Title
Resolution Authorizing Publication of Notice of Intent to Issue Capital Improvement Bonds to Fund a Portion of the Development of 350 S. Fifth Avenue as Affordable Housing (Not to Exceed $35,000,000.00) (6 Votes Roll Call)
Memorandum
Recommended for Council is a Resolution approving the publication of a Notice of Intent to Issue Capital Improvement Bonds (Limited Tax General Obligation) in the maximum principal amount of $35,000,000.00 for the purposes of financing part of the costs to develop affordable housing at 350 S. Fifth Avenue (the “Bonds”).
The purpose of this resolution is to authorize publication of a notice of intent to issue the Bonds to inform the electors and taxpayers of the City of Ann Arbor of the Bonds’ purpose and their right to petition for a referendum on the question of issuance of the Bonds. The City intends to issue the Bonds without a vote of the electors, but the Bonds will not be issued until 45 days after publication of this notice and until final approval and authorization by separate resolution by City Council.
The Ann Arbor Housing Commission, through its 501(c)(3), the Ann Arbor Housing Development Corporation, is co-developing the property at 350 S 5th with Related Midwest. The project is a twenty-story, mixed-use building located in the heart of downtown Ann Arbor. It will feature 330 units that will be targeted to low and moderate-income households (up to 80% of the Area Median Income) along with ground-floor retail and the expansion of the Blake Transit Center. The building will be all electric and net-zero ready, utilizing state-of-the art building technology to deliver strong environmental performance. A new permanent restriction will be recorded through a modified deed or a restrictive covenant which will require the greater of 100 units or 40% of the units to be restricted to households at 60% AMI or less.
The project is anticipated to cost over $200 million and has already secured the support of the Michigan State Housing Development Authority (“MSHDA”) for $100 million in tax exempt bonds, associated low-income housing tax credits, and HOME financing. Act 381 Transformational Brownfield Program funds, Housing Millage funds and the Capital Improvement Bonds will complete the financing of the construction activities. The development team intends to break ground in the spring of 2026.
Staff anticipates that the City of Ann Arbor will be responsible for repayment of the Bond proceeds, interest, and other related issuance costs through a portion of the City’s Affordable Housing Millage adopted in 2020. An Agreement committing the AAHC to expend and account for the proceeds of the Bonds on the Project is being prepared for consideration prior to City Council considering final approval of the Bond issuance.
The Bonds are secured by the City’s pledge of its limited tax full faith and credit, and are expected to be sold through a competitive public sale. The Bond Authorizing Resolution, to be considered at a later date, will authorize the City Treasurer to execute an Order awarding the Bonds to the lowest bidder based on the lowest true interest cost to the City. The Bond Authorizing Resolution will also authorize the Mayor, City Clerk, Chief Financial Officer and City Treasurer to execute and deliver all required documentation in connection with the issuance, sale, and delivery of the Bonds.
The City’s bond counsel, Miller Canfield, prepared the attached notice and resolution, with further review by the City Attorney.
Staff
Prepared by: Marti Praschan, Chief Financial Officer
Reviewed by: Michelle Landis, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
CITY OF ANN ARBOR
County of Washtenaw, State of Michigan
Minutes of a regular meeting of the City Council of the City of Ann Arbor, County of Washtenaw, State of Michigan, held on the ____ day of January, 2026, at 7:00 p.m., Eastern Standard Time.
