for demolishing four single-family homes and one two-family building, and constructing a 32-unit apartment complex with five buildings, 61 parking spaces, a playground, and a community building. The new apartments will include: 8 one-bedroom units; 12 two-bedroom units; 6 three-bedroom units; 2 four-bedroom units; and 4 five-bedroom units.

Two of the proposed buildings would be in the floodplain, which raised concerns from city staff. The AAHC is working to address those concerns – possibly by eliminating or reducing the number of buildings in the floodplain. It had been expected that the AAHC could address the issues raised by city staff so that the site plan could return to the planning commission at its Aug. 19 meeting – but that didn’t happen. Nor is it on the planning commission’s Sept. 3 agenda. [.pdf of planning staff report] [.pdf of June 28, 2014 citizen participation meeting report]

This project is part of major renovations and improvements the AAHC is making to its low-income housing inventory. For background on the AAHC process of renovating its properties, see Chronicle coverage: “Public Housing Conversion Takes Next Step.”

The AAHC Platt Road project is different from a Washtenaw County-owned property at 2260 and 2270 Platt Road, the former location of the county’s juvenile center. That site is also being considered for affordable housing.

North Maple Estates

The council will consider the site plan for North Maple Estates on Sept. 2. This Ann Arbor housing commission project calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms.

Aerial view of North Maple Estates site, outlined in green.

The rezoning of the 4.8-acre site at 701 N. Maple Road already has been given final approval by the city council at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district).

The Ann Arbor planning commission had recommended the zoning and site plan for approval at its meeting on June 17, 2014. The council gave initial approval of the rezoning at its July 7, 2014 meeting.

The project is another part of the major renovation effort being undertaken by AAHC on several of its properties. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The units in the eight-building, 42-unit apartment complex are proposed to have a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project will include a playground, community building and 73 parking spaces. According to a staff memo, the buildings will be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

Gift of Life Expansion

At its Sept. 2 meeting, the council will consider giving final approval to the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). At the same meeting, the council will also consider the site plan for the project.

Aerial view of Gift of Life Michigan site.

The proposal calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit. According to a staff report, the additional space will accommodate offices, a special events auditorium and “organ procurement suites.” The nonprofit’s website states that the Gift of Life is Michigan’s only federally designated organ and tissue recovery program. Cost of the expansion project will be $10.5 million.

The city planning commission recommended approval of the rezoning at its July 1, 2014 meeting. City council action to give initial approval of the site plan came at its meeting on Aug. 7.

The project would reduce the four existing curb cuts to Research Park Drive to three, connecting one of the loop driveways to an existing driveway at the east end of the site. A parking lot at the back of the site will be expanded by 38 parking spaces. Two alternate vehicle fueling stations are proposed in parking spaces near the main entry, with the driveway at the center of the site providing access for ambulances. A new shipping and receiving facility will be located on the northeast corner of the site.

Taxicab Meter Rates

Even though the council rejected one proposed change to its taxicab ordinance at its Aug. 18, 2014 meeting – which would have regulated all drivers for hire in the city – initial approval was given to another change in the part of the ordinance that regulates rates. So the council will be giving final consideration to that change on Sept 2.

The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

The vote by the taxicab board to recommend the ordinance change came at its July 24, 2014 meeting.

These issues were also discussed at three monthly meetings of the taxicab board prior to that, on April 23, 2014, May 22, 2014 and June 26, 2014. Representatives of the taxicab industry at those meetings advocated for the establishment of a very high maximum – not tied to gas and insurance prices. They feel it’s one mechanism that would allow them to compete with ride-sharing services like Uber and Lyft.

The proposal to regulate all drivers for hire, which the council rejected, was also intended in part to allow taxicab companies to compete with Uber and Lyft on an even playing field. Taxicab drivers are already regulated by the city.

Regarding fare regulation, the city’s current structure already allows for establishing a maximum rate to be adopted by the city council. Currently the maximum rate in Ann Arbor is $3 to get in, $2.50 per mile, and 40 cents per minute waiting time. Those maximum rates were last adjusted upwards three years ago, on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. At that time, the taxicab board indicated it did not anticipate considering another rate change until the gas prices were over $5 for at least two consecutive months.

So the taxicab board’s thinking is not being driven by gas prices, which are currently between $3.75 and $4 in the Ann Arbor area. Instead, a possible increase in allowable fares is based on concern that the taxicab industry in Ann Arbor might not be able to survive unless taxis are allowed to charge more.

At its Aug. 28, 2014 meeting, taxicab board members recommended the following maximum rate schedule for eventual consideration by the council, which could appear on the council’s agenda as soon as Sept. 15: $10 to get in, $5 per mile and 40 cents per minute waiting time. In addition, a $1 surcharge could be applied for each passenger over three passengers.

At the council’s Aug. 18 meeting, Stephen Kunselman (Ward 3) – who also serves as the city council’s representative to the taxicab board – asked rhetorically if the taxicab board should be disbanded. At its Aug. 28 meeting, taxicab board chair Michael Benson announced that he’d received an email from board member Eric Sturgis, who indicated that he would be resigning from the board – because he’s moving to Jackson, Mich. It has historically been difficult to find residents willing to serve on the taxicab board.

Drivers for Hire: Uber/Lyft Operating Agreement

The ordinance change rejected by the council on Aug. 18, 2014 would have required all drivers for hire to be registered with the city, to have commercial plates on their vehicles, and to maintain insurance commensurate with commercial plates. And the absence of commercial plates on a vehicle that’s observed being used for picking up or dropping off passengers would have provided a reason for a traffic stop by Ann Arbor police. At the taxicab board meetings over the last few months, representatives of the taxicab industry argued that the state statute regulating limousines already gives the city the ability to enforce against Uber and Lyft drivers.

At the taxicab board’s Aug. 28 meeting, representatives of the taxicab industry lamented the fact that they had not attended the council’s Aug. 18 meeting to advocate for regulating all drivers for hire through a city ordinance. Representatives of Uber and Lyft numbered over 50 people at the council meeting, some of whom addressed the council during public commentary time.

Ward 3 city councilmember and taxicab board member Stephen Kunselman indicated at the board’s Aug. 28 meeting that there might be a possibility that one of the five councilmembers who voted against the ordinance at first reading on Aug. 18 might bring it back for reconsideration.

The 5-5 vote totaling 10 on the 11-member body stemmed from the absence of Margie Teall (Ward 4). Voting for the regulation of all drivers for hire were Kunselman, Sumi Kailasapathy (Ward 1), Jack Eaton (Ward 4), Chuck Warpehoski (Ward 5) and Mike Anglin (Ward 5). Voting against the change were mayor John Hieftje, Sabra Briere (Ward 1), Jane Lumm (Ward 2), Sally Petersen (Ward 2) and Christopher Taylor (Ward 3).

At the council’s Aug. 18 meeting, during deliberations on the rejected ordinance change, Briere indicated that she’d concluded as early as April of this year that an operating agreement – instead of a local ordinance – would be the right approach. Taylor indicated he had been working with Briere to come up with that kind of approach.

The resolution to be considered by the council on Sept. 2 would direct the city administrator to negotiate an operating agreement with established transportation network companies (TNCs) and to bring an agreement to the council for approval by the second council meeting in October, which is Oct. 20.

The elements to be included in the operating agreement are specified in an attachment to the resolution as follows:

Operating agreement principles include:

• Company will provide a minimum of $1M in liability insurance coverage for the driver, vehicle and passengers and any other injured parties, from the moment a driver is linked with a passenger to the moment the passenger releases the vehicle.
• Company will conduct the following at no cost to the city: background checks for each driver-applicant prior to allowing their participation. This background check will include a criminal background check, including a check for multiple relevant jurisdictions; a review of the applicant’s driving record; a mechanical inspection of the vehicle by a licensed inspector. The results of this data collection will be made available to the City for any driver / vehicle combination approved for participation in the company.
• Company will not allow participation by a driver / vehicle combination if the driver has any felony conviction; any conviction for DUI; more than 2 moving violations in any calendar year or more than 4 moving violations in a six-year period, with no more than 4 accumulated points in any calendar year.
• Company shall ensure that all driver vehicles pass an annual, mutually agreeable safety inspection conducted by a licensed mechanic.
• Prior to participation in the program, drivers shall go through a driver-education program that provides training in customer service and improves familiarity with local streets and local traffic conditions.
• Drivers shall not accept passengers except through the ride-sharing mechanism provided by the Company.
• Company will provide requested data to the City about accidents and incidents with passengers, as well as a report on customer satisfaction and safety ratings.

The resolution does not appear to define explicitly what a TNC is – and seems to allow for the possibility that an existing limo company could seek to operate under such an agreement without complying with the state statute on operation of limousines.

The resolution also leaves unspecified the intended term of the agreement – although deliberations at the council’s Aug. 18 meeting indicated that the intent of such operating agreements in other Michigan municipalities was to implement a temporary basis under which Uber and Lyft could operate, while the state legislature establishes a legislative framework under which such companies could operate.

The resolution does not direct the city administrator to provide for any explicit penalties that the city could impose on a TNC for failure to adhere to the operating agreement. The enforcement mechanism that the resolution seems to contemplate is for a TNC to provide certain kinds of data to the city upon request.

The resolution does not direct the city administrator to impose any requirements on the public accessibility of data provided by TNCs to the city. If a company were to come to an agreement with the city that data and information would be provided to the city, but only upon the condition that it not be disclosed to the public, then that data would be exempt from disclosure, even under a request made under Michigan’s Freedom of Information Act.

Extension of LDFA

The council will consider a resolution on Sept. 2 that would move ahead with a 15-year extension of the local development finance authority (LDFA). The LDFA – branded as one of about a dozen LDFA SmartZones statewide – is funded through capture of public school operating millages within the geographic areas of the Ann Arbor and Ypsilanti downtown development authority districts. In actual fact, however, no capture is made of the Ypsilanti school taxes.

The LDFA contracts with Ann Arbor SPARK to operate a business accelerator, which is meant to move start-up companies in the tech and biosciences sectors more quickly to a stage in their development when they are generating revenue from paying customers and adding jobs. Separate from the LDFA business acceleration contract with Ann Arbor SPARK, the city of Ann Arbor has historically engaged SPARK for business attraction and retention services. However, this year the $75,000 annual contract with SPARK was tabled by the council – in a vote taken at the council’s June 16, 2014 meeting. It’s expected at some point to be taken back up off the table for consideration. By council rule, it will be considered demised if it’s not considered before a lapse of six months.

The extension – which would still need approval from the Michigan Economic Development Corporation – depends on establishing a relationship between the Ann Arbor-Ypsilanti SmartZone and some other “satellite” LDFA. So the Sept. 2 resolution designates Adrian/Tecumseh as that satellite. The council’s resolution specifies the following as findings:

1. That the selection of the Adrian/Tecumseh LDFA as a satellite provides unique characteristics and specialties through its public and private resources including the location of Adrian College, Siena Heights University and Jackson College within its TIF District and the opportunities for research partnerships and student/young entrepreneur involvement. In addition partnership with another multi-jurisdictional LDFA provides opportunities for shared experiences.
2. That the selection of the Adrian/Tecumseh LDFA as a satellite provides regional cooperation and collaboration benefits to the LDFA and the Cities of Ann Arbor and Ypsilanti with joint focuses on technology (including expanding green technologies and agricultural technology) and entrepreneurial services.
3. That the selection of the Adrian/Tecumseh LDFA as a satellite provides value and support to the LDFA by strengthening existing collaboratives, making available a new/expanded technical assistance and support through its Innovation Center at Adrian College, and agricultural and manufacturing resources.

In connection with the extension, revisions to the Ann Arbor-Ypsilanti SmartZone TIF (tax increment financing) plan and development plan are being undertaken. Drafts of revisions are attached to the council’s Sept. 2 agenda item. Revisions appear to address concerns that have been raised about the current arrangement – to some extent by Ann Arbor city councilmembers.

Those concerns include the fact that TIF is not currently allowed to be spent outside the TIF district in the city of Ann Arbor; further, no TIF funds can be expended in Ypsilanti – inside or outside its TIF district – because no actual tax capture revenue is generated for the LDFA in that area. The revisions would allow TIF revenue to be expended anywhere in the entire cities of Ann Arbor or Ypsilanti.

In addition, the revisions specify in greater detail that TIF revenue can be used to pay for high-speed communications infrastructure. Specifically mentioned as eligible expenditures is the “installation of technology related infrastructure assets, i.e. fiber lines, nodes, or work spaces.”

The LDFA extension comes in the context of lingering questions about the impact on school funding of the LDFA tax capture. In FY 2013, the total amount captured by the Ann Arbor SmartZone LDFA was $1,546,577, and the current fiscal year forecast is for $2,017,835. About the same amount is forecast for FY 2015.

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

Questions raised in the last few months have centered around whether the School Aid Fund is “reimbursed” by the state’s general fund for the taxes that are captured to fund the Ann Arbor SmartZone LDFA – because the wording of the state statute is based on the term “reimburse.”

It turns out that the school taxes captured by the Ann Arbor SmartZone are not required to be “reimbursed” to the state School Aid Fund – which diminishes the amount of funding for public schools statewide. That’s a conclusion based on a reading of the LDFA statute and confirmed to The Chronicle by communications staff in the Dept. of Treasury and the MEDC. However, it’s not clear that “reimbursement” is even a useful way of framing the question – notwithstanding the wording of the state statute. That’s partly because tax capture from those LDFAs to which the state statute does apply are not “reimbursed” in the sense that the word implies – with a specific calculation done and a transfer of money (or an adjustment to the legislature’s appropriation) made based on that calculation. From an Aug. 7, 2014 staff memo: “… the reimbursement language really only served as language of intent.”

Based on subsequent inquires made by city of Ann Arbor financial staff with state officials, it appears that the setting of the statewide per-pupil allowance each year proceeds along a separate track from replenishing the School Aid Fund – which receives significant revenue from sources other than local school operating millages. It appears it’s not possible to establish a 1-to-1 relationship between local school operating taxes that are captured by LDFAs and money that flows into the School Aid Fund from various other sources that might be analyzed as “compensating” for the capture.

In any case, city staff have concluded that LDFA tax capture has not had a negative impact on Ann Arbor’s local school funding.

Appointments to Boards and Commissions

Appointments to the city of Ann Arbor’s boards and commissions are typically handled in a two-step process: (1) the mayor announces the nominations at a council meeting; and (2) the council votes on the confirmation at the next meeting of the council. The procedure is grounded in the city charter.

At the council’s Aug. 21 meeting, Anna Ercoli-Schnitzer was nominated to fill a vacancy on the commission on disability issues. Tamara Burns and Dick Mitchell were nominated to be reappointed to the design review board. Sofia Franciscus was nominated to fill the vacancy on the planning commission due to Paras Parekh’s resignation. And John Splitt was nominated for reappointment to the Downtown Development Authority board.

3:05 p.m. The staff responses to councilmembers’ questions about agenda items are now available. [Sept. 2, 2014 staff responses to questions]

4:29 p.m. Tonight only five people appear to be signed up to talk in the 10 slots for public commentary that are available at the start of the meeting. Kai Petainen is signed up to talk about the LDFA extension. Alan Haber is signed up to talk about the park advisory commission’s recommendation for redevelopment of Liberty Plaza, which is an attachment to the clerk’s report. And three people are signed up to talk about the direction to the city administrator to negotiate operating agreements with transportation network companies like Uber and Lyft: John Heed, a representative of SelectRide; and Michael Benson and LuAnne Bullington, who serve on the city’s taxicab board. (Benson is chair of that group.)

6:52 p.m. Jane Lumm (Ward 2), Jack Eaton (Ward 4), Sally Petersen (Ward 2) and mayor John Hieftje have arrived.

7:04 p.m. We’re still missing Christopher Taylor (Ward 3) and Margie Teall (Ward 4).

7:07 p.m. Call to order, moment of silence, pledge of allegiance.

7:07 p.m. Roll call of council. Margie Teall (Ward 4) and Christopher Taylor (Ward 3) are absent.

7:08 p.m. Approval of agenda.

7:09 p.m. Chuch Warpehoski (Ward 5) is adding an agenda item DS-4, which will take up the Ann Arbor SPARK contract off the table from a previous meeting. A separate vote will be taken at the time the council reaches that agenda point.

7:09 p.m. Outcome: The council has approved the evening’s agenda as amended.

7:10 p.m. Communications from the city administrator. City administrator Steve Powers reminds the council of the Sept. 8 work session with the DDA on parking issues, starting at 7 p.m.

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

7:13 p.m. Kai Petainen is speaking about the LDFA extension. He is focusing on the jobs claims that have been made by Ann Arbor SPARK. He says that SPARK and LDFA are not telling a consistent story. He asks if it’s worth spending $58 million on 700 jobs. He asks if many of the jobs that have been created would have been created even without the existence of SPARK and the LDFA. [.pdf of Petainen's remarks]

7:14 p.m. Alan Haber is talking about the World Day of Peace. He’s talking about the importance of gathering the community. He’s supporting a proclamation later on the agenda that would recognize World Peace Day. [Teall and Taylor have now arrived at the meeting.]

7:17 p.m. John Heed is speaking against negotiating an operating agreement with Uber and Lyft, arguing that they operate in violation of state law. He gives insurance requirements as an example of the competitive playing field not being level. The operating agreements would simply shift responsibility, he says. Having a new business model does not make anybody above the law, he says.

7:21 p.m. Michael Benson is chair of the taxicab board and a resident of Ward 2. He was in Beijing during the last council meeting and couldn’t attend. He characterizes the transportation industry as in a state of flux due to a variety of factors. He’s speaking against establishing operating agreements with TNCs, arguing that they fall under the state’s limo statute. He says that the proposal that the taxicab board had made would be broad enough to cover the market, however it evolved. He points out that the city had issued a cease-and-desist order, which means that the city’s view is that Uber and Lyft are operating in violation of the law. He asks that the council reconsider the ordinance they rejected, and allow a public hearing on the question by allowing it to go to a second reading. [.pdf of Benson's remarks]

7:24 p.m. LuAnne Bullington says she’s not speaking as a member of the taxicab board, but as a citizen who knows something about transportation. A limo is licensed by the state, and a taxi is licensed by a local municipality. It’s not possible to regulate taxicabs outside of the city, she says. She says that Uber is really a $17 billion taxicab company that the state and the city of Ann Arbor can’t regulate. She notes that a court in Frankfurt, Germany had issued an order against Uber that Uber is simply ignoring.

7:24 p.m. Communications from the council. This is the first of two slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

7:24 p.m. Jack Eaton says that a meeting on the Packard Square development has been canceled and will be scheduled for a later time.

7:28 p.m. Mike Anglin is talking about the Sept. 21 World Peace Day proclamation. He says that it was added late, but he wanted it to appear on this council’s agenda. He also points to the F-3 communication from the park advisory commission, which is attached to the agenda. Anglin says that voters had overwhelmingly said they wanted additional parks in the downtown. Because the council had voted to designate part of the top of the Library Lane parking structure as a public park/plaza, it was important to start holding events there. The World Peace Day event is something that there can’t be any equivocation about, he says – as everyone agrees there should be peace in the world. It should be made possible without establishing barriers. He’s referring to the requirement that an insurance policy be in place. [The DDA's policy on use of public parking facilities for events includes an insurance requirement.]

7:30 p.m. Sumi Kailasapathy says that as she was walking in, Ray Detter had told her that there was a light agenda. She said that although the agenda is light, she had a heavy heart because it is the last day of The Ann Arbor Chronicle. She’s now talking about the beheading of journalists in the Middle East and relates her own experience growing up in a civil war in Sri Lanka. She’s talking about the importance of documenting history. She’s sending her salutations and thanks to The Chronicle.

7:32 p.m. Sabra Briere is talking about the design charrette on the Platt Road site. It was hosted by Washtenaw County, which owns the land. The county board of commissioners was interested in how the public wanted to see the site developed if it included housing. The results of the charrette are now up on the website, Briere says. If the county determines that affordable housing is appropriate, she hopes the city will be able to cooperate in that effort. She encourages people to look into that and to communicate to the county.

7:35 p.m. Jane Lumm is announcing the year-end dog swim at the Buhr Park pool on Sept. 3-4. Educational efforts will be made at the event about the dog licensing requirements. She’s thanking Kailasapathy for her comments about The Chronicle and wishes us a happy 25th wedding anniversary. She’s describing The Chronicle as public servants who have helped improve the community with an emphasis on open and transparent governance. She’s extending her sincere thanks and says The Chronicle will be missed.

7:36 p.m. Hieftje says there are some spectacular athletes at the dog swim. He tells late-arriving councilmembers that the SPARK contract has been added to the agenda to be taken up off the table.

7:37 p.m. MC-1 Confirmations. At the council’s Aug. 21 meeting, Anna Ercoli-Schnitzer was nominated to fill a vacancy on the commission on disability issues. Tamara Burns and Dick Mitchell were nominated to be reappointed to the design review board. Sofia Franciscus was nominated to fill the vacancy on the planning commission due to Paras Parekh’s resignation. And John Splitt was nominated for reappointment to the Downtown Development Authority board.

7:37 p.m. Eaton is asking that John Splitt’s nomination to be separated out from the others.

7:38 p.m. The council has confirmed all the nominations except for that of Splitt, which is being considered separately.

7:39 p.m. Stephen Kunselman says he won’t support Splitt to a third term. Eaton also says he won’t support it, and he wants to explain why. He says that The Chronicle has consistently reported on various problems with the Open Meetings Act and a compliant development plan, and he thinks that those problems stem from confirming the same people over and over again.

7:40 p.m. Kailasapathy also says she won’t support Splitt’s confirmation. She wants people who will take TIF (tax increment finance) spending seriously, and not treat it like “Halloween candy.” New people will look at things with fresh eyes, she says. She says it’s not personal.

7:42 p.m. Petersen says she’ll support Splitt and says she knows him to be an independent thinker. When she traveled with the DDA to New York City, he’d made an extra effort to get to know her. She says that Splitt represents the State Street area of the downtown.

7:44 p.m. DDA board chair John Mouat is asked to the podium by Margie Teall (Ward 4). She asks him if the DDA board members are “slackers.” Mouat is saying there is a steep learning curve on the DDA. Teall asks if there is any review of the OMA on staff. He allows that it’s been brought up as a point of discussion. It’s probably something that the DDA should look at, he says.

7:48 p.m. Kunselman is asking Mouat about the raises that Susan Pollay received as executive director. Mouat says he doesn’t feel comfortable answering that question. Kunselman says he wasn’t planning to go into detail. He’s reviewing The Chronicle’s reporting about those raises. Kunselman is now talking about the requirements of the DDA statute. He says he’s looking for new DDA members who will each year work on the TIF plan. Mouat points to the joint working session on Sept. 8, which would be a better occasion for this discussion, he says.

7:49 p.m. Anglin is comparing the compensation of DDA staff to city staff. Anglin says he’s voting against Splitt’s reappointment because he wants to see the DDA step up and provide police in the downtown.

7:51 p.m. Kailasapathy responds to Mouat’s remarks about the learning curve. The DDA’s institutional memory is not as good as it should be, she says. Kailasapathy is talking about Kunselman and The Chronicle’s retrieval of some DDA records from the Bentley Library. She wondered why long-term members of the DDA had not remembered these things.

7:53 p.m. Lumm thanks those who have said they will vote against Splitt’s appointment. She says that city administrator Steve Powers had demonstrated a courageous vote when he voted against Susan Pollay’s raise this year. However, Splitt was entitled to another term, Lumm says. Splitt has worked hard, she adds, so she will support his appointment.

7:55 p.m. Hieftje says there are membership criteria for members of the DDA. Splitt is a downtown business owner and lives in the DDA district, he says. He gives a breakdown of the mix of the DDA board in terms of thirds, based on their length of service.

7:55 p.m. The council has confirmed the nominations of John Splitt to a third term on the DDA board on a 7-4 vote. Dissenting were Kailasapathy, Kunselman, Eaton and Anglin

7:55 p.m. MC-2 Nominations. Tonight Sam Callan is being nominated to the building board of appeals. The vote on his confirmation will come at the council’s next meeting.

7:55 p.m. Public Hearings. All the public hearings are grouped together during this section of the meeting. Action on the related items comes later in the meeting. Four public hearings are scheduled tonight: one on the Ann Arbor Housing Commission’s North Maple Estates site plan; two on the Gift of Life project (one for the rezoning and the other on the site plan); and one on the changes to the taxicab rate ordinance.

7:55 p.m. PH-1 AAHC North Maple Road site plan

7:57 p.m. Thomas Partridge is speaking in support of this item, with the proviso that it should have adequate handicapped parking.

7:59 p.m. Ed Vielmetti is speaking in support of the site plan. He’s objecting to the copyright notices that are included on the various maps. Because they are planning documents that people might want to review, it’s important that the city include copyright notices that are appropriate for archival distribution.

8:02 p.m. Scott Betzoldt with Midwestern Consulting, Jennifer Hall of the AAHC and architect John Mouat are at the podium. They represent the project. Betzoldt is going first. He says that all the underground utilities will be replaced, and stormwater detention will be provided. Mouat says that his firm has worked with AAHC for over 20 years. He stresses three points. The buildings have been designed to be simple to maximize floor area. The mix of bedrooms is 1-bedroom, 2-bedroom, 3-bedroom and 4-bedroom units. He also notes that the units will be barrier-free. The building will also be certified as environmental friendly, he says, including 4×6 stud construction, which will allow for additional insulation.

8:04 p.m. Hall says that this is the first site to which the AAHC has been able to add units in over 20 years. She’s talking about the relocation plan for the current tenants. They’ll be able to move back to the site when construction is complete.

8:04 p.m. That’s it for PH-1.

8:04 p.m. PH-2 Gift of Life rezoning

8:06 p.m. Thomas Partridge expresses concern that there should be a requirement that the property be made accessible to public transportation as well as paratransit. All similar rezoning should have such a requirement.

8:07 p.m. That’s it for PH-2.

8:07 p.m. PH-3 Gift of Life site plan

8:08 p.m. Thomas Partridge reiterates the importance of making site plan approval contingent on adequate access to handicapped parking and public transportation.

8:09 p.m. That’s it for PH-3.

8:09 p.m. PH-4 Taxicab ordinance

8:12 p.m. Mark LaSarge of SelectRide is addressing the council. He’s arguing against pricing restrictions generally. He’s ticking through the costs of the taxicab industry. The city doesn’t determine prices for milk, he notes, and should not determine prices for taxicabs. He’s also arguing against the direction to the city administrator to negotiate operating agreements that the council will consider tonight.

8:16 p.m. John Heed says this should be passed, even though it will not solve all the problems. It will help the taxicab industry absorb “price shocks,” he says.

8:16 p.m. A woman introduces herself as a taxicab driver. She disagrees with the taxicab owners on the fare issue. But she agrees with them on the question of operating agreements with Uber and Lyft. Hieftje encourages her to relate her remarks to the ordinance on the agenda. She invites councilmembers to do a ride-along with her as she drives her taxi.

8:18 p.m. LuAnne Bullington is reviewing how the price structure would work. She asks councilmembers to support this ordinance change, because it gives taxicab companies flexibility. The taxicabs would simply have to post the rates, she concludes.

8:20 p.m. Rick Clark, of Amazing Blue Taxi, tells the council that he’d received a sad phone call from a customer, who would no longer be using his cab service – because she’s moving to California. She thanked him for the service. “An app is not going to care about people,” he concludes.

8:22 p.m. Thomas Partridge wants the maximum rates extended to cab-like services like Uber and Lyft. He calls for keeping Ann Arbor an affordable city.

