Title
Resolution to Approve an Agreement with the Downtown Development Authority for the Fourth Avenue Reconstruction Project and to Appropriate $2,188,032.00 in Contributing Funds (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution to authorize an agreement with the Ann Arbor Downtown Development Authority (“DDA”) for the City’s participation in construction costs for the Fourth Avenue Reconstruction (from E. William to E. Liberty, inclusive of the Liberty intersection).
The City and DDA collaborated in the design and preparation of plans for streetscape improvements, road reconstruction, water main replacement, intersection improvements, transit enhancements, and storm water management as part of the DDA’s upcoming Fourth Avenue Reconstruction project.
Construction for this project is scheduled to begin in the spring of 2026.
Construction cost responsibilities for different portions of the work were discussed with the DDA, and these percentages were used as a basis to determine the respective amounts that each party will pay for the construction of the project. The DDA will have the contractual relationship with the Contractor, and the City will reimburse the DDA for its portion of the construction phase costs. The attached document outlines the terms of the agreement between the City and the DDA to complete the work described above. The City’s share of the projects includes a portion of the road reconstruction, watermain, and storm work.
DDA and AAATA project funding includes $1.2 million in grant funding for transit and placemaking - $800,000.00 through the MEDC Revitalization and Placemaking Grant plus $400,000.00 through the MDOT Safe Streets and Spaces Grant. Additionally, the Fourth Avenue Project is serving as matching funds for the MEDC Michigan Talent Partnership Grant, leveraging $4.3 million for transit and housing to be implemented with the Housing Commission’s 350 S. Fifth Avenue Project and The Ride’s Blake Transit Center expansion.
Budget/Fiscal Impact: The City’s Capital Improvement Plan includes projects related to the Fourth Avenue Reconstruction Project (OI-26-05, UT-WS-24-17, and UT-ST-25-03). The City’s portion of the cost allocation for this contract is an estimated as follows:
Fund Amount
Street, Bridge, and Sidewalk Millage Fund $ 81,000.00
Water Supply System Fund $1,104,000.00
Stormwater Fund $1,121,000.00
Sewage Disposal Fund $ 27,000.00
TOTAL $2,333,000.00
Staff
Prepared by: Nick Hutchinson, P.E., City Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City’s Capital Improvement Plan includes projects OI-26-05, UT-WS-24-17, and UT-ST-25-03 for the Fourth Avenue Reconstruction Project;
Whereas, The City and the Downtown Development Authority (“DDA”) agreed it would be beneficial in collaborating on the design of the infrastructure improvements;
Whereas, The DDA solicited an RFP for the construction of the project and will have the contractual relationship with the contractor;
Whereas, The City and DDA have drafted the attached cost-sharing agreement for the construction phase of the project; and
Whereas, The DDA will pay the contractor and will invoice the City for its share of the construction phase costs as detailed in the attached Agreement;
RESOLVED, That City Council approve the attached Agreement with the Ann Arbor
Downtown Development Authority for responsibilities and cost allocations for the construction of the Fourth Avenue Reconstruction Project;
RESOLVED, That $1,080,819.00 be appropriated from the Stormwater Fund Capital Budget to the Fourth Avenue Reconstruction Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $27,000.00 be appropriated from the Sewage Disposal Fund Capital Budget to the Fourth Avenue Reconstruction Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That $1,080,213.00 be appropriated from the Water Supply System Fund Capital Budget to the Fourth Avenue Reconstruction Project, thereby increasing the project revenue and expenditure budgets;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said agreement after approval as to form by the City Attorney and approval as to substance by the City Administrator; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution and to approve amendments to the agreement within the project budget.