PRESENT: Members
ABSENT: Members
The following preamble and resolution were offered by Councilmember __________ and supported by Councilmember __________:
WHEREAS, the City Council of the City of Ann Arbor (the “City”) intends to issue general obligation limited tax bonds pursuant to Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”), in one or more series, in an aggregate principal amount of not to exceed Thirty-Five Million Dollars ($35,000,000) (the “Bonds”) for the purpose of paying part of the costs to develop affordable housing units located at 350 S. Fifth Avenue (the “Project”); and
WHEREAS, it is proposed that the Bonds be limited tax general obligation bonds secured by a pledge of the City’s full faith and credit, subject to constitutional, statutory and charter tax rate limitations; and
WHEREAS, a notice of intent to issue bonds and of the right to petition for referendum thereon must be published at least 45 days before the issuance of the aforesaid Bonds in order to comply with the requirements of Section 517 of Act 34.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Clerk of the City (the “City Clerk”) is authorized and directed to cause a notice of intent to issue bonds to be published and prominently displayed once in The Washtenaw County Legal News, a newspaper of general circulation in the City. Said notice of intent shall be published as a one-quarter (1/4) page display advertisement in substantially the following form (the “Notice”) with such changes as the City Clerk shall deem necessary and appropriate, upon the advice of Miller Canfield as bond counsel:
[Form of Notice]
NOTICE TO ELECTORS OF THE CITY OF ANN ARBOR
OF INTENT TO ISSUE GENERAL OBLIGATON
CAPITAL IMPROVEMENT BONDS
SECURED BY THE TAXING POWER OF THE CITY
AND OF THE RIGHT TO PETITION FOR REFERENDUM THEREON
PLEASE TAKE NOTICE that the City Council of the City of Ann Arbor, Washtenaw County, Michigan (the “City”), intends to authorize the issuance and sale of the City’s Limited Tax General Obligation Capital Improvement Bonds, pursuant to Act 34, Public Acts of Michigan, 2001, as amended, in one or more series, in an aggregate principal amount of not to exceed Thirty-Five Million Dollars ($35,000,000) (the “Bonds”) for the purpose of paying part of the costs to develop affordable housing units located at 350 S. Fifth Avenue (the “Project”).
SAID BONDS will be payable in annual installments, not to exceed eighteen (18) in number, and will bear interest at the rate or rates to be determined at a public or negotiated sale, but in no event to exceed the maximum rate permitted by law, on the unpaid balance from time to time remaining on said Bonds.
SOURCE OF PAYMENT OF BONDS
THE PRINCIPAL OF AND INTEREST ON SAID BONDS shall be payable from the general funds of the City lawfully available for such purposes including property taxes levied within applicable constitutional, statutory and charter tax rate limitations. The City anticipates paying debt service on the bonds from a portion of the tax revenues received from the City’s affordable housing millage.
RIGHT TO PETITION FOR REFERENDUM
The Bonds will be issued without a vote of the electors unless a valid petition requesting such a vote signed by not less than 10% or 15,000 of the registered electors of the City is filed with the City Clerk within forty-five (45) days after publication of this notice. If a valid petition is filed, the Bonds may not be issued without an approving vote of the majority of the qualified electors voting thereon.
This notice is given by order of the City Council pursuant to the requirements of Section 517, Act 34, Public Acts of Michigan, 2001, as amended.
Jacqueline Beaudry
City Clerk, City of Ann Arbor
[End of form of Notice]
2. The City Council does hereby determine that the foregoing form of Notice and the manner of publication directed is the method best calculated to give notice to the City’s electors and taxpayers of the City’s intent to issue the Bonds, the purpose of the Bonds, the security for the Bonds, including the full faith and credit pledge to be issued by the City, and the right of referendum relating thereto, and the newspaper named for publication is hereby determined to reach the largest number of persons to whom the Notice is directed.
3. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.
AYES: Member
NAYS: Member
ABSENT:
RESOLUTION DECLARED ADOPTED.
__________________________
Jacqueline Beaudry, City Clerk
I hereby certify that the attached is a true and complete copy of a resolution adopted by the City Council of the City of Ann Arbor, County of Washtenaw, State of Michigan, at a regular meeting held on the ____ day of January, 2026, and that public notice of said meeting was given pursuant to and in full compliance with Act No. 267, Public Acts of Michigan, 1976 and that minutes of the meeting were kept and will be or have been made available as required by said Act.
_______________________________
Jacqueline Beaudry, City Clerk
_______________________________
Date Certified