Title
Resolution to Approve a Cost Share Agreement ($1,960,484) with the City of Ann Arbor for the Ann Street Improvements Project.
Memorandum
Attached for your review and approval is a resolution to authorize an agreement with the City of Ann Arbor to participate in construction costs for the Ann Street Improvements Project (from First St to Fifth Ave).
The DDA and City collaborated in the design and preparation of plans for the Ann Street Improvements project. The Ann Street Improvements Project includes the following elements and (funding sources):
• Water main replacement due to age and undersized (City Water Funds)
• Stormwater improvements (Stormwater Funds)
• Road resurfacing, curb replacement and bump outs (City Street Funds)
• Streetscape improvements in the amenity zone from Ashley Street to Fifth Avenue, including new and replaced streetlights, brick pavers, tree grates, benches, and some curb bump outs (DDA TIF Fund)
• A fully ADA accessible on-street parking space and approach, mid-block crosswalk, and sidewalk replacement of the Ann Street entrance to the Ann-Ashley parking structure (Parking Fund)
• 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 City, 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 City will have the contractual relationship with the Contractor, and the DDA will reimburse the City 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.
Budget/Fiscal Impact: The DDA’s portion of the cost allocation for this contract is an estimated $1,960,484.00 (DDA Construction Cost attached)
Staff
Prepared by: Amber Miller, Capital Projects and Planning Manager
Body
Whereas, the Ann Arbor Downtown Development Authority’s (“DDA”) 2026-2035 Development Plan and the City of Ann Arbor’s Capital Improvements Plan identified Ann Street as a priority capital project;
Whereas, The DDA’s portion of funding for the project is included in the approved capital budgets of the DDA TIF Fund and DDA Parking Fund;
Whereas, The City solicited an RFP for the construction of the project;
Whereas, Following the RFP process, the City is preparing to enter into a contract with Bailey Excavating, Inc.;
Whereas, The City and DDA have drafted the attached cost-sharing agreement for the construction phase of the project; and
Whereas, The City will pay the contractor and will invoice the DDA for its share of the construction phase costs as detailed in the attached Agreement;
RESOLVED, That the DDA Board approves the attached Agreement with the City of Ann Arbor for responsibilities and cost allocations for the construction of the Ann Street Improvements Project;
RESOLVED, That a project budget of $1,960,484 be established for the Ann Street Project, with $1,767,869 from the DDA TIF Fund and $192,615 from the DDA Parking Fund
RESOLVED, That the Executive Director be authorized and directed to execute said agreement after approval as to form by the DDA Attorney; and
RESOLVED, That the DDA Executive Director be authorized to take the necessary administrative actions to implement this resolution and to approve amendments to the agreement within the project budget.