8:23 p.m. Michael White, general manager for Uber in Michigan, speaks in support of the “deregulation” of taxicab rates. He says that the council’s focus should be on providing choice and safety. Uber provides choice and safety, he says. He’s available, if councilmembers have questions, he says.

8:26 p.m. Michael Benson, chair of the taxicab board, says that this ordinance addresses two problems – variable insurance and gas rates. The cost of doing business has to be weighed against the cost to the public. The ordinance requires posting the rates and allows a taxicab company to change its rates once during the year. This does not mean the taxicab board is in favor of complete deregulation, he says. The taxicab industry is different from others in that it operates solely in the public right of way. He encourages the council to approve the ordinance.

8:27 p.m. That’s it for PH-4.

8:27 p.m. Council minutes.

8:27 p.m. Outcome: The council has approved the minutes of the previous meeting.

8:27 p.m. Consent agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. This meeting’s consent agenda includes:

• CA-1 Street Closing: Oktoberfest Oct. 3-4, 2014 (W. Washington) requested by Arbor Brewing Company.
• CA-2 Street Closing: Oktoberfest Oct. 3-4, 2014, (W. Washington) requested by Grizzly Peak Brewing Company and the Blue Tractor.
• CA-3 Street Closing: Reception for UM President Sept. 5, 2014 (E. Washington btw. Thayer and Fletcher).
• CA-4 Contract Amendment with Hinshon Environmental ($10,000).
• CA-5 Approve a purchase order with Staples FY 2015 ($92,499).
• CA-6 PILOT for Avalon Housing 1010-1030 Arbordale Street.
• CA-7 Amend contract with Green Vision Lawn and Landscaping ($2,556).
• CA-8 Authorize contract with OPUS International Consultants, Inc. ($58,724) for Nixon/Green/Dhu Varren Intersection Improvement Study.

8:28 p.m. Councilmembers can pull items off the consent agenda for separate consideration. Tonight Briere has asked CA-6 and CA-8 to be pulled out for separate consideration. Taylor wants CA-2 pulled out.

8:28 p.m. Outcome: The council has approved the consent agenda except for the three items to be considered separately

8:28 p.m. CA-2 Street Closing: Oktoberfest Oct. 3-4, 2014 (W. Washington) requested by Grizzly Peak Brewing Company and the Blue Tractor.

8:29 p.m. This was considered separately to allow for recusal of Taylor because his firm represents the requestor of the street closing.

8:29 p.m. Outcome: The council has now approved CA-2 on the consent agenda.

8:30 p.m. CA-6 PILOT for Avalon Housing 1010-1030 Arbordale Street. Briere makes some remarks in favor of this item.

8:31 p.m. Outcome: The council has now approved CA-6 on the consent agenda.

8:31 p.m. CA-8 Authorize contract with OPUS International Consultants Inc. ($58,724) for Nixon/Green/Dhu Varren Intersection Improvement Study. Briere says that Ward 1 and Ward 2 councilmembers are delighted to see this item. She reminds city administrator Steve Powers that she’s grateful for the public participation component of the contract. Kailasapathy says that residents will definitely have a lot to say.

8:33 p.m. Lumm says, “Hear, hear,” to the comments that Briere and Kailasapathy have made. The “intersection” is problematic, she says.

8:34 p.m. Outcome: The council has now approved CA-8 on the consent agenda.

8:34 p.m. B-1 Gift of Life Rezoning. This is final approval of the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). The site plan, which also appears on the Sept. 2 agenda, calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit. [For additional background, see Gift of Life Expansion above.]

8:35 p.m. Outcome: The council has voted without discussion to give final approval to the Gift of Life rezoning.

8:35 p.m. B-2 Taxicab Rate Ordinance. The council gave initial approval at its Aug. 18 meeting to a change in the part of the taxicab ordinance that regulates rates. This is the final consideration of that change. The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall. [For additional background, see Taxicab Meter Rates above.]

8:37 p.m. Kunselman says that staff has asked him to add an amendment – to set the date of enactment to be Oct. 14. He says he won’t bore everyone by repeating the sentiments expressed during the public hearing. He reviews how the ordinance would work, saying that it allows for the setting of a very high maximum. It would allow taxicab companies to start to compete with companies like Uber and Lyft that are competing unfairly. Lumm indicates her support for the change to the ordinance.

8:41 p.m. Hieftje says that he served on the taxicab board from November 1999 to November 2000. At that time, nobody heard much from the taxicab board, he notes. Kunselman says that he very rarely uses livery services. He said that the camaraderie among the livery service community should be taken note of. They’ve been around for a long time, he says. He’s known a number of taxicab drivers and talks about the stories they tell. He jokes that someone else on the council might want to serve as the council’s representative starting in November, when the council reassigns its board and commission appointments.

8:41 p.m. Anglin echoes Kunselman’s appreciation of the taxicab industry.

8:42 p.m. Outcome: The council has voted to give final approval to the revision to the taxicab ordinance, regarding the setting of rates.

8:42 p.m. Recess. We’re now in recess.

8:53 p.m. We’re back.

8:53 p.m. C-1 AAHC Platt Road rezoning. This is the initial rezoning approval for the AAHC’s Lower Platt Road project, which will entail demolishing four 5-bedroom units – because of their current placement in the floodplain – and constructing 32 townhomes and a community center. The zoning change would be from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district). [For additional background, see AAHC: 3451 Platt Road Rezoning above.]

8:54 p.m. Lumm asks if planning manager Wendy Rampson is available. She is. Lumm asks about the delay in the site plan at the planning commission. Rampson explains to Lumm that a reconfiguration is being sought for some of the buildings.

8:54 p.m. Outcome: The council has voted to give initial approval to the rezoning of 3451 Platt Road.

8:54 p.m. DC-1 SmartZone satellite agreement. This resolution would move ahead with a 15-year extension of the local development finance authority (LDFA). The LDFA  – branded as one of about a dozen LDFA SmartZones statewide –  is funded through capture of public school operating millages within the geographic areas of the Ann Arbor and Ypsilanti downtown development authority districts. The extension requires an agreement with a satellite LDFA, which the Ann Arbor-Ypsilanti SmartZone is making with Adrian/Tecumseh. [For additional background, see Extension of LDFA above.]

8:58 p.m. Petersen is reviewing the purpose of the resolution. [She's the council's representative to the LDFA board.] Petersen is reading aloud a statement in support of economic development generally. She’s addressing the possible objection that some councilmembers might have, given the mechanism for funding the LDFA – which is through tax increment financing. She’s inviting Eric Jacobsen, board treasurer of the LDFA, to the podium.

9:00 p.m. Jacobsen notes that the recruitment of a satellite LDFA is a state mandate as a condition of the extension. He’s reviewing the reasons for choosing Adrian/Tecumseh over Brighton/Howell. He says that no Ann Arbor tax dollars would be going to Adrian/Tecumseh.

9:03 p.m. Jacobsen notes that this is just the next step in a multi-step process. One of the next steps is to define a new TIF agreement. The LDFA is in the business of economic growth – helping start-up companies, not trying to get other companies to relocate here. It’s an ecosystem for entrepreneurs, he says. Ann Arbor can compete with Palo Alto and Austin, he says. He stresses that Ann Arbor SPARK is the LDFA’s contractor – and that SPARK executes on the directive that LDFA gives.

9:04 p.m. Jacobsen reports that the Ypsilanti city council has approved the agreement earlier tonight. Five other cities are applying for two possible extensions statewide, he says.

9:08 p.m. Kailasapathy notes that the revenue estimates for the 15-year period total about $58 million. She calls that a estimate conservative. She says her understanding is that something like $3-6 million will be spent in Ypsilanti, even though there is no TIF capture in Ypsilanti. CFO Tom Crawford says that there have been informal discussions with the MEDC, and there’s an interest by MEDC in seeing the money spent in Ypsilanti as well. Ann Arbor still comes out ahead, Crawford says. Kailasapathy says $58 million is a lot of money.

9:11 p.m. Kailasapathy is confronting the contention that the ecosystem will “wither away” without the extension. She notes the increase from $200,000 in the early years of the LDFA to $2 million now. She points out that the University of Michigan has a new entrepreneurial effort. Jacobsen says that he expects all the partners will work together.

9:12 p.m. Kailasapathy is now addressing the focus on job creation. How many jobs will be created in the next 15 years? she asks.

9:14 p.m. Crawford points to the draft amended TIF plan. After getting approval from the MEDC, the city would then need to enter into negotiations on the TIF plan with the MEDC. After it get passed, the city would be jumping into that feet first, he says. Kailasapathy calculates that it would be $80,000 per job created.

9:15 p.m. Jacobsen is saying for every job created in the tech field, another five jobs are created. So if it’s $80,000 per job, the return to the community is still very impressive, he says.

9:16 p.m. Lumm says she understands that the final TIF and development plans aren’t required until next year, but she’s happy the council has been provided with draft versions. Jacobsen reiterates that goals on job creation would come after the TIF and development plans are finalized.

9:19 p.m. Briere asks Jacobsen if he were to design the agreement, whether job creation would be a “decent” metric. Yes, he says. She asks him to explain how it’s a good metric. Stephen Rapundalo, an LDFA board member and former Ward 2 city councilmember, takes the podium. Growing businesses is the goal, Rapundalo says, and the jobs come as a result of that.

9:21 p.m. Briere says that it feels good to say that we’ll project a certain number of jobs created and then go back and check to see if that’s what happened. But that “recipe” makes her nervous, she says. How many dollars we spend to get how many jobs is not a good way to think about it, she adds. So she wonders what other metrics can be offered? Rapundalo says that the number of companies that are starting is one measure, as well as the amount of funding that they are receiving. Briere says she wishes the discussion was less focused on the specific number of jobs.

9:28 p.m. Eaton asks if we acknowledge that if the $58 million is captured, that the state does not reimburse the state’s School Aid Fund. Crawford explains that the foundation grant is determined by two components: the local millage funding and the state contribution. Local schools are not harmed through the tax capture, he says. Eaton asks if the state treasurer is making up the fact that the School Aid Fund is not reimbursed. Crawford explains the complexity of the School Aid Fund mechanism. Eaton is reiterating his concern about the impact on school funding. He also talks about the “fuzzy” job creation number. He wonders if the jobs that are created are really attributable to the activities of the LDFA. Crawford compares $4 million to $10 billion that the state contributes, so he says that tax capture has a negligible impact on school funding.

9:30 p.m. Kunselman wants to know what five cities are in the running for the two slots for the 15-year extension. Automation Alley, Grand Rapids and Kalamazoo are named. Kunselman wants to know how unemployment rates in the cities compare. Ann Arbor has the lowest unemployment in the state, Kunselman is told. Now Kunselman wants to know what the options are for a five-year extension, if Ann Arbor is not selected for the 15-year extension.

9:36 p.m. Kailasapathy wants to see some of the taxes eliminated from capture – the school operating millage, because that’s the amount that is distributed from the state treasurer directly back to the school districts. Lumm expresses skepticism that Kailasapathy has characterized that accurately. Crawford confirms that’s right.

9:40 p.m. Briere ventures that the foundation grant level is set, and after that the state looks for where the money comes from to fund that grant level. Crawford is explaining that there are numerous factors. He is arguing that there is some return on the investment of the captured taxes, which generates greater revenue to the state and the local communities.

9:42 p.m. Anglin is now asking about the possibility of imposing hold-harmless requirements.

9:45 p.m. Kunselman says he appreciates all the commentary. He says that the LDFA is showing a lot of care and consideration in its willingness to work with the council – something he can’t say about every authority the council deals with. He still has a problem with the fact that the money is taken from schools. When he hears about the other communities that are in the running, because they have real need for job creation. Ann Arbor already enjoys the benefits of the economic engine that the University of Michigan provides. He wants to see Detroit and Kalamazoo get this benefit. So he won’t support the 15-year extension. He calls this greedy on Ann Arbor’s part. “We are in this as a state,” he says. “If Detroit doesn’t get better, we don’t get better.”

9:46 p.m. Teall agrees with Kunselman that everyone needs this. But Ypsilanti and Adrian/Tecumseh need this too, she says. The stronger this local region is, the stronger the state can become, she says.

9:48 p.m. Petersen is asking for clarification about who is still in the running. Houghton/Marquette already have the extension, she ventures. That’s right, confirms Crawford.

9:50 p.m. Lumm is explaining her reasons for supporting this. She hopes that LDFA and SPARK will listen to the concerns about the need for greater transparency. She remarks on the funding of fiber networks in the next 15 years as a positive. She says she does not believe that the capture of the school taxes has a negative impact on school funding.

9:53 p.m. Anglin says the council has not talked about the five-year option. Why is the 15-year plan preferable? he asks. He points to the rationale for excluding the Washtenaw Intermediate School District’s tax from capture and wonders why that exemption doesn’t apply to the AAPS operating millage. Good schools lead to good jobs, he says. He’s saying that local officials need to tell the state that they need to do better in their overall approach to funding state education.

9:54 p.m. Anglin says he’d like to see a smaller step taken – a five-year extension.

9:59 p.m. Crawford clarifies that the WISD millage is not captured. Briere ventures that the rationale for not capturing WISD’s millage is that WISD doesn’t receive per-pupil reimbursements from the state. Briere also says that the reason the council is considering the 15-year extension first is that Ann Arbor is in competition with other cities – and if Ann Arbor does not win, then the five-year extension is the fall-back position.

9:59 p.m. Anglin says he will vote against this, because he wants the state legislature to do a better job funding schools.

10:00 p.m. Eaton is noting that the 15-year extension goes out 18 years from now, because there’s three years left on the current authorization. To date, the council has only seen “fuzzy” justification for the results, he says. Eaton would support a five-year extension but says that planning for 15 years in the future at this price tag is pretty speculative.

10:02 p.m. Petersen clarifies that the council is not voting on the 15-year extension – as that’s the purview of MEDC and the state treasurer – but rather on the inclusion of Adrian/Tecumseh in the application.

10:02 p.m. Lumm returns to the school funding question.

10:04 p.m. Kunselman is asking what the TIF capture would be in other cities that are competing for the 15-year extension.

10:06 p.m. Anglin is reading aloud the parts of the resolution that address the 15-year extension and asks: “Are we reading the same document?” Hieftje thanks Crawford for all the work he’s done and also the LDFA board. The LDFA has responded to questions from the council, he says. He’s convinced that local schools are not hurt by the LDFA – as the state will fund public schools the way it wants to.

10:08 p.m. Hieftje says that he disputes the idea that job creation would happen without the efforts of the LDFA. Ann Arbor might be the only city in the state of Michigan that can compete with Palo Alto, Hieftje says. So it’s important that Ann Arbor continue to do that. He says that it would be good for some of the LDFA money to be spent in Ypsilanti. This will “lift all boats,” he says.

10:10 p.m. Warpehoski is responding to the question Kunselman asked about the TIF capture of other cities, with data he Googled.

10:13 p.m. Warpehoski notes Pfizer’s departure and says that Ann Arbor’s economy is not bulletproof. He points to SPARK’s bootcamp and a resident who went through it, who has now started a business: 1000 Tools. Warpehoski is glad that kind of innovation is happening, he says. Even if after five years there are no jobs associated with that company, he thinks the impact is positive.

10:14 p.m. Taylor says it’s all pretty simple. There’s an opportunity to obtain a few million dollars for the benefit of Ann Arbor’s economy.

10:15 p.m. Taylor notes that 2,400 were lost when Pfizer left. That was not the only negative impact. Conversely, he says, adding jobs has additional positive impact beyond just those job numbers.

10:18 p.m. Briere says she likes to look at the resolution in front of her but she’d had to look at a lot more than that with this resolution. Briere says that the state does not attach as much importance to infrastructure and schools as it once did. But now it’s willing to invest in economic development, which might indirectly help revenues to fund infrastructure and schools.

10:19 p.m. Briere says there are three things that are important: (1) money will be spent in Ypsilanti; (2) it allows investment in Adrian/Tecumseh; and (3) spending on fiber networks.

10:20 p.m. Anti-Israel activists have arrived with signs. They attended the Ypsilanti city council meeting earlier.

10:20 p.m. Briere will support the resolution.

10:22 p.m. Outcome: The council has voted 7-4 to approve the agreements with Adrian/Tecumseh regarding the extension of the LDFA, over dissent from Kailasapathy, Kunselman, Eaton and Anglin.

10:22 p.m. DC-2 Transportation Network Companies (Uber/Lyft). Direct the city administrator to negotiate operating agreements. This resolution would direct the city administrator to negotiate operating agreements with transportation network companies like Uber and Lyft. This is being considered as an alternative to the ordinance considered, but rejected at the council’s Aug. 18, 2014 meeting, which would have required all drivers for hire to be registered with the city, to have commercial plates on their vehicles, and to maintain insurance commensurate with commercial plates. And the absence of commercial plates on a vehicle that is observed being used for picking up or dropping off passengers would have provided a reason for a traffic stop by Ann Arbor police.

10:24 p.m. Briere says that the resolution was the result of electronic collaboration among herself, Taylor and Petersen. The language had been run past city staff to make sure the principles in the resolution were principles from which the staff could negotiate. Public safety was one of the concerns she’d tried to address. This is an effort to regulate companies like Uber and Lyft, she says.

10:27 p.m. Kunselman wants to know if the insurance referred to is primary or secondary. Briere invites Kunselman to make an amendment to clarify. Kunselman declines, saying he plans to vote against this resolution.

10:30 p.m. Kunselman asks assistant city attorney Abigail Elias if the cease-and-desist order is still in effect. She states that she is not familiar with the order. Kunselman ventures that the direction to the city administrator undercuts the city attorney’s authority.

10:30 p.m. Kunselman reiterates that he won’t support this resolution.

10:32 p.m. Warpehoski asks what the goal is of having a company provide customer satisfaction data. Briere indicates that it’s kind of a proxy for safety data.

10:35 p.m. Warpehoski says his concern with this provision is twofold. Are we holding TNCs to an appropriate standard for public safety? Does that compromise proprietary information? he wonders. He asks that Powers interpret this flexibly so that private information is not compromised.

10:36 p.m. Petersen says that this is data that TNCs already collect. There should be a plan to use it, if the city is going to ask for it, she says. The operating agreement should include a plan to use the data once the city has it.

10:40 p.m. Petersen ventures that once an operating agreement is in place, the cease-and-desist orders would be rescinded. Hieftje appreciates the work that Briere, Taylor and Petersen have put into it and indicates he’ll support it. Warpehoski said that if the city hears complaints about racial profiling or access of helper dogs, that should be referred to relevant boards and commissions. He also says that a blanket ban on drivers with felony convictions is an overly broad requirement to place on TNCs. Someone who is convicted of embezzlement should not be precluded as a driver. So he wants to amend the principles to indicate that only relevant felony convictions would be considered.

10:40 p.m. Lumm wants to know what other cities are doing. Briere says it varies from community to community.

10:45 p.m. Lumm says she doesn’t have enough information to evaluate Warpehoski’s amendment. She wants the city attorney’s office to address these questions. Taylor says this issue can be evaluated when the council is presented with an actual operating agreement. Teall wants to know the difference between UberX and UberBlack. Kunselman is explaining the difference. UberX is the service where drivers use their personal vehicles, he says. Uber’s Michael White has again been invited to the podium. Limo companies offer rides through UberBlack to help fill their downtime, he explains. He is now explaining how UberX works.

10:46 p.m. White says that the insurance provided by Uber for UberX is for primary, commercial insurance.

10:49 p.m. Kunselman questions whether the cease-and-desist order can be rescinded unless the operating agreement results in compliance by UberX with the state limo act. He is worried about councilmembers’ liability for direction to rescind the cease-and-desist order. He says that he’ll vote against it.

10:50 p.m. The rest of the world is moving forward with regulation, Kunselman says. Those councilmembers who are going to “dance around the law, have at it, please!”

10:52 p.m. Lumm wants to know if there will be some kind of limit on the life of the operating agreement. Briere ventures that it will be limited in time.

10:54 p.m. Lumm asks for thoughts on the term of the agreement. Taylor says that he thinks something like two years, with a provision that material changes in state law could result in earlier termination.

10:55 p.m. Lumm asks for an amendment clarifying that inspection would be done by a state licensed mechanic.

10:57 p.m. Eaton is taking Kunselman’s question to heart about the potential conflict between the city attorney’s cease-and-desist order and this resolution. Eaton says that he thinks the city attorney should review this question. Assistant city attorney Abigail Elias notes that all contracts entered into by the city are reviewed by the city attorney’s office.

10:59 p.m. Elias explains to Kunselman her view that a request for a public opinion must be made by the council. Petersen wants to know what will happen to the cease-and-desist order. Hieftje indicates that will be decided in the future. Lumm quips that the cease-and-desist order is not causing Uber and Lyft to cease and desist.

11:01 p.m. Lumm is reading aloud her prepared statement in support of this direction to the city administrator to negotiate an operating agreement. She calls the principles robust and says they provide a good framework.

11:03 p.m. Warpehoski says that he’s forwarded the text of the city’s taxicab ordinance so that Lumm can compare the current resolution on felony convictions to requirements on taxicab drivers.

11:04 p.m. Outcome: The council has voted 8-3 to direct the city administrator to negotiate operating agreements with transportation network companies like Uber and Lyft, over dissent from Kailasapathy, Kunselman and Anglin

11:04 p.m. DC-3 Accept and allocate Michigan Supreme Court State Court Administrative Office Michigan Veterans Treatment Court Program Grant ($173,911). The grant would fund the veterans treatment court.

11:04 p.m. Outcome: The council has voted to accept the Supreme Court grant.

11:04 p.m. DC-4 Community Events Funding Disbursements. The bulk of the community events disbursements were made at the council’s previous meeting. This one is an add-on for Community Works Plus ($1,000) to cover city costs for the African-American Festival Event scheduled on June 6, 2015.

11:04 p.m. Outcome: The council has voted to approve the community events fund disbursements.

11:04 p.m. DC-5 Resolution in Support of World Peace day on Sept. 21, 2014.

11:05 p.m. Anglin says that the only objection he’s heard so far is about insurance, but he ventures that no one would object to the overall intent of the resolution.

11:07 p.m. Warpehoski says this is an important commemoration worldwide. There will also be an event on the Diag, he says, and a demonstration on climate action. He says that he doesn’t see the resolution as a promise that the insurance question will be solved. He’s concerned about the appearance of a precedent.

11:08 p.m. Petersen asks city administrator Steve Powers about how a July 2012 event was handled. Powers doesn’t recall. For two more recent events, the city has required insurance: Dancing in the Streets, and the Barracuda street closure. That’s an existing city requirement, he says.

11:09 p.m. Hieftje appreciates Warpehoski raising the question.

11:09 p.m. Kunselman asks if Pizza in the Park carries insurance. Powers indicates that he’d have to check into that. Hieftje ventures that this issue will be figured out.

11:10 p.m. Outcome: The council has voted unanimously to approve the resolution calling for celebration of World Peace Day on Sept. 21, 2014.

11:10 p.m. DB-1 AAHC North Maple Estates. This vote is on the North Maple Estates site plan, which requires just one council vote. The rezoning required for the AAHC project – a 4.8-acre site at 701 N. Maple Road – has already been given final approval by the city council, at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. [For additional background, see North Maple Estates above.]

11:10 p.m. Outcome: The council has voted to approve the site plan for North Maple Estates.

11:10 p.m. DB-2 Gift of Life site plan. This is the site plan that required the council to approve rezoning, which was completed earlier in the meeting. [For additional background, see Gift of Life Expansion above.]

11:10 p.m. Outcome: The council has voted to approve the Gift of Life site plan.

11:10 p.m. DB-3 AAHC Funding Request ($729,879) from the affordable housing trust fund. This resolution would transfer $729,879 from the affordable housing trust fund to the Ann Arbor Housing Commission. The fund transfer would support the “West Arbor” portion of the AAHC’s renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit into the trust fund the net proceeds of the sale of the former Y lot. [For additional background, see Affordable Housing Fund Transfer above.]

11:11 p.m. Outcome: The council has voted to approve the transfer from the affordable housing trust fund to the AAHC.

11:11 p.m. DS-1 Approve purchase order for Ultimate Software Group ($250,000).  This is the city’s payroll software. The amount will cover a transition period as the city moves to NuView, a different software system.

11:11 p.m. Outcome: The council has voted to approve the purchase order with Ultimate Software Group.

11:11 p.m. DS-2 Approve a contract with Northwest Consultants Inc. for the Stadium Boulevard Reconstruction Project ($930,822). This is for the design work for the Stadium Boulevard reconstruction project from Kipke Drive to Hutchins.

11:14 p.m. Teall says this is really exciting. Councilmembers are reviewing the history of this project. Kunselman asks if the city is asking for an easement from the Ann Arbor Golf & Outing Club. Michael Nearing is explaining that there is a robust public participation component of the project. It will be discussed with the public and Ann Arbor Golf & Outing.

11:16 p.m. Nearing tells Lumm the staff will keep the council apprised of the project.

11:16 p.m. Outcome: The council has voted to approve the contract with Northwest Consultants for the Stadium Boulevard design work.

11:16 p.m. Recess. We’re now in recess.

11:28 p.m. We’re back.

11:28 p.m. DS-3 Accept easement for sidewalk at 3947 Research Park Drive from American Honda Motor Co. Inc. This is a standard easement.

11:28 p.m. Outcome: The council has voted to accept the easement.

11:28 p.m. DS-4 Ann Arbor SPARK contract ($75,000). This is the item that the council had tabled back on June 16, 2014 meeting. The first vote will be on the question of taking the item up off the table.

11:29 p.m. Outcome: The council has voted to take the item up off the table.

11:29 p.m. The question of the SPARK contract is now in front of the council.

11:31 p.m. Warpehoski proposes an amendment to include a clause on the scope of the contract to include additional metrics and direction for collaboration with Washtenaw County’s Act 88 committee. [.pdf of Warphehoski's amendment, as forwarded to the city clerk, who then forwarded it to media]

11:33 p.m. Warpehoski is now arguing for the contract.

11:33 p.m. Outcome: The council has approved amendment.

11:36 p.m. Kunselman proposes an amendment to adjust the amount down to $65,000. Teall asks why he’s proposing that number. Kunselman recalls the amount was $50,000 back in 2007. And other general fund needs have arisen, he says – like the need for a warming shelter. But he says that he’ll support the contract, even if the amendment doesn’t succeed.

11:37 p.m. Hieftje says that he wants to see the $10,000 stay in SPARK’s contract because that will make the “pie” bigger. Kunselman cites the Headlee Amendment as a reason that increased property values will not create the money that will be needed.

11:38 p.m. Kailasapathy recalls her question from earlier in the year about the contributions from other municipalities – less than Ann Arbor – so she’d be happy to see it reduced to $50,000.

11:40 p.m. Paul Krutko, CEO of Ann Arbor SPARK, indicates that this information is now available as a FAQ. The next-closest municipality in terms of contribution to SPARK is Pittsfield Township.

11:41 p.m. Kunselman ventures that when the county levies Act 88 money, it’s collecting Ann Arbor taxes, too. Krutko confirms that.

11:43 p.m. Eaton indicates that the county’s Act 88 collection provides $200,000 to SPARK. He asks how much of that is due to Ann Arbor taxpayers. Krutko said he’d have to get back to him about that.

11:43 p.m. Outcome on Kunselman’s amendment: The council has rejected the amendment reducing the amount to $65,000. It received support only from Kailasapathy, Kunselman, Eaton, and Anglin.

11:44 p.m. Lumm says the city of Ann Arbor is getting good return on its investment from the $75,000.

