Title
Resolution to Approve the First Amendment to Southtown Development Agreement (1601 S State St)
Memorandum
This resolution will approve additional components to the Southtown Development Agreement between the City of Ann Arbor and South Town by 4M LLC, the developer of a site planned project to construct a 246,670-square foot building having two multi-story towers.
The development includes commercial and residential amenity space on the ground floor, 216 apartments on upper floors and a 54-space vehicle parking garage within the building podium. The project was originally planned to use DTE Electricity as the sole utility provider for the building, using DTE Gas service to only power its on-site emergency back-up internal combustion generator when the DTE Electricity grid was down. The project now intends to operate an on-site fuel cell to generate its own electricity. Fuel sources for the fuel cell include renewable natural DTE Gas (RNG).
Additional components to the Development Agreement are proposed to address operating and maintaining a continuous microgrid at 60-75% less carbon intensity than DTE Electric, as required by the separately petitioned amendment to the Southtown Conditional Zoning Statement of Conditions.
A Development Agreement requires approval by City Council. The First Amendment to the Southtown Development Agreement provides the operations, fuel sources, transitions, and penalties related to operating and maintaining a continuous microgrid from on-site fuel cells.
Ordinance 23-24, rezoning the block bounded by South State Street on the west, Henry Street on the north, White Street on the east, and Stimson Street on the south, from R4C (Multiple-Family Dwelling) to C1A/R With Conditions (Campus Business Residential) and incorporating the Southtown Conditional Zoning Statement of Conditions, was approved by City Council on September 5, 2023 and became effective on September 24, 2023. Resolution 23-325 approving the 1601 S State "S...
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