Title
Resolution to Approve a Purchase and Sale Agreement for the Kline’s Lot (8 Votes Required)
Memorandum
The Kline’s Lot is an approximately 1.31-acre City-owned parcel located on the northeast corner of South Ashley Street and West William Street in downtown Ann Arbor. The site is commonly referred to as the Kline’s Lot because it formerly served as the parking lot for Kline’s Department Store. The property is currently improved as a surface parking lot.
Pursuant to Resolution R-25-049, adopted by City Council on February 18, 2025, the City entered into a Professional Services Agreement with commercial real estate broker CBRE to solicit proposals from private development companies for the purchase and development of the site. Five development teams submitted proposals. On September 15, 2025, pursuant to Resolution R-25-1578, City Council selected Hines Development as the most responsive proposal and authorized the City Administrator to enter into negotiations with the company.
The selection was based on several factors, including: (i) the highest overall purchase price, (ii) the largest number of proposed dwelling units, (iii) a strong national track record of comparable projects, (iv) demonstrated success with public-private partnerships, and (v) incorporation of sustainable design features.
The proposal contemplates a predominantly residential mixed-use development with ground-floor retail, to be constructed in two phases. The purchase price for the property will be based on the number of residential units ultimately approved through the Site Plan process. The agreed-upon price is $31,500.00 per approved residential unit, subject to a minimum purchase price of $14,175,000.00.
This resolution approves a Purchase and Sale Agreement for the property. The agreement memorializes the principal terms negotiated by the parties and establishes other contractual provisions governing the conveyance of the property, including due diligence and approval timelines,...
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