Title
Resolution to Approve Amendment #1 to the Brownfield Plan for the Village of Ann Arbor
Memorandum
The proposed resolution would approve Amendment #1 to the Village of Ann Arbor Brownfield Plan. City Council unanimously approved the original Plan on March 6, 2023, through Resolution R-23-079. The original project included 564 residential units on approximately 77 acres near the intersection Pontiac Trail and Dhu Varren Road, with an estimated private investment of $214.4 million and approximately $31.4 million in authorized tax increment reimbursement.
Since that approval, more stringent EGLE requirements related to methane-generating sources required additional testing, and, ultimately, a redesign of the site plan. The revised project includes 613 residential units, consisting of 133 for-sale homes and 480 rental apartments, with estimated private investment of approximately $221 million.
The amended Brownfield Plan identifies approximately $39 million in eligible costs, an increase of approximately $7.6 million. The increase reflects updated regulatory requirements, cost increases due to inflation, additional testing, and new public infrastructure costs. It also includes reclassification of certain soil-related costs from environmental to non-environmental site preparation. Despite the increase in reimbursement, the anticipated capture period is reduced by one year due to the higher taxable value expected from the revised project.
Additional details regarding the proposed amendment, eligible activities, financial assumptions, and approval process are provided in the attached Staff Report and amended Brownfield Plan.
Budget / Fiscal Impact: Approval of the Brownfield Plan does not create an upfront City expenditure or direct financial obligation. The developer advances the full project cost and may be reimbursed for eligible activities only from future tax increment revenues generated by the project. The reimbursement is not funded through an increa...
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