Title
Resolution to Sell 404 N. Ashley to the Ann Arbor Housing Development Corporation ($1.00) (8 Votes Required)
Memorandum
The Ann Arbor Housing Commission (AAHC) is requesting City Council approval of the sale of 404 N. Ashley to the Ann Arbor Housing Development Corporation (AAHDC), a Michigan nonprofit whose sole member is the AAHC, for $1.00. The property was appraised in 2019 for $1.8 million.
In 2019, City Council approved a resolution (R-19-515), directing the AAHC to develop 404 N. Ashley as affordable housing. At the time, the U of M Community Dental Center was in a lease that annually renewed through June 30, 2024. The lease is subject to immediate termination by the City if the Community Dental Center ceases the operation of the Community Dental Center at the site. The Dental Clinic services ceased its operations at 404 N. Ashley and moved to the U of M Dental School on November 30, 2023. Based on conversations with representatives from the U of M and the U of M Dental School, they have no objection to the City terminating the lease at this time.
In 2019, the AAHC conducted a feasibility analysis and the site is a good location to develop as affordable housing. However, it will take more than a year to go through site plan approval, secure financing and begin demolition of the building. The Winter Sheltering Taskforce, composed of local non-profits, the AAHC, City and County staff have been meeting and planning for an expected increase in need for emergency shelter this winter, particularly for families. In the short-term, the AAHC is working with local non-profit shelter providers to determine if 404 N. Ashley can be used to expand the shelter capacity this winter.
The AAHC hired an architect and worked with the City's Building Official to determine what improvements are required to allow a residential use as an overnight shelter. The building would need to have a sprinkler system, showers and egress windows installed. This scope of work is po...
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