Title
Resolution to Approve an Amendment to the Fourth Avenue Reconstruction Project Budget (increase of $1,120,420 to $6,365,020) and to authorize execution of associated contracts.
Memorandum
Attached for your review and approval, please find a resolution to increase the Fourth Ave Project Budget and authorize the execution of associated contracts following an increased grant award.
This budget adjustment is due to the following changes:
* Revenue: The DDA has received an additional $1.7M in RAP grant funds. This funding allows us to expand our public art scope and increase the percentage of the project cost that is offset by grant dollars.
* Expenditures: The Fourth Ave Project budget is being adjusted to accommodate expanded public art, retractable bollards, and the planned partnership with the Ann Arbor Housing Commission for their 350 S. Fifth Avenue site. The estimated cost of these adjustments is included below.
Background:
In March 2026, the DDA Board established a Fourth Ave Project, approved a construction contract with Fonson Co Inc, and approved associated cost-share contracts. In June 2026, the DDA Board approved an amended MEDC RAP Grant Agreement to accept an additional $1.7M in grant funding. It is now time to adjust the Fourth Ave Project Budget and approve the remaining contracts associated with implementation.
Budget/Fiscal Impact:
A portion of TIF funding includes an MEDC RAP Grant, which is increasing from $800,000 to $2,452,820.31 (approximately a $1,653,000 increase). Table 1, below, reflects DDA project budget elements approved in March 2026. Table 2 shows increases associated with the increased grant amount (added public art and retractable bollards) as well as the planned Housing Commission partnership. Table 3 reflects the combined totals and the amended Fourth Ave Project Budget. The FY27 Budget in both the General/TIF Fund and the Parking CIP Fund is sufficient to absorb the project elements related to the additional grant ...
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