Title
Resolution to Approve an Agreement for Sale of Air Rights over a Portion of 616 S. Forest Ave. to CS Acquisition Vehicle, LLC for No Less than $1,200,000.00 (8 Votes Required)
Memorandum
The City of Ann Arbor has been approached by the purchaser who desires to develop and build a multi-story, mixed-use commercial and residential development (the "Proposed Development") that would extend over and occupy a portion of the air space located above the City's property at 616 S. Forest Avenue, which currently serves as a non-public "alley" behind the Forest Ave parking structure. City staff investigated the consequences of such a sale and determined that the air rights are not of strategic importance to the City and a proposed residential development on the site would support new housing development in the City. The agreement transfers a portion of the air rights for the first phase of development, with purchaser being granted an option to purchase a