11:46 p.m. Outcome: The council has approved the $75,000 SPARK contract over dissent from Kailasapathy, Eaton, and Anglin

11:46 p.m. Communications from council. Presentation to The Ann Arbor Chronicle.

11:47 p.m. Public comment. There’s no requirement to sign up in advance for this slot for public commentary.

11:49 p.m. Kai Petainen is now addressing the council on SPARK. He says it was sneaky to add the item to the agenda late. He ventures that the state is playing favorites with Ann Arbor’s LDFA. He criticizes the fact that the assistant city attorney Abigail Elias had said she was not familiar with the cease-and-desist order.

11:52 p.m. Ed Vielmetti is addressing the council on several issues, including the topic of copyright notices that the city puts on maps. He says that Legistar makes it difficult to search for things. He says that given the fragile state of the press in this town, it would behoove the council to move toward closed captioning for meetings. The new website for the city is beautiful, he tells the council, but he notes that many of the links are now broken.

11:53 p.m. LuAnne Bullington expresses skepticism that the city administrator will be able to negotiate an operating agreement with Uber and Lyft in the short timeframe specified in the resolution.

11:57 p.m. Changming Fan says that thanks is not enough and action means the most. He is president of TiniLite, which he says is a small company based in Ann Arbor. He says that DDA board member John Splitt had spent two hours meeting with him, so Fan appreciated his support. “He is a good man,” even though he is older and is bald, he quips.

11:59 p.m. Alan Haber says he came back to give his appreciation. He hopes a creative approach can be found to deal with the insurance question for the World Peace Day event. He’s talking about a culture of peace and non-violence for the children of the world.

12:04 a.m. Michael Benson is addressing the councilmembers, thanking them for passing the taxicab ordinance on rates. He questions whether complaints about TNCs should be forwarded to the taxicab board – not the human rights commission or the commission on disability issues. He says he doesn’t appreciate the fact that the council killed the other ordinance proposal at first reading. The taxicab board had held off holding a public hearing, because it was felt that the council would be a better venue for that – which would have taken place at the second reading of the council.

12:04 a.m. Adjournment. We are now adjourned. That is all from the hard benches.

This is the corner spot on the hard benches in the city council chambers where The Chronicle typically sat. It’s somebody else’s seat now!

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

The Sept. 2 agenda is relatively light and is dominated by land use and development issues, many of them related to the Ann Arbor housing commission’s (AAHC) extensive plan to renovate many of its existing properties.

In other significant business, the council will be considering a direction to the city administrator to negotiate operating agreements with transportation networking companies like Uber and Lyft.

And the council will consider authorizing up to a 15-year extension of the local development finance authority (LDFA), based on a collaboration with a satellite arrangement in Adrian and Tecumseh.

Separate from site plan and zoning issues associated with the AAHC’s renovations, the council will also be considering transferring $729,879 from the affordable housing trust fund to the Ann Arbor housing commission. The fund transfer would support the “West Arbor” portion of the renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit into the trust fund the net proceeds of the sale of the former Y lot.

Two projects associated with the West Arbor part of the AAHC plan appear on the council’s Sept. 2 agenda. First, the council will consider initial approval of rezoning for the 3451 Platt Road property – from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district). That was forwarded to the council with a recommendation of approval from the planning commission. However, commissioners postponed consideration of the site plan for the five-building, 32-unit project, amid concerns about the site’s location in the floodplain and stormwater management. The site plan may be able to “catch up” to the zoning approval – because the council will need to give the rezoning a second and final approval at a meeting following the Sept. 2 session.

Second, the North Maple Estates site plan, which requires just one council vote, will be considered on Sept. 2. The rezoning required for the AAHC project – a 4.8-acre site at 701 N. Maple Road – has already been given final approval by the city council, at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which was shifted to the Sept. 2 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms.

A non-AAHC land development item on the council’s Sept. 2 agenda is final approval of the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). The site plan, which also appears on the Sept. 2 agenda, calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit.

Even though the council rejected one proposed change to its taxicab ordinance at its Aug. 18 meeting – which would have regulated all drivers for hire in the city – initial approval was given to another change in the part of the ordinance that regulates rates. So the council will be giving final consideration to that change on Sept 2. The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

As an alternative to requiring all drivers for hire to be registered with the city and to affix commercial plates to their vehicles, the council will be considering whether to establish operating agreements with companies like Uber and Lyft. The council’s Sept. 2 agenda includes a resolution that would direct the city administrator to negotiate operating agreements with transportation network companies (TNCs) in lieu of developing a local law. The resolution does not define in specific terms what a TNC is.

In other business on Sept. 2, the council will be considering a large contract with Ultimate Software Group, worth $250,000 for payroll software to cover the period as the city transitions to NuView, a different software system. Another large contract to be considered by the council on Sept. 2 is with Northwest Consultants Inc. for $930,822  – to do the design work for the Stadium Boulevard reconstruction project from Kipke Drive to Hutchins.

A smaller contract to be considered by the council, as part of the consent agenda, is with Hinshon Environmental Consulting Inc. for additional facilitation services for the technical oversight and advisory group (TOAG). That group is overseeing and coordinating multiple wet weather-related projects in the city. The $10,000 contract amendment would bring the total contract value to $35,000.

The council will also consider the confirmation of several nominations to boards and commissions, including a reappointment of John Splitt to the board of the Ann Arbor Downtown Development Authority. It would be Splitt’s third four-year term on the board.

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

Affordable Housing Fund Transfer

The council will be considering a $729,879 transfer from the affordable housing trust fund to the Ann Arbor housing commission to support the “West Arbor” portion of the AAHC’s renovation plan. That would leave a $850,920 balance in the trust fund. The trust fund’s current balance stems largely from the council’s decision late last year – on Dec. 16, 2013 – to deposit the net proceeds of the sale of the former Y lot into the trust fund.

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

According to the memo accompanying this item, out of the $16,564,370 project budget for West Arbor, low-income housing tax credits and permanent debt are expected to cover $14,091,491. That leaves a gap of $1,472,879. The AAHC has secured $50,000 from Michigan State Housing Development Authority (MSHDA) and $293,000 from a Community Challenge Planning Grant. So the AAHC has requested up to $729,879 in capital funding support from the Ann Arbor housing trust fund for the West Arbor portion of the RAD conversion.

A project included in West Arbor is the Lower Platt Road project, which will entail demolishing four 5-bedroom units – because of their current placement in the floodplain – and constructing 32 townhomes and a community center. A second project included in West Arbor is North Maple Estates, which currently offers 19 units. All those units would be demolished and replaced with 42 townhomes.

The final component of West Arbor is the renovation of the four 3-bedroom units known as the North Maple Duplexes.

AAHC: 3451 Platt Road Rezoning

The council will give initial consideration to the rezoning that’s necessary for the Lower Platt portion of West Arbor: from R1C (single-family dwelling district) and R2A (two-family dwelling district) to R4B (multi-family dwelling district).

The planning commission sent the rezoning request for the 3451 Platt Road property to the city council with a recommendation of approval – in a vote taken at its Aug. 6, 2014 meeting. However, commissioners postponed consideration of the site plan for the five-building, 32-unit project, amid concerns about the site’s location in the floodplain and stormwater management. The postponement is supposed to allow time to address staff concerns regarding the impact on natural features.

Zoning and site plan approval must ultimately be given by the city council. However, the zoning approval will require two votes by the council at two separate meetings – because changes to the zoning code are actually changes to a city ordinance. So the site plan’s delay would not necessarily delay the project, as long as the site plan is put in front of the council for consideration by the time the council takes a second vote on the rezoning.

The site includes a property currently owned by AAHC, as well as an adjacent parcel that’s being purchased by the city on behalf of AAHC.

The project calls for demolishing four single-family homes and one two-family building, and constructing a 32-unit apartment complex with five buildings, 61 parking spaces, a playground, and a community building. The new apartments will include: 8 one-bedroom units; 12 two-bedroom units; 6 three-bedroom units; 2 four-bedroom units; and 4 five-bedroom units.

Two of the proposed buildings would be in the floodplain, which raised concerns from city staff. The AAHC is working to address those concerns – possibly by eliminating or reducing the number of buildings in the floodplain. It had been expected that the AAHC could address the issues raised by city staff so that the site plan could return to the planning commission at its Aug. 19 meeting – but that didn’t happen. [.pdf of planning staff report] [.pdf of June 28, 2014 citizen participation meeting report]

This project is part of major renovations and improvements the commission is making to its low-income housing inventory. For background on the AAHC process of renovating its properties, see Chronicle coverage: “Public Housing Conversion Takes Next Step.”

The AAHC Platt Road project is different from a Washtenaw County-owned property at 2260 and 2270 Platt Road, the former location of the county’s juvenile center. That site is also being considered for affordable housing.

North Maple Estates

The council will consider the site plan for North Maple Estates – an Ann Arbor housing commission project that calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms.

Aerial view of North Maple Estates site, outlined in green.

The rezoning of the 4.8-acre site at 701 N. Maple Road already has been given final approval by the city council at its Aug. 18, 2014 meeting. The zoning was changed from R1C (single-family dwelling district) to R4B (multi-family dwelling district).

The Ann Arbor planning commission had recommended the zoning and site plan for approval at its meeting on June 17, 2014. The council gave initial approval of the rezoning at its July 7, 2014 meeting.

The project is another part of the major renovation effort being undertaken by AAHC on several of its properties. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The units in the eight-building, 42-unit apartment complex are proposed to have a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project will include a playground, community building and 73 parking spaces. According to a staff memo, the buildings will be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

Gift of Life Expansion

At its Sept. 2 meeting, the council will consider giving final approval to the rezoning of property necessary for an expansion of the Gift of Life Michigan facility on Research Park Drive. The rezoning would change 6.55 acres from O (office district) and RE (research district) to ORL (office/research/limited industrial district). At the same meeting, the council will also consider the site plan for the project.

Aerial view of Gift of Life Michigan site.

The proposal calls for building a three-story, 40,786-square-foot addition to connect two existing buildings at 3161 and 3169 Research Park Drive, which are owned and occupied by the nonprofit. According to a staff report, the additional space will accommodate offices, a special events auditorium and “organ procurement suites.” The nonprofit’s website states that the Gift of Life is Michigan’s only federally designated organ and tissue recovery program. Cost of the expansion project will be $10.5 million.

The city planning commission recommended approval of the rezoning at its July 1, 2014 meeting. City council action to give initial approval of the site plan came at its meeting on Aug. 7.

The project would reduce the four existing curb cuts to Research Park Drive to three, connecting one of the loop driveways to an existing driveway at the east end of the site. A parking lot at the back of the site will be expanded by 38 parking spaces. Two alternate vehicle fueling stations are proposed in parking spaces near the main entry, with the driveway at the center of the site providing access for ambulances. A new shipping and receiving facility will be located on the northeast corner of the site.

Taxicab Meter Rates

Even though the council rejected one proposed change to its taxicab ordinance at its Aug. 18, 2014 meeting – which would have regulated all drivers for hire in the city – initial approval was given to another change in the part of the ordinance that regulates rates. So the council will be giving final consideration to that change on Sept 2.

The change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

The vote by the taxicab board to recommend the ordinance change came at its July 24, 2014 meeting.

These issues were also discussed at three monthly meetings of the taxicab board prior to that, on April 23, 2014, May 22, 2014 and June 26, 2014. Representatives of the taxicab industry at those meetings advocated for the establishment of a very high maximum – not tied to gas and insurance prices. They feel it’s one mechanism that would allow them to compete with ride-sharing services like Uber and Lyft.

The proposal to regulate all drivers for hire, which the council rejected, was also intended in part to allow taxicab companies to compete with Uber and Lyft on an even playing field. Taxicab drivers are already regulated by the city.

Regarding fare regulation, the city’s current structure already allows for the establishing of a maximum rate to be adopted by the city council. Currently the maximum rate in Ann Arbor is $3 to get in, $2.50 per mile, and 40 cents per minute waiting time. Those maximum rates were last adjusted upwards three years ago, on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. At that time, the taxicab board indicated it did not anticipate considering another rate change until the gas prices were over $5 for at least two consecutive months.

So the taxicab board’s thinking is not being driven by gas prices, which are currently between $3.75 and $4 in the Ann Arbor area. Instead, a possible increase in allowable fares is based on concern that the taxicab industry in Ann Arbor might not be able to survive unless taxis are allowed to charge more.

At its Aug. 28, 2014 meeting, taxicab board members recommended the following maximum rate schedule for eventual consideration by the council, which could appear on the council’s agenda as soon as Sept. 15: $10 to get in, $5 per mile and 40 cents per minute waiting time. In addition, a $1 surcharge could be applied for each passenger over three passengers.

At the council’s Aug. 18 meeting, Stephen Kunselman (Ward 3) – who also serves as the city council’s representative to the taxicab board – asked rhetorically if the taxicab board should be disbanded. At its Aug. 28 meeting, taxicab board chair Michael Benson announced that he’d received an email from board member Eric Sturgis, who indicated that he would be resigning from the board – because he’s moving to Jackson, Mich. It has historically been difficult to find residents willing to serve on the taxicab board.

Drivers for Hire: Uber/Lyft Operating Agreement

The ordinance change rejected by the council on Aug. 18, 2014 would have required all drivers for hire to be registered with the city, to have commercial plates on their vehicles, and to maintain insurance commensurate with commercial plates. And the absence of commercial plates on a vehicle that is observed being used for picking up or dropping off passengers would have provided a reason for a traffic stop by Ann Arbor police. At the taxicab board meetings over the last few months, representatives of the taxicab industry argued that the state statute regulating limousines already gives the city the ability to enforce against Uber and Lyft drivers.

At the taxicab board’s Aug. 28 meeting, representatives of the taxicab industry lamented the fact that they had not attended the council’s Aug. 18 meeting to advocate for regulating all drivers for hire through a city ordinance. Representatives of Uber and Lyft numbered over 50 people at the council meeting, some of whom addressed the council during public commentary time.

Ward 3 city councilmember and taxicab board member Stephen Kunselman indicated at the board’s Aug. 28 meeting that there might be a possibility that one of the five councilmembers who voted against the ordinance at first reading on Aug. 18 might bring it back for reconsideration.

The 5-5 vote totaling 10 on the 11-member body stemmed from the absence of Margie Teall (Ward 4). Voting for the regulation of all drivers for hire were Sumi Kailasapathy (Ward 1), Stephen Kunselman (Ward 3), Jack Eaton (Ward 4), Chuck Warpehoski (Ward 5) and Mike Anglin (Ward 5). Voting against the change were mayor John Hieftje, Sabra Briere (Ward 1), Jane Lumm (Ward 2), Sally Petersen (Ward 2) and Christopher Taylor (Ward 3).

At the council’s Aug. 18 meeting, during deliberations on the rejected ordinance change, Sabra Briere (Ward 1) indicated that she’d concluded as early as April of this year that an operating agreement – instead of a local ordinance – would be the right approach. Christopher Taylor (Ward 3) indicated he had been working with Briere to come up with that kind of approach.

The resolution to be considered by the council on Sept. 2 would direct the city administrator to negotiate an operating agreement with established transportation network companies (TNCs) and to bring an agreement to the council for approval by the second council meeting in October, which is Oct. 20.

The elements to be included in the operating agreement are specified in an attachment to the resolution as follows:

Operating agreement principles include:

• Company will provide a minimum of $1M in liability insurance coverage for the driver, vehicle and passengers and any other injured parties, from the moment a driver is linked with a passenger to the moment the passenger releases the vehicle.
• Company will conduct the following at no cost to the city: background checks for each driver-applicant prior to allowing their participation. This background check will include a criminal background check, including a check for multiple relevant jurisdictions; a review of the applicant’s driving record; a mechanical inspection of the vehicle by a licensed inspector. The results of this data collection will be made available to the City for any driver / vehicle combination approved for participation in the company.
• Company will not allow participation by a driver / vehicle combination if the driver has any felony conviction; any conviction for DUI; more than 2 moving violations in any calendar year or more than 4 moving violations in a six-year period, with no more than 4 accumulated points in any calendar year.
• Company shall ensure that all driver vehicles pass an annual, mutually agreeable safety inspection conducted by a licensed mechanic.
• Prior to participation in the program, drivers shall go through a driver-education program that provides training in customer service and improves familiarity with local streets and local traffic conditions.
• Drivers shall not accept passengers except through the ride-sharing mechanism provided by the Company.
• Company will provide requested data to the City about accidents and incidents with passengers, as well as a report on customer satisfaction and safety ratings.

The resolution does not appear to define explicitly what a TNC is – and seems to allow for the possibility that an existing limo company could seek to operate under such an agreement without complying with the state statute on operation of limousines.

The resolution also leaves unspecified the intended term of the agreement – although deliberations at the council’s Aug. 18 meeting indicated that the intent of such operating agreements in other Michigan municipalities was to implement a temporary basis under which Uber and Lyft could operate, while the state legislature establishes a legislative framework under which such companies could operate.

The resolution does not direct the city administrator to provide for any explicit penalties that the city could impose on a TNC for failure to adhere to the operating agreement. The enforcement mechanism that the resolution seems to contemplate is for a TNC to provide certain kinds of data to the city upon request.

The resolution does not direct the city administrator to impose any requirements on the public accessibility of data provided by TNCs to the city. If a company were to come to an agreement with the city that data and information would be provided to the city, but only upon the condition that it not be disclosed to the public, then that data would be exempt from disclosure, even under a request made under Michigan’s Freedom of Information Act.

Extension of LDFA

The council will consider a resolution on Sept. 2 that would move ahead with a 15-year extension of the local development finance authority (LDFA). The LDFA  – branded as one of about a dozen LDFA SmartZones statewide –  is funded through capture of public school operating millages within the geographic areas of the Ann Arbor and Ypsilanti downtown development authority districts. In actual fact, however, no capture is made of the Ypsilanti school taxes.

The LDFA contracts with Ann Arbor SPARK to operate a business accelerator, which is meant to move start-up companies in the tech and biosciences sectors more quickly to a stage in their development when they are generating revenue from paying customers and adding jobs. Separate from the LDFA business acceleration contract with Ann Arbor SPARK, the city of Ann Arbor has historically engaged SPARK for business attraction and retention services. However, this year the $75,000 annual contract with SPARK was tabled by the council – in a vote taken at the council’s June 16, 2014 meeting. It’s expected at some point to be taken back up off the table for consideration. By council rule, it will be considered demised if it’s not considered before a lapse of six months.

The extension – which would still need approval from the Michigan Economic Development Corporation – depends on establishing a relationship between the Ann Arbor-Ypsilanti SmartZone and some other “satellite” LDFA. So the Sept. 2 resolution designates Adrian/Tecumseh as that satellite. The council’s resolution specifies the following as findings:

1. That the selection of the Adrian/Tecumseh LDFA as a satellite provides unique characteristics and specialties through its public and private resources including the location of Adrian College, Siena Heights University and Jackson College within its TIF District and the opportunities for research partnerships and student/young entrepreneur involvement. In addition partnership with another multi-jurisdictional LDFA provides opportunities for shared experiences.
2. That the selection of the Adrian/Tecumseh LDFA as a satellite provides regional cooperation and collaboration benefits to the LDFA and the Cities of Ann Arbor and Ypsilanti with joint focuses on technology (including expanding green technologies and agricultural technology) and entrepreneurial services.
3. That the selection of the Adrian/Tecumseh LDFA as a satellite provides value and support to the LDFA by strengthening existing collaboratives, making available a new/expanded technical assistance and support through its Innovation Center at Adrian College, and agricultural and manufacturing resources.

In connection with the extension, revisions to the Ann Arbor-Ypsilanti SmartZone TIF (tax increment financing) plan and development plan are being undertaken. Drafts of revisions are attached to the council’s Sept. 2 agenda item. Revisions appear to address concerns that have been raised about the current arrangement – to some extent by Ann Arbor city councilmembers.

Those concerns include the fact that TIF is not currently allowed to be spent outside the TIF district in the city of Ann Arbor; further, no TIF funds can be expended in Ypsilanti – inside or outside its TIF district – because no actual tax capture revenue is generated for the LDFA in that area. The revisions would allow TIF revenue to be expended anywhere in the entire cities of Ann Arbor or Ypsilanti.

In addition, the revisions specify in greater detail that TIF revenue can be used to pay for high-speed communications infrastructure. Specifically mentioned as eligible expenditures is the “installation of technology related infrastructure assets, i.e. fiber lines, nodes, or work spaces.”

The LDFA extension comes in the context of lingering questions about the impact on school funding of the LDFA tax capture. In FY 2013, the total amount captured by the Ann Arbor SmartZone LDFA was $1,546,577, and the current fiscal year forecast is for $2,017,835. About the same amount is forecast for FY 2015.

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

Questions raised in the last few months have centered around whether the School Aid Fund is “reimbursed” by the state’s general fund for the taxes that are captured to fund the Ann Arbor SmartZone LDFA – because the wording of the state statute is based on the term “reimburse.”

It turns out that the school taxes captured by the Ann Arbor SmartZone are not required to be “reimbursed” to the state School Aid Fund – which diminishes the amount of funding for public schools statewide. That’s a conclusion based on a reading of the LDFA statute and confirmed to The Chronicle by communications staff in the Dept. of Treasury and the MEDC. However, it’s not clear that “reimbursement” is even a useful way of framing the question – notwithstanding the wording of the state statute. That’s partly because tax capture from those LDFAs to which the state statute does apply are not “reimbursed” in the sense that the word implies – with a specific calculation done and a transfer of money (or an adjustment to the legislature’s appropriation) made based on that calculation. From an Aug. 7, 2014 staff memo: “… the reimbursement language really only served as language of intent.”

Based on subsequent inquires made by city of Ann Arbor financial staff with state officials, it appears that the setting of the statewide per-pupil allowance each year proceeds along a separate track from replenishing the School Aid Fund – which receives significant revenue from sources other than local school operating millages. It appears it’s not possible to establish a 1-to-1 relationship between local school operating taxes that are captured by LDFAs and money that flows into the School Aid Fund from various other sources that might be analyzed as “compensating” for the capture.

In any case, city staff have concluded that LDFA tax capture has not had a negative impact on Ann Arbor’s local school funding.

Appointments to Boards and Commissions

Appointments to the city of Ann Arbor’s boards and commissions are typically handled in a two-step process: (1) the mayor announces the nominations at a council meeting; (2) the council votes on the confirmation at the next meeting of the council. The procedure is grounded in the city charter.

At the council’s Aug. 21 meeting, Anna Ercoli-Schnitzer was nominated to fill a vacancy on the commission on disability issues. Tamara Burns and Dick Mitchell were nominated to be reappointed to the design review board. Sofia Franciscus was nominated to fill the vacancy on the planning commission due to Paras Parekh’s resignation. And John Splitt was nominated for reappointment to the Downtown Development Authority board.

A related item on the Aug. 18 agenda, which was also given approval by the council, was the vacation of a portion of the city’s right-of-way for Seybold Drive.

The Ann Arbor planning commission recommended all three items for approval at its meeting on June 17, 2014. The council gave initial approval of the rezoning at its July 7, 2014 meeting.

Aerial view of North Maple Estates site, outlined in green.

The project is part of a major renovation effort by the Ann Arbor Housing Commission of several of its properties. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The units in the eight-building, 42-unit apartment complex are proposed to have a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project will include a playground, community building and 73 parking spaces. According to a staff memo, the buildings will be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

The project also requires the city to vacate a portion of the right-of-way for Seybold Drive. The surrounding land is owned by the housing commission, the land will become part of the housing commission property. In a separate vote, the planning commission also recommended approving that request.

When the project was in front of the planning commission, planning staff noted three issues that need to be resolved before the project gets approval from city council:

The parcel containing two duplex buildings also owned by the Ann Arbor Housing Commission in the northeast corner of the site must be combined with the subject site, forming a single parcel as a requirement for issuance of any permits.

The legal description and comparison chart data must be confirmed to include the duplex parcel.

The northern-most parking stall, nearest the connection to Vine Court, must be relocated outside of the minimum front setback area.

According to the staff memo, after June 3 the city’s traffic engineer reviewed the proposed new connection from Seybold Drive onto Dexter Avenue, and concluded that sight distances from all approaches are acceptable. He suggested that the pavement markings on Dexter should be refreshed.

The reconstruction of North Maple Estates is part of an ongoing effort by the housing commission to upgrade the city’s housing stock for low-income residents. At the planning commission’s May 6, 2014 meeting, AAHC executive director Jennifer Hall had made a presentation about the initiative, which includes seeking private investors through low-income housing tax credits.

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

Land use and development is set up to be a dominant theme of tonight’s meeting, as it frequently is for many of the council’s meetings. An additional highlight will be initial consideration of a change to the city’s taxicab ordinance – in response to the entry of services like Uber and Lyft into the Ann Arbor market.

A report from the city administrator on options for deer management has led to a resolution on the Aug. 18 agenda appropriating $20,000 for the development of a deer management program.

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

Among the land use items on the Aug. 18 agenda is one related to use of city-owned land – three parking lots at Fuller Park: (1) the parking lot south of Fuller Road, next to the railroad tracks; (2) the paved parking lot north of Fuller Road at Fuller Park; and (3) the unpaved parking lot north of Fuller Road at Fuller Park. The lots are used by the University of Michigan during restricted hours.

The council will be considering a two-year lease with one additional two-year option for renewal. Annual revenue from this lease will be $78,665, and will be included as part of the parks and recreation general fund budget. The item was forwarded to the city council from the park advisory commission with a recommendation of approval.

Private land development items on the Aug. 18 agenda include final approval of the rezoning of land for the State Street Village project at 2221-2223 S. State St. The 4.5-acre parcel is proposed to be rezoned from M1 (limited industrial district) to O (office district). Also on the council’s agenda is the site plan for the project that will be made possible by approval of the rezoning – a $10 million development by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027-square-foot building – for a leasing office with two apartments above it – would be built on the front of the parcel, on South State.

Also on the agenda for final approval is the rezoning required for an Ann Arbor Housing Commission project – a 4.8-acre site at 701 N. Maple Road. The zoning would change from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which is also on the council’s Aug. 18 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. A related item on the agenda is the vacation of a portion of the city’s right-of-way for Seybold Drive.

Rezoning for 121 W. Kingsley Street for a private development is getting initial consideration by the council on Aug. 18. The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million.

Getting initial consideration by the council at its Aug. 18 meeting are changes to the city’s taxicab ordinance that have been recommended by the city’s taxicab board. The recommendations come in the context of the entry of Uber and Lyft into the Ann Arbor market. The companies offer the arrangement of rides through mobile networks with drivers who operate their own vehicles. Both companies have ignored cease-and-desist orders from the city.

Uber has sent its Ann Arbor customers an email asking them to sign an online petition supporting Uber’s continued ability to operate here.

One ordinance change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall. The other ordinance would require that all drivers for hire – whether they are taxicab drivers or drivers who work for Uber or Lyft – register with the city, maintain proper insurance for their vehicles and acquire commercial plates.

The Aug. 18 agenda also includes an item to confirm the re-appointment of Bob Guenzel to the board of the Ann Arbor Downtown Development Authority.

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

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

Fuller Park Parking Lease

The council will be considering a possible four-year extension on a University of Michigan lease of three parking lots at Fuller Park. The lease comes to the council with a recommendation of approval from the park advisory commission. The commission gave that recommendation at its July 15, 2014 meeting.

Map of parking lots at Fuller Park that are leased to the University of Michigan.

