Title
Resolution to Approve a Brownfield Plan for Townie Homes at 1780 and 1788 Scio Chuch Road, 225 and 235 South Wagner Road, 1535, 1563, 1565 and 1567 South Maple Road, and 1288 and 1369 Jewett Avenue
Memorandum
The proposed resolution would approve a Brownfield Plan for 10 contiguous and non-contiguous parcels to support the development of 26 single family homes and accessory dwelling units. The targeted sales prices for these homes are intended to address the lack of housing for households earning between 30% and 90% of the Area Median Income. Projected sale prices range from $125,000 to $350,000, which correlates to these income levels. Median home sales in Ann Arbor are approximately $600,000.
Construction costs for these homes exceed the proposed sale prices, so tax increment generated by the new homes can be used to reimburse the developer for eligible planning and construction costs. This reimbursement structure allows the homes to be offered at price points affordable to lower- and middle-income buyers.
Unlike most Brownfield Plans, where the project as proposed would not be feasible without the use of tax increment financing, these homes could likely be built without financial support. However, the resulting sale prices would not be affordable to the intended income groups. The Townie Homes program therefore offers a creative and targeted approach to meeting the community's affordable housing goals for a housing type that is in high demand yet difficult to deliver at an affordable level. A similar scattered site residential Brownfield Plan was approved in Muskegon, Michigan in 2019.
The development will be undertaken by the Ann Arbor Community Land Trust. Total private investment is approximately $9,900,000. Total eligible costs are $5,063,781. These costs include public infrastructure at 27%, demolition and site preparation at 9%, general conditions and project management at 5%, contingency at 5%, a housing subsidy at 52%, and plan preparation at...
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