Title
Resolution to Approve Amendment of Master Deed and Bylaws for Tally Hall Condominium
Memorandum
Ann Arbor Tally Hall Condominium Project (“Condominium”), located at 505 E. Liberty St. Ann Arbor, includes two units and is co-owned by the City and Hillside-Liberty Square, LLC (Hillside). Unit 1, which includes the basement area and office space, is owned by Hillside. Unit 2, commonly known as the Liberty Square Parking Structure, is owned by the City. The Parking Structure is managed by the DDA.
The Master Deed and Bylaws provide for an Association responsible for maintaining the Common Elements in the Condominium. The affairs of the Association are administered by a Board of Directors, which consists of one voting member designated by the City Administrator, and one voting member designated by Hillside.
The Condominium stairwell and lobbies are designated in the Master Deed as General Common Elements, with 75% of the costs of maintenance and repair allocated to the City and 25% of the costs allocated to Hillside. Because they are designated as General Common Elements, maintenance or repair projects in the stairwell and lobbies must be reviewed by and receive consent from both voting members.
The DDA identified an immediate need for a significant stairwell restoration project to ensure that the stairs servicing the parking structure remain safe and in good repair. However, the current consensus voting structure within the Association has limited the DDA’s ability to timely initiate the stairwell restoration project to DDA standards and specifications.
City and DDA staff recommend an amendment to the Master Deed to convert certain common areas to City control, which will better align with practical construction and operational needs. This amendment would convert above-ground stairwell and lobbies to City Limited Common Elements, and therefore remove any requirements that Hillside approve or contribute to the repair and maintenance costs for those areas. This conversion will allow the DDA to effectively protect the City’s parking asset by completing ongoing maintenance while also ensuring a high standard of repair work to benefit public users of the parking structure.
Staff
Prepared by: Nicole Vargas, Assistant City Attorney
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Milton Dohoney, Jr., City Administrator
Body
Whereas, the Ann Arbor Tally Hall Condominium Association owns and maintains common areas in the Ann Arbor Tally Hall Condominium (“Condominium”), located between Liberty and Washington Streets in the City of Ann Arbor, Washtenaw County, and more fully described as follows:
Ann Arbor Tally Hall Condominium, according to the Master Deed thereof, as recorded in Liber 2116, Page 810, Washtenaw County Records, designated as Washtenaw County Condominium Subdivision Plan No. 60.
Whereas, The City and Hillside-Liberty Square, LLC are co-owners of the Condominium and are therefore the only members of the Ann Arbor Tally Hall Condominium Association (“Association”);
Whereas, The Liberty Square Parking Structure, which is Unit 2 of the Condominium, is managed the Downtown Development Authority;
Whereas, the Master Deed and Bylaws require consent of Association members to approve maintenance and repair projects for General Common Elements, which has resulted in an inability to efficiently move forward with certain repairs to City and DDA standards; and
Whereas, an amendment to the Master Deed and Bylaws to convert certain General Common Elements to Limited Common Elements appurtenant to the City’s Condominium Unit will allow the DDA to more effectively manage the parking structure to its customary standard of repair, without requiring approval from the Association;
RESOLVED, That City Council authorize the Administrator or designee and City Attorney to negotiate amendments to the Master Deed and Bylaws to convert certain General Common Elements, including the above-ground stairwell and certain lobby areas, to City control;
RESOLVED, That City Council authorize the Mayor and City Clerk to execute the revised Master Deed and Bylaws for the Ann Arbor Tally Hall Condominium subject to approval by the City Administrator and City Attorney; and
RESOLVED, That the City Administrator or designee is authorized to take all necessary actions to implement this resolution, including execution of any supplemental documents.