Title
Resolution to Approve a Brownfield Plan for the Arbor South Project - 2845 South State Street
Memorandum
This resolution approves a Brownfield Plan for the Arbor South project, located northeast of the intersection of South State Street and Eisenhower Parkway, and including the following parcels: 2800 East Boardwalk Drive, 2845 State Street, and 2991 State Street.
Arbor South proposes to transform a parking lot, gas station, and other adjacent properties into a walkable mixed-use district developed over five phases (Phases 1-5). The project envisions more than 1,000 housing units, a hotel, street-level retail, open space and plazas.
To realize this vision, substantial investment in public infrastructure is required, including new streets, sidewalks, utilities, and three public parking structures. These structures are planned as components of Phases 2, 3, and 5 of the project. A separate resolution of Council authorizes the purchase of these structures subject to contingencies set forth in a public-private agreement with the developer.
The Brownfield Plan enables new property tax revenues generated by the Arbor South project to be captured by the Washtenaw County Brownfield Authority and used to reimburse eligible activities and their associated costs as identified in the plan.
The Brownfield Plan organizes eligible activities into two categories:
* Priority One: Purchase and development of the public parking structures
* Priority Two: All other on-site and off-site infrastructure necessary for the project
Included within Priority Two is $25 million in anticipated tax increment revenue designated for a City-led sewer trunkline expansion. The Brownfield Plan also provides for up to 5% simple interest to support financing costs.
A forthcoming Reimbursement Agreement between the City, the County Brownfield Authority, and the developer, which requires approval by City Council, will establish the method of distributing tax increment revenues among the p...
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