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: By resolution, Council communicates its preferences regarding the Comprehensive Land Use Plan currently being written by Mayoral appointees on the City Planning Commission. Council requests that the Planning Commission establish a height limit of 35 feet (three stories) in residential neighborhoods and that the Planning Commission consider various “tools that are known to fit denser development harmoniously into neighborhood contexts.” (Legistar)
- An amendment to postpone this resolution to the next Council meeting was defeated.
- Two days after the Council meeting, a draft Comprehensive Land Use Plan was published, which included this language: “Residential District: Buildings are limited to four stories in this district” https://engage.a2gov.org/comprehensive-land-use-plan
- The draft plan also included this language: “Translating the Residential District into zoning regulations requires careful consideration. Community engagement revealed that while residents support introducing new housing types in single-family neighborhoods, they prefer developments that align with the existing scale. This plan established that a building height of four stories is an appropriate scale for these areas. However, further analysis is needed to identify additional measures for preserving neighborhood scale, which will be explored during the rezoning process.”
- https://www.mlive.com/news/ann-arbor/2025/04/new-draft-plan-to-help-ann-arbor-grow-now-available-for-public-review.html
APPROVED: An ordinance added to the City code establishes a Sustainable Energy Utility (SEU). The SEU will be an opt-in, fee-based supplemental energy utility to provide renewably-sourced energy and other energy-related services in the City. The ordinance establishes a governing structure, rules and regulations for the SEU. (Legistar)
- An Enterprise Fund will be established in order to finance any improvements. This fund will account for operations so that costs will be recovered from customer charges. City Council will set rates and charges.
- Facilities and infrastructure built and purchased will be owned by the City of Ann Arbor
- The City administrator will appoint a director tasked with planning and coordinating with City departments (Public Works and Office of Sustainability & Innovations), submitting annual reports, and meeting state and federal regulatory requirements
- https://www.mlive.com/news/ann-arbor/2025/04/want-to-go-solar-for-free-new-ann-arbor-program-will-eliminate-costs.html
APPROVED: An amendment to the Uniform Development Code (UDC) relaxes the process for making alterations to “nonconforming structures.” A nonconforming structure does not meet zoning district standards because it was built prior to the existence of those standards; alterations are subject to review. When plans to alter a nonconforming structure include an increase in habitable floor area, number of dwelling units or expansion of exterior dimensions, it must be approved by the Zoning Board of Appeals (ZBA). The UDC amendment eliminates the need for ZBA review/approval for changes to residential properties in cases where alterations do not extend closer to lot lines, does not create new nonconformities, and complies with all other height, setback, dimensional, and building code requirements. (Legistar)
APPROVED: Air Rights over 616 S. Forest Ave. will be sold for no less than $1,200,000 to CS Acquisition Vehicle, LLC. According to the resolution, the City was approached by the purchaser “who desires to develop and build a multi-story, mixed-use commercial and residential development … that would extend over and occupy a portion of the air space located above the City’s property at 616 S. Forest Avenue, which currently serves as a non-public ‘alley’ behind the Forest Ave parking structure.” (Legistar)
These air rights are adjacent to two other planned developments on the same block:
- South University Avenue (current Pinball Pete’s location) https://a2council.com/1208-south-university-ave-resident-participation-meeting-december-10-2024/
- Church Street (across from Pizza House) https://a2council.com/611-633-church-street-citizen-participation-meeting-june-4-2024/
- https://www.mlive.com/news/ann-arbor/2025/04/high-rise-developer-gets-rights-to-build-over-ann-arbor-alley-for-12m.html
APPROVED: By resolution, the City Administrator is directed to enter the “next stage” of negotiation with a developer – Oxford Companies – in order for the City to fund the construction of parking decks at a private development called Arbor South. The City Administrator will prepare the issuance of $146 million in City-backed bonds and develop a plan for a special assessment districts to divert tax revenue from Arbor South toward the cost of the parking decks. (Legistar)
- APPROVED: An amendment adds the directive that the City Administrator is to negotiate in support of the A2 Zero and Vision Zero goals
- DEFEATED: An amendment would have removed resolved clauses directing work on bond issuance and special assessment district(s).
- Attached to this resolution is a memo explaining how City participation is necessary in order to generate adequate “return on equity” (ROE) and adequate “internal rate of return” (IRR) for the developer (Oxford). In other words: the City investment is necessary to subsidize profitability for the investors and owners of Arbor South. With City support, the internal rate of return for Oxford is predicted to be 16.06%.
- As explained in a report attached to this weeks resolution (link): “[T]he Developer’s request of the City’s participation via the financing of the structured parking elements of the proposed Southside Redevelopment by the City is necessary to meet the typical investment hurdle for a multi-phases mixed-use project.”
- City-subsidized parking decks would require the issuance of an estimated $146 million in bonds. The City would purchase land from the private developer, cover the cost of construction, and assume ownership of the decks. City ownership will reduce future tax liability for the private developer. The City would be responsible for an estimated annual cost of $1.9 million to operate the decks, potentially covered by whatever income might be generated from user fees.
