Title
Resolution to Approve Amendment #1 to the Brownfield Plan for the Village of Ann Arbor
Memorandum
The proposed resolution would approve Amendment #1 to the Village of Ann Arbor Brownfield Plan. City Council unanimously approved the original Plan on March 6, 2023, through Resolution R-23-079. The original project included 564 residential units on approximately 77 acres near the intersection Pontiac Trail and Dhu Varren Road, with an estimated private investment of $214.4 million and approximately $31.4 million in authorized tax increment reimbursement.
Since that approval, more stringent EGLE requirements related to methane-generating sources required additional testing, and, ultimately, a redesign of the site plan. The revised project includes 613 residential units, consisting of 133 for-sale homes and 480 rental apartments, with estimated private investment of approximately $221 million.
The amended Brownfield Plan identifies approximately $39 million in eligible costs, an increase of approximately $7.6 million. The increase reflects updated regulatory requirements, cost increases due to inflation, additional testing, and new public infrastructure costs. It also includes reclassification of certain soil-related costs from environmental to non-environmental site preparation. Despite the increase in reimbursement, the anticipated capture period is reduced by one year due to the higher taxable value expected from the revised project.
Additional details regarding the proposed amendment, eligible activities, financial assumptions, and approval process are provided in the attached Staff Report and amended Brownfield Plan.
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 may be reimbursed for eligible activities only from future tax increment revenues generated by the project. The reimbursement is not funded through an increase in tax rates, a special assessment, or additional taxes imposed on residents or other taxpayers. If the anticipated tax increment is not generated, the City is not obligated to make up the difference from its General Fund or other revenues.
If the project is developed, a portion of the new property tax revenue generated by the increased taxable value will be captured for approximately 15 years, which include $10,545,289.00 for WCBRA administrative costs and deposits to the Local Brownfield Revolving Fund, including both annual capture and LBRF lump sum after developer reimbursement. Maximum tax capture would be capped at 20 years, as stated in stated in Section III, A. of the Plan. After the capture period ends, the additional tax revenue will flow to the underlying taxing jurisdictions. The property currently generates approximately $50,000.00 annually in property taxes and is estimated to generate more than $6.1 million annually following completion of the reimbursement period.
Staff
Prepared by: Joseph R. Giant, Director of Economic Development
Reviewed by: Milton Dohoney Jr., City Administrator
Atleen Kaur, City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Washtenaw County Board of Commissioners established the Washtenaw County Brownfield Redevelopment Authority (the “WCBRA”) pursuant to the Brownfield Redevelopment Financing Act, Act 381 of the Public Acts of Michigan of 1996, as amended (“Act 381”), to facilitate the identification, redevelopment, and treatment of eligible properties within Washtenaw County;
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 included in the Brownfield Plan has been determined to be a “facility,” as defined by and required for eligibility 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 initiation of the WCBRA review process nor approval of the Brownfield Plan by the City guarantees approval by the Washtenaw County Board of Commissioners or any other governmental entity, or guarantees that any particular financial incentive will ultimately be obtained;
Whereas, City Council previously approved a Brownfield Plan for the Village of Ann Arbor Redevelopment Project through Resolution R-23-079, adopted March 6, 2023;
Whereas, The developer of the project has requested approval of Amendment #1 to the Brownfield Plan for the Village of Ann Arbor Redevelopment Project to modify the previously approved plan through the WCBRA; and
Whereas, City Council held a public hearing on September 22, 2026, to receive public comment regarding Amendment #1 to the Brownfield Plan;
RESOLVED, That City Council waives the City’s Brownfield Policy requirement that 15% of the units in the project be affordable housing because the project was originally approved without an affordable housing requirement, and the proposed amendment does not represent a material change in scope, but instead primarily reflects the recharacterization of eligible costs and inflationary cost increases since the original approval, while the exceptionally challenging site conditions remain unchanged;
RESOLVED, That, consistent with the original Brownfield Plan, City Council waives the City’s Brownfield Policy that interest not be an eligible reimbursable expense because interest reimbursement is necessary to offset financing costs attributable to eligible activities;
RESOLVED, That City Council approves and concurs with Amendment #1 to the Brownfield Plan for the Village of Ann Arbor Redevelopment Project, dated August 6, 2026;
RESOLVED, That the tax capture period shall be the first to occur of 20 years, where 2025 was the first year of tax capture, or a maximum total tax capture of $52,210,041.00 which includes WCBRA fees and both local and state 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 Amendment #1 to the Brownfield Plan.