Title
Resolution to Approve a Transformational Brownfield Plan for 350 South Fifth Avenue
Memorandum
The proposed resolution approves a Transformational Brownfield Plan to support development of approximately 330 affordable units, ground floor retail, and enhancements to the Blake Transit Center, representing a total investment in excess of $200 million. The project is being co-developed by the Ann Arbor Housing Development Corporation, (“AAHDC”), a Michigan non-profit corporation, whose sole member is the Ann Arbor Housing Commission (“AAHC”) and Related Midwest, who was selected through a competitive solicitation process (collectively, the “Developer”).
This project would represent the City’s first use of the Transformational Brownfield Plan. As described in the attached Staff Report, in addition to capturing incremental increases in property taxes generated by the project, Transformational Brownfield Plans allow for the capture of additional non-local taxes generated by the development, including during the construction phase. These include personal income tax, sales and use tax, and withholding tax.
Affordable housing projects at any scale are difficult to finance, and traditional TIF financing is typically not a good fit for these projects because they are often exempt from property taxes or contribute only a nominal amount through a PILOT arrangement. The Transformational Brownfield Plan is therefore well-suited to this project, as it captures taxes that remain applicable to the project and would not exist but for the project. City Council approved a PILOT for this project on December 15, 2025.
Over the proposed 30-year capture period, the project is estimated to generate more than $29 million in capturable taxes. Of this amount, approximately $1.5 million is attributable to property tax increment, with the balance consisting of non-local taxes generated by construction and ongoing economic activity.
Providing a substantial number of affordable units in a walkable, transit-oriented location near City services within a mixed-use building advances numerous City policies and meaningfully addresses the City’s affordable housing needs. Use of this incentive in combination with other sources leverages the affordable housing millage to create significantly more housing than could be supported with it on its own.
Attached are the Brownfield Plan and the staff report.
Staff recommends approval of this resolution.
Staff
Prepared by: Joseph R. Giant, Director of Economic Development
Reviewed by: Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Christopher Frost, Senior Assistant City Attorney
Marti Praschan, Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The developer of 350 South Fifth Avenue has requested approval of the 350 S Fifth Ave Act 381 Combined Transformational Brownfield Plan (”Plan”) in order to pursue tax increment financing through the Washtenaw County Brownfield Redevelopment Authority;
Whereas, The Washtenaw County Board of Commissioners established the Washtenaw County Brownfield Redevelopment Authority (“WCBRA”), which facilitates the implementation of plans relating to the identification and treatment of environmentally-distressed areas within the County of Washtenaw pursuant to the Michigan Brownfield Redevelopment Financing Act, Public Act 381 of 1996 (“Act”);
Whereas The Act requires explicit consent of each local unit of government included in the WCRBA, which the City of Ann Arbor joined by resolution R-35-1-02;
Whereas, Any reimbursement by the WCBRA based on an approved Plan is limited to actual eligible expenses incurred in accordance with the Act;
Whereas, Any reimbursement by the MEDC will be in accordance with applicable requirements of the State of Michigan for Transformational Brownfield projects;
Whereas, The burden is on the development to: (i) construct the project and pay taxes and (ii) comply with State of Michigan requirements for Transformational Brownfield projects in order for tax capture and reimbursement to occur;
Whereas, The City is not liable for any costs associated with the project if the project is not built or if it fails to achieve the estimated taxable value;
Whereas, Neither the initiation of the review process by the WCBRA nor the City’s consideration or recommendation of the Plan constitutes a guarantee that the Plan will be approved by the Washtenaw County Board of Commissioners, MEDC, or that any financial incentives will be awarded;
RESOLVED, That City Council finds that the 350 S Fifth Ave Act 381 Combined Transformational Brownfield Plan, dated December 15, 2025, is consistent with the City’s Brownfield Policy and is hereby approved; 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 the Plan.