Title
Resolution Expressing Concern with the University of Michigan's Potential Acquisition of Concordia University Property
Memorandum
It has been reported in the media, and confirmed by the University of Michigan that they are considering acquiring one of the Concordia University campuses. If the transaction is consummated it would represent one of over 90 instances in the past 25 years that the University has purchased parcels in Ann Arbor resulting in the loss of $2.4M annually in City property tax revenue. Concordia University has signaled its intention to no longer utilize the parcel for its operations. While the Concordia property is not currently on the tax rolls, its acquisition by the University of Michigan stifles the City's interest in seeing it become a tax generating parcel that serves community needs. The Concordia property has never been publicly characterized as central to the University of Michigan's 2050 Plan.
The Ann Arbor City Council has on multiple occasions cited the severe deficit of housing at all levels within the city. While the utilization of the 187-acre parcel would not eliminate the deficit by itself, it does present a significant opportunity to close the housing supply gap. Using the parcel for housing would enable it to become tax generating, thus supporting the long term stability of the City of Ann Arbor.
The City Council urges the University of Michigan not to acquire the Concordia property making it at least theoretically possible that it could be shifted to the tax rolls. The City also would be seriously concerned if the acquisition of the parcel would be done simply to add to the University's portfolio of land holdings without any intention of using it.
The City's Resolution is not meant to ignore the positive relationship that has been forged between the two institutions, especially in recent years. However, with the City of Ann Arbor being landlocked at 28 square miles, any erosion of the tax base is a cause f...
Click here for full text