Title
Resolution to Approve Purchase of Greenbelt District Land and Appropriate $766,517.00 for Purchase of Fee Title to the James R. Gysel Property (8 Votes Required)
Memorandum
To address farmland ownership, succession, and inequity challenges, conservation agencies have been working to ensure that land stays in the hands of farmers through Buy-Protect-Sell (BPS) transactions that directly facilitate affordable farmland access opportunities in their communities. Please refer to staff’s February 22nd, 2022 “Greenbelt Buy-Protect-Sell Framework” memo for detailed information on BPS transactions. This resolution approves the purchase of a 15.01-acre parcel as the Greenbelt Program’s third BPS project.
This resolution approves the purchase of fee title to approximately 15.01 acres of land owned by James R. Gysel, located in Salem Township. This property is adjacent to the 375-acre Hamilton conservation easement held by the City’s Greenbelt program, adding to a significant contiguous block of protected land within the Greenbelt District.
Once acquired, the 15.01-acre parcel will be held by the City until a Request for Proposals is developed by City staff and released to the public. The RFP process would mirror the process developed and implemented for the City’s prior Buy-Protect-Sell projects. Once a buyer is selected, an outsale of the protected property will generate proceeds to the Open Space & Parkland Preservation millage fund balance, and those proceeds would be earmarked for use again within the Greenbelt District. Upon sale, the City would retain a perpetual conservation easement on the property. Staff anticipate this parcel creating one new affordable farmland purchasing opportunity, adding to the City’s portfolio of work addressing farmland ownership, succession, and inequity challenges in the region.
Due to the unpredictable nature of real estate markets, City staff is seeking authorization to execute a purchase agreement that includes a due diligence period in which an appraisal will be secured. The final purchase price for the property will be determined by that appraisal and may be less than the amount authorized by this resolution. Staff believe the recommended appropriations within this resolution will cover the value determined by an appraisal, though it is not anticipated that the full funding amount appropriated will be utilized.
James R. Gysel Property, Salem Township
The property is approximately 15.01 acres with access from Brookville Road. It is comprised of approximately 10 acres of tillable farmland and associated farm structures, and approximately 5 acres of woodland. Based on feedback staff received throughout the first Buy-Protect-Sell RFP process, this 15.01-acre property is a highly sought after size for new and beginning farmers looking to secure affordable farmland access. As well, the presence of an existing home on the parcel addresses one of the primary concerns many land insecure farmers have voiced since the Greenbelt has been utilizing this Buy-Protect-Sell framework, which is that most farmers want to live on the land where they work. This parcel addresses both the priority acreage and residential amenity concerns voiced by many land insecure farmers in our region.
The not-to-exceed purchase price authorized by this resolution is a reasonable maximum projected valuation. The purchase agreement would secure a due diligence period for an appraisal, and the final purchase price would be limited to the appraised valuation even if it is less than the authorized purchase price. The City’s purchase and conservation of the property will be funded by the City’s Open Space and Parkland Preservation Millage proceeds.
Approval of this Buy-Protect-Sell purchase was recommended by the Greenbelt Advisory Commission at their October 1, 2026 meeting. The Greenbelt Advisory Commission recommended the purchase due to the site suitability for continued agricultural production and diversification, adjacency to approved conservation acquisitions, soil quality, and the opportunity to continue work addressing farmland access and affordability within the Ann Arbor Greenbelt District.
Project Budget
Fee Simple Acquisition
Not-to-Exceed Purchase Price: $697,650.00
Other Costs
Estimated Due Diligence: $30,000.00
Estimated Closing Costs: $15,000.00
Endowment: $23,867.00
Total Other Costs: $68,867.00
Appropriation of Funds Needed at Closing
Not-to-Exceed Purchase Price: $697,650.00
Other Costs: $68,867.00
Total Funds Needed at Closing: $766,517.00
Staff
Prepared by; Remy Long, Deputy Manager - Parks & Recreation Services
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, James R. Gysel has offered to sell approximately 15.01 acres of property located in Salem Township, as depicted on the attached map (tax parcel A -01-29-100-006) (“James R. Gysel Property”);
Whereas, Chapter 42 of Ann Arbor City Code authorizes the purchase of a land and conservation easements with Open Space and Parkland Preservation Millage proceeds, of which there are sufficient funds for this purchase;
Whereas, The fair market value of the property will be determined by an appraisal as required by Section 1:321 of Ann Arbor City Code;
Whereas, The purchase price for the property will not exceed the appraised value; and
Whereas, At its October 1, 2026 meeting, the Greenbelt Advisory Commission recommended purchase of the James R. Gysel Property;
RESOLVED, That City Council approves the purchase of the James R. Gysel Property contingent upon the City receiving an appraisal of the property equal to or less than $697,650.00 and the City’s completion of appropriate due diligence on the property, including review of the appraisal, purchase documents, title work, environmental assessments, and surveys, as appropriate;
RESOLVED, That $766,517.00 is appropriated from the Open Space and Parkland Preservation Millage proceeds for the purchase of the James R. Gysel Property, for the life of the project, without regard to fiscal year;
RESOLVED, That the Mayor and City Clerk are authorized and directed to execute a purchase agreement for purchase of the James R. Gysel Property, after approval by the City Attorney and City Administrator; and
RESOLVED, That the City Administrator is authorized to take all appropriate actions to implement this resolution, including the determination of satisfactory due diligence, exercise of all determinations and authority delegated to the City under any agreement, and the execution and management of ancillary or related documents, instruments, and agreements after approval by the City Attorney.
Sponsored by: Councilmembers Mallek and Radina