Title
Resolution to Authorize Settlement of Claim by Oaks of Ann Arbor Limited Dividend Housing Association LP, and Windsong Limited Dividend Housing Association LP
Staff
Prepared by: Matthew Thomas, Assistant City Attorney
Reviewed by: Atleen Kaur, City Attorney
Body
Whereas, In February 2026, Oaks of Ann Arbor and Windsong, represented by Brian Summerfield of Schenk & Bruetsch PLC, asserted a claim against the City alleging that the City had improperly applied its Payment in Lieu of Tax ordinance by overcharging the annual service charge for a number of units;
Whereas, The parties desire to settle and resolve the claim without an admission of liability on the part of any party, wherein the City will pay $70,000.00 to be split between Oaks of Ann Arbor and Windsong, in exchange for a full and final settlement agreement signed by the parties and a release of all claims against the City and the officer;
Whereas, The parties further agree that 3001 Valencia Circle will be charged an annual service charge of $1,500.00 so long as the unit continues to be used as an office and Windsong continues to qualify for Payment in Lieu of Taxes as provided by the State Housing Development Authority Act and Ann Arbor City Code; and
Whereas, The City Attorney’s Office has advised City Council on this matter in attorney-client privileged and confidential legal advice memoranda;
RESOLVED, That City Council authorizes the City Attorney to fully resolve the claims by Oaks of Ann Arbor and Windsong for a total payment of $70,000.00 from the City to be split between Oaks of Ann Arbor and Windsong, contingent on the receipt of a full and final settlement agreement signed by the parties and release of all claims against the City, which shall be subject to City Attorney approval as to form and substance;
RESOLVED, That 3001 Valencia Circle will be charged an annual service charge of $1,500.00 so long as the unit continues to be used as an office and Windsong continues to qualif...
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