Title
Resolution to Approve Amended Arbor South Development Agreement, 2845 S. State St. Site Plan (SP24-0011)
Memorandum
This resolution will approve an amendment to the approved Arbor South Development Agreement between the City of Ann Arbor and Eisenhower State Land Development Company, LLC, to extend the deadline date for a first application for a LIHTC loan from March 1, 2026 to March 1, 2027.
The Eisenhower State Land Development Company, LLC is the developer of Arbor South, which received site plan approval to construct 14 new buildings in a downtown-style development around two existing buildings at 777 and 789 E Eisenhower, including a hotel, apartment buildings (most with ground-floor retail uses), restaurant and retail buildings, and parking structures on June 17, 2025, subject to entering into and satisfying all terms of a development agreement.
The Arbor South Development Agreement was approved by City Council on February 2, 2026, but has not yet been signed. The agreement contains a variety of provisions related to constructing and maintaining off-site improvements necessitated by the project, unique obligations because of the nature of the development, granting certain easements, and typical statements related to review and approval procedures.
Specifically, paragraph P-28 of the Arbor South Development Agreement reinforces and expands upon the separate Arbor South Brownfield Plan with an agreement by the Developer to create a joint venture with the Ann Arbor Housing Commission to develop and finance affordable housing as part of the Arbor South project including executing an Affordable Housing Development Agreement. Among the terms in paragraph P-28 is that the Affordable Housing Development Agreement require for the first application for a LIHTC loan to be made by March 1, 2026.
Although the Arbor South Development Agreement was drafted in anticipation of approval in Fall 2025, it was not approved until February 2, 2026. The referenced joint venture between the Developer and the Ann Arbor Housing Commission has not yet been created nor its Affordable Housing Development Agreement executed. The terms of P-28 as approved will therefore not be met and the developer and the Ann Arbor Housing Commission have requested an amendment to change this deadline. Given the steps needed to create the joint venture, the rolling MSHDA deadline schedule, and other known projects also competing for LIHTC loans, staff believe a one-year extension is reasonable.
Attachments: Arbor South Development Agreement-Amended
Staff
Prepared by: Alexis DiLeo, Principal Planner
Reviewed by: Brett Lenart, Planning Manager
Derek Delacourt, Community Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Arbor South Development Agreement was approved by City Council on February 2, 2026 but has not yet been executed; and
Whereas, The developer and the Ann Arbor Housing Commission have requested that paragraph P-28 of the agreement regarding the deadline for the submission of the first LIHTC application be amended to change March 1, 2026 to March 1, 2027;
RESOLVED, That the Mayor and City Clerk are authorized and directed to sign the Arbor South Development Agreement as amended by this resolution, in substantially the form attached, after approval by the City Administrator and City Attorney; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution and the development agreement, including execution of all related agreements contemplated under the development agreement after approval by the City Attorney, and the exercise of all determinations and authority delegated to the City under the development agreement and all related agreements.