Ann Arbor City Council: July 7, 2025

Jul 7, 2025 | City Council

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: The City Administrator is directed to negotiate the issuance of public bonds to fund parking decks at Arbor South, a private development at State and Eisenhower. The resolution originally proposed that the bonds be issued prior to the construction of three decks. The public bonds would be paid back from tax revenue generated by the Arbor South development, via a special assessment district. (Legistar)

  • At the July 7th meeting, City Council approved an amendment to clarify that the City would issue bonds only after the developer of Arbor South had financed the first of the three parking decks. The City would issue bonds prior to the construction of two additional decks only after the construction of the first.
  • In November 2024, City staff reported that construction of these parking decks would cost the City a total of $104.3 million. In January 2025, consultants reported that the City would commit a total of $146 million in public bonds to finance them.
  • To the extent that the arrangement might conflict with City ordinances, Council directs the City Administrator to recommend amendments to the city code. The city code (link) describes how the City can support local public improvements when the improvements confer a special benefit on specific parcels rather than the City at large. Chapter 12, section 1:277 allows for “Construction by agreement” — a property owner can request City support “for the construction of any local public improvement…where the cost of such construction is to be privately financed.”
  • The Michigan State Constitution includes this clear language (link): “Except as otherwise provided in this constitution, no city or village shall have the power to loan its credit for any private purpose or, except as provided by law, for any public purpose.”
  • On June 16, 2025, City Council approved up to $175,000 in consulting fees for due diligence on a City subsidy of parking decks at Arbor South. https://a2council.com/ann-arbor-city-council-june-16-2025/
  • This week, a staff memo included in the Legistar item explains that if the City borrows the money, the parking decks will be less expensive: “requiring the developer to finance construction, the resulting difference in costs to the City are estimated to be $30.6 million, due to higher private interest rates that the developer will incur and then pass to the City, as compared to municipal bond financing”
  • In January 2024, the developers held a resident participation meeting for Arbor South https://a2council.com/777-e-eisenhower-oxford-resident-participation-meeting-january-9-2024/
  • https://www.mlive.com/news/ann-arbor/2025/07/massive-taxpayer-subsidy-for-big-development-has-ann-arbor-council-divided.html

In November 2024, I made a video about the Arbor South parking deck proposal:

APPROVED: A consulting contract for $599,871 will provide a Transportation Study of North Main Street, from Huron to M-14. This roadway is not currently under the control of the City, but rather the Michigan Department of Transportation (MDOT). (Legistar)

  • At a June 2024 work session, Council discussed taking control of North Main and other MDOT roadways in the city (Huron, Jackson, and Washtenaw). Staff explained that under City control, the State would not provide enough money to pay for ongoing maintenance of these roads.
  • In August 2024, City Council directed the City Administrator to pursue negotiations with MDOT in order for the City to take over North Main, Huron, Jackson, and Washtenaw. https://a2council.com/ann-arbor-city-council-august-8-2024/
  • This week’s contract for a transportation study was solicited through a Request for Proposals (RFP 25-08, February 2025).
  • The City-issued RFP includes this explanation in the “Scope of Services”: “Redevelopment along the corridor can be expected as part of the city’s Comprehensive Master Plan update currently underway, which seeks to add increased housing density and associated land use and zoning changes. Demand for travel options along this corridor will need to be addressed as the land use changes create more opportunity for mode shift.”
  • https://www.mlive.com/news/ann-arbor/2025/07/600k-study-to-take-fresh-look-at-reimagining-ann-arbors-north-main-street.html

APPROVED: Bylaws clarify the structure and function of operations for a new Sustainability Commission, which replaces the Environmental Commission and Energy Commission eliminated at the City Council meeting on June 16, 2025. (Legistar)

  • At the July 7th Council Meeting, the proposed bylaws were amended to increase public speaking time to 3 minutes and add a Public Comment period at the end of Commission meetings. As originally proposed, the bylaws allowed for only 2 minute public comments and only at the beginning of commission meetings.
  • The Sustainability Commission will be directed by City staff and the the bylaws include specific clarification: “The Sustainability Commission’s work shall be guided by an annual work plan provided by the City Office of Sustainability and Innovations in coordination with the Public Services Area. The work plan will set the specific, annual goals of the Sustainability Commission, with clear metrics established to not only determine progress towards these goals but also articulate how success for each metric will be determined.”
  • Prior to its elimination, the last act of the Environment Commission was a resolution (Legistar) asking City Council to direct more careful consideration and protection of natural features in updates to the Comprehensive Land Use Plan. Liaisons to the Environmental Commission – Council Members Cornell and Mallek – did not bring the resolution to Council for a vote.

APPROVED: Two grant agreements will create “Resilience Hubs” with funds from the Sustainability and Innovations Unit. These projects anticipated the use of federal funds through an EPA program. The City recently learned that this federal funding was cancelled. (Legistar) (Legistar)

APPROVED: A site plan for 625 Church will permit the construction of a 20-story apartment building of approximately 180 units, 280,000 square feet of floor area and 195 feet in height. The development agreement includes a $113,125 contribution to City parks. (Legistar)

APPROVED: A development agreement for 303 Detroit Street will permit the conversion of office/commercial space to residential, adding one story to existing buildings in order to create 16 housing units. The agreement includes a voluntary $10,000 contribution to City parks. (Legistar)

A2ELNEL Voting Chart

Ann Arbor City Council Voting Chart for July 7, 2025 Part 1
Ann Arbor City Council Voting Chart for July 7, 2025 Part 1

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