The existing lease expires on Aug. 31, 2014. The three lots are: (1) the parking lot south of Fuller Road, next to the railroad tracks (Lot A); (2) the paved parking lot north of Fuller Road at Fuller Park (Lot B); and (3) the unpaved parking lot north of Fuller Road at Fuller Park (Lot C). The lots are used by UM during restricted hours.

The city has leased Lot A to UM since 1993. Lots B and C have been leased since 2009.

The proposal, which requires city council approval, is for a two-year lease with one additional two-year option for renewal. Annual revenue of this lease will be $78,665, and will be included as part of the parks and recreation general fund budget. [.pdf of proposed lease agreement] [.pdf of staff report]

The hours that UM can use these lots are stipulated in the agreement:

• Lot A: 4 a.m. to 4 p.m. Monday through Friday.
• Lot B (paved lot): 6 a.m. to 5 p.m. Monday through Friday, beginning the day after Labor Day through the Friday before Memorial Day, excluding holidays.
• Lot C (unpaved lot): 6 a.m. to 5 p.m. Monday through Friday, excluding holidays.

At the PAC meeting when the lease was recommended, parks and recreation manager Colin Smith noted that the revenue from these three lots is significant for the parks and recreation operating budget. The current agreement – which was approved by the council in 2009 and extended by two administrative renewals – is essentially the same as the agreement that will expire, Smith told PAC.

The main purpose of the lots is for the parks, Smith explained. That’s reflected in the hours when UM can use the lots – on weekdays, prior to 4-5 p.m. The outdoor pool and soccer fields don’t need the quantity of parking during the winter or off-season. “It’s an asset within the parks department that we can either have sit there, or we can lease it for a significant amount of revenue that obviously helps us provide other programs,” he said. If the city doesn’t lease those parking lots, “I am absolutely certain that people will park in it anyway,” Smith added.

State Street Village

On Aug. 18, the council will consider final approval of the rezoning of land for the State Street Village project at 2221-2223 S. State St. The 4.5-acre parcel is proposed to be rezoned from M1 (limited industrial district) to O (office district). Also on the council’s agenda for approval is the site plan for the project that will be made possible by approval of the rezoning – a $10 million development by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027 square foot building – for a leasing office with two apartments above it – would be built on the front of the parcel, on South State.

Aerial view of State Street Village site.

Action on the initial approval came at the city council’s July 21, 2014 meeting. A recommendation for the rezoning was given at the June 17, 2014 meeting of the Ann Arbor planning commission.

At that meeting, commissioners recommended approval of the site plan, development agreement and rezoning for the project.

The front part of the site is currently a surface parking lot, and is zoned O (office). The rear parcel – 4.5 acres – is vacant, and zoned M1 (limited industrial). Residential developments are permitted in office-zoned areas. [.pdf of staff report]

The development will include 114 parking spaces in the rear of the site and 13 spaces for the front. Another 22 spaces in the surface parking lot will be shared by the existing office building just south of the site.

In addition, 44 covered bicycle spaces and 8 enclosed bicycle spaces will be provided near the entrances of the apartment buildings and 2 hoops will be placed near the entrance of the rental office building.

Instead of making a $48,360 requested donation to the city for parks, McKinley has proposed two 8×10-foot grilling patios with picnic tables and grills.

According to the staff memo, the footing drains of 18 homes, or flow equivalent to 71.91 gallons per minute, will need to be disconnected from the city’s sanitary sewer system to mitigate flow from this proposed development.

North Maple Estates

To be considered for final approval by the council at its Aug. 18 meeting is the rezoning required for an Ann Arbor Housing Commission project – a 4.8-acre site at 701 N. Maple Road. The zoning would change from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which has been shifted to the Sept. 2 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. A related item on the agenda is the vacation of a portion of the city’s right-of-way for Seybold Drive.

The Ann Arbor planning commission recommended all three items for approval at its June 17, 2014 meeting. The council gave initial approval of the rezoning at its July 7, 2014 meeting.

Aerial view of North Maple Estates site, outlined in green.

The project is part of a major renovation effort by the Ann Arbor Housing Commission of several of its properties. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The units in the eight-building, 42-unit apartment complex are proposed to have a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project would include a playground, community building and 73 parking spaces. According to a staff memo, the buildings would be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

The project also requires the city to vacate a portion of the right-of-way for Seybold Drive. The surrounding land is owned by the housing commission, so if the right-of-way vacation is approved, the land would become part of the housing commission property. In a separate vote, the planning commission also recommended approving that request.

When the project was in front of the planning commission, planning staff noted three issues that need to be resolved before the project gets approval from city council:

The parcel containing two duplex buildings also owned by the Ann Arbor Housing Commission in the northeast corner of the site must be combined with the subject site, forming a single parcel as a requirement for issuance of any permits.

The legal description and comparison chart data must be confirmed to include the duplex parcel.

The northern-most parking stall, nearest the connection to Vine Court, must be relocated outside of the minimum front setback area.

According to the staff memo, after June 3 the city’s traffic engineer reviewed the proposed new connection from Seybold Drive onto Dexter Avenue, and concluded that sight distances from all approaches are acceptable. He suggested that the pavement markings on Dexter should be refreshed.

The reconstruction of North Maple Estates is part of an ongoing effort by the housing commission to upgrade the city’s housing stock for low-income residents. At the planning commission’s May 6, 2014 meeting, AAHC executive director Jennifer Hall had made a presentation about the initiative, which includes seeking private investors through low-income housing tax credits.

121 Kingsley West

Rezoning for 121 W. Kingsley Street for a proposed new development is getting initial consideration by the council on Aug. 18. The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million.

The rezoning is on the council’s agenda, but the site plan will not come before the council until the zoning is considered for a second and final vote. The Ann Arbor planning commission’s recommendation of approval for the site plan and the rezoning came at its July 15, 2014 meeting.

Rendering of 121 Kingsley West project, looking south from Kingsley. The existing building is in the left foreground.

Developers are Tom Fitzsimmons, Peter Allen and Mark Berg. The architect is Marc Rueter.

There would be 29 parking spaces below the buildings – though only two spaces are required, based on residential premiums that the project is seeking. The premiums give the project additional floor area, compare to what’s allowed by right. An elevator for each building will be accessible from the parking level. The parking level of the east building will include a bike room with 14 spaces.

According to a staff report, the project’s development agreement will address “easements for encroachments onto the City right of way by the existing building, onsite stormwater management, verification of LEED points, six required footing drain disconnects, future façade alterations, and the contribution to Parks and Recreation Services.” [.pdf of staff report]

Planning commissioners unanimously recommended approval of the rezoning, site plan and development agreement. However, only five commissioners on the nine-member body were present, and the commission’s bylaws stipulate that approval requires six votes. So the project was forwarded to city council for consideration with a recommendation of denial from the commission. Wendy Woods, the commission’s chair, assured the developers that city council would be informed that the project secured unanimous support from all commissioners who were present.

The project is on the same site as a previously proposed project by Peter Allen called Kingsley Lane. That had been envisioned as a larger development with 46 units in a complex with two “towers” – at four and nine stories. According to a 2006 Ann Arbor News article, pre-sales of the units were slower than expected because of the struggling housing market, and ultimately financing fell through. At a July 9, 2013 planning commission work session, planning manager Wendy Rampson reported that the developers had lost the property to the bank, but subsequently secured the land and were expected to submit a new site plan.

Taxicab Ordinances

Getting initial consideration by the council on Aug. 18 are two changes to the city’s taxicab ordinance that have been recommended by the city’s taxicab board. The recommendations come in the context of the entry of Uber and Lyft into the Ann Arbor market. The companies offer the arrangement of rides through mobile networks with drivers who operate their own vehicles. Both companies have continued to operate in Ann Arbor, despite cease-and-desist orders from the city. [.pdf of cease-and-desist sent to Lyft] [.pdf of cease-and-desist sent to Uber]

The vote to recommend the ordinance changes came at the July 24, 2014 meeting of the taxicab board.

These issues were also discussed at three monthly meetings of the taxicab board prior to that, on April 23, 2014, May 22, 2014 and June 26, 2014.

One ordinance change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

The current structure for fare regulation already allows for the adoption of a maximum rate to be adopted by the city council. Currently the maximum rate in Ann Arbor is $3 to get in, $2.50 per mile, and 40 cents per minute waiting time. Those maximum rates were last adjusted upwards three years ago, on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. At that time, the taxicab board indicated it did not anticipate considering another rate change until the gas prices were over $5 for at least two consecutive months.

So the taxicab board’s thinking is not being driven by gas prices, which are currently between $3.75 and $4 in the Ann Arbor area. Instead, a possible increase in allowable fares is based on concern that the taxicab industry in Ann Arbor might not be able to survive unless taxis are allowed to charge more.

At its July 24 meeting, taxicab board members discussed the possibility of delaying their recommendation on the ordinance changes until the board could also make a specific recommendation on the price point for a very high maximum rate. But ultimately board members felt that a recommendation on a price point for a new maximum rate could come later – especially because ordinance changes require a first and second reading in front of the council. There would be a window of opportunity between those readings to make a recommendation on the higher maximum. The taxicab board’s next meeting is scheduled for Aug. 28 at 8:30 a.m. at city hall.

The other ordinance change to be given initial consideration would require that all drivers for hire – whether they are taxicab drivers or drivers who work for Uber or Lyft – register with the city, maintain proper insurance for their vehicles and acquire commercial plates. Commercial plates would require that the commensurate commercial insurance is carried.

And the absence of commercial plates on a vehicle that is observed to be used for picking up or dropping off passengers would provide a primary reason for a traffic stop by Ann Arbor police. At the taxicab board meetings over the last few months, representatives of the taxicab industry argued that the state statute regulating limousines already gives the city the ability to enforce against Uber and Lyft drivers.

Deer Management

Attached to the Aug. 18 city council agenda is a report from the city administrator outlining issues and options for management of the urban deer herd in Ann Arbor. Based on that report is a resolution, sponsored by Sabra Briere (Ward 1) and Jane Lumm (Ward 2), that would accept the report and appropriate $20,000 from the general fund for development of a “community endorsed deer management plan.” [.pdf of Aug. 14, 2014 deer management options report]

The council had directed the preparation of the report on various options in a resolution approved at its May 5, 2014 meeting. The report was to have been delivered to the council by July 31.

Fall 2015 is the earliest date identified in the report as a possible timeframe for a culling of the herd.

Before developing a specific plan – that could involve killing deer or not – input from Washtenaw County Parks and Recreation and the University of Michigan would be sought. And the Michigan Department of Natural Resources would need to approve any plan for deer management. The Aug. 14 report includes descriptions of deer management plans in other Michigan cities that range from ordinances prohibiting the feeding of deer to culling programs that shut down city parks and prescribe shooting lanes for archers.

City of Ann Arbor staff estimate that six months would be needed for public engagement. That public engagement could start within 45 days of city council approval to proceed.

Estimated staff time to develop the specific plan is 160 hours, according to the Aug. 14 report. Contractual public engagement and support to develop a management plan are estimated at $20,000.

Other facts included in the plan are the fact that neither city parks nor golf courses have had vegetation damage by deer. The cost to the city for disposing of deer carcasses in fiscal year 2014 was $5,850.

Estimated cost to kill 40-50 deer in the city of Ann Arbor is $25,000-$27,000 per year. That amount includes city staff administration cost in the amount of $14,000.

All deer-car accidents in Washtenaw County from 2004 through 2013 are plotted in the dynamic map below. Map is by The Chronicle with data from michigantrafficcrashfacts.org.

3:50 p.m. Agenda questions. Now available are the city staff’s written responses to questions about agenda items submitted by councilmembers. [.pdf of Aug. 18, 2014 agenda responses]

3:59 p.m. Public speaker lineup. Two speakers and one alternate are signed up to talk about the Fuller Park lease agreement: Rita Mitchell, George Gaston and Larry Baird (alternate). Two speakers and one alternate are signed up to talk about the taxicab ordinance changes: Anne Choike, Scott Sanders and Michael White (alternate). Five speakers are signed up to talk about deer management: Maurita Holland, Mary Avrakotos, Trocy Grogan, Judy Cohen and Nicholas Avrakotos. Thomas Partridge is signed up to talk about electing Mark Schauer and affordable housing.

6:33 p.m. Two large groups are congregating – one outside city hall by the Dreiseitl fountain and one inside the lobby. They’re drivers for Uber and Lyft, respectively.

6:36 p.m. Two people are here in chambers so far. Both are here because they’re interested in the new taxicab ordinance revisions. Sally Petersen (Ward 2) has already arrived and is sitting at the council table.

6:44 p.m. Color coding for the TV viewing audience: Pink T-shirts are for Lyft; blue is for Uber. About 40 people total so far. Two AAPD officers are also here. One of them talks with Mozhgan Savabieasfahani and Blaine Coleman about the seating.

6:53 p.m. City attorney Stephen Postema and city administrator Steve Powers are here. Jane Lumm (Ward 2) has arrived.

6:53 p.m. Chief of police John Seto and deputy chief Greg Bazick were in the hallway on the second floor, outside council chambers. Jack Eaton (Ward 4) arrived earlier.

6:57 p.m. One guy in the back row has both pink and blue T-shirts draped over his shoulders. He drives for both Uber and Lyft.

6:59 p.m. Savabieasfahani calls supporters of the “Boycott Israel” contingent to sit on the north side of the chambers. Thomas Partridge responds by saying, “This is a city council meeting, not a rally!”

7:01 p.m. Chants of “Boycott Israel” begin. The council meeting has not yet been convened.

7:01 p.m. And we’re off.

7:01 p.m. Call to order, moment of silence, pledge of allegiance.

7:02 p.m. Roll call of council. Sabra Briere (Ward 1), Margie Teall (Ward 4), and Chuck Warpehoski (Ward 5) are absent at the rollcall.

7:02 p.m. Approval of agenda.

7:03 p.m. Outcome: The council has approved the evening’s agenda without amendment.

7:05 p.m. Communications from the city administrator. City administrator Steve Powers is talking about the closing of the Ann Arbor senior center for safety reasons. It will be open again in early September. Applications for the city fire chief position will be accepted through Sept. 15. The city’s bond rating has been confirmed as AA+.

Powers doesn’t mention the deer management report that has been submitted to the council. It’s attached to the council’s agenda as a communication. [.pdf of Aug. 18, 2014 deer management options report]

7:05 p.m. Public commentary. This portion of the meeting offers 10 three-minute slots that can be reserved in advance. Preference is given to speakers who want to address the council on an agenda item. [Public commentary general time, with no sign-up required in advance, is offered at the end of the meeting.]

Two speakers and one alternate are signed up to talk about the Fuller Park lease agreement: Rita Mitchell, George Gaston and Larry Baird (alternate). Two speakers and one alternate are signed up to talk about the taxicab ordinance changes: Anne Choike, Scott Sanders and Michael White (alternate). Five speakers are signed up to talk about deer management: Maurita Holland, Mary Avrakotos, Trocy Grogan, Judy Cohen and Nicholas Avrakotos. Thomas Partridge is signed up to talk about electing Mark Schauer and affordable housing.

Mayor John Hieftje is reviewing the rules about how many people can speak at a time and where signs can be held.

7:05 p.m. Rita Mitchell tells Hieftje that she is electing not to speak.

7:08 p.m. George Gaston is addressing the council on the topic of the Fuller Park lot leases. In an email sent to council members over the weekend, he explained how he’s calculated revenue to the University of Michigan from the Yellow and Blue permits issued for the lots. Gaston’s calculations put the UM’s revenue at a total of $521,956 annually, compared to the $78,665 amount in the lease. [.pdf of Gaston's Aug. 15 and Aug. 17, 2014 emails]

He tells the council that he’d spoken to the park advisory commission [at its July 15, 2014 meeting]. He asks the council to delay approval of the lease until they’ve reviewed the figures. Lot A was supposed to be a temporary lot, 20 years ago, he says. The lots are Yellow and Blue lots in the UM parking system, he says. Yellow permits are much cheaper, he says. The council should insist on compensation from the UM based at least on the cost of Yellow Blue permits. Gaston is reciting the history of the leasing of the lots, which involved an interest in preserving bur oak trees. [Briere has now arrived at the table. So has Warpehoski.]

7:12 p.m. Anne Choike tells the council she recently moved to Ann Arbor to teach at the law school. She is speaking in her personal interest in support of Uber and Lyft. She’s arguing for the services based on an interest in less reliance on car ownership. She relies on the bus system, Uber and Lyft, and shared rides with friends. She recites reasons why taxicab service is inadequate. She describes how she is able to spend money on local businesses, instead of on car ownership.

7:16 p.m. Scott Sanders says he’s a homeowner, with two kids and the husband of a professor. Two kids means that it’s a challenge to find a way to earn extra money. Driving in a ride-sharing service is a way to do that. He describes this as an opportunity to grow the transportation business. Instead of fighting for a smaller piece of the pie, people should be thinking about growing the size of the pie: “Coopetition.” This makes transportation more efficient and more accessible, he says. Every time he picks up riders, they express the attitude that: What did we ever do before this? He asks the council not to use a heavy hand. His remarks conclude with applause from the audience, like the previous speaker did.

7:18 p.m. Maurita Holland is speaking for various plants that have been harmed by deer. She’s also speaking for the Washtenaw Citizens for Ecological Balance. She calls for immediate action because the problem is doubling every year, she contends. The deer population in Washtenaw County is 12.5 times the recommended density, she says. “We have to do something,” she says.

7:19 p.m. Mary Avrakotos is speaking as a homeowner on the problem of deer management. She calls deer an increasing menace. She wants the council to decide quickly on a deer management plan and to insist that the city administrator adhere to a timeline on implementation.

7:22 p.m. Tracy Grogan says that spending money on a deer management plan would be money well spent. He likes deer, but deer in urban areas are nervous and tentative, he says. The problem is complex and subject to debate. Ann Arborites are thoughtful, peaceful and caring, he says. But the deer situation is brutal and costly. He wants the discussion to be elevated aggressively. The resolution tonight is an important step forward, he says. He allows that the general fund balance is a precious resource, but we owe it to ourselves to develop a plan that reflects the values of the city. His remarks draw applause.

7:25 p.m. Judy Cohen is also here to talk about the deer issue. It’s not just a matter of whether the deer are eating lilies and decimating your garden. The dollar value of the damage is high, she says. She says that Matthaei Botanical Gardens has cages around the trees to protect them from the deer, but most people don’t want cages around their own trees. She’s describing her personal close calls with deer in her car and actual accidents in her car.

7:27 p.m. Nicholas Avrakotos tells the council that we do have a problem with deer. The most severe winter in many years has not diminished the deer population, he says. He’s describing overpopulation of rabbits on an island – which has become a refuge for rabbits. He says that’s what’s happening here with respect to deer. He wants the council to acknowledge there is a problem.

7:29 p.m. Thomas Partridge calls for the election of Mark Schauer as governor and Gary Peters as U.S. Senator. Hieftje tells Partridge that he had signed to talk about agenda item F-5 and wants him to do that. Peters would have a platform that would help eliminate homelessness and provide affordable housing, Partridge responds.

7:30 p.m. Hieftje disallows Baird as an alternate speaker, saying that Mitchell was here but chose not to speak.

7:30 p.m. Communications from council. This is the first of two slots on the agenda for council communications. It’s a time when councilmembers can report out from boards, commissions and task forces on which they serve. They can also alert their colleagues to proposals they might be bringing forward in the near future.

7:32 p.m. Taylor conveys regrets from Teall, who is caring for older family members. Eaton announces a neighborhood meeting for the Packard Square development on Sept. 4.

7:33 p.m. MC-1 Confirmations. The council is being asked tonight to confirm nominations made at the council’s Aug. 7, 2014 meeting: Bob Guenzel as a reappointment to the Ann Arbor Downtown Development Authority; Stephen Raiman to the energy commission to replace Dina Kurz; and Nora Lee Wright to a vacancy on the housing and human services advisory board.

7:33 p.m. Outcome: All nominations have been confirmed without discussion.

7:33 p.m. MC-2 Nominations. Anna Ercoli-Schnitzer is being nominated to fill a vacancy on the Commission on Disability Issues. Tamara Burns and Dick Mitchell are being nominated to be reappointed to the design review board. Sofia Franciscus is being nominated to fill the vacancy on the planning commission due to Paras Parekh’s resignation. And John Splitt is being nominated for reappointment to the Downtown Development Authority board. Votes on their confirmation will take place at the council’s next meeting.

7:35 p.m. Public hearings. All the public hearings are grouped together during this section of the meeting. Action on the related items comes later in the meeting. Four public hearings are scheduled tonight. Two of them relate to an Ann Arbor Housing Commission project on North Maple that involves demolishing some units and re-building them. [For additional background see North Maple Estates above] The other two public hearings relate to the McKinley project on State Street called State Street Village. [For additional background see State Street Village above]

Hieftje tells the Boycott Israel contingent to hold their signs over to the sides. They respond by exiting. In leaving some make statements: “You care more about deer than people.”

7:35 p.m. PH-1 Ann Arbor Housing Commission North Maple Road.

7:37 p.m. Thomas Partridge calls for more affordable housing.

7:37 p.m. PH-2 Seybold Drive street vacation.

7:38 p.m. No one speaks on this public hearing.

7:38 p.m. PH-3 State Street Village rezoning.

7:40 p.m. Thomas Partridge calls for more consideration of the most vulnerable.

7:40 p.m. PH-4 State Street Village site plan.

7:42 p.m. Thomas Partridge calls for public access by everyone, including seniors and the disabled.

7:42 p.m. Approval of minutes. Outcome: The minutes of the council’s previous meeting have been approved.

7:42 p.m. Consent agenda. This is a group of items that are deemed to be routine and are voted on “all in one go.” Contracts for less than $100,000 can be placed on the consent agenda. This meeting’s consent agenda includes:

• CA-1 Approve the member services agreement into the Keenan Pharmacy Purchasing Coalition ($60,000 for 2014 and $60,000 for 2015).
• CA-2 Approve July 24, 2014 recommendations of the Board of Insurance Administration.
• CA-3 Street Closure: Maynard Street on Wednesday, September 10, 2014 for the Barracuda Networks BBQ.
• CA-4 Approve agreement with the Washtenaw County Road Commission for the resurfacing of Newport Road (City Limits to Bird Road) ($90,000).

7:43 p.m. Councilmembers can pull out any item on the consent agenda for separate consideration. Briere pulls out CA-4.

7:43 p.m. Outcome: The consent agenda has been approved except for CA-4.

7:43 p.m. CA-4 Approve agreement with the Washtenaw County Road Commission for the resurfacing of Newport Road (City Limits to Bird Road) ($90,000).

7:44 p.m. Briere is thanking staff for working with the Washtenaw County Road Commission to make this happen.

7:44 p.m. Outcome: CA-4 has now been approved from the consent agenda.

7:44 p.m. B-1 Ann Arbor Housing Commission North Maple Road Rezoning. The council is considering for final approval the rezoning required for an Ann Arbor Housing Commission project – a 4.8-acre site at 701 N. Maple Road. The zoning would change from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which has been shifted to the Sept. 2 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. A related item on the agenda is the vacation of a portion of the city’s right-of-way for Seybold Drive. [For additional background see North Maple Estates above]

7:45 p.m. Outcome: The council has voted to give final approval to the North Maple Estates rezoning.

7:45 p.m. B-2 State Street Village rezoning. The council is considering the rezoning of land for the State Street Village project at 2221-2223 S. State St. The 4.5-acre parcel is proposed to be rezoned from M1 (limited industrial district) to O (office district). Also on the council’s agenda for approval is the site plan for the project that will be made possible by approval of the rezoning – a $10 million development by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027 square foot building – for a leasing office with two apartments above it – would be built on the front of the parcel, on South State. [For additional background see State Street Village above]

7:45 p.m. Briere notes that office (O) zoning was the most flexible zoning for this site. She assures members of the public that every site plan is vetted for access to transit by all users.

7:46 p.m. Outcome: The council has voted to give final approval to the State Street Village rezoning.

7:46 p.m. C-1 121 Kingsley West rezoning. This is the initial consideration of the 121 W. Kingsley Street project. The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million. The rezoning is on the council’s agenda, but the site plan will not come before the council until the zoning is considered for a second and final vote. [For additional background see 121 Kingsley West above]

7:46 p.m. Outcome: Without discussion, the council has voted to give initial approval to the rezoning for 121 Kingsley West.

7:46 p.m. C-2 Taxicab ordinance amendment: Rates. Getting initial consideration tonight are two changes to the city’s taxicab ordinance that have been recommended by the city’s taxicab board. The recommendations come in the context of the entry of Uber and Lyft into the Ann Arbor market. This ordinance change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall. [For additional background see Taxicab Ordinances above]

7:47 p.m. Outcome: Without discussion, the council has voted to give initial approval of the taxicab ordinance change on the maximum rate.

7:47 p.m. C-3 Taxicab ordinance amendment: Register drivers for hire. This is the second item recommended by the taxicab board. It would require the registration with the city by all drivers for hire, including those who work for Uber and Lyft. Key requirements are the affixing of commercial license plates to a vehicle and maintaining commensurate insurance. [For additional background see Taxicab Ordinances above]

7:50 p.m. Stephen Kunselman (Ward 3) is noting that he sits on the taxicab board. The board has been working to bring up the city’s laws up to date with the changes to the marketplace. The speakers tonight have not addressed the issue of public safety, he says. This ordinance will require insurance of vehicles as commercial vehicles, he notes. This will make all drivers comply with the same rules, Kunselman says. He notes that this is the first reading of the ordinance. Some items might need to be removed, but he would like that to happen at the second reading.

7:51 p.m. Kunselman compares the issue to Selma Cafe. Everyone thought it was great, and then came the annoyances from all the neighbors because of the parking in the neighborhood. Relying on personal insurance won’t work, Kunselman says, because that puts the consumer at risk.

7:52 p.m. Hieftje is reviewing the two-step process for changes to ordinances – first reading, followed by second reading with a public hearing at a later date. Lumm is thanking the city attorney’s staff for their work.

7:54 p.m. Lumm asks about the division of responsibility between the state and local municipalities with respect to taxicabs and limos. Assistant city attorney Kristen Larcom tells Lumm that her understanding of the state of Michigan’s position is that Uber and Lyft services meet the definition of a limo. There’s movement among legislators to make amendments to the state limo act, she thinks.

7:57 p.m. City CFO Tom Crawford, who serves on the taxicab board in an ex officio capacity, responds to a question from Lumm about mechanics and inspections.

7:59 p.m. Briere wants to know what the financial impact will be on drivers for Uber and Lyft. Crawford says that there’s a distinction between a limo company, the drivers and the vehicle. He says that the drivers for Uber and Lyft are 1099 workers. Briere says that this is not what she’s concerned about. She wants to know who bears the cost. How does the proposed change share responsibility? she asks.

8:03 p.m. Kailasapathy ventures that answering the cost question is challenging, and Crawford agrees. Petersen says that the real hurdle is the insurance, not the chauffeur’s license.

8:06 p.m. Anglin agrees that it’s important to understand the cost. Kunselman responds by saying the reason that Lyft and Uber can make a profit is that they are “cheating” the law. What about the companies that are complying with the law? Kunselman asks – like Ann Arbor’s taxicab companies. The reason Uber and Lyft can charge less because they aren’t carrying the associated cost of business, he says. About the use of a family car for a ride-sharing business, Kunselman says: “Lord help us all if that family vehicle gets in a wreck,” and the family goes into bankruptcy.

8:07 p.m. Anglin doesn’t want to jump into anything rapidly.

