Title
Resolution to Accept a Hazard Mitigation Grant and Appropriate Funds from the Federal Emergency Management Agency for the Purchase and Demolition of 124 Felch Street and 112 E Summit Street ($731,702.82) (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve a grant agreement between the City of Ann Arbor and the Federal Emergency Management Agency (FEMA) to accept a Hazard Mitigation Grant for 90% of the total project cost to (1) purchase the properties at 124 Felch St. and 112 E Summit St., Ann Arbor; (2) conduct demolition of the houses, foundations and the impervious surfaces on the sites; and, (3) grade and stabilize the sites. City matching funds (10%) are identified in the City’s Capital Improvements Plan to come from the Stormwater Fund.
The structures at 124 Felch St. 112 E Summit St. are located within the floodway of Allen Creek. The owners filed a notice of voluntary interest to allow City staff to make a Hazard Mitigation Grant application. The City submitted a Hazard Mitigation Grant application to the Federal Emergency Management Agency (FEMA) in October 2022, and the City was notified in February 2024 that FEMA has awarded the City of Ann Arbor $658,532.54 in match dollars to fund the 124 Felch/112 E Summit project.
Acceptance of the FEMA grant is contingent upon creating permanent open space by deed restricting the properties. 124 Felch sits between Felch Street and the City’s 721 N. Main St. site. Per City Council Resolution 374-8-05 approved on August 15, 2005, the area of the City properties at 721 N. Main within the floodway will be included in the Treeline Urban Trail. The clearing of the 124 Felch St. property will help facilitate future access to the Treeline Urban Trail on the 721 N. Main St. site.
City Council approved a Hazard Mitigation Plan in 2022 which made the City eligible to apply for the Hazard Mitigation Grant. The 2022 Hazard Mitigation Plan recommends the voluntary removal of structures from the floodway (see Mitigation Action #33).
Matching funds for this project have been established in the approved City of Ann Arbor Capital Improvement Plan (FY 2024 Stormwater Utility (0069) Fund). The total estimated cost of this mitigation project as well as the federal and non-federal contribution is shown below:
Total FEMA (federal) contribution: $658,532.54
Total City (nonfederal) contribution: $73,170.28
Total estimated cost of this mitigation project: $731,702.82
Sale of the properties to the City is conditioned upon the owner accepting the third-party market value appraisal price. Sale of the property is voluntary.
Outcomes of the project include removal of two single family residential rental structures from the floodway, creation of permanent open space by deed restricting the properties, and improved access to the City’s 721 N. Main St. site from Felch Street.
Grant funds will be available for the life of the project regardless of fiscal year, and the City’s Stormwater and Floodplain Management Program Coordinator will handle grant management.
Staff
Prepared By: Jerry Hancock, Stormwater and Floodplain Programs Coordinator
Reviewed By: Brian Steglitz, Public Services Area Administrator
Approved By: Milton Dohoney Jr., City Administrator
Body
Whereas, The City of Ann Arbor completed a Hazard Mitigation Plan in November 2022 that recommends voluntary acquisition of properties at risk of flooding as opportunities arise with a priority on properties that are in the floodway;
Whereas, The City submitted a Hazard Mitigation Grant application to the Federal Emergency Management Agency (FEMA) in October 2022, and the City was notified in February 2024 that FEMA has awarded the City of Ann Arbor $658,532.54 which represents 90% of the total project cost;
Whereas, This grant advances the attainment of reduced flood losses, minimizes damage to public and private property and protection of public health and safety by removal of two houses from the Allen Creek floodway;
Whereas, Funds for the City’s required match have been established in the approved City of Ann Arbor Capital Improvement Plan (FY 2024 Stormwater Utility (0069) Fund); and
Whereas, The Stormwater and Floodplain Program Coordinator will handle project and grant management;
RESOLVED, That the City accept the Federal Emergency Management Agency grant of $658,532.54 effective November 11, 2023, ending January 11, 2026;
RESOLVED, That Council approves the execution of a Grant Agreement and all other documents necessary to create permanent open space by deed restricting the properties at 124 Felch Street and 112 E Summit Street;
RESOLVED, That the approval of this grant be subject to establishment of a fair market price for the properties as determined by an independent appraisal;
RESOLVED, That the Grant Funds ($658,532.00) and Stormwater matching Capital Budget funds ($73,170.00) be appropriated to the Major Grants Fund (00MG) thereby increasing the projects revenue and expense budget; and
RESOLVED, That City Council authorizes the Mayor, City Clerk and City Administrator to execute a Grant Agreement and all other documents necessary to complete the Grant requirements after approval as to form by the City Attorney.