Title
Resolution to Approve the Purchase of Real Property Located at 124 Felch for $373,400.00 Plus Costs Not to Exceed $20,000.00 ($393,400.00) (8 Votes Required)
Memorandum
Below for your review and action is a resolution to approve the purchase of the property located at 124 Felch Street, Ann Arbor, Tax Parcel 09-09-20-409-014 in fee title for $373,400.00 from the Seller, WIC 600 DE LLC (Wickfield Properties) on the terms set forth in the proposed Purchase and Sale Agreement (see attached).
The property at 124 Felch contains a residential structure constructed in 1901 which has been used as a rental property in the past. The property has a rental certificate but is not currently occupied.
The property is located in the Allen Creek floodway. Current State and City standards prohibit new or substantially improved residential structures in the floodway. This means if a current residential structure is damaged or is otherwise in need of substantial repairs or renovations over a certain threshold, it may trigger a requirement to meet current floodplain management standards, which would then mean the property could no longer be used for residential purposes.
The City’s FEMA-approved 2022 Hazard Mitigation Plan recommends the voluntary removal of structures from the floodway (Mitigation Action #33). The City previously tried to purchase this property in 2024 with the intent of demolishing the structure but was unable to come to an agreement on price with the property owner.
The City’s purchase of this property would eliminate another buyer from purchasing it and perpetuating the residential use of the building within the floodway.
If acquired, the City would seek to demolish the structure, foundation, and other impervious surfaces on the site to remove this obstruction from the floodway.
This property is also adjacent to the City-owned property at 721 N. Main Street, and if acquired, it presents additional opportunities regarding plans for the future of 72...
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