Ann Arbor City Council: February 2, 2026

Feb 2, 2026 | City Council

Arbor South | Brownfield | DDA | ICE | Renters

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.

CM Cornell was absent

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Ann Arbor City Council Meeting Summary

APPROVED: A brownfield plan will divert tax incremental financing (TIF) of an estimated $345,054,904 or not in excess of $373,825,905 with administrative fees to support the development of “Arbor South” at State and Eisenhower. The TIF will be diverted for the maximum timeframe: 30 years, through 2057. (Legistar)

  • Council Members Dharma Akmon and Erica Briggs were the only votes of dissent.
  • This item was postponed from the January 20, 2026 Council Meeting. https://a2council.com/ann-arbor-city-council-january-20-2026/
  • Of the total TIF, about $184,866,844 will fund parking structures and $160,188,060 will fund off-site sanitary sewer trunklines and interceptor, water, storm sewer, bus rapid transit stop, pedestrian improvements and other utilities. An estimated $2 million will be used to remediate a gas station on-site.
  • The developers of Arbor South have declared a private investment of $406,000,000.
  • This plan was posted and removed from two Council agendas in November 2025. Previously, it was presented together with a public private partnership agreement that committed the City to issue $166,390,000 in public bonds to purchase land and three parking decks from the developer.
  • This week, the brownfield plan for Arbor South was presented separately, without the public private partnership (PPP).
    The updated brownfield plan still refers to the PPP as likely or inevitable, referring to “an anticipated municipal bond issuance should the City of Ann Arbor chose (sic) to participate as such at a future date.” Without the benefit of the PPP, commitments to build affordable housing shift. The November brownfield plan describes the delivery of up to 215 affordable units “prior to delivering any market rate units.” That language is removed in the new plan.
  • The brownfield plan for Arbor South will allow tax incremental finance (TIF) greater than 20% of overall investment. According to City Brownfield Policy criteria, the tax increment finance should not exceed 20% of overall project investment.
  • In answer to questions about this criteria (link), staff explained that the brownfield TIF for Arbor South is 56% of total investment.
  • When the Arbor South brownfield plan was presented together with the PPP agreement, a staff memo explained that the 20% limit on brownfield reimbursement was applicable “where a public entity does not have a direct financial role.” Staff implied that the limit did not apply because the project was “unique” due to the public private partnership.
  • Without the added context of that public private partnership, staff language shifted. A staff memo refers to brownfield award criteria – which, according to City policy, “must be met” – in the past tense, as “an effective benchmark for prior projects.”
  • https://www.mlive.com/news/ann-arbor/2026/01/ann-arbor-officials-still-not-sold-on-major-development-deal-as-details-become-less-clear.html
  • https://www.mlive.com/news/ann-arbor/2026/02/tax-capture-deal-for-ann-arbor-development-gets-councils-8-2-ok.html

APPROVED: A development agreement for Arbor South at 2845 South State will permit a downtown-style development of 14 new buildings: a hotel, apartment and condominium buildings, some with ground floor retail uses, restaurant/commercial buildings, and parking structures. The 23.5 acre site includes existing buildings at 777 and 789 E. Eisenhower Parkway. The agreement includes requirements for basic infrastructure: water main, sanitary sewer, stormwater management, streetlights, and sidewalks. (Legistar)

  • The agreement refers to a “Letter of Intent” between the developers of Arbor South and the City’s housing commission. The developer agrees to “negotiate in good faith with the Ann Arbor Housing Commission” toward the development of affordable housing, offering a commitment of $10.500,000 in “value” (at least $7,500,000 in money). If efforts fail, the developer will make a payment in lieu of $18,900,000.
  • The agreement further commits the developer to provide “traffic mitigation measures” including a signalized intersection on State Street and whatever other measures are deemed necessary by a traffic study. The developer will also provide a bike lane on Boardwalk (Oakbrook to Eisenhower) and drought-tolerant landscaping. The agreement includes commitments for  a bus “superstop” with shelter and seating, capacity for multiple buses, near-level boarding platforms, and real-time information and accessibility features. 
  • Developers of Arbor South held a public engagement meeting on January 9, 2024. https://a2council.com/777-e-eisenhower-oxford-resident-participation-meeting-january-9-2024/
  • The City Planning Commission approved the site plan for Arbor South on June 17, 2025. https://a2council.com/ann-arbor-city-planning-commission-june-17-2025/

APPROVED: An ordinance amendment regulates optional tenancy fees that are reasonably avoidable by the tenant, such as parking fees, pet fees, and lock-out fees. It also bans separate, mandatory tenancy fees. Any mandatory tenancy fee – one that cannot be avoided by the tenant – must be disclosed and advertised as part of the base rent. All optional tenancy fees must also be disclosed, listed on the first page of the lease agreement or clearly in one place as an addendum. A landlord cannot charge parking fees if the tenant has not agreed to use parking amenities. (Legistar)

APPROVED (First Reading): 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)

  • Second reading will happen in April 2026, giving other taxing entities an opportunity to “opt out.”
  • 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.
  • 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

APPROVED: By resolution, Council “does not authorize” the use of City resources, funds, or personnel to assist in civil immigration enforcement. City-owned lots cannot be used for staging civil immigration enforcement— within 90 days, the City Administrator is directed to add signage, key cards and locked gates to City lots and garages to limit access, where feasible. (Legistar)

APPROVED: A resolution declares a traffic hazard and removes a curb cut on Ann Street, at the corner of Main (201 N Main). This corner is currently the site of a liquor store with curb cut access via Ann. Their small parking lot frequently hosts a food truck. (Legistar)

  • Legistar attachments include a document from 1958, describing how curb cuts at this property may or may not be permitted by City officials. The Downtown Development Authority has plans for improvement to Ann Street that will eliminate all curb cuts for off-street access to this property. Finalized plans for that project can be found at this link: https://engage.a2gov.org/annstreet-improvements

APPROVED (First Reading): Nine parcels at 554, 558 South Fifth Avenue; 201, 211 and 215 East Madison Street; 543, 547, 551, 553 South Fourth Avenue (one acre, total) will be rezoned from R4C (Multiple-Family Dwelling) and M1 (Limited Industrial) to D1 (Downtown Core), with conditions. The rezoning was requested by the developers of “The Dean”, a proposed 14-story residential building. Developers have offered the condition of a 10 foot setback from adjacent residential zoning. (Legistar)

A2ELNEL Voting Chart

Ann Arbor City Council Voting Chart for February 2, 2026

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