- The report explains: “A City-financed structured parking facility as initially proposed provides the project the lowest cost of capital and reduces the net operating costs of the structured parking by eliminating property taxes on the structured parking. However, in the City-financed option, the City is taking on the project risk such that if the parking garage [net operating income] and [tax incremental financing] revenue is not sufficient to cover the debt service, the City’s general fund represents the source of payment for the shortfall.”
- The report also calculates relative advantage to the City in terms of potential net operating revenue for the garages and future tax revenue from the Arbor South development covering the cost to service the debt (bonds).
- https://www.mlive.com/news/ann-arbor/2025/04/ann-arbor-weighs-putting-300m-behind-building-a-second-downtown.html
- You can learn more about South Arbor and watch a public engagement meeting for the development that was held in January 2024: https://a2council.com/777-e-eisenhower-oxford-resident-participation-meeting-january-9-2024/
- In November 2024, City Council heard presentations regarding public subsidy of these parking decks to meet the needs of the planned Arbor South development. You can watch a summary of that meeting here:
APPROVED: A contract for $280,000 will pay for consultants to evaluate the reconfiguration of multiple major thoroughfares in the City. (Legistar)
- Road segments included in the evaluation:
- Stadium (Washtenaw split to just west of Seventh)
- Stadium/Maple (just southeast of Pauline to Dexter)
- E. Packard (Eisenhower split to US 23)
- Eisenhower (Ann Arbor-Saline to Packard split)
- S. Main/Ann Arbor-Saline (Stadium to I-94)
- S. State (just north of Oakbrook to Ellsworth)
- Plymouth/Broadway (US-23 to Division)
- Huron Parkway (Platt split to Nixon)
- Green (Plymouth to Burbank)
- Fuller/Glen (Catherine to Glazier Way)
- https://www.mlive.com/news/ann-arbor/2025/04/280k-study-to-look-at-reconfiguring-10-of-ann-arbors-wider-road-corridors.html
APPROVED: By resolution, Council reaffirms its commitment to reducing injuries and deaths on City roads and also reducing vehicle miles travelled. The City administrator is directed to coordinate with City departments and community partners and align City projects and City budgets in support of these goals. (Legistar)
APPROVED: $5,333,900 construction contract for water main, stormwater improvements, curb & gutter, road resurfacing, and separated bike lanes on State Street. (Legistar)
APPROVED: $9,425,310 construction contract for water main, storm sewer, lighting, roundabouts (3), crosswalks, and bike lanes on Nixon Road. (Legistar)
APPROVED: $2,168,176.91 construction contract for a new water main, service transfers, and asphalt at Westgate shopping center. (Legistar)
APPROVED: Changes to Council Rules cover several topics. The procedure of “tabling” is defined: an item subject to tabling will be considered abandoned at the end of the next regular Council meeting. An agenda item may be “postponed indefinitely” and reintroduced within six months. (Legistar)
- Expanded rules explain that Council’s new annual travel budget – $5,000 per member, per year – can be used for international as well as domestic travel. Neither the Mayor nor anyone else will “approve” reimbursements. Council will monitor and regulate itself: “City staff’s role in processing reimbursements shall be ministerial and Council shall be responsible for monitoring and regulating Council member reimbursement requests.”
- An annual travel budget for Council Members was first approved in May 2024, to be available beginning July 1, 2024. In April 2023 – one year before this money was budgeted/available – Council Member Travis Radina received a reimbursement of $2,211.45 from the City, to pay his airfare to join a “Sister City” trip to Tuebingen, Germany.
APPROVED (First Reading): An ordinance referring to the local gas franchise with DTE will be amended, defining a shorter commitment. (Legistar)
- As explained in the Legistar text: “Rather than lasting 30 years like a typical gas franchise, this franchise only lasts until 2035, signaling to DTE Gas, developers, and residents that the City is exploring alternatives for heating that better align with A2ZERO goals (geothermal, electric heat pumps, etc.). This does not mean the City could not choose to enter another franchise with DTE Gas (or another utility) at the end of this franchise term, but another franchise is not guaranteed.”
- As part of the terms of the agreement, DTE will fund $500,000 in grants to landlords making energy efficiency improvements. DTE will also invest in physical offices of the Local UA 190 Plumbers and Pipefitters union and make direct payments to two other labor unions: $50,000 per calendar year for three years to Local UA 190 and another $50,000 per calendar year for three years to Local UWUA 223.
- DTE commits to generally “collaborate” and “reasonably support” and “reasonably assist” and “reasonably work together” and “reasonably pursue” various projects with the City. In reference to one initiative, the agreement includes explanation: “DTE will determine in its sole discretion, the level of financial support.”
- A2ELNEL: Money Back & Forth: Elected Leaders & Labor Unions
- https://www.mlive.com/news/ann-arbor/2025/04/dte-can-provide-gas-service-in-ann-arbor-until-2035-under-new-climate-action-deal.html
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