Title
Resolution to Approve a Brownfield Plan for Townie Homes at 1780 and 1788 Scio Chuch Road, 225 and 235 South Wagner Road, 1535, 1563, 1565 and 1567 South Maple Road, and 1288 and 1369 Jewett Avenue
Memorandum
The proposed resolution would approve a Brownfield Plan for 10 contiguous and non-contiguous parcels to support the development of 26 single family homes and accessory dwelling units. The targeted sales prices for these homes are intended to address the lack of housing for households earning between 30% and 90% of the Area Median Income. Projected sale prices range from $125,000 to $350,000, which correlates to these income levels. Median home sales in Ann Arbor are approximately $600,000.
Construction costs for these homes exceed the proposed sale prices, so tax increment generated by the new homes can be used to reimburse the developer for eligible planning and construction costs. This reimbursement structure allows the homes to be offered at price points affordable to lower- and middle-income buyers.
Unlike most Brownfield Plans, where the project as proposed would not be feasible without the use of tax increment financing, these homes could likely be built without financial support. However, the resulting sale prices would not be affordable to the intended income groups. The Townie Homes program therefore offers a creative and targeted approach to meeting the community’s affordable housing goals for a housing type that is in high demand yet difficult to deliver at an affordable level. A similar scattered site residential Brownfield Plan was approved in Muskegon, Michigan in 2019.
The development will be undertaken by the Ann Arbor Community Land Trust. Total private investment is approximately $9,900,000. Total eligible costs are $5,063,781. These costs include public infrastructure at 27%, demolition and site preparation at 9%, general conditions and project management at 5%, contingency at 5%, a housing subsidy at 52%, and plan preparation at 2%. A portion of the tax increment will also fund state programs and Brownfield Authority administration.
The Plan anticipates a capture period of 30 years, after which all new tax revenue will be distributed to the underlying taxing units.
Attached are the Brownfield Plan and the staff report. A Reimbursement Agreement describing the terms for allocating tax increment will be brought to City Council for separate approval.
Staff recommends approval of this resolution.
Staff
Prepared by: Joseph R. Giant, Director of Economic Development
Reviewed by: Derek Delacourt, Community Services Area Administrator
Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Ann Arbor Community Land Trust has requested approval of the Townie Homes Brownfield Plan (the “Plan”) for the properties located at 1780 and 1788 Scio Chuch Road, 225 and 235 South Wagner Road, 1535, 1563, 1565 and 1567 South Maple Road, and 1288 and 1369 Jewett Avenue in order to pursue tax increment financing through the Washtenaw County Brownfield Redevelopment Authority;
Whereas, The Washtenaw County Board of Commissioners established the Washtenaw County Brownfield Redevelopment Authority (“WCBRA”), which facilitates the implementation of plans relating to the identification and treatment of environmentally- distressed areas within the County of Washtenaw pursuant to the Michigan Brownfield Redevelopment Financing Act, Public Act 381 of 1996 (“Act”);
Whereas The Act requires explicit consent of each local unit of government included in the WCRBA, which the City of Ann Arbor joined by resolution R-35-1-02;
Whereas, The project is eligible for tax increment financing because it meets the statutory definition of a housing property located in a community that has identified a specific housing need and has provided absorption or job growth data within the Brownfield Plan, as required by the Act;
Whereas, Any reimbursement by the WCBRA based on an approved Plan is limited to actual eligible expenses incurred in accordance with the Act;
Whereas, The burden is on the development to construct the project and pay taxes in order for tax capture and reimbursement to occur;
Whereas, The City is not liable for any costs associated with the project if the project is not built or if it fails to achieve the estimated taxable value;
Whereas, Neither the initiation of the review process by the WCBRA nor the City’s consideration or recommendation of the Plan constitutes a guarantee that the Plan will be approved by the Washtenaw County Board of Commissioners, the Michigan Department of Environment, Great Lakes, and Energy (EGLE), the Michigan Strategic Fund (MSF), or that any financial incentives will be awarded;
Whereas, The City Council held a public hearing on December 1, 2025 to receive public comment on the Plan;
RESOLVED, That City Council hereby approves the Townie Homes Brownfield Plan dated November 6, 2025; and
RESOLVED, That the City Clerk is directed to submit a copy of this resolution to the Washtenaw County Board of Commissioners as documentation of the City’s consideration and concurrence with the Plan.