Title
Resolution to Approve a Brownfield Plan for the University Inn Redevelopment Project at 2424 East Stadium Boulevard
Memorandum
This resolution would approve the Brownfield Plan for the University Inn Redevelopment Project at 2424 East Stadium Boulevard. The approximately 4.43-acre site, located south of the intersection of Stadium and Washtenaw, would be redeveloped from a former motel and office buildings into a high-density, all-electric residential development consisting of 295 apartments in a six-story building and 12 townhomes, for a total of 307 housing units and approximately $135.4 million in private investment. The Planning Commission approved a site plan for the project in July 2026.
The project would be the first multifamily development in Ann Arbor to utilize MSHDA’s Housing Tax Increment Financing (TIF) program under the 2023 expansion of Act 381 eligible activities. The Brownfield Plan identifies $29,763,724 in eligible project costs reimbursable to the developer, including $23,048,235 for site preparation, environmental due care, infrastructure, and the multifamily parking structure, and $6,715,489 in reimbursable financing interest.
The Plan also includes $5,500,000 for City-led improvements to the Stadium / Washtenaw intersection, including up to $500,000 for study and design.
In addition, the Plan authorizes $10,687,936 in required Washtenaw County Brownfield Redevelopment Authority (WCBA) administrative fees and revolving fund deposits. Tax capture is projected over approximately 17 years, including 12-13 years for developer reimbursement, approximately two years for City infrastructure improvements, and three years for Local Brownfield Revolving Fund capture. The resolution establishes a maximum capture period of 19 years to provide flexibility for future conditions.
The redevelopment advances several City priorities by adding housing along a high-frequency transit corridor near jobs, services, and existing infrastructure, while supporting the continued evolution of the Stadium/Washtenaw corridor into a more compact, walkable, mixed-use area. Under MSHDA’s Housing TIF requirements, 62 units will be income-restricted, including seven studio apartments reserved for households earning no more than 80% of Area Median Income. The developer will also contribute more than $2.5 million to the City’s Affordable Housing Fund to support deeper and longer-term affordability elsewhere in the community.
Following approval by the City, the Brownfield Plan will proceed to the WCBRA for recommendation and the County Board of Commissioners for adoption before being packaged as an Act 381 MSHDA Housing Brownfield Plan for state approval.
Budget / Fiscal Impact: Approval of the Brownfield Plan does not create an upfront City expenditure or direct financial obligation. The developer advances the full project cost and is reimbursed solely from future incremental property tax revenues generated by the project. Existing property tax revenues based on the initial taxable value continue to flow to taxing jurisdictions throughout the capture period. Upon completion of the Plan, the project is estimated to generate approximately $3.0 million in new annual property tax revenue, a significant increase from the approximately $48,000 generated today.
Staff
Prepared by: Joseph R. Giant, Director of Economic Development
Reviewed by: Milton Dohoney Jr., City Administrator
Christopher Frost, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The developer of the University Inn Redevelopment Project has requested approval of the attached brownfield plan (“Plan”) to support site redevelopment through the Washtenaw County Brownfield Redevelopment Authority (the “WCBRA”) under the MSHDA Housing Tax Increment Financing program;
Whereas, The Washtenaw County Board of Commissioners established the WCBRA to facilitate the implementation of plans relating to the identification and treatment of eligible properties in the county, pursuant to and in accordance with the provisions of the Brownfield Redevelopment Financing Act, being Act 381 of the Public Acts of 1996 of the State of Michigan, as amended (“Act 381”);
Whereas, Act 381 requires the explicit consent of each local unit of government included in the WCBRA, which the City of Ann Arbor granted by Resolution R-35-1-02;
Whereas, The property located at 2424 E. Stadium Boulevard included in the Plan has been determined to qualify as a “facility” as defined under Part 201 of NREPA and a “housing property” as defined under Act 381;
Whereas, Any reimbursement by the WCBRA based on an approved Plan shall be limited to actual eligible expenses incurred in accordance with Act 381;
Whereas, The developer is responsible for advancing the costs of the project and eligible activities, constructing the project, and generating the tax increment necessary for reimbursement to occur;
Whereas, The City is not obligated to reimburse project costs from its General Fund or other City revenues if the project is not constructed, does not generate the anticipated tax increment, or otherwise 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 or other government agency, or that any financial incentives will be awarded;
Whereas, City Council held a public hearing on October 19, 2026, to receive public comment regarding the Plan;
RESOLVED, That City Council waives the City’s Brownfield Policy provision regarding interest as an eligible reimbursable expense because interest reimbursement will help offset the cost of financing eligible activities, which have increased materially since the Policy was adopted in 2019;
RESOLVED, That City Council waives the City’s Brownfield Policy provision limiting developer-reimbursable TIF to 20% of private investment because substantially higher borrowing costs, construction costs, and other development expenses since the Policy was adopted in 2019 have materially affected project feasibility, resulting in developer-reimbursable TIF of approximately 22% of the total investment;
RESOLVED, That City Council approves the Brownfield Plan for the University Inn Redevelopment Project, dated September 29, 2026;
RESOLVED, That the tax capture period shall be the first to occur of 19 years following the start date of tax capture or a maximum total tax capture of $46,081,660 (which includes eligible activity reimbursements to the developer and City of Ann Arbor, WCBRA administrative fees, State Brownfield Redevelopment Fund deposits, and Local Brownfield Revolving Fund deposits); 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 Brownfield Plan for the University Inn Redevelopment Project.