Title
Resolution to Approve the 300-312 E. Huron Redevelopment Brownfield Plan
Memorandum
The proposed resolution would approve 300-312 E. Huron Redevelopment Brownfield Plan. Approval of this resolution will allow the Brownfield Plan to satisfy a condition of the Washtenaw County Brownfield Redevelopment Authority and to advance to the Washtenaw County Board of Commissioners, to authorize Tax Increment Financing (TIF) to reimburse the developer and City of Ann Arbor for eligible activities, support of the Local Site Remediation Revolving Fund (LSRRF), and administrative support to the Washtenaw County Brownfield Redevelopment Authority.
The attached Brownfield Plan dated July 11, 2024, incorporates recommendations from staff from the initial plan review. The proposed Brownfield Plan identifies:
• The site is eligible for brownfield assistance through its designation as a “facility” as defined by the State of Michigan, particularly for the presence of tetrachloroethylene (PCE) levels greater than State-established criteria. The site was previously utilized as a gas station, car stereo installation center, garage, and dry cleaner over its history.
• The Brownfield Plan would reimburse the developer for environmental-related activities totaling $749,529 including: Baseline Environmental Assessment (BEA) Activities; Due Care Activities (installation of a vapor mitigation system, transportation and disposal of dewatering fluids); Soil Management (testing, transportation and disposal of impacted soil); Demolition, Brownfield Plan Preparation and Implementation; and 15% in Contingency Costs.
310 E Huron LLC, is seeking to redevelop 300-312 E Huron to construct a six-story, 139 room AC Hotel. On November 14, 2023, the Planning Commission approved the related Site Plan.
Attachments: 300-312 E Huron Brownfield Staff Report
300-312 E Huron Brownfield Plan
Staff
Prepared by: Brett Lenart, Planning Manager
Reviewed by: Derek Delacourt, Community Services Area Administrator
Kim Buselmeier, Interim Chief Financial Officer
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, 310 Huron LLC has requested approval of the 300-312 E. Huron Brownfield 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 and in accordance with provisions of the Brownfield Redevelopment Financing Act, being Act 381 of the 1996 of the Public Acts of Michigan, as amended (the “ACT”);
Whereas The ACT requires explicit consent of each local unit of government included in the Authority, which the City of Ann Arbor joined by resolution R-24-1-02;
Whereas, City staff recommends approval of the petition;
Whereas, The property included in the Plan was determined to be a Facility, as required by Act 381;
Whereas, Any reimbursement by the WCBRA based on an approved Brownfield Plan is for actual eligible expenses only;
Whereas, The burden is on the development to building the project and pay taxes 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, It is understood that neither the initiation of the review process by the WCBRA for development of the Brownfield Plan nor the recommendation of the Brownfield Plan to WCBRA by the City is a guarantee that it will be approved by the Washtenaw County Board of Commissioners, EGLE, MSF, or that financial incentives will be obtained; and
Whereas, The City Council held a public hearing on October 7, 2024 to receive public comment on the Brownfield Plan;
RESOLVED, That City Council approve the 300-312 E. Huron Redevelopment Brownfield Plan submitted to the City and dated July 11, 2024;
RESOLVED, That the City Clerk be directed to submit a copy of this Resolution to the Washtenaw County Board of Commissioners as documentation of the City’s consideration and concurrence of the Brownfield Plan; and
RESOLVED, That any substantial changes to the Brownfield Plan after the date of this Resolution will require review and approval by City Council.