This Ann Arbor City Council meeting was held in person at City Hall. Members of the public can participate in public hearings and public comment either in person or via phone.
A2Council Update Video
Ann Arbor City Council Meeting Summary
APPROVED: A plan to amend the terms of Downtown Development Authority (DDA) and renew it for 30 years. Proposed changes would expand the boundaries of the DDA district to include an area to the north of Kingsley up to Depot Street. The District would also reach south to capture a single parcel, just north of Forest Court. (Legistar)
- The DDA district is funded by tax incremental finance (TIF), which ‘captures’ property tax growth within the district, i.e. the difference between existing value of a property and a newly constructed property. The DDA captures new property tax revenue that would otherwise go to the city of Ann Arbor, Washtenaw County, the Ann Arbor Area Transportation Authority (AAATA), Washtenaw Community College (WCC), and the Ann Arbor District Library.
- The new ordinance would allow the DDA to ‘capture’ TIF across a larger area of the City and also amend how that TIF is calculated.
- City Council approved DDA renewal and expansion at first reading on February 2, 2026. Between first reading and second reading, other taxing entities had the opportunity to “opt out” of an expanded district. https://a2council.com/ann-arbor-city-council-february-2-2026/
- The elected boards of three taxing entities – Washtenaw County, Washtenaw Community College, and the Ann Arbor District Library – voted to opt out of an expanded DDA district. The appointed board of the Ann Arbor Area Transportation Authority (AAATA) supports the expansion that will re-direct more tax revenue to the DDA. A majority of the AAATA board (eight of ten members) was appointed by Mayor Taylor.
- The state of Michigan created the mechanism of TIF financing to support downtown districts when suburban-style shopping was pulling business away from city centers and hollowing out downtowns. The TIF/DDA model promoted redevelopment and dedicated funds toward reinvestment in downtowns that were struggling. The state law enabling such districts allows a timeline of 30 years. Ann Arbor’s DDA was established in 1982 and renewed in 2003.
- The City ordinance defining the terms of the DDA includes this explanation of purpose: “The purpose of this chapter is to create a public body corporate to act in the best interests of the City to halt property value deterioration, increase property tax valuation where possible in the business district of the City, eliminate the causes of that deterioration, and to promote economic growth”
- In 2013 – in response to rapid growth in the downtown district – City Council approved a ‘cap’ on the DDA’s TIF capture, limiting its growth to 3.5% per year: “Beginning with the 2016 tax year the maximum captured taxable value shall be $224,000,000.00. Each tax year thereafter, the maximum captured taxable value shall be increased by 3.5% per annum.” (Legistar)
- On September 2, 2025, DDA Executive director Maura Thompson presented a recommendation to City Council that would increase DDA TIF capture under a “gainshare model.” This model would allow the DDA to keep 70% of tax revenue growth from new development and other taxing units (e.g. the City, County, AAATA, WCC, AADL) would retain 30%. (Legistar)
- In Ann Arbor, the DDA also manages public parking within the district and sets parking rates. Until recently, City Council played a role in approving those parking rates. This fall (9/15/25), Council unanimously approved changes that remove the requirement for an annual DDA/Council meeting and allow the City Administrator to approve the DDA’s parking rates without the participation of Council. https://a2council.com/ann-arbor-city-council-september-15-2025/
- You can find comprehensive background on the Ann Arbor DDA from the archives of the Ann Arbor Chronicle, written by Dave Askins. This article includes explanation of issues debated in 2011, including both the TIF capture and approval of Council approval of parking rates: https://annarborchronicle.com/2011/05/05/dda-delays-parking-vote-amid-tif-questions/index.html
- https://www.mlive.com/news/ann-arbor/2025/12/boundary-expansion-for-downtown-development-authority-gets-ann-arbors-initial-ok.html
- https://www.mlive.com/news/ann-arbor/2026/04/big-projects-planned-in-expanded-downtown-ann-arbor-tax-capture-zone.html
APPROVED: A resolution to approve the sale of air rights to the Ann Arbor District Library (AADL) was added late to the agenda, on the Sunday before the meeting. The agreement itself was added on the day of the meeting. The air rights over property at 319 S. Fifth Ave. and 326 S. Division St (aka the “Library Lot” and Library Lane) will be transferred to the AADL for $1. (Legistar)
- This sale is the result of a special election directed by Council in August 2025, to un-do the citizen initiated vote in November 2018. The 2018 vote directed that the property be maintained in public ownership for the development of an urban park.
- In November 2024, AADL director Eli Neiburger hosted a public meeting about potential rezoning of the Downtown District library from Public Land to Downtown Core to match the zoning of the Library Lot adjacent to it. He presented plans for the library to share space with private/commercial partners.
https://a2council.com/ann-arbor-downtown-library-rezoning-request-public-meeting-november-19-2024/ - In January 2025 – seven months before the special election that permitted the parcel’s sale – Council directed the City Administrator to report on how to transfer the Library Lot to the AADL. https://a2council.com/ann-arbor-city-council-january-21-2025/
- In March 2025, City Council directed a special election in August 2025 for two City Charter amendments: (B) rescinding a vote from November 2018 that had directed the parcel be designated an urban park to be held in public ownership and (A) allowing the parcel’s sale to the AADL. https://a2council.com/ann-arbor-city-council-march-3-2025/
- In April 2025 – three months before the special election that would permit the parcel’s sale – City Council directed the negotiation of terms to sell it to the AADL for $1. https://a2council.com/ann-arbor-city-council-april-21-2025/
- In May 2025, Council rezoned the Downtown District Library property from Public Land to Downtown Core, in order to permit commercial activities and private ownership of the site. https://a2council.com/ann-arbor-city-council-may-5-2025/
- In August 2025, a special election rescinded the November 2018 vote, permitting the sale of the Library Lot to the AADL.
- https://www.mlive.com/news/ann-arbor/2025/08/ann-arbor-voters-say-yes-to-downtown-library-proposals-design-work-comes-next.html
- With the approval of sale to the AADL, both the Library Lot and the rezoned Downtown Public Library adjacent to it may now be held in private ownership for private development to whatever extent is directed by the Library Board of Trustees.
- https://www.mlive.com/news/ann-arbor/2026/04/deal-for-new-downtown-ann-arbor-library-okd-current-library-to-stay-until-2029.html
APPROVED (first reading): Water rates will be increased. Every category of customer will see an increase of about 6% effective July 1, 2026. (Legistar)
APPROVED (first reading): Stormwater rates will be increased. Every category of customer will see an increase of about 3% effective July 1, 2026. Credit for offsets like rain barrels and rain gardens will also increase by about 3%. (Legistar)
APPROVED (first reading): Sewer rates will be increased. Every category of customer will see an increase of about 3% effective July 1, 2026. (Legistar)
A2ELNEL Voting Chart
