Title
Resolution Expressing Concern with the University of Michigan’s Potential Acquisition of Concordia University Property
Memorandum
It has been reported in the media, and confirmed by the University of Michigan that they are considering acquiring one of the Concordia University campuses. If the transaction is consummated it would represent one of over 90 instances in the past 25 years that the University has purchased parcels in Ann Arbor resulting in the loss of $2.4M annually in City property tax revenue. Concordia University has signaled its intention to no longer utilize the parcel for its operations. While the Concordia property is not currently on the tax rolls, its acquisition by the University of Michigan stifles the City’s interest in seeing it become a tax generating parcel that serves community needs. The Concordia property has never been publicly characterized as central to the University of Michigan’s 2050 Plan.
The Ann Arbor City Council has on multiple occasions cited the severe deficit of housing at all levels within the city. While the utilization of the 187-acre parcel would not eliminate the deficit by itself, it does present a significant opportunity to close the housing supply gap. Using the parcel for housing would enable it to become tax generating, thus supporting the long term stability of the City of Ann Arbor.
The City Council urges the University of Michigan not to acquire the Concordia property making it at least theoretically possible that it could be shifted to the tax rolls. The City also would be seriously concerned if the acquisition of the parcel would be done simply to add to the University’s portfolio of land holdings without any intention of using it.
The City’s Resolution is not meant to ignore the positive relationship that has been forged between the two institutions, especially in recent years. However, with the City of Ann Arbor being landlocked at 28 square miles, any erosion of the tax base is a cause for concern. If there is a scenario where the University and the City of Ann Arbor could partner on a portion of the parcel the City would be open to exploring it.
Staff
Reviewed by: Milton Dohoney Jr., City Administrator
Atleen Kaur, City Attorney
Body
Whereas, The City of Ann Arbor is facing a housing shortage needing housing at all levels to be developed in the City;
Whereas, The City Council has taken a number of steps to facilitate the growth of a diverse housing supply for current and new residents;
Whereas, The City Council remains concerned about the stability of the tax base;
Whereas, The City Council acknowledges the long-term relationship between the City and the University of Michigan;
Whereas, The City Council is seriously concerned with the University’s possible acquisition of the 187-acre Concordia property;
Whereas, The City Council is especially concerned with the prospect of the University acquiring the Concordia property with no stated community centered use;
Whereas, The City Council is urging the University of Michigan not to acquire the Concordia property allowing it to change ownership with an end use that makes it tax generating;
Whereas, If a land purchase decision has been irreversibly made by the University of Michigan, they are urged to consider the exploration of a potential partnership with the City of Ann Arbor to achieve mutually beneficial projects on that land supporting community needs;
RESOLVED, The City Council directs the City Administrator to transmit this Resolution to the University of Michigan;
RESOLVED, The City Council further directs the City Administrator to transmit a companion letter to the University of Michigan; and
RESOLVED, The City Council directs the City Administrator to continue working with the administration to facilitate more housing options and placemaking opportunities that will support the Ann Arbor tax base while simultaneously addressing community needs.
Sponsored by: Councilmembers Mallek, Watson, Radina, Mayor Taylor, and Cornell