8:10 p.m. Taylor says that the solution proposed is for a problem that does not exist. Uber and Lyft provide safe service, he says. They allow Ann Arborites to maintain a carless lifestyle. These business models provide for full insurance, he contends. Drivers are taken care of by the insurance of Uber and Lyft when they’re driving. He’ll vote against this, he says. Instead he’ll be working with Briere to bring forward a resolution directing the city administrator to develop an operating agreement with Uber and Lyft. His remarks are met with applause. Hieftje says “Applause is not appropriate during the body of the meeting.”

8:13 p.m. Eaton asks a question of the city attorney’s office. He asks if there’s anything about the state limo act that prevents the city from asserting control over the same subject matter. Warpehoski gets clarification that Ann Arbor does not limit the number of taxicab licenses. He’s comparing Ann Arbor to New York, and its taxicab “cartel.” He says it’s a matter of threading the needle, balancing the right amount of regulation.

8:15 p.m. Warpehoski says he’ll vote for this at first reading, but if the text is the same by the time the ordinance comes back for second reading, he’ll vote against it at that time.

8:15 p.m. Petersen says she’ll take Warpehoski’s advice from a couple of meetings ago: If you’re going to vote against it at second reading, vote against it at first reading. She wants to support Taylor’s efforts to develop an operating agreement.

8:19 p.m. Kunselman notes that the Detroit operating agreement is for a short time, while the law is worked out. All this ordinance does is make everyone follow the same laws, he says. If councilmembers think that Uber and Lyft can self-regulate public safety, then they should vote this down and let it be a free-for-all, he says. They’re making money because they’re not paying the full cost of the business model. They’re using public streets to make a buck, he says. With Selma Cafe, everyone was having a great time going to breakfast at someone’s house, he says, but then it had to be shut down.

8:19 p.m. Kunselman says he doesn’t use Lyft and Uber because he doesn’t feel they’re safe.

8:21 p.m. Briere is describing how many cities are developing operating agreements while the state laws are sorted out. The operating agreements can address who pays for what, she says. The agreement being considered in Lansing would define an amount for which the company is responsible for insuring, she says.

8:23 p.m. Briere ventures that such operating agreements could eventually be extended to standard limo companies. She doesn’t imagine ever needing to know who every driver is, but thinks it’s rational to expect that a list be maintained – so it’s fine if Lyft and Uber maintain that list.

8:26 p.m. Lumm says the ship has left the dock and there’s no stopping it now. Even though there’s a cease-and-desist order, Uber and Lyft are continuing to do business, she says. It’s about ensuring safety for passengers, she adds. Detroit had left undefined who the “third party” is who can inspect vehicles. Lumm is talking about the fact that Uber and Lyft drivers are rated by customers, but she wonders what happens if there’s a series of bad ratings. Lumm asks that Taylor and Briere work with the taxicab board, if the ordinance revision doesn’t pass at first reading. She notes that the chair of the taxicab board [Michael Benson] had sent the council an email asking the council to support the changes.

8:29 p.m. Crawford describes himself as conflicted about the ordinance. He says that he doesn’t see Uber and Lyft as competing with taxicabs so much as with limos. The Uber and Lyft business models are designed for those who have smartphones, he notes. They have ways to rate passengers and drivers, he says, so if you have give drivers a bad experience, you might not be able to get a ride.

8:32 p.m. Kailasapathy is drawing an analogy to renting a house. If a landlord was skirting requirements on fire inspections, would the city opt to come up with operating agreements with them? Is the city council there to revise ordinance that apply to everybody, or when people break the rules, do we scramble to create operating agreements to fit their business models? For her it’s a governance issue.

8:35 p.m. Eaton says he’ll support the ordinance change. He notes that Kunselman has stated he’s willing to compromise on some of the language. Eaton says that he is sensitive to the idea that a company will self-regulate for safety. He says that the same offer of an operating agreement would need to be offered to taxicab companies. Eaton can’t imagine letting an entire industry arise under the guise of self-regulation.

8:36 p.m. Petersen says she’s not opposed to ordinance amendments, but she doesn’t think that these are the right set of amendments. She says that Kunselman should go back to the drawing board. Public safety, health and welfare is paramount, but she doesn’t think that these are insurmountable barriers.

8:39 p.m. Anglin is talking about the transportation that the AAATA’s shared taxi service provides. Briere moves to waive the council’s rules on speaking times, which the council agrees to.

8:40 p.m. Kunselman is going through the requirements in the ordinance change and asks other councilmembers if they have objections to each of them. “Does anybody have a problem with that?” is the question he poses for each requirement.

8:42 p.m. Kunselman comes to “the one that probably scares Uber and Lyft the most,” which is that they would have to comply with state limo act. He asks if councilmembers are willing to allow a company to operate in violation of state law. If so, then “have at it,” he says.

8:44 p.m. Briere calls Kailasapathy’s comparison to renting a house interesting. She extends that to the hotel industry and bed and breakfasts, and is now talking about Airbnb-type models.

8:47 p.m. Briere says she wants the company to bear the burden. The city would be adding an incredible burden to something that is a casual relationship. She thinks the city can be more creative in regulating this issue. Since April, she’s been convinced that an operating agreement is the way to go.

8:49 p.m. Lumm thinks that the requirements in the ordinance are really basic. She asks for the representative from Uber, Michael White, to explain which elements of the ordinance he objects to.

8:52 p.m. White says that there’s no need for commercial insurance on a vehicle that’s being used for three hours a week for this service, he says. Uber’s insurance covers those vehicles when they’re being used to drive for Uber, he says. If there were a safety issue, he says, it wouldn’t be just a national issue, it would be an international issue, he says.

8:54 p.m. Eaton asks which requirements White objects to. He objects to each driver having to complete the requirements.

8:55 p.m. Kailasapathy is asking about the insurance policy. It’s a liability policy, White explains.

8:57 p.m. Briere asks if White can share data about safety. Not today, he says. Briere asks if he can get it. Complaints come in as a stream, he says. Briere wants to know about percentages – out of 20 vehicles, how many complaints are there?

9:00 p.m. White says that their drivers have an average star rating of 4.6 stars out of 5.0. Briere says she’s not asking about satisfaction, but about safety. Petersen wants to know how that data is used by Uber. White is providing the standard Uber marketing message to the council.

9:01 p.m. Petersen asks if Uber can suspend a driver before they discover that people aren’t requesting rides from them. Based on White’s response, it’s not clear.

9:02 p.m. Lumm is following up with questions about the rating system.

9:05 p.m. White is taking the opportunity to explain the various advantages that Uber offers to riders.

9:07 p.m. Lumm is going back and forth with White about what he’d be willing to put in an operating agreement. He’d be willing to put a requirement in an Ann Arbor operating agreement that required the vehicle inspection to be done by a licensed mechanic.

9:12 p.m. Warpehoski has some back-and-forth with White.

9:12 p.m. Kunselman asks White if Uber would be willing to accept six points as a maximum. White says that they evaluate the nature of the violations. He’d be happy to discuss various issues. Kunselman says White has been vague. Kunselman asks if Uber would allow a felon to be a driver. No, White says. The city council had recently approved a policy on that, Kunselman notes. [Earlier this year, the city eliminated the requirement that job applicants disclose past criminal records – except for police and fire department applicants.]

White says that an English requirement would effectively arise from having to be able to go through the application system. And if they did manage to be activated as a driver, their ability to deliver quality service would be hampered by a lack of English. And that would show up in the feedback the driver would get.

9:14 p.m. Kunselman asks about possible discrimination against riders with disabilities and about red-lining. White says that studies have been done that show in Chicago, undesirable and underserved areas are much better served by Uber than by existing transportation options. Kunselman asks: Do you think that we should disband the taxicab industry in Ann Arbor?

9:20 p.m. Hieftje says there have been a lot of good comments. He mentions pipelines as a self-regulated industry, in some ways. It’s long been a goal of his to make it possible for people to live without owning a car, he says. The bike lane system has been expanded, he says. The bus system has been expanded. Ride-sharing apps are a way to expand ride-share options. So he won’t support the ordinance change tonight. He doesn’t think there’s any reason to think that Uber and Lyft aren’t concerned with safety.

9:24 p.m. Outcome: The council has rejected the ordinance at first reading on a 5-5 vote. Voting against it were Hieftje, Briere, Petersen, Lumm and Taylor.

9:24 p.m. Recess. We’re now in recess.

9:37 p.m. We’re back.

9:37 p.m. DC-1 Appropriate $20,000 to develop a community-endorsed deer management plan. This item is based on the Aug. 14 report from the city administrator on options for managing the deer population. Before developing a specific plan – that could involve killing deer or not – input from Washtenaw County Parks and Recreation and the University of Michigan would be sought. And the Michigan Department of Natural Resources would need to approve any plan for deer management.

The Aug. 14 report includes descriptions of deer management plans in other Michigan cities that range from ordinances prohibiting the feeding of deer to culling programs that shut down city parks and prescribe shooting lanes for archers. City of Ann Arbor staff estimate that six months would be needed for public engagement. That public engagement could start within 45 days of city council approval to proceed. Estimated staff time to develop the specific plan is 160 hours, according to the Aug. 14 report. Contractual public engagement and support to develop a management plan are estimated at $20,000. The report indicates that to cull 40-50 deer per year, the cost to the city would be about $25,000. According to Michigan Department of Natural Resources records 6,608 deer were taken by hunters in Washtenaw County. [For additional background see Deer Management above]

9:39 p.m. Lumm is thanking city administrator Steve Powers and community services administrator Sumedh Bahl. Lumm is reading aloud a written statement. The plan to be developed is supposed to include metrics for success, she says. The MDNR is the critical partner, she says.

9:42 p.m. Lumm allows that the problem might be concentrated in Ward 1 and Ward 2, but she hopes that the council will support it. Briere says that the problem is growing in Ward 5 as well. Briere says she doesn’t have an interest in seeing the deer slaughtered, but there are few ways to control the deer population. The problem might not be only the overpopulation of deer, she allows. She supports moving the process forward.

9:44 p.m. Hieftje says his central concern is that it be a comprehensive solution. He reports that he saw a buck walk past his front porch, even though there are no natural areas in the area.

9:47 p.m. Lumm asks Bahl to come to the podium. Powers responds first. He notes that the partners involved “aren’t quite there yet,” and the DNR has recommended that there be a community process. That comment comes in response to some public input to the effect that the city was not moving fast enough.

9:50 p.m. Lumm asks if there will be more data collected on environmental data. That will take some time, Bahl says.

9:51 p.m. Lumm is now reading aloud an email from a NAP volunteer. Young oak trees don’t survive unless the volunteer fences the trees, the email states.

9:52 p.m. Outcome: The council has voted unanimously to appropriate $20,000 to develop a deer management plan.

9:52 p.m. DC-2 Community Events Fund Disbursements. This item was added late to the agenda by Sabra Briere (Ward 1) and Chuck Warpehoski (Ward 5). The council rule on the subject reads as follows: “Council members may add items to the agenda at any time, but will use best efforts to do so prior to 5:00 p.m. on the Friday before the next Council meeting.” The two constitute the council committee for distribution of community events funding. They met at 10 a.m. today (Monday) for a meeting that was announced through the city’s notification system at 4:06 p.m. last Friday.

About half of the events to receive funding this year have already taken place. The disbursements are for a total of $55,000, including $10,000 for the Ann Arbor Street Art Fair and $25,000 for the Summer Festival.

9:54 p.m. Warpehoski apologizes for the late addition to the agenda. Some of the events that been allocated funding turned out not to be happening and so adjustments needed to be made late. The full amount is not being allocated, he says, so that late applications might be accommodated.

9:54 p.m. Outcome: The council has voted to approve the disbursements from the community events fund.

9:54 p.m. DB-1 Seybold Drive vacation. This item is related to the Ann Arbor Housing Commission’s North Maple Estates project the zoning for which the council voted on earlier in the meeting. [For additional background see North Maple Estates above]

9:54 p.m. Outcome: The council has voted to approve the vacation of Seybold Drive.

9:54 p.m. DB-2 State Street Village site plan. The council voted on the rezoning for the project earlier in the meeting. [For additional background see State Street Village above]

9:54 p.m. Outcome: The council has voted to approve the State Street Village site plan.

9:54 p.m. DS-1 Approve extended policy with EyeMed Vision Care ($305,828). The policy period is four years. The policy requires the city to pay a set monthly premium. The monthly premiums are $4.53 for single, $8.61 for two people, and $12.64 for a family from July 1, 2014 through Dec. 31, 2014. According to the staff memo accompanying the resolution, due to the fees imposed onto insurers under the Affordable Care Act (ACA), the premiums will be adjusted upward on January 1, 2015. The new monthly premiums will be $4.67 for single, $8.87, for two people, and $13.02 for a family from Jan. 1, 2015 through Dec. 31, 2018.

9:55 p.m. Outcome: The council has voted to approve the extension with EyeMed.

9:55 p.m. DS-2 Approve Fuller Lot lease with University of Michigan. This item would extend the lease by the city to the University of Michigan for three parking lots at Fuller Park: (1) the parking lot south of Fuller Road, next to the railroad tracks; (2) the paved parking lot north of Fuller Road at Fuller Park; and (3) the unpaved parking lot north of Fuller Road at Fuller Park. The lots are used by the University of Michigan during restricted hours. Annual revenue from this lease will be $78,665, and will be included as part of the parks and recreation general fund budget. The item was forwarded to the city council from the park advisory commission with a recommendation of approval. [For additional background see Fuller Park Parking Lease above.]

9:57 p.m. Hieftje says that he thinks it would be useful to postpone the question.

9:58 p.m. Eaton asks that if this is sent back to the park advisory commission (PAC), then he wants the commission to review the relevant planning documents.

10:00 p.m. Briere moves to postpone until October. Lumm asks what happens, given the expiration of the current lease. Hieftje ventures that this is coming to the council later than it should have.

10:01 p.m. Anglin is concerned about the inclusion of a mention of future uses of the property.

10:01 p.m. Outcome: The council has voted to postpone the Fuller Park lot lease with the University of Michigan until the first meeting in October.

10:01 p.m. DS-3 Appropriate emergency management performance ($42,582) This item will accept $42,582 in grant funding from the state for emergency management. It will pay for part of the salary for the city’s emergency manager.

10:01 p.m. Outcome: The council has voted to approve the acceptance of the emergency program grant funds.

10:02 p.m. Communications from the council.

10:05 p.m. Kailasapathy is pointing out that the council rule regarding public commentary is that if someone vacates their reserved time, it shall be assigned to the alternate speakers. Larry Baird was the alternate who was denied an opportunity to speak. Hieftje says that he will take a look at that. But he says that the rules are under a great deal of scrutiny to make sure that the rules are followed. “Maybe I was too careful.” He was concerned that someone might bring that up to the council. Kailasapathy reiterates the point of the rule. Hieftje says he’ll look into that. Warpehoski notes that everyone has a responsibility to note the error at the time it’s made.

10:06 p.m. Clerk’s Report. Warpehoski says he’s happy to see the inclusion of accessory dwelling units in the planning commission’s work plan, which is part of the clerk’s report of communications.

10:08 p.m. Warpehoski says that if the council wants to see things move forward, they need to make the necessary resources available.

10:08 p.m. Outcome: The council has now accepted the clerk’s report.

10:08 p.m. Public comment. There’s no requirement to sign up in advance for this slot for public commentary.

10:10 p.m. Thomas Partridge says that despite the council’s vote on the taxicab ordinance, the city still needs assurances that transportation will be safety. He says the city is not making the kind of progress it needs to on affordable housing.

10:13 p.m. Kai Petainen is addressing the council on the topic of Ann Arbor SPARK. Here’s a .pdf of his remarks: [.pdf of Petainen Aug. 18, 2014]

10:16 p.m. A Lyft driver is addressing the council. He says he’s been living here for 14 years. He says that the council makes the city better and better every day. He wants them to continue to make Ann Arbor’s transportation system better.

10:18 p.m. A second Lyft driver, who’s been working with that service since May 8, is now addressing the council. Ann Arbor deserves ride-sharing in the city, he says. About 80% of riders he picks up are college students. When he picks up students who are drunk, he knows that he is saving their lives. It takes 45 minutes to an hour for other services, he says. Lyft covers him with a $1 million policy, he says.

10:21 p.m. Ed Vielmetti is addressing the council. He’s a Ward 4 resident. Two years ago, The Chronicle’s Stopped.Watched feature recorded a vehicle in storage by the city of Ann Arbor – it’s a Washtenaw County APC with a battering ram. He alludes to events in Ferguson. He hopes and prays that if something happens in this city and county, their public officials will support them in cases where injustices have been done.

10:23 p.m. Rita Mitchell says that she is choosing to speak now, although she chose not to speak earlier. She appreciates the rule that calls for speakers to speak on agenda items at the start of the meeting. She thanks the council for their action to postpone the item on leasing Fuller Park lots to UM. She hopes that the parks can be funded without leasing parkland for non-park uses. She also objects to inclusion of language in the lease about possible future use of the area as a train station. She wants the city to check into the condition of the trees that were supposed to be saved through the lease so many years ago.

10:25 p.m. Jeff Hayner says he hopes the city can get a better deal from the University of Michigan. He delivers a theatrical reading with a deer skull.

10:26 p.m. An Uber driver is now addressing the council in support of Uber and other ride-sharing services.

10:27 p.m. Adjournment. We are now adjourned. That’s all from the hard benches.

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

A report from the city administrator on options for deer management has led to a resolution on the Aug. 18 agenda appropriating $20,000 for the development of a deer management program.

Screenshot of Legistar – the city of Ann Arbor’s online agenda management system. Image links to the Aug. 18, 2014 meeting agenda.

Among the land use items on the Aug. 18 agenda is one related to use of city-owned land – three parking lots at Fuller Park: (1) the parking lot south of Fuller Road, next to the railroad tracks; (2) the paved parking lot north of Fuller Road at Fuller Park; and (3) the unpaved parking lot north of Fuller Road at Fuller Park. The lots are used by the University of Michigan during restricted hours.

The council will be considering a two-year lease with one additional two-year option for renewal. Annual revenue from this lease will be $78,665, and will be included as part of the parks and recreation general fund budget. The item was forwarded to the city council from the park advisory commission with a recommendation of approval.

Private land development items on the Aug. 18 agenda include final approval of the rezoning of land for the State Street Village project at 2221-2223 S. State St. The 4.5-acre parcel is proposed to be rezoned from M1 (limited industrial district) to O (office district). Also on the council’s agenda for approval is the site plan for the project that will be made possible by approval of the rezoning – a $10 million development by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027-square-foot building – for a leasing office with two apartments above it – would be built on the front of the parcel, on South State.

Also on the agenda for final approval is the rezoning required for an Ann Arbor Housing Commission project – a 4.8-acre site at 701 N. Maple Road. The zoning would change from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which is also on the council’s Aug. 18 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. A related item on the agenda is the vacation of a portion of the city’s right-of-way for Seybold Drive.

Rezoning for 121 W. Kingsley Street for a private development is getting initial consideration by the council on Aug. 18. The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million.

Getting initial consideration by the council at its Aug. 18 meeting are changes to the city’s taxicab ordinance that have been recommended by the city’s taxicab board. The recommendations come in the context of the entry of Uber and Lyft into the Ann Arbor market. The companies offer the arrangement of rides through mobile networks with drivers who operate their own vehicles. Both companies have ignored cease-and-desist orders from the city.

Uber has sent its Ann Arbor customers an email asking them to sign an online petition supporting Uber’s continued ability to operate here.

One ordinance change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall. The other ordinance would require that all drivers for hire – whether they are taxicab drivers or drivers who work for Uber or Lyft – register with the city, maintain proper insurance for their vehicles and acquire commercial plates.

In other significant business at its Aug. 18 meeting, the council will also be asked to confirm the re-appointment of Bob Guenzel to the board of the Ann Arbor Downtown Development Authority.

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

Fuller Park Parking Lease

The council will be considering a possible four-year extension on a University of Michigan lease of three parking lots at Fuller Park. The lease comes to the council with a recommendation of approval from the park advisory commission. The commission gave that recommendation at its July 15, 2014 meeting.

Map of parking lots at Fuller Park that are leased to the University of Michigan.

The existing lease expires on Aug. 31, 2014. The three lots are: (1) the parking lot south of Fuller Road, next to the railroad tracks (Lot A); (2) the paved parking lot north of Fuller Road at Fuller Park (Lot B); and (3) the unpaved parking lot north of Fuller Road at Fuller Park (Lot C). The lots are used by UM during restricted hours.

The city has leased Lot A to UM since 1993. Lots B and C have been leased since 2009.

The proposal, which requires city council approval, is for a two-year lease with one additional two-year option for renewal. Annual revenue of this lease will be $78,665, and will be included as part of the parks and recreation general fund budget. [.pdf of proposed lease agreement] [.pdf of staff report]

The hours that UM can use these lots are stipulated in the agreement:

• Lot A: 4 a.m. to 4 p.m. Monday through Friday.
• Lot B (paved lot): 6 a.m. to 5 p.m. Monday through Friday, beginning the day after Labor Day through the Friday before Memorial Day, excluding holidays.
• Lot C (unpaved lot): 6 a.m. to 5 p.m. Monday through Friday, excluding holidays.

At the PAC meeting when the lease was recommended, parks and recreation manager Colin Smith noted that the revenue from these three lots is significant for the parks and recreation operating budget. The current agreement – which was approved by the council in 2009 and extended by two administrative renewals – is essentially the same as the agreement that will expire, Smith told PAC.

The main purpose of the lots is for the parks, Smith explained. That’s reflected in the hours when UM can use the lots – on weekdays, prior to 4-5 p.m. The outdoor pool and soccer fields don’t need the quantity of parking during the winter or off-season. “It’s an asset within the parks department that we can either have sit there, or we can lease it for a significant amount of revenue that obviously helps us provide other programs,” he said. If the city doesn’t lease those parking lots, “I am absolutely certain that people will park in it anyway,” Smith added.

State Street Village

On Aug. 18, the council will consider final approval of the rezoning of land for the State Street Village project at 2221-2223 S. State St. The 4.5-acre parcel is proposed to be rezoned from M1 (limited industrial district) to O (office district). Also on the council’s agenda for approval is the site plan for the project that will be made possible by approval of the rezoning – a $10 million development by Ann Arbor-based McKinley Inc. The plan calls for constructing two 4-story apartment buildings at the rear of the site, totaling 112,262 square feet, with 38 units each. Another 2,027 square foot building – for a leasing office with two apartments above it – would be built on the front of the parcel, on South State.

Aerial view of State Street Village site.

Action on the initial approval came at the city council’s July 21, 2014 meeting. A recommendation for the rezoning was given at the June 17, 2014 meeting of the Ann Arbor planning commission.

At that meeting, commissioners recommended approval of the site plan, development agreement and rezoning for the project.

The front part of the site is currently a surface parking lot, and is zoned O (office). The rear parcel – 4.5 acres – is vacant, and zoned M1 (limited industrial). Residential developments are permitted in office-zoned areas. [.pdf of staff report]

The development will include 114 parking spaces in the rear of the site and 13 spaces for the front. Another 22 spaces in the surface parking lot will be shared by the existing office building just south of the site.

In addition, 44 covered bicycle spaces and 8 enclosed bicycle spaces will be provided near the entrances of the apartment buildings and 2 hoops will be placed near the entrance of the rental office building.

Instead of making a $48,360 requested donation to the city for parks, McKinley has proposed two 8×10-foot grilling patios with picnic tables and grills.

According to the staff memo, the footing drains of 18 homes, or flow equivalent to 71.91 gallons per minute, will need to be disconnected from the city’s sanitary sewer system to mitigate flow from this proposed development.

North Maple Road

To be considered for final approval by the council at its Aug. 18 meeting is the rezoning required for an Ann Arbor Housing Commission project – a 4.8-acre site at 701 N. Maple Road. The zoning would change from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The site plan, which is also on the council’s Aug. 18 has been shifted to the Sept. 2 agenda, calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. A related item on the agenda is the vacation of a portion of the city’s right-of-way for Seybold Drive.

The Ann Arbor planning commission recommended all three items for approval at its June 17, 2014 meeting. The council gave initial approval of the rezoning at its July 7, 2014 meeting.

Aerial view of North Maple Estates site, outlined in green.

The project is part of a major renovation effort by the Ann Arbor Housing Commission of several of its properties. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The units in the eight-building, 42-unit apartment complex are proposed to have a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project would include a playground, community building and 73 parking spaces. According to a staff memo, the buildings would be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

The project also requires the city to vacate a portion of the right-of-way for Seybold Drive. The surrounding land is owned by the housing commission, so if the right-of-way vacation is approved, the land would become part of the housing commission property. In a separate vote, the planning commission also recommended approving that request.

When the project was in front of the planning commission, planning staff noted three issues that need to be resolved before the project gets approval from city council:

The parcel containing two duplex buildings also owned by the Ann Arbor Housing Commission in the northeast corner of the site must be combined with the subject site, forming a single parcel as a requirement for issuance of any permits.

The legal description and comparison chart data must be confirmed to include the duplex parcel.

The northern-most parking stall, nearest the connection to Vine Court, must be relocated outside of the minimum front setback area.

According to the staff memo, after June 3 the city’s traffic engineer reviewed the proposed new connection from Seybold Drive onto Dexter Avenue, and concluded that sight distances from all approaches are acceptable. He suggested that the pavement markings on Dexter should be refreshed.

The reconstruction of North Maple Estates is part of an ongoing effort by the housing commission to upgrade the city’s housing stock for low-income residents. At the planning commission’s May 6, 2014 meeting, AAHC executive director Jennifer Hall had made a presentation about the initiative, which includes seeking private investors through low-income housing tax credits.

121 Kingsley West

Rezoning for 121 W. Kingsley Street for a proposed new development is getting initial consideration by the council on Aug. 18. The project calls for rezoning the site from a planned unit development (PUD) to D2 (downtown interface). The development would include renovating the existing two-story, 2,539-square-foot building, plus constructing two additional buildings: (1) a 3.5-story addition to the existing building; and (2) a 4.5-story structure at the southeast corner of West Kingsley and North Ashley. In total, the development would include 22 units and 40,689 square feet. The estimated cost is $6.5 million.

The rezoning will be on the council’s agenda, but the site plan will not come before the council until the zoning is considered for a second and final vote. The Ann Arbor planning commission’s recommendation of approval for the site plan and the rezoning came at its July 15, 2014 meeting.

Rendering of 121 Kingsley West project, looking south from Kingsley. The existing building is in the left foreground.

Developers are Tom Fitzsimmons, Peter Allen and Mark Berg. The architect is Marc Rueter.

There would be 29 parking spaces below the buildings – though only two spaces are required, based on residential premiums that the project is seeking. The premiums give the project additional floor area, compare to what’s allowed by right. An elevator for each building will be accessible from the parking level. The parking level of the east building will include a bike room with 14 spaces.

According to a staff report, the project’s development agreement will address “easements for encroachments onto the City right of way by the existing building, onsite stormwater management, verification of LEED points, six required footing drain disconnects, future façade alterations, and the contribution to Parks and Recreation Services.” [.pdf of staff report]

Planning commissioners unanimously recommended approval of the rezoning, site plan and development agreement. However, only five commissioners on the nine-member body were present, and the commission’s bylaws stipulate that approval requires six votes. So the project was forwarded to city council for consideration with a recommendation of denial from the commission. Wendy Woods, the commission’s chair, assured the developers that city council would be informed that the project secured unanimous support from all commissioners who were present.

The project is on the same site as a previously proposed project by Peter Allen called Kingsley Lane. That had been envisioned as a larger development with 46 units in a complex with two “towers” – at four and nine stories. According to a 2006 Ann Arbor News article, pre-sales of the units were slower than expected because of the struggling housing market, and ultimately financing fell through. At a July 9, 2013 planning commission work session, planning manager Wendy Rampson reported that the developers had lost the property to the bank, but subsequently secured the land and were expected to submit a new site plan.

Taxicab Ordinances

Getting initial consideration by the council on Aug. 18 are two changes to the city’s taxicab ordinance that have been recommended by the city’s taxicab board. The recommendations come in the context of the entry of Uber and Lyft into the Ann Arbor market. The companies offer the arrangement of rides through mobile networks with drivers who operate their own vehicles. Both companies have continued to operate in Ann Arbor, despite cease-and-desist orders from the city. [.pdf of cease-and-desist sent to Lyft] [.pdf of cease-and-desist sent to Uber]

The vote to recommend the ordinance changes came at the July 24, 2014 meeting of the taxicab board.

These issues were also discussed at three monthly meetings of the taxicab board prior to that, on April 23, 2014, May 22, 2014 and June 26, 2014.

One ordinance change would establish certain parameters to mitigate possible negative consequences to the setting of a very high maximum allowable taxicab rate, under which taxicab companies might eventually compete. Those parameters include a requirement that a taxicab company commit to a single rate annually and that the rate be advertised in a vehicle with signage in letters one-inch tall.

The current structure for fare regulation already allows for the adoption of a maximum rate to be adopted by the city council. Currently the maximum rate in Ann Arbor is $3 to get in, $2.50 per mile, and 40 cents per minute waiting time. Those maximum rates were last adjusted upwards three years ago, on May 16, 2011, in response to gas prices that had nudged past $4 per gallon. At that time, the taxicab board indicated it did not anticipate considering another rate change until the gas prices were over $5 for at least two consecutive months.

So the taxicab board’s thinking is not being driven by gas prices, which are currently between $3.75 and $4 in the Ann Arbor area. Instead, a possible increase in allowable fares is based on concern that the taxicab industry in Ann Arbor might not be able to survive unless taxis are allowed to charge more.

At its July 24 meeting, taxicab board members discussed the possibility of delaying their recommendation on the ordinance changes until the board could also make a specific recommendation on the price point for a very high maximum rate. But ultimately board members felt that a recommendation on a price point for a new maximum rate could come later – especially because ordinance changes require a first and second reading in front of the council. There would be a window of opportunity between those readings to make a recommendation on the higher maximum. The taxicab board’s next meeting is scheduled for Aug. 28 at 8:30 a.m. at city hall.

The other ordinance change to be given initial consideration would require that all drivers for hire – whether they are taxicab drivers or drivers who work for Uber or Lyft – register with the city, maintain proper insurance for their vehicles and acquire commercial plates. Commercial plates would require that the commensurate commercial insurance is carried.

And the absence of commercial plates on a vehicle that is observed to be used for picking up or dropping off passengers would provide a primary reason for a traffic stop by Ann Arbor police. At the taxicab board meetings over the last few months, representatives of the taxicab industry argued that the state statute regulating limousines already gives the city the ability to enforce against Uber and Lyft drivers.

Deer Management

Attached to the Aug. 18 city council agenda is a report from the city administrator outlining issues and options for management of the urban deer herd in Ann Arbor. Based on that report is a resolution, sponsored by Sabra Briere (Ward 1) and Jane Lumm (Ward 2), that would accept the report and appropriate $20,000 from the general fund for development of a “community endorsed deer management plan.” [.pdf of Aug. 14, 2014 deer management options report]

The council had directed the preparation of the report on various options in a resolution approved at its May 5, 2014 meeting. The report was to have been delivered to the council by July 31.

Fall 2015 is the earliest date identified in the report as a possible timeframe for a culling of the herd.

Before developing a specific plan – that could involve killing deer or not – input from Washtenaw County Parks and Recreation and the University of Michigan would be sought. And the Michigan Department of Natural Resources would need to approve any plan for deer management. The Aug. 14 report includes descriptions of deer management plans in other Michigan cities that range from ordinances prohibiting the feeding of deer to culling programs that shut down city parks and prescribe shooting lanes for archers.

City of Ann Arbor staff estimate that six months would be needed for public engagement. That public engagement could start within 45 days of city council approval to proceed.

Estimated staff time to develop the specific plan is 160 hours, according to the Aug. 14 report. Contractual public engagement and support to develop a management plan are estimated at $20,000.

Other facts included in the plan are the fact that neither city parks nor golf courses have had vegetation damage by deer. The cost to the city for disposing of deer carcasses in fiscal year 2014 was $5,850.

Estimated cost to kill 40-50 deer in the city of Ann Arbor is $25,000-$27,000 per year. That amount includes city staff administration cost in the amount of $14,000.

All deer-car accidents in Washtenaw County from 2004 through 2013 are plotted in the dynamic map below. Map is by The Chronicle with data from michigantrafficcrashfacts.org

Aerial view of North Maple Estates site, outlined in green.

At its meeting on June 17, planning commissioners recommended rezoning a 4.8-acre site at 701 N. Maple Road from R1C (single-family dwelling district) to R4B (multi-family dwelling district). Commissioners also recommended a site plan and development agreement for the project – part of a major renovation effort by the Ann Arbor housing commission. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive. [.pdf of staff report]

The plan calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project would include a playground, community building and 73 parking spaces. According to a staff memo, the buildings would be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive.

The project also requires the city to vacate a portion of the right-of-way for Seybold Drive. The surrounding land is owned by the housing commission, so if the right-of-way vacation is approved, the land would become part of the housing commission property. In a separate vote, the planning commission also recommended approving that request.

On June 3, several nearby residents had raised concerns about the project, including issues with security, impact on adjacent property, and traffic exiting onto Dexter Avenue. In addition, the planning staff had recommended postponement so that the housing commission staff could address some outstanding issues with the project. On June 17, the planning staff recommended approval and noted that housing commission staff and the project’s team had talked with residents after the June 3 meeting to address concerns. Five people spoke during the June 17 public hearing, either asking questions or expressing support.

Planning staff noted three issues that need to be resolved before the project gets approval from city council:

The parcel containing two duplex buildings also owned by the Ann Arbor Housing Commission in the northeast corner of the site must be combined with the subject site, forming a single parcel as a requirement for issuance of any permits.

The legal description and comparison chart data must be confirmed to include the duplex parcel.

The northern-most parking stall, nearest the connection to Vine Court, must be relocated outside of the minimum front setback area.

According to the staff memo, after June 3 the city’s traffic engineer reviewed the proposed new connection from Seybold Drive onto Dexter Avenue, and concluded that sight distances from all approaches are acceptable. He suggested that the pavement markings on Dexter should be refreshed.

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

The reconstruction of North Maple Estates is part of an ongoing effort by the housing commission to upgrade the city’s housing stock for low-income residents. At the planning commission’s May 6, 2014 meeting, AAHC executive director Jennifer Hall had made a presentation about the initiative, which includes seeking private investors through low-income housing tax credits.

This brief was filed from the second-floor council chambers at city hall. A more detailed report will follow: [link]

Dan Reim, one of the Jesuits who hopes to live at 1919 Wayne St. (Photos by the writer.)

However, at the end of the meeting – near midnight, long after supporters and opponents of the proposal had left – commissioners voted to reconsider the item, and then subsequently voted to postpone action until their next meeting on June 17.

The request – by the Ann Arbor Jesuit Community, formally known as the USA Midwest Province of the Society of Jesus – is for a special exception use to allow a “functional family” to live in a house zoned R1C (single-family dwelling). Without the special exception use, only up to four unrelated people could live there.

The code that allows this special exception use was adopted by Ann Arbor in 1991. Although the city’s ordinance has allowed for a “functional family” designation for more than two decades, this is the first time any group has requested it. The members are affiliated with the St. Mary Student Parish.

Approval required six votes, but the request initially garnered support from only five of the seven commissioners who were present. Voting against it were Diane Giannola and Kirk Westphal. Two commissioners – Sabra Briere and Paras Parekh – were absent. An attempt earlier in the meeting to postpone the vote had failed, with a majority of commissioners wanting to take action that night, apparently assuming it would pass. The final vote to postpone – taken after all other agenda items were dispatched – was 6-1, over dissent from Giannola. The planning commission has discretion to grant a special exception use, which does not require additional city council approval.

During the proposal’s public hearing, 21 people spoke – the majority of them opposed to the request, including representatives from the Oxbridge Neighborhood Association and the North Burns Park Association. Concerns included the possibility of lower property values, the chance of opening the door to student housing or cults, instability of the household because members aren’t related, and “gender housing discrimination.”

Some people directed criticism against the power, privilege and abuse of the Catholic church. Other praised the Jesuits, saying their concerns were strictly related to the zoning code, which they didn’t feel permitted this type of living arrangement in the R1C district. They suggested that the Jesuits could live in other districts – like R4C – that would allow for up to six unrelated people to live together without getting a special exception use.

Three Jesuits who plan to live there – including Ben Hawley, pastor and director of campus ministry for the St. Mary Student Parish – attended the meeting. Rev. Daniel Reim, who serves as the head of household, apologized for the controversy that this request has caused. The group currently lives in a smaller house on Ferdon, which they said they’ve outgrown. Some supporters of the request noted how the men are good neighbors on Ferdon. The former owner of that house pointed out that nearby properties he’s built or renovated had sold for over $1 million, describing the argument about hurting property values as “silly.”

The public hearing will be re-opened on June 17, to allow for additional public input. The Jesuits are encouraging supporters to attend. On June 9, Reim sent an email suggesting specific ways that people can lobby commissioners and the city council.

In voting against the request, Giannola said she didn’t think the Jesuits fit the description of a “functional family.” Westphal said he wanted to get more information from the city attorney’s office about the risk of setting a precedent, and whether there could be conditions on the special exception use that would address concerns about the turnover of residents. Planning staff reported that the city attorney’s office had already vetted the item, but they would make additional queries based on commissioners’ feedback.

There was some question about whether a delay would affect the sales contract that the Jesuits have with the current owner, who also attended the June 3 meeting. The property is listed for sale at $795,000.

In taking up the issue on June 17, one additional wrinkle might be the composition of the commission at that meeting. Two commissioners who supported the request – Jeremy Peters and Eleanore Adenekan – indicated that they would be absent, and another supporter, Ken Clein, said he might also be unable to attend. So it’s possible that there will only be six commissioners at that meeting. That would mean all six commissioners would need to vote yes in order for the request to win approval.

The property is located in Ward 2. One of the Ward 2 city councilmembers, Jane Lumm, attended the planning commission meeting, but did not formally address the commission. Westphal – the planning commission’s chair – is running for city council in the Ward 2 Democratic primary. Westphal and Nancy Kaplan are vying to fill the open seat that’s being left by Sally Petersen’s mayoral candidacy.

In other action on June 3 – a meeting that lasted over five hours – commissioners postponed a rezoning and site plan request from the Ann Arbor housing commission for a property on North Maple, part of a major overhaul of the city’s public housing sites. The project would demolish the single family homes at North Maple Estates, and build apartments that would roughly double the density of low-income housing there. Some neighbors raised concerns about the proposal, which is on the commission’s June 17 agenda for consideration.

Other items on the June 3 agenda were dispatched with little discussion: (1) a site plan for Dusty’s Collision on South Industrial; (2) an expansion at the Rudolf Steiner High School on Pontiac Trail; and (3) a rezoning and area plan request to develop property on Research Park Drive, including an indoor-outdoor tennis facility.

Jesuit Home on Wayne Street

Planning commissioners were asked to consider a request that would allow up to six Jesuits to live together at 1919 Wayne St.

The request – by the Ann Arbor Jesuit Community, formally known as the USA Midwest Province of the Society of Jesus – is for a special exception use to allow a “functional family” to live in a house zoned R1C (single-family dwelling). Without the special exception use, up to four unrelated people could live there.

Aerial view of 1919 Wayne St.

The code that allows this special exception use was adopted in 1991. Before that time, most communities didn’t provide for an alternative family living arrangement in their zoning codes. In 1984, the Michigan Supreme Court determined that some provision for a living arrangement other than a traditional biological family was needed. That ruling came in the case of Delta Charter Township v. Dinolfo.

Ann Arbor adopted language that is similar to ordinances in many communities in Michigan. A group must meet all requirements in the zoning ordinance as well as in the special exception use conditions in order to be considered a “functional family.” A “functional family,” for purposes of the city’s zoning code, is defined as follows: “a group of people plus their offspring, having a relationship which is functionally equivalent to a family. The relationship must be of a permanent and distinct character with a demonstrable and recognizable bond characteristic of a cohesive unit.” The city code states that a functional family is not a social society, club, fraternity or sorority, association, lodge, organization, group of students or other unrelated persons living together temporarily.

The permit must apply only to the functional family “type” that obtains the permit – in this case, the Ann Arbor Jesuit Community. It is limited to the number of people specified in the permit, and there must be a contact person identified as head of household. This special exception use would be limited to up to six people, with Rev. Dan Reim acting as head of household.

Although the city’s ordinance has allowed for a “functional family” designation since 1991, this is the first time any group has requested it. The residents would be members of the religious order at St. Mary’s Student Parish, or pursuing degrees at the University of Michigan or other local institutions.

The group’s application describes how the Jesuits live as a “functional family.” The statement reads, in part:

As a functional family, we refer to one another, when speaking of each other collectively, as “brothers.” Our unity is based upon our religious commitment to live together as a religious family. As brothers related to one another by our common vows and commitment to service in the Church, we are, like a family, one another’s primary support system.

…

The basis of our living as a household is not temporary or dependent on the University school year or any such seasonal arrangement or pattern, as a fraternity or sorority would typically be. Jesuits living in structured households under a superior has been an integral part of the religious order for centuries, and the Jesuits who will live at 1919 Wayne will be participating in that centuries old tradition.

In addition to meeting the “functional family” requirement, this special exception use must meet with certain standards, including compatibility with the zoning district and adjacent districts. The use must also not generate an intensity that would be hazardous or inconvenient to the neighborhood, or conflict with normal traffic.

Wayne Street is located on the city’s near east side, between Washtenaw Avenue and Vinewood Boulevard, in Ward 2.

No exterior changes are planned to the structure of the house, which has about 4,000 square feet with seven bedrooms and two bathrooms. The Jesuits indicated that they’d like to reconfigure the interior to use one of the bedrooms as a guest room and to add two bathrooms.

The special exception use would be contingent on providing off-street parking spaces for each vehicle used by the residents. There are two spaces in the garage and two tandem parking spaces in the driveway. They also have received permission to park two vehicles at the lot for the First Church of Christ, Scientist, which is adjacent to the site.

In giving her staff report, city planner Alexis DiLeo pointed out that a range of questions raised by nearby residents are addressed in the staff report. [.pdf of staff memo]

The planning commission has discretion to grant a special exception use, which does not require additional city council approval.

Jesuit Home on Wayne Street: Public Hearing

A public hearing drew 21 speakers and lasted about 45 minutes. Several speakers also wrote letters, which were included in the meeting packet. Here are some highlights.

Dan Reim introduced himself as one of the Jesuits who’s applying for the special exception use. He apologized to neighbors for the concerns that this has raised and the tensions that exist. He had hoped to attend the May 13 Oxbridge Neighborhood Association meeting to relieve these concerns. There’s a lot of misinformation and misunderstanding, he said. Reim identified several claims that neighbors have made, such as a negative impact on resale value of nearby homes, and the use of this house for UM Jesuit students. “These statements are not correct,” Reim said. “This is not student housing.”

In the foreground is Dennis Dillon, a pastoral associate at St. Mary Student Parish. Next to him is Ben Hawley, pastor and director of campus ministry. Both men would be among the Jesuits living at 1919 Wayne St.

In addition to Reim, other residents at the house would include Ben Hawley, pastor and director of campus ministry for the St. Mary Student Parish, and Dennis Dillon, a pastoral associate. In August, two new Jesuit priests would be arriving, both of them 33 years old. One of them will be starting a doctoral program at UM’s School of Public Health, and would be the only student in the house, Reim said. At this time, only five Jesuits are planning to live at the house. If a sixth person were to come, he would not be a student but would work at the parish, Reim said.

Reim talked about how the group would be like a family, sharing income and expenses. This would be their full-time residence. Chores, meals, recreation and prayers are shared. The head of household is the designated patient advocate, he noted. As religious brothers, they serve as each other’s primary support system. They’ve loved living in their current home on Ferdon, Reim said, where he’s lived for 10 years. But now they need a new home to accommodate more brothers. They’ll do everything they can to be good neighbors, he concluded.

Peter Nagourney told commissioners he’s co-chair of the North Burns Park Association. He was concerned about the precedent that would be set, and he didn’t believe the planning staff’s justification for granting a special exception use was valid. He highlighted a response from the Jesuits that stated the residents “will generally be members of the religious order that serve at St. Mary’s Student Parish…and/or will be pursuing degrees at the University of Michigan or other local institutions.” The term “generally” is non-specific, he said.

What’s more, the residents will be non-permanent, he added, because some residents will be students or interns, who’ll leave after they finish their studies. The occupants will continually change, Nagourney said. He also was concerned because the city doesn’t enforce its ordinances. In addition, he worried that this would set a precedent for other groups to claim similar status, which could in turn hurt property values. A charismatic leader with five followers, a cult or a commune could qualify, he said. So the city is “about to open the doors wide” to any number of other household types in residential neighborhoods. He urged commissioners to reject this request.

Scott Munzel is the attorney representing the Oxbridge Neighborhood Association to oppose the application. [.pdf of Munzel letter] Clearly the applicant is not a functional family, he said. The name of the organization includes the word “society,” he said, and a society is explicitly excluded from the city’s definition of a functional family. The Jesuits take vows, Munzel noted, but those vows are not directed to each other – they’re directed to the church. As an “ironic detour,” he joked, many families actually don’t operate in the way that the Jesuits describe. “Many families operate like a failed autocracy, subject to coup at any moment.”

Peter Nagourney, Scott Munzel and Eppie Potts all spoke against granting the special exception use request for 1919 Wayne St.

Even if the Jesuits were a functional family, Munzel continued, they’d fail to meet the standards of a special exception use, which include protecting the residential fabric of the neighborhoods and maintaining property values. He noted that other residential zoning districts – such as R4C – do allow for six unrelated residents in a home. There are thousands of structures in R4C districts, he said. Munzel also indicated his view that the decision about granting a special exception use is the purview of the zoning board of appeals

Liz Kamali lives in the Oxbridge neighborhood and supported the project. [.pdf of Kamali letter] She noted that her family had joined the Oxbridge Neighborhood Association soon after they moved into the area. But she had grave concerns about how ONA is handling this matter. She said the ONA board had violated its bylaws by not sending timely notice of a May 13 meeting, and it hadn’t been clear that the meeting would include a vote about hiring an attorney. There’s been a lack of communication between ONA and its members, she said. Specifically, the board didn’t notify all members that it was spending members’ money to hire an attorney to oppose the Jesuits’ request, which might not represent the prevailing sentiment in the neighborhood, she said. Kamali urged commissioners to grant the special exception use.

Prudence Heikkinen, who lives across from 1919 Wayne Street, said the proposed owners seem to be kind and good men, who would take responsible care of the home. But that’s not the basis on which the commission should make its decision. She’s lived there for 38 years, and said she’d focus her concern on parking. It’s already constrained, especially for overnight parking. The Jesuits state that they’ll park two cars in the driveway, but in the time she’s lived across the street, none of the other six previous owners of 1919 Wayne has consistently used the driveway. “It is simply too narrow and too crooked to do so,” she said. The addition of six cars to the neighborhood would diminish the enjoyment of her home, Heikkinen said.

Fran Youssef pointed out that a previous speaker, Liz Kamali, is a member of the St. Mary Student Parish, and said Kamali’s comments should be viewed in that light. Youssef said the ONA doesn’t function like Congress, so the fact that people weren’t notified according to the bylaws doesn’t mean the association was trying to pull the wool over anyone’s eyes. She said she has two young children and it’s a very safe neighborhood. “I worry that with six adult males with cars and friends, the comings and goings, that it won’t be safe.” She also raised concerns about setting a precedent, saying it will affect the quality of life and resale value of homes there.

Gwen Nystuen and Ellen Ramsburgh (foreground) spoke against granting the special exception use.

Youssef said the men would be wonderful neighbors, but she doesn’t want to open a door to other religious groups. Regarding parking, she said the city doesn’t enforce parking regulations. “I’m a religious person – I’m not going to call the cops on these priests!” It’s not an appropriate neighborhood for them, she concluded. “I think there are many other places that would welcome you with open arms, and in any other circumstances, I’m sure we’d be friends and colleagues.”

Gwen Nystuen also spoke against granting the special exception use. [.pdf of Nystuen letter] A family is usually considered to be a group that owes their first allegiance to each other and that expect to be together permanently, she said. The six people who’d be living in the house at 1919 Wayne wouldn’t all stay there permanently, she said. This arrangement actually sounds like a co-op, she added.

The next speaker was Eppie Potts, who read aloud a definition of an association: “an organized body of people who have some interest, activity or purpose in common.” This is what the Jesuits are, she said, and associations can’t be granted a special exception use. If it’s approved, it sends a warning to everyone who lives in R1 districts that they might be seeing associations moving into their neighborhoods too, she said. The planning commission’s job is to uphold the city’s zoning ordinance. It’s the zoning board of appeals that interprets the ordinance, she contended.

Susan Davenport-Geer said as she tried to leave her office, a drunk, aggressive man blocked her way. This happens regularly, she added, “since a homeless shelter was foisted on a residential community by this very process and body, I believe. It’s an ugly and shameful piece of our history, and I know a lot about how it really came down.” The homeless shelter [at 312 W. Huron] resulted from money, power and privilege, she said. She told commissioners that she’s ashamed to live in a community whose elected and appointed officials would even consider this matter.

She had particular concerns about this specific special exception use. The Catholic church has enjoyed some of the longest and most expensive protection in history, she said. The question is whether Ann Arbor will hold accountable a vastly powerful, wealthy and privileged business – the Catholic church – “that has perpetrated violence throughout its long history on women and children and men,” she said. “Economic violence, political, cultural, gender, sexual violence, to name just a few of its methods.” She wanted to know what planning commissioners are going to do about this. If they don’t reject the request, they’ll be making possible the continuation of these abuses, she said.

Michael Clark lives next to 1919 Wayne, and opposes the special exception use.

Michael Clark, whose property abuts the northern border of 1919 Wayne, highlighted some of the points he’d made in a letter to commissioners. [.pdf of Clark letter] He agreed with previous speaker who opposed the request, especially as it relates to inconsistencies with the city’s master plan. He noted that the proposed owner of the property – USA Midwest Province of the Society of Jesus, Saint Ignatius Trust – is based in Chicago. “They have no ties to this neighborhood,” he said. “They transfer people in and out of Ann Arbor as they see fit.” The city has no way to monitor the number of people living there, or the temporary nature of their residency, he said.

Regarding property values, Clark said that several real estate professionals and attorneys have told residents that it would negatively affect property values. “Some recent studies have shown that property values are affected by as much as 24% when inconsistent groups have moved into the neighborhood,” he said. Clark urged commissioners to reject the request.

Marie Quinlan supported the request, saying she’s known the Jesuits for 10 years as a member of the St. Mary Student Parish. She was surprised to learn about the opposition to this request. Quinlan described how she got to know the priests when she and her son were on a walk and saw Father Dan Reim watering his yard on Ferdon. The Jesuits’ home looks just like other homes in that neighborhood. It’s a blessing to know them and share a neighborhood with them, she said. Quinlan noted that previous speakers had expressed anger at how the Catholic church handled the sexual abuse of children by priests. “Believe me, I share that anger, and I know that the Jesuits are equally appalled. But no amount of anger can justify punishing those who have not and would never commit such crimes,” she said. It would be discriminatory and unfair, Quinlan added, saying “I ask that you not make a determination based on fear.”

Karla Goldman reported that the current owners of 1919 Wayne usually had three cars parked on the street, and there were no parking problems with that. If the adjacent church parking lot is available, she didn’t think there would be an impact on street parking. She said she’s not a member of the Catholic church, but she knows about the contribution that the parish makes to this community. She supported the Jesuits’ request.

Carl Babock told commissioners that he’s a builder in town, and had sold the house on Ferdon to the Jesuits 10 years ago. He listed several other homes in the neighborhood that he’s renovated and sold. After he sold the home to the Jesuits, he sold nearby homes on Baldwin for about $1.2 million each. He thought it was a silly argument to say that property values would decline. He said he knows the Jesuits personally, calling them a group of wonderful people. He thought they would be a wonderful addition to the Oxbridge neighborhood.

Elizabeth Shadigian lives across from 1919 Wayne and opposes the special exception use.

Elizabeth Shadigian, who also submitted a letter to the planning commission, has lived at 1916 Wayne Street for 20 years, across the street from 1919 Wayne. [.pdf of Shadigian letter] She told commissioners that she loves her neighborhood and is Catholic, but she’s firmly against the request. Granting the special exception use would be the equivalent of gender housing discrimination, she said. If the owners wanted to sell the house to people who met the requirements for a special exception use but who discriminated against Germans or against black people or against blind people or LGBT people, she and her husband would be opposed to it. So if the owners want to sell to people who discriminate against women, she and many of her colleagues are also opposed to that, Shadigian said. How can Ann Arbor, which appreciates diversity and civil rights, allow discrimination against women? Gender discrimination is in the Catholic church, in the Society of Jesus, “and it’s right here in front of you,” she said. She urged commissioners to talk to the city’s attorneys and look at the request in more detail than they have so far.

David Emerson said he didn’t think the issue was about ideology in any way. It’s about zoning laws, why they were instituted, and why they should be upheld. He thinks “these are probably fine gentlemen,” but they are not family and are not permanent. They call themselves brothers, Emerson said, but so do all the fraternities. Many of the supporters of the request are affiliated with the church, he noted, which he thought should raise questions about whether they’re biased.

Ann Shields lives close to 1919 Wayne, but said her concerns go beyond just this neighborhood. It’s difficult to understand why the Jesuits qualify as a functional family, she said, because it’s not a permanent arrangement. This isn’t a personal issue, she said, but the Jesuits aren’t a family for the purposes of getting a special exception use – and that’s what she encouraged commissioners to consider. If they approve this request, it could open the door for many other groups to make similar requests and establish group living situations in single-family residential area, which would change the character of those neighborhoods.

Andrea Van Houweling said she knew Jesuits would be wonderful neighbors, but they are a society – and the city’s zoning code states that a functional family can’t be a society, she noted. The Jesuits are saying that they aren’t a social society, she added, but they are a society. If the city approves this request, then why wouldn’t a fraternity be able to get a special exception use? She’s concerned that the zoning code won’t be enforced. [.pdf of Van Houweling letter]

Cevin Taylor, an attorney representing the Jesuits who are seeking a special exception use to live at 1919 Wayne Street.

Masoud Kamali noted that he is married to a previous speaker, Elizabeth Kamali, and he also supported the request. Not everyone who supports it is Catholic, he added – he was born Muslim, and isn’t Catholic. He said he’s from Iran, describing it as a country that’s portrayed negatively by many. He’s very aware of being discriminated against because of association.

The attorney representing the Jesuits, Cevin Taylor, added verbal remarks to supplement the letter he submitted to the commission. [.pdf of Taylor letter] He thanked the planning staff for the professional way that they’ve handled this process. He and the Jesuits have heard the neighbors’ concerns and will do their best to take those concerns into account. He noted that many issues have been raised, but the planning commission’s task is to determine if the request meets the zoning code requirements. The code states that the requirements must be “substantially” met, he noted, so there’s some leeway.

Taylor also argued that a functional family shouldn’t be held to a higher standard than a biological family. In a biological family, a father might need to move to another city for a year for work reasons, Taylor said. Death, divorce, remarriage, the birth or adoption of children – all of these changes might happen in a traditional family. Regarding the word “society” in the “Society of Jesus,” the zoning ordinance doesn’t exclude any entity that has a legal name using that word, he said. Regarding the word “generally” that was used in the Jesuits’ request, Taylor said he takes blame for that. The application states that residents “will generally be members of the religious order that serve at St. Mary’s Student Parish…and/or will be pursuing degrees at the University of Michigan or other local institutions.” He said they will all be members of the order – one student, with the others serving at the parish. He concluded by asking commissioners to approve the application.

The final speaker was Ellen Ramsburgh, who serves on the city’s historic district commission. She said the objection isn’t to who is applying. Rather, it’s that the request would be granted to a group that is not a functional family. The group could find housing in several other zoning districts, she noted. The planning staff’s description of the Jesuits’ living arrangement also describes any of the co-ops that are run by the Inter-Cooperative Council, she said. Those are located in districts that allow this type of living arrangement. She also noted that the relationship among members of the Jesuits’ house is impermanent and subject to assignments from the head of the Society of Jesus. The bond is not to the family unit, but to the organization. Within a biological family, there are usually contractual or legal agreements, she added, like a marriage certificate. Those contractual agreements don’t exist in the case of the Jesuits, she concluded.

Jesuit Home on Wayne Street: Commission Discussion

Planning commission chair Kirk Westphal began the discussion by thanking speakers who commented during the public hearing, saying that commissioners depend greatly on their input. However, he added, the commission’s purpose is to look at petitions as they relate to city code.

The initial discussion lasted more than an hour, followed by a vote. At the end of the meeting – around midnight – commissioners took up the issue again, and ultimately postponed action.

This report summarizes and organizes the deliberations thematically.

Jesuit Home on Wayne Street: Commission Discussion – Legal Issues

Responding to a query from Kirk Westphal, planning manager Wendy Rampson explained that she’d been involved in developing the city code related to the “functional family” designation. The case of Delta Charter Township v. Dinolfo resulted from a violation of the township’s limit on the number of unrelated individuals who could live in a house. The Delta case involved a family plus six unrelated individuals of a religious organization who challenged that zoning limitation, Rampson explained. Ultimately, the Michigan Supreme Court heard the case and ruled that all communities must make accommodations for non-traditional families.

Planning commissioner Ken Clein.

The term used to refer to these kinds of situations was “functional family,” she said. That term was adopted as part of the city of Ann Arbor’s code, as well as for other municipalities nationwide. In the mid-1990s, the city of Ann Arbor’s code was challenged in a case that went to the state court of appeals, which upheld the city code, she said. But there have not been any formal applications for the functional family designation until this one, she said. It was adopted into city code in 1991.

Ken Clein quipped that if it’s been almost 25 years with only one request, “there’s not a mad rush at this point.”

Jeremy Peters asked if granting this special exception use would set any kind of legal precedent for future, if other groups – religious or not – want to apply. City planner Alexis DiLeo replied that she didn’t think so. Each petitioner would have to state their case to the planning commission, she added. By their nature, special exception uses aren’t appropriate everywhere.

Jesuit Home on Wayne Street: Commission Discussion – Functional Family

Diane Giannola asked if the request was for six specific individuals, or for any Jesuit. Alexis DiLeo replied that it would allow any member of the USA Midwest Province of the Society of Jesus to live at that location. Giannola wondered if there was any stipulation about requiring members to live there for a certain period. There’s no durational requirement, DiLeo said.

DiLeo also clarified for Giannola that the special exception use (SEU) is attached to the address, not to the property owner. If the SEU is granted, it would apply as long as the residents meet the criteria of the SEU – for example, as long as the residents are Jesuits. The SEU lapses after two years, if its requirements aren’t met.

Giannola wondered how this would be different from a fraternity or sorority. DiLeo cautioned that she wasn’t as familiar with fraternities or sororities, but her understanding is that members reside in a house for one to four or five years while in school. They don’t make medical decisions for each other, or pool their income, or share their material possessions. If something happens, they’d probably call their parents, she said. DiLeo said her assumption is that co-housing works in a similar way. An SEU is made on a case-by-case basis, she noted.

Planning commissioner Diane Giannola.

Jeremy Peters asked how this functional family designation might apply to a same-sex couple with more than two adopted kids, who under Michigan law might be technically unrelated. DiLeo said it would likely be a strong case for the functional family designation. If people like that apply, their request would be evaluated based on the ties that bind them together, she said.

Ken Clein asked whether the city attorney’s office was in agreement with the planning staff’s assessment of the functional family designation in this case. DiLeo said the planning staff as a whole discussed it, and discussed it with the city attorney’s office. The city attorney’s staff knows that planning staff is recommending approval of the SEU, “and did not find any reason to object or advise us otherwise,” she said.

Clein clarified again that if the Jesuits moved out of that house, the SEU would no longer apply and any other group would have to seek a new SEU. Yes, DiLeo said – if a different family type moved in that needed an SEU, then they would have to apply for it. The SEU doesn’t transfer to a different address or to a different family type.

Bonnie Bona pointed out that if an individual member of the Jesuit community purchased the house from the Society of Jesus, the SEU would remain in effect. DiLeo again noted that the SEU is not tied to the owner – it’s tied to the family type that’s granted the SEU.

Bona also wanted to know what options were available for six unrelated people to live, regardless of whether they were considered a functional family. DiLeo replied that the options would be to live in residences located in any R4 zoning district or in the downtown districts, zoned D1 or D2.

The city code has three residential occupancy options, DiLeo explained: (1) the functional family designation; (2) a traditional family of any size; or (3) four unrelated residents, or up to six residents in R4 districts. If there are seven unrelated residents, their only option is to seek a functional family designation, she said.

DiLeo noted that these “residential occupancy” options – outlined in Chapter 55, Section 7 of the city code – do not apply to “rooming or boarding houses, fraternity or sorority houses, student cooperatives, emergency shelters, or convalescent homes.” Those types of arrangements are allowed as special exception uses in the R2B and R4 districts.

Kirk Westphal cautioned against using the rationale that there are other places the Jesuits could live as a reason for making the planning commission’s decision.

Eleanore Adenekan asked about the word “society” in the group’s name. When the planning staff and city attorney’s office reviewed this application, what did they think about that word, given that a functional family can’t be a “social society.” DiLeo replied that the Society of Jesus is a religious order.

Planning commissioner Eleanore Adenekan.

Peters asked about the Jesuits’ commitment to each other, outside of their commitment to the religious order. Dan Reim, who would be the head of household, said there’s a long training period, when they learn a particular spirituality within the Catholic church. It focuses how they live their life, and what their mission is. All of that they share in common, he said, and their religion is lived out on a daily basis through their life together. They take vows of poverty, he said – that’s why they don’t own their own cars or homes. All salaries come into a common pot, he said, and expenses are shared.

Bona thanked them for coming forward, and for facing some harsh criticism. “I think we would all feel unfairly treated if we became suddenly responsible for every one of our distant relatives’ mistakes,” she said, referring to criticism of the Catholic church.

Bona noted that all families face conflicts, and wondered how the Jesuits dealt with that. Communication is key, Reim replied. They are focused on helping improve people’s lives. From a faith perspective, “we believe that’s through our encounter with Christ,” he said. By sharing and practicing their faith together, talking to each other and praying together, that works pretty well. He said they struggle like everyone else.

Bona said she was trying to get at the issue of family and permanence. In a co-op, if you didn’t get along with others, you could just move out. Reim replied that the Jesuits take a vow of obedience to the next-highest person in the religious order. That person is responsible for assigning you to wherever you might go. That vow means they don’t get to choose where they go or what they do, Reim explained. You have the option of leaving the order, he added, but he thought their vows encourage them to work harder on sorting things out.

Adenekan asked about their daily routine. Reim said they work morning until evening, with their most intense work at the parish occurring on weekends. Each person is assigned a day off during the week. There are other Jesuits who might visit them and stay at the house for short periods. Biological family members might also visit, he said.

Adenekan clarified with Reim that if one Jesuit brother moves out, another brother would come to take a similar role within the household. She likened it to a divorce and remarriage within a traditional household. In response to another query, Reim said he’s the official patient advocate for Ben Hawley, and Hawley is the patient advocate for Reim. That’s an important distinction between the Jesuits and a co-op housing arrangement, he said. Regarding the pooling of resources, when purchases need to be made, the brothers discuss it and reach a consensus, he said.

Adenekan wondered if the graduate student who’d be living there would be moving on after his studies. Reim said the student might move, or might stay and continue working at the parish. If the student moves, another student might come, he added – depending on if there’s a Jesuit who gets accepted into a university graduate program. Or another Jesuit who’s doing ministry at the parish might live there. In general, there won’t be more than six Jesuits living there, he said, and maybe less than five.

Jesuit Home on Wayne Street: Commission Discussion – Neighborhood Impact

Kirk Westphal asked staff to respond to concerns about the stability of the neighborhood and turnover.

City planner Alexis DiLeo.

Alexis DiLeo replied that the neighborhood is predominantly owner-occupied, single-family homes of traditional families. There aren’t many rental properties or student rentals. A family of any size or four unrelated people could live at 1919 Wayne without a special exception use. There would be no requirements about the type of unrelated people who could live there – that is, residents could be four unrelated students. The city doesn’t regulate the number of cars that residents own, she noted, but there is a residential parking permit program in that neighborhood. Any household is entitled to a total of five permits.

Responding to a query from Westphal, DiLeo said the functional family designation falls under the residential occupancy section of the zoning code. That section talks about types of family arrangements and number of people. It doesn’t talk about gender, age or other characteristics. Individual or family roles are not regulated for traditional biological families, she noted. So if a functional family designation is approved, there can be different types of individuals within that family.

Responding to a query from Westphal, DiLeo explained that the planning commission could add conditions to the special exception use. Those conditions might relate to the number of parking spaces, the number of people allowed to live there, or other issues, she said.

Jeremy Peters wondered if putting restrictions on residents – like student status, gender, or age – would violate federal fair housing laws. Planning manager Wendy Rampson indicated that the staff couldn’t answer that legal question on the fly. The point of a “functional family” designation was to allow for types of living arrangements that have traditionally been kept out of single-family neighborhoods, she said. Peters noted that density would increase only by two people, compared to the four unrelated people that would be allowed to live there otherwise.

Wendy Woods asked about the issue of property values. DiLeo suggested that residents could contact a realtor or property appraiser to ask about property values. The city code does speak to the need to preserve property values, she said. But as a functional family, in the eyes of the city they would be a single-family household. She’s certain that there are six-person traditional, biological families in that neighborhood, so she didn’t think it was an unreasonable size. Other special exception uses allowed in that neighborhood are churches and childcare centers. Types of uses that are considered inappropriate for single-family neighborhoods include restaurants or a home business that’s out of character with the neighborhood.

Given the location, DiLeo didn’t think a six-person “functional family” household was out of character with the neighborhood.

Westphal asked about the experience of other communities with this type of designation, and how it worked. DiLeo didn’t have information about specific experiences, but said she’d surveyed other communities’ code. Some have definitions that are almost identical to Ann Arbor’s, while others include the phrase “religious order” explicitly as a type of functional family.

Jesuit Home on Wayne Street: Commission Discussion – Parking

Kirk Westphal raised the possibility of requiring that more than two of the six cars should be parked at the adjacent church lot. Alexis DiLeo said she took the Jesuits at their word when they said they would be parking two cars in the garage and two cars in the driveway. The cars aren’t assigned to specific individuals, she noted – keys are kept in a bowl, and the person who needs to leave takes the first car at the end of the driveway. She said they indicated that they drive smaller vehicles.

Planning commissioner Jeremy Peters.

Ken Clein noted that the Jesuits have lived on Ferdon for about 10 years. He wondered if the city had any complaints about parking at that location. Dan Reim, the head of household for the Jesuits, said they’ve have no complaints. He noted that the homeowner next to them asked that they not park in front of that home, and they’ve complied with that.

Eleanore Adenekan confirmed that because of the system the Jesuits use – not owning individual cars – they don’t have to deal with moving cars. They just take the one that’s most convenient to use. She asked if there would be any meetings there, or gatherings for ministry. No, Reim replied.

Jeremy Peters asked why the Jesuits had chosen this house, rather than a house located in areas that wouldn’t require a special exception use. Reim said they like their current house on Ferdon and wouldn’t leave, but it has only four bedrooms and a small guest room. They’ve outgrown it. The house on Wayne fits their lifestyle, he said. There aren’t many seven-bedroom houses, he noted, and they’ve been looking for quite some time. The bedrooms are an appropriate size.

Reim again apologized, saying he had no idea it would become such a big issue and take up so much of people’s time.

Jesuit Home on Wayne Street: Commission Discussion – Zoning Board of Appeals

Jeremy Peters asked staff to clarify why the special exception use request was being handled by the planning commission, not the zoning board of appeals. He noted that the question had been raised during the public hearing.

Alexis DiLeo replied that the city code is clear – the planning commission is the entity that determines whether a group is a functional family, and also is the entity that approves special exception uses.

Bonnie Bona asked if the ZBA has any role to play if the planning commission rejects this request. Wendy Rampson said the next step would be for someone to take the issue to circuit court. There’s been some case law in Michigan that encourages all administrative remedies to be pursued before taking it to court, she said. Some courts have held that to mean taking the issue to the ZBA, even though the ZBA has no jurisdiction. Rampson said she couldn’t say definitively that the issue couldn’t be brought to the ZBA, but in the normal course of action the next step would be circuit court.

Jesuit Home on Wayne Street: Commission Discussion – Enforcement

Bonnie Bona asked planning staff to explain what should be done if someone is violating the city code. Wendy Rampson confirmed that enforcement is complaint-driven. It’s very difficult in court to prove over-occupancy, because it’s the city’s word against that of the residents, she said. Enforcement for over-occupancy primarily takes place through the city’s rental housing inspection program. She’s heard there’s a concern about over-occupancy at the Vitosha Guest Haus Inn – saying that it might be that neighbors have contacted community standards about parking but planning staff haven’t been contacted about zoning issues there.

The approach would be to meet with the property owner and give them time to make corrections, she said. If they don’t, the city can write tickets for civil infractions – but then it’s up to the court. So the staff has tools, she said, but they’re not the easiest tools to administer.

Jesuit Home on Wayne Street: Commission Discussion – Conclusions

Diane Giannola said that this arrangement doesn’t seem like a functional family to her. It’s more of a cross between a fraternity and co-op. Members of fraternities and sororities have bonds for life, she said – they feel like family, but live in a larger group housing. A co-op lives more like a family, but it’s more temporary, she said. Because the special exception use applies to an entire religious group – and not six specific individuals – Giannola couldn’t think of it as a functional family.

Planning manager Wendy Rampson.

She could see awarding the group a special exception use if there were no place else in the city. But many other zoning districts allow for six unrelated people to live.

Planning manager Wendy Rampson clarified that the code refers to functional family types, not individuals. It was clear when consulting with the city attorney’s office that the code does not require specific individuals to be designated a functional family. Giannola said there’s too much transiency, because in this case the SEU would apply to an entire religious order.

Kirk Westphal asked if there would be any way to put legal requirements on the term of residency, to regulate the transiency. Alexis DiLeo said she hadn’t seen any examples of that in other communities, and she’d need to consult with the city attorney’s office. Rampson added that it’s a very difficult question, and the federal fair housing and civil rights laws might play into it. The planning staff hadn’t explored this particular issue in depth, and they couldn’t provide an answer that evening.

Ken Clein said he respectfully disagreed with Giannola. It seems that the commission is bordering on holding the Jesuits to a higher standard than a six-member traditional family. It could quickly lead to a sense of discriminating against people like this, he said. In traditional families, there are divorces, and people leave home. To say that a traditional family is permanent might be overstated, he thought. This request meets his understanding of a functional family designation.

Regarding impact on the neighborhood, Clein didn’t think there’s any solid evidence that property values would be negatively impacted. The church next to the house probably has more impact than this group would. It’s important to handle the parking so that it won’t impact other residents, but he didn’t think it would be detrimental to the neighborhood.

Eleanore Adenekan agreed with Clein. As a realtor, she evaluates houses based on the condition of the house and the neighborhood, not on who lives there or how long they’ve lived there. Her daughter previously lived in that neighborhood, she said, and it’s a residential, family-friendly area. These Jesuits aren’t teenagers, she added. They know how to maintain a home, and she’s supporting their request. She said she’s listened to concerns and has empathy for that, but noted that the Jesuits are committed. Their vows won’t result in a transient lifestyle, she said. She reported that her son attended a Jesuit school in New York City, so she’s familiar with that order.

Planning commissioner Wendy Woods.

Wendy Woods also was supportive of the request, saying it met the definition of a functional family. The main difference is that for the Jesuits, there will be a cap on the number of people living there. A traditional family doesn’t have that same constraint. She hoped that if it was approved, there would be community healing. There were some unfortunate comments during the public hearing, she noted. Woods also noted that there had been some concern about students living there, but she cautioned against making generalizations about students.

Bonnie Bona said she’d been through the same “mental gyrations” that other commissioners have gone through, taking all the comments to heart. Her view is that the definition of functional family is the Ann Arbor Jesuit community, which is listed as the family type on the SEU resolution. Like a traditional family, members will come and go. She didn’t share Giannola’s concern. Bona felt very comfortable with the group of Jesuits, and with the idea that this SEU doesn’t set a precedent. Future requests will also be based on the city’s standards and criteria, not on precedent. She thought the Jesuits could be strong neighbors.

Westphal didn’t know if this would set a precedent if any other religious group came forward with a similar request. Legal documents like health care proxies give him comfort with this particular group functioning as a permanent unit, but is that something that other religious orders have? He said he was struggling with these issues, even though he was comfortable with this particular group.

Jesuit Home on Wayne Street: Commission Discussion – Initial Motion to Postpone

Kirk Westphal pointed out that this was the first time the commission had dealt with this functional family issue, and he wanted more time to research the experiences of other communities and to further consult with the city attorney’s office. He wanted to get more “comfort with making sure this fits everybody’s expectation with what we’ve agreed to hold ourselves to with the master plan and the stability of neighborhoods.” He said he felt ill-prepared to make a determination.

Kirk Westphal, chair of the planning commission.

Jeremy Peters observed that one of the main concerns is permanence. He didn’t know if language could be crafted in the SEU to deal with that, or if that would be exclusionary under federal fair housing laws.

Peters moved to postpone the item to get more information from the city attorney’s office with regard to possible restrictions on turnover of residents, and other legal issues.

Westphal asked staff how long it might take to have discussions with the city attorney’s office. “Years and years,” DiLeo quipped. [The city attorney's office generally has a reputation for taking a long time to deal with requests.] She said they could start the next day, and with the goal of bringing something forward at the commission’s June 17 meeting.

Bonnie Bona supported postponement, “so when we do vote, we’re all comfortable.”

Wendy Woods wondered what postponement would do to the Jesuits’ plans to buy the house. Dan Reim reported that the Jesuits have committed a certain amount of money, which they’d lose if they withdrew the offer or couldn’t move ahead with the deal. They have a sales contract on the house, which is listed at $795,000.

When asked to weigh in, the property’s current owner, Steffen Urbaniak, said he wasn’t going to make a decision on the spot that night. He wasn’t clear about the commission’s decision-making process, and wanted to take some time to consider what it means for him and his wife. They’d had this offer for quite some time, and are planning to move to China on July 1. They don’t have other offers at this time.

Woods pointed out that the commission’s decisions have consequences. She wasn’t in favor of postponing. Eleanore Adenekan also opposed postponement, though she noted that the sales contract could be extended if both parties agree.

Ken Clein also weighed in against postponing, noting that the city attorney’s office has already reviewed the information prepared by the planning staff and didn’t have any problem with it. He thought a postponement might be the equivalent of a vote against it, because it could possibly kill the real estate deal.

Steffen Urbaniak, current owner of 1919 Wayne St.

Clein clarified with planning staff that six votes would be required to pass the special exception use.

Bona said if it’s postponed, she’d like to see it at the next planning commission meeting on June 17.

DiLeo again stressed that the planning staff worked one-on-one with the city attorney’s office in crafting the language of the special exception use resolution. It’s very specific to this particular situation, and she noted that the resolution is significantly longer than most resolutions. “I don’t know how much more the city attorney’s office even has to offer, relative to precedent-setting,” she said. She added that she could work with the attorney’s office regarding what kind of additional conditions might be included, beyond the current resolution.

DiLeo said it would help if Westphal could clarify exactly what he’d like to see as conditions. “Going to the city attorney’s office with open-ended questions, you don’t get the level of specificity that I think you might be looking for,” she explained.

Westphal replied that he was interested in restrictions that might address the degree of turnover among residents. He also wanted time for the Jesuits to meet with the Oxbridge Neighborhood Association.

Peters said he opposed postponement. He explained that he had moved to postpone becuase Westphal, as chair, couldn’t make the motion. Peters had wanted Westphal’s concerns to be discussed.

Outcome on initial vote to postpone: It failed on a 3-4 vote, with support from Kirk Westphal, Diane Giannola and Bonnie Bona.

Jesuit Home on Wayne Street: Commission Discussion – Additional Comments

Wendy Woods noted that the decision on the special exception use does not require city council approval. She confirmed that there would also be no recourse to take this item to the zoning board of appeals.

Outcome on granting the special exception use: It needed six votes to pass, and failed on a 5-2 vote over dissent from Kirk Westphal and Diane Giannola.

Jesuit Home on Wayne Street: Reconsideration

At the end of the meeting around midnight, during the agenda item for commission proposed business, Jeremy Peters said it might be worth looking at the bylaws regarding special exception use – especially considering that not all members of the planning commission were present for the vote. [Sabra Briere and Paras Parekh were absent.]

Planning commission chair Kirk Westphal noted that the commission did have the ability to take up items for reconsideration. “I sensed there was some degree of surprise with the vote,” he said.

Diane Giannola pointed out at an item can only be brought back for reconsideration by someone who voted on the prevailing side. In this case, that meant only she or Westphal could bring it back.

Planning manager Wendy Rampson read from the relevant section of the commission’s bylaws:

Section 12. After a motion has been decided, any member voting with the prevailing side may move for reconsideration of the motion at the same or the next regular meeting. No motion may be reconsidered more than once.

Bonnie Bona said she likes the fact that planning commissioners tend to vote their conscience, rather than taking a straw vote or negotiating votes, which she said feels like a political process. So it’s appropriate that they voted, and then can reconsider it if that’s what is desired.

Westphal noted that it’s rare to have two commissioners absent. He indicated interest in reconsideration. Saying that it was late – about midnight – Giannola proposed waiting two weeks until the June 17 meeting. It could be reconsidered at that time.

Bona thought the commission should act sooner, or the Jesuits might lose their sales contract for the property. Giannola pointed out that four people could live there without a special exception use – just not more. Westphal noted that the whole point of buying the house was that it would accommodate more people.

There was some discussion about another section of their bylaws, regarding acting on agenda items after 11 p.m. From the bylaws:

Article VII: Section 2. No agenda item will be taken up by the Commission after 11:00 p.m., except by the consent of five (5) Commission members present. In those cases where agenda items are not completed, they will be put forward to the next regular meeting of the Commission and placed first on the agenda.

For the previous hour, commissioners had followed this rule for other items on their agenda. Wendy Rampson noted that their current discussion was not actually an item on the agenda, but Bona wanted to go through the process so that there’d be no question that the vote to reconsider was official.

Outcome: Commissioners voted unanimously to extend the meeting to consider this item.

Westphal asked Giannola if she wanted to make a motion to reconsider. She did not. So Westphal then moved to reconsider the special exception use item for the house on 1919 Wayne St. He said even though waiting two weeks might jeopardize the sales contract, it benefited the community to have a more thorough discussion.

Ken Clein then moved to postpone the reconsideration. Rampson pointed out that commissioners hadn’t yet voted on the motion to reconsider. Clein withdrew his motion.

Outcome: Commissioners passed the motion to reconsider, over dissent from Diane Giannola.

Rampson reported that her computer had just stopped working. It was about 12:10 a.m.

Planning commissioners Wendy Woods and Jeremy Peters.

Peters moved to postpone until the June 17 meeting.

Rampson said that the planning staff would notify people who attended the meeting about the commission’s decision. She asked if commissioners wanted to re-open the public hearing.

Giannola supported re-opening the public hearing, “since nobody’s here right now to see what we’re doing.” [Other than commissioners, planning staff and The Chronicle, no other people were at the meeting at this point.]

Westphal commented that it’s possible the planning commission would add conditions to the special exception use, which might change how some residents feel about it.

Bona also supported re-opening the public hearing. She asked Rampson to encourage the Jesuits and the Oxbridge Neighborhood Association to meet before the June 17 planning commission meeting, to try to address some of the residents’ concerns.

Westphal hoped to get some guidance from the city attorney’s office before June 17. Rampson said an updated staff report can be provided. It would be available online by the end of the day on Friday, June 13, as part of the June 17 meeting packet.

Westphal suggested that the Jesuits and neighborhood association could meet sometime after the updated staff report is available, but before June 17. Bona didn’t think that adding a bit of legal information would change the dynamic between the Jesuits and the neighbors. She cautioned against constraining when those groups should meet.

Woods agreed with Bona. She wondered if someone from the city attorney’s office could attend the June 17 meeting. Rampson said she’d ask, but typically the city attorney’s staff are reluctant weigh in at meetings, other than on questions of fact.

Westphal clarified with Rampson that a simple majority was required to pass a motion to postpone.

Outcome: On a 6-1 vote, commissioners postponed the item until June 17, over dissent from Diane Giannola.

Jesuit Home on Wayne Street: June 17 Meeting

After the vote, two commissioners who supported the request – Jeremy Peters and Eleanore Adenekan – indicated that they will be absent, and another supporter, Ken Clein, said he might also be unable to attend. So it’s possible that there will only be six commissioners at that meeting – which means all commissioners would need to vote yes in order for it to pass.

On Friday, June 13, the planning staff posted a revised staff report on this item, incorporating responses based on the June 3 discussion. The staff continues to recommend approval of this request. [.pdf of June 17 staff report]

North Maple Public Housing

Planning commissioners were asked to recommend approval of rezoning a 4.8-acre site at 701 N. Maple Road from R1C (single-family dwelling district) to R4B (multi-family dwelling district). Commissioners were also asked to recommend a site plan and development agreement for the project – part of a major renovation effort by the Ann Arbor housing commission. The site is on the west side of North Maple, between Dexter Avenue and Hollywood Drive.

The plan calls for demolishing 20 existing single-family homes – the public housing complex known as North Maple Estates – and constructing an eight-building, 42-unit apartment complex with a total of 138 bedrooms. The units range in size from one bedroom to five bedrooms.

The project would include a playground, community building and 73 parking spaces. According to a staff memo, the buildings would be located along a T-shaped driveway that connects to North Maple Road and Dexter Avenue. The drive extends northward toward Vine Court but does not connect with that street. There would be a new connection to Dexter Avenue through the remaining, undeveloped length of Seybold Drive. [.pdf of staff memo]

The project also requires the city to vacate a portion of the right-of-way for Seybold Drive. The surrounding land is owned by the housing commission, so if the right-of-way vacation is approved, the land would become part of the housing commission property. Planning staff recommended postponement on that specific action so that the request to vacate a portion of Seybold Drive’s right-of-way can be given proper public notice.

In general, the postponement on the North Maple Estates reconstruction was recommended to allow time to address several outstanding issues related to the project, and to draft a development agreement.

Rendering of proposed Ann Arbor housing commission project at 701 N. Maple.

Proposed layout of the Ann Arbor housing commission’s development on North Maple.

The reconstruction of North Maple Estates is part of an ongoing effort by the housing commission to upgrade the city’s housing stock for low-income residents. At the planning commission’s May 6, 2014 meeting, AAHC executive director Jennifer Hall had made a presentation about the initiative, which includes seeking private investors through low-income housing tax credits.

At that May 6 meeting, planning commissioners recommended rezoning for three AAHC properties: (1) Baker Commons, at the southeast corner of Main and Packard, from public land to D2 (downtown interface); (2) Green/Baxter Court Apartments, at the northwest corner of Green and Baxter roads, from public land to R4A (multi-family dwelling district); and (3) Maple Meadows at 800-890 S. Maple, from R1C (single-family dwelling district) to R4B (multi-family dwelling district). The rezoning for those sites was subsequently given initial approval by city council at its meeting on June 2, with a final vote expected later this month.

North Maple Public Housing: Public Hearing

During the project’s public hearing on June 3, four neighbors voiced a variety of concerns about the proposal, including traffic related to the new curbcut on Dexter Avenue, increased density, and security.

Laura Fisher spoke during a public hearing on the North Maple Estates project.

Laura Fisher told commissioners that she wasn’t concerned about the project in general, but she did have concerns about the proposed curbcut onto Dexter Avenue. At that spot, Dexter Avenue narrows from five lanes to two. She lives near the intersection of Dexter and Valley Drive, across from the proposed curbcut. A lot of people turn left from Dexter into Valley Drive, she said, so that’s another issue, and a lot more study needs to be done regarding traffic.

Fisher also noted that the foot and bicycle traffic has increased in that area over the past 10 years, especially after the opening of Plum Market and Aldi at the corner of Maple and Dexter. People walk along Dexter Avenue to get there, and they walk in the road because there’s no sidewalk. Currently, people from North Maple Estates also cross Dexter Avenue without using the light at Maple. The staff report about the North Maple Estates didn’t address these issues, she said.

Joyce Garrett lives on Allison Drive, directly west of North Maple Estates. She said there were several residents who were not notified of the February citizens participation meeting about this project. It appears that there will be a lot more people living on that site, she noted, and that all the buildings will be significantly closer to the property lines. She was concerned about the impact of construction, and about what kind of fence or other barrier would be put up to prevent people from crossing into her property. Now, a lot of people cut through her yard. There’s also a bright light on the back of the community center that shines into the back of her house. She hoped things like that would be changed. She also thought the city’s sanitary sewer line runs along her back fence, and she wondered if that would be excavated.

George Dentel also lives on Allison Drive. He wondered why the residents who are most affected by this planning commission meeting – the people currently living in North Maple Estates – weren’t notified about it. He’s talked with them and they were shocked, he said. The current homes there have neat yards and playgrounds. “We’ve been living peacefully with this development for 25 or 30 years or more,” he said. Dentel didn’t understand the motivation for this project. Was it financial? “It certainly can’t be for the benefit of residents,” he said. He wanted to know if there are legal measures that residents can take to oppose the project. Most of the people who live on Allison and Hollywood oppose this project, he concluded.

Another Allison resident, Mike Kvicala, told commissioners that his house is directly behind the basketball court. He referred to the staff memo’s mention of “conflicting land use,” and asked for an explanation. His understanding was that the project would cut down the trees and scrub, and he wanted clarification of that. The biggest concern of most nearby residents is the density, he said, which will double. He wondered why there were five-bedroom units. He said he’s seen news items about immigrants “stuffing grandma and uncles and aunts” into apartments.

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

Another concern is building materials, like using vinyl, and he wondered how it would be maintained. The housing commission historically has done a poor job of maintaining its properties, he said, with a “revolving door” of administrators. He disagreed with a previous speaker who said there hadn’t been problems with North Maple Estates. He said he’s rebuilt his fence twice after kids have knocked it down, and he’s had outbuildings destroyed. “I’m constantly having police actions, so I’m concerned about security.” With increased density, there will potentially be more problems, he said.

Three representatives of the housing commission and project team spoke during the hearing, and were on hand to answer questions. AAHC executive director Jennifer Hall told commissioners that there’s been a lot of deferred maintenance, and that’s why AAHC has taken on this overhaul of its properties. Some just need rehab, but “this particular site is not one of them” – it needs to be rebuilt.

The houses at North Maple Estates have problems with their original construction and site design, Hall said. Eight of the 20 units are located at the lowest part of the site and have problems with water infiltration. So demolishing the houses and building new units will be better for residents as well as for the surrounding neighborhood. She said there was an opportunity to increase affordable housing on the site. Currently there are 10 four-bedroom houses and 10 five-bedroom houses. The proposed site plan would have more units with fewer bedrooms, so there’s more of a mix, Hall noted.

Scott Betzel of Midwestern Consulting spoke next. He’s the project’s civil engineer. The site presents an opportunity to increase density, be connected to public transportation, and use the land in a better way than it currently is, he said. The units will be new, modern and efficient. They will be ADA compliant and alleviate flooding problems. A key feature will be stormwater management – there isn’t any on the existing site, he noted.

Regarding the new curbcut onto Dexter Avenue, Betzel reported that it was examined by the city’s traffic engineer, who thought it was safe. A new sidewalk will be added to connect with an existing sidewalk at the corner of Dexter and Maple. Regarding landscaping, he said the conflicting land use buffer is required to be a minimum of 15 feet, but it will be more than that between the adjacent residential properties to the west. The large trees will be preserved, and more evergreen trees will be added. He thought it would be a benefit to the neighborhood and to AAHC residents.

Architect John Mouat.

Architect John Mouat of the Ann Arbor firm Mitchell & Mouat began by noting that the color of the buildings as shown in the meeting packet will be different – not the olive green that’s on the rendering. He described how the apartments will be distributed in eight buildings so there won’t be one big building. The smaller units are located near the community building, while the larger units, which are intended for larger families, are closer to the playground. He noted that the site includes about a 20-foot drop from one side to the other, and a major goal for this project is to put the buildings on higher ground. The buildings will also have fairly large porches, he said, and there won’t be patios in the back. They’re trying to create a secure, friendly environment, Mouat concluded.

Hall wrapped up the commentary by adding that this project will include a community center so that AAHC will have on-site property management, which is not part of the existing complex.

North Maple Public Housing: Commission Discussion

Before discussion began, planning commissioner Wendy Woods announced that her husband, Ronald Woods, served on the housing commission board. Ronald Woods attended the June 3 meeting, but did not formally address the board. She said she personally did not benefit from the project, but would be willing to recuse herself if any planning commissioners objected. No one did.

Before the vote to postpone, discussion lasted about 35 minutes. Most of the commissioners’ questions related to issues that were raised during the public hearing.

North Maple Public Housing: Commission Discussion – Fencing, Landscaping

Diane Giannola asked about the fencing. AAHC executive director Jennifer Hall replied that the current fencing is probably inadequate in every housing commission site. It will be replaced, she said, and they can keep an eye on that to make sure it’s not torn down. Having an on-site property manager will make that easier to do.

Scott Betzel of Midwestern Consulting.

Giannola wondered if it would be possible to build a six-foot-high wood fence around the site. Hall replied that she wasn’t sure AAHC owned the fencing, but they’ll look into it. The type of replacement fencing will depend on cost. “We can only do what we have enough money to do,” Hall said.

Bonnie Bona asked staff to give an explanation of requirements for the conflicting land use buffer. City planner Alexis DiLeo explained that a buffer is required when there are different types of adjacent land uses – in this case, single-family sites abutting a proposed multi-family development. The buffer must be at least 15-feet wide, with a designated number of trees. There must also be either a hedge, berm or wall. For this project, a hedge will be used. Existing plants can be used to meet part of the requirement, DiLeo noted.

Bona said that in previous projects, construction trucks have pressed down the soil, which later causes new plants to grow very slowly. She wondered whether construction equipment can be kept away from the buffer area. Scott Betzel of Midwestern Consulting noted that on this site, the buffer will be at the bottom of a slope, so the land there likely won’t be compacted. They’ll be planting 86 trees in the buffer along the west side and 107 bushes.

Responding to another query from Bona, Betzel said a large number of trees will stay in place at the north half of the site, as well as on the southern quarter. Those are where the highest-quality of existing trees are located, he said. They’ve tried to save as much of the trees and hedgerow as possible, he added.

North Maple Public Housing: Commission Discussion – Infrastructure

Responding to a resident’s concern about the sewer line, Scott Betzel said the closest sewer line appears to be about 30 feet away from any fence.

Bonnie Bona asked about plans for lighting on the site. Alexis DiLeo reported that a photometric plan showed that no light would spill onto adjacent properties, and the pole fixtures are all “dark-sky friendly,” which have shields and downward-directed light. That compares to the current “wall pack” lighting that includes visible fixtures and bulbs. Bona said she lives near a city streetlight that’s “pretty obnoxious.” She wanted to make sure that the lamp itself is shielded on the bottom.

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

Betzel said no wall packs are proposed for this site. He wasn’t sure how tall the lights would be. Bona noted that it’s an important issue, especially since the site’s density will be increased. “When we’re asking the neighbors to live with more, I think we have to give them more,” she said.

Regarding the neighbor’s complaint about the community center light, Jennifer Hall said she’d be happy to remove it now. The proposed new lighting would all be on the street – no lighting would be placed in back of the buildings. So there would be no lights near the surrounding neighborhood, she said.

Bona also asked about sidewalks within the site, next to where cars will be parked. She said she’s always concerned about the overhang of a vehicle that might reduce the width of a sidewalk. Betzel replied all sidewalks in front of parking are seven feet wide.

Wendy Woods asked about the proposed detention pool, and wondered how deep the water would be. It concerned her, because children would be in that area. Betzel said that most of the time, the ponds would look like sloped grassy areas, with wetland plants like cattails at the bottom. It would be no deeper than five feet during a 100-year storm, he said. It’s designed to drain within 24-48 hours. John Mouat added that the playground was designed to be further away from the detention ponds.

Responding to a query from Bona, Hall noted that the existing buildings have no insulation. There are constant sewage backflows because the pipes are smaller than the ones required now. AAHC is spending thousands of dollars annually for repair and cleanup. So the houses are beyond the point where they can be rehabbed. Hall pointed out that the investors are requiring that the new buildings meet Enterprise Green Communities standards, so they will be higher energy efficiency buildings.

North Maple Public Housing: Commission Discussion – Management, Security

Wendy Woods was glad there will be an on-site manager. She asked about security on the site. Jennifer Hall replied that she gets a monthly report from the Ann Arbor police department for calls to all of the public housing sites. She doesn’t see reports about calls to surrounding neighbors, however. Hall said police chief John Seto had told her that the public housing sites don’t draw more police calls than other neighborhoods. Woods said problems from increased density aren’t necessarily tied to income or social status, and she wanted people to keep that in mind.

Hall observed that the site has a strong slope on the west side, so the design doesn’t accommodate back porches. That might help with security issues. She also noted that the west side includes the lowest-density units. The higher-density units are clustered together in an area where there aren’t any adjacent single-family neighborhoods.

Jeremy Peters asked about the role of the on-site manager. Hall explained that currently, complex managers are based out of Miller Manor, which is several miles away. They hold office hours at North Maple Estates a couple of hours each week. What’s more, the current community center is actually a converted house. The new community center will have offices and meeting space, and a manager who’ll be there every day. There will be a broad range of activities offered there for both children and adults, Hall said.

North Maple Public Housing: Commission Discussion – Density

Bonnie Bona said she’s a little uncomfortable with the rezoning to increase density on this site. She thought that the housing commission had planned to keep the density unchanged.

Planning commissioner Bonnie Bona.

She noted that the existing houses are 50 years old, but should have lasted 100 years. The city needs to know that the housing commission will take care of its properties. “The worst investment is for the city to keep doing this over and over again,” Bona said. She hoped the commission would do it right this time, even if it costs more upfront to do that.

Jennifer Hall explained that all the funding for public housing has come from HUD. The AAHC did an analysis about how much it would need to maintain its properties, and the amount is about three times more than what HUD provides, she said. Hall agreed with Bona, but said “I’m not made of magic – I can only use what funding sources are out there.” The advantage of the new financing approach, she added, is that there’s an opportunity to use private capital investment that’s not available for public housing. The private investors, including Chase Bank, want to ensure that their investment will last for the term of the agreement, which is a minimum of 20 years.

The process includes putting a portion of rent revenues into a capital reserve fund, Hall explained. That wouldn’t be possible with just 20 units, she added – there wouldn’t be enough funds to maintain the buildings, and they wouldn’t be able to get investors for the project. So the density is needed in order to make the project viable, she said.

Jeremy Peters confirmed with Hall that this would be the first addition to the city’s affordable housing stock in recent memory. Hall estimated that the city was losing 100 units of affordable housing each year. She noted that Avalon Housing recently opened an apartment complex on Pauline, but there are eight fewer units than in the previous apartment complex there.

Peters said that the city has made affordable housing a priority, yet there seems to be a struggle to add more units. That should be kept in mind when commissioners evaluate the increased density of this North Maple proposal, he said.

North Maple Public Housing: Commission Discussion – Traffic

Kirk Westphal asked about the traffic issues raised during the public hearing. Scott Betzel reiterated that he’d spoken with the city’s traffic engineer, and they both agreed that adding the Dexter Avenue curbcut seemed like a logical and conventional solution to the situation. Planning manager Wendy Rampson said that planning staff would follow up with the traffic engineer to take another look at it.

Jennifer Hall explained that the site requires a second exit for fire emergencies. One of AAHC’s concerns is that they don’t want it to be a cut-through street, so they’d be willing to look at adding speed bumps or other traffic calming measures.

North Maple Public Housing: Commission Discussion – Misc.

Ken Clein highlighted information in the meeting packet about housing costs, saying that it might be confusing. It was a sheet with rent and income data for “Maple/Platt,” which had been distributed at the citizens participation meeting in February. Jennifer Hall clarified that AAHC is also working on a project for a site on Platt Road. So this information showed a range of income levels to illustrate who would be eligible for AAHC’s housing. The information provided in this sheet also referred to 70 total units, which is the combination of proposed units on both the North Maple and Platt sites, Hall said.

Bonnie Bona directed staff to double-check the mailing addresses, to make sure all nearby residents are provided with adequate notification.

Hall offered to pass out her business card to residents who were interested in following up with her about the issues raised during the public hearing. She said she’d be willing to come out and meet with neighbors, if they wanted to set up a meeting.

Outcome: Commissioners unanimously voted to postpone the three items related to this AAHC request: Rezoning, site plan, and street vacation. The items are on the commission’s June 17 agenda for consideration.

Rudolf Steiner Expansion

The site plan for expansion of the Rudolf Steiner High School was on the June 3 agenda. The private school is located at 2230 Pontiac Trail, north of Brookside.

The project – estimated to cost $2.5 million – involves building a one-story, 19,780-square-foot addition to the existing classroom building. The building will include a 9,990-square-foot gym, with the remaining 9,790 square feet used for classrooms and storage.

According to the staff memo, an existing Quonset hut on the east side of the site will be removed, as will a 48-inch white oak tree immediately east of the proposed addition. The school will be required to plant 12 trees for mitigation. In addition, 17 new trees will be planted as part of the project.

Parking will be increased by 31 spaces to accommodate special events and discourage parking in nearby neighborhoods, according to the staff memo. A total of 32 bicycle parking spaces will be provided near the north entry to the new addition. No additional enrollment beyond the previously approved 120 students is proposed. The school has operated at that location since 2002.

Site plan for Rudolf Steiner High School expansion. The yellow section is the existing building. The white section indicates the proposed addition.

Commissioners were also asked to approve a special exception use for the project. That’s required under Chapter 55 of the city’s zoning code because the site is zoned R1D (single family dwelling). Private schools are allowed within that zoning district, if granted a special exception use. The planning commission has discretion to grant a special exception use, which does not require additional city council approval.

The only speaker at a public hearing on this item was Dave Leclair of Livingston Engineering, the project’s site engineer. He introduced other members of the team, and said they were on hand to answer questions.

Rudolf Steiner Expansion: Commission Discussion

There was no discussion on the special exception use item.

From left: Victor Leabu, facilities manager for the Rudolf Steiner High School, and Dave Leclair of Livingston Engineering.

For the site plan resolution, city planner Jeff Kahan told commissioners it had been amended to include the phrase “subject to a modified utility easement agreement addressing the proposed bioswale located within the easement area.” A water utility line is located under the bioswale. The city needs to have access to the water main, if it needs repair. If that happens, the owners of the property would be responsible for restoring the bioswale, which is about 6 inches deep.

Responding to a query from Ken Clein, Kahan explained that the school is proposing an additional 31 parking spaces that would extend the existing parking lot to the east. The intent is to accommodate overflow parking for school functions. Currently, overflow parking is on the lawn.

Also, the fire marshal recommends that emergency access be put in place to the street that’s south of the site. The fire marshal agreed that a gate could be placed there too, to prevent the emergency access from becoming a regularly used route to the street.

Kirk Westphal asked what kind of feedback the school has received from surrounding neighbors. Victor Leabu, the school’s facilities manager, said the school has been there about 12 years, and some of the families live in the neighborhood. Most of the feedback was positive, he said. One issue was that since the gym is higher and the lights might be on at night, someone wondered what the impact on the neighborhood might be. There aren’t any houses directly in that area, however, and the school plans to use shades on the windows at night, he said.

Outcome: In separate unanimous votes, commissioners granted the special exception use and recommended approval of the site plan. The site plan will be forwarded to city council for consideration.

Research Park Project

The June 3 agenda included a proposal to rezone six sites along Research Park Drive, as well as an area plan for development of the parcels.

Laith Farjo of Qubit Group.

Another item related to amendments to Chapter 55 of the city’s zoning code to allow outdoor recreation as a special exception use in the office/research/limited industrial (ORL) zoning district.

The six lots are undeveloped and total 16.6 acres. Four of the lots, on the southern end of the site, are owned by Qubit Corp. LLC; BMS Holdings LLC owns the northern two sites.

The rezoning would be from RE (research) to ORL. The proposed area plan – which is less detailed than a site plan – includes an indoor-outdoor tennis facility on one of the lots. It also includes five two-story buildings that could accommodate office, research, and limited industrial uses on the remaining lots, each with their own parking lot and access point to Research Park Drive.

Prior to construction, the project must go through the city’s site plan approval process, which might require a traffic impact study.

The text amendment to Chapter 55 would delete a current restriction that recreation sites must be within an enclosed building. The change would allow outdoor tennis courts to be built in the ORL zoning district.

Two people spoke briefly at the public hearing. Jim Barnwell of Desine Inc. and Laith Farjo, a representative of Qubit Group LLC, the site’s owner, introduced themselves and said they’d be available for questions.

Aerial view showing Research Park Drive parcels.

Area plan for four sites in a proposed development on Research Park Drive. The image is oriented with east at the top.

Research Park Project: Commission Discussion

Responding to a query from Diane Giannola, planning manager Wendy Rampson said that commissioners had been briefed on the project at a working session last year.

Kirk Westphal asked what kind of feedback had been received, and if any changes are being considered based on the feedback. Laith Farjo, one of the owners, replied that everyone was very positive. Several people from surrounding businesses had attended the citizen participation meeting, he said, and liked the idea that the project would be bringing more life into that area. The hours are also complementary to existing businesses, he added. A juniors tennis facility would be the first phase, and would mostly be used in the evenings and weekends.

Outcome: In separate unanimous votes, commissioners unanimously recommended approval of the rezoning, area plan and amendments to Chapter 55 of the city’s zoning code. The items will be forwarded to city council for consideration.

Dusty’s Collision

A site plan for Dusty’s Collision at 2310 South Industrial Highway, south of Jewett, was on the June 3 agenda.

Aerial view of Dusty’s Collision site.

The proposal calls for building a 30,537-square-foot, one-story auto collision repair facility on a parcel that’s currently vacant. A previous building at that location was torn down in 2013. The new building would include 5,285 square feet for office use, a waiting area of 5,227 square feet, and 20,025 square feet for the repair area and garage. The project is estimated to cost $2 million.

The site will include 106 spaces of exterior parking, including 24 spaces that will be deferred until needed, according to the staff memo. One bicycle hoop – for 2 bike parking spaces – will be located near the front of the building.

The recommendation is contingent on the owner – Whitney’s Collision West of Ann Arbor – providing one footing drain disconnect before the city issues a certificate of occupancy. [.pdf of staff memo]

The only speaker at this item’s public hearing was Rich Henes, a principal with Cornerstone Design Inc., the project’s architect. He said he was there to answer questions.

Dusty’s Collision: Commission Discussion

Bonnie Bona said she couldn’t see much pedestrian access on the site – just the parking lot. She granted that it was a vehicle-centric business, but said that people might need to walk or take the bus there while their car is being repaired.

Architect Rich Henes of Cornerstone Design Inc.

Rich Henes of Cornerstone Design said pedestrians could use the driveway, adding that it’s close to the road and there will be bike parking on the north corner.

Planning manager Wendy Rampson pointed out that there’s a sidewalk connection from the building’s entrance to the public sidewalk.

Jeremy Peters asked about plans to mitigate potential runoff from any hazardous materials that might be used. Henes replied that the building will have internal trench drains, with the runoff contained and disposed of legally.

Peters also asked about a comment in the staff report from the Mallets Creek Coordinating Committee: “The MCCC recommended that the petitioner consider conducting soil borings from the detention basin in order to increase infiltration design of the storm water basin. It is also recommended that the property owner take special care to monitor and contain any dripping fluids from damaged vehicles.”

Henes said the concern related to an existing bioswale on the north side of the property. The MCCC wants the owner to install a pipe that will direct runoff from that bioswale toward the center of the site. “But the water table is so high that it would be useless to do that,” Henes said. Rampson pointed out that the site plan complies with the county water resource commissioner’s current rules.

Ken Clein confirmed with the planning staff that the project’s landscaping plan meets the city’s requirements.

Outcome: Commissioners unanimously recommended approval of the site plan, which will now be forwarded to city council for consideration.

Communications & Commentary

Every meeting includes several opportunities for communications from planning staff and commissioners, as well as two opportunities for public commentary. Here are some highlights from June 3.

Communications & Commentary: Affordable Housing

Planning commissioner Jeremy Peters reported that he, Wendy Woods and Eleanore Adenekan met in late May with members of the city’s housing & human services advisory board and staff of the Washtenaw County office of community & economic development. It was the first in what will likely be a series of meetings regarding affordable housing. The intent is to look at issues where these three groups have similar interests, and eventually to provide some strong guidance for city and county leaders, he said.

Tentatively, Peters said, the group has identified four broad issues to discuss: (1) refining premiums offered to developers in the downtown D1 and D2 zoning districts; (2) investigating possible policy advocacy at the state level, to make the process of building or purchasing affordable housing units simpler and more predictable; (3) looking at actions to allow for workforce housing within the city in ways that are ultimately respectful of each neighborhood’s character; and (4) investigating what fee-based roadblocks might be modified or removed to make new construction of an affordable nature easier to do, in areas zoned for that type of residential development.

Communications & Commentary: Ordinance Revisions

Planning commission chair Kirk Westphal reported that the ordinance revisions committee had met immediately prior to the regular June 3 planning commission meeting, and continued discussion of possible changes to downtown zoning. No date has been set for the next ORC meeting. Members include Westphal, Bonnie Bona, Wendy Woods and Diane Giannola.

Present: Eleanore Adenekan, Bonnie Bona, Ken Clein, Diane Giannola, Jeremy Peters, Kirk Westphal, Wendy Woods. Also: City planning manager Wendy Rampson.

Absent: Sabra Briere, Paras Parekh.

Next meeting: Tuesday, June 17, 2014 at 7 p.m. in council chambers at city hall, 301 E. Huron. [Check Chronicle event listings to confirm date]

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The three actions were taken at the city council’s April 21, 2014 meeting.

By way of background, at its March 3, 2014 meeting, the council had directed the city administrator to prepare a budget resolution that would allocate $600,000 from the city’s affordable housing trust fund to support the AAHC’s plan to renovate its properties.

That allocation was to be contingent on the closing of the sale of the former Y lot to Dennis Dahlmann, as the net proceeds of that sale were to be deposited into the city’s affordable housing trust fund. The sale of the property closed on April 2, with net proceeds of roughly $1.4 million. So the $600,000 transfer out of the affordable housing trust fund was approved by the council at its April 21 meeting.

Also approved by the council at the same meeting was the reduction of planning and development fees associated with two of the capital renovation efforts being undertaken by the AAHC – at North Maple Estates and Platt Road.

Rendering of North Maple Ann Arbor Housing Commission property after renovation.

The current AAHC complex at 701-739 North Maple – north of Dexter Avenue, on the west side of North Maple – consists of 19 single-family homes with a total of 85 bedrooms, as well as two three-bedroom duplexes with a total of 12 bedrooms. AAHC executive director Jennifer Hall has described the 21-unit complex as the busiest of AAHC’s properties.

The housing at North Maple was built at the lowest portions of the site, while an asphalt basketball court is at the highest point. The current configuration does not make sense from the perspective of drainage and stormwater management.

The AAHC is proposing to demolish the existing buildings at North Maple site and replace them with a small community building and 42 new units ranging in size from 1 bedroom to 5 bedrooms.

A community center would be centrally located on the west side of the site, and parking will be located adjacent to each of the buildings.

Rendering of Lower Platt Ann Arbor Housing Commission property after renovation.

The AAHC property described as Lower Platt is located at 3451-3457 Platt – on the east side of Platt Road, north of Belvidere. Currently, there are four single-family houses at that site, each with five bedrooms.

Three of those houses are in the floodway, and the water table is higher than the basements. When it rains, the properties flood. The plan is to tear down the existing buildings, and rebuild 12 new townhomes further north on the same site, on land that’s currently vacant.

In addition, there’s a strip of vacant city-owned land on the west side of Platt, north of Verle and south of Sharon. The land runs from Platt over to Springbrook. The development plan calls for building four duplexes there – a total of eight units – with two duplexes accessed from Platt, and the other two accessed from Springbrook.

For the North Maple and Lower Platt projects, the city would ordinarily assess fees for site plan approval, zoning approval and street vacation. Those charges break down as follows, for a total of $22,705:

• North Maple: $8,995 for site plan approval; $1,425 for zoning approval; and $2,565 for street vacation.
• Lower Platt: $8,295 for site plan approval; $1,425 for zoning approval.

But under Chapter 55, Section 5:108 of Ann Arbor city code, those fees may be reduced by resolution of the city council by up to 50% of the specified fees – if the reduction is based on a finding that the development would provide affordable housing for lower-income households. That’s what the council agreed to do.

At its April 21 meeting, the city council also authorized a payment in lieu of taxes for AAHC properties at North Maple Estates, North Maple Duplexes, Lower Platt, Broadway, and White/State/Henry apartments. The period for which property taxes are being waived – under Section 15(a) of the State Housing Development Authority Act and Chapter 19, Section 1:651 of Ann Arbor City Code – is 50 years. In lieu of taxes, a $1 service charge must be paid.

The $600,000 authorized by the city council in support of AAHC’s renovation efforts comes after the April 2, 2014 vote by the Ann Arbor Downtown Development Authority board to grant $600,000 over a three-year period to AAHC for renovation of its downtown and near-downtown properties at Baker Commons and Miller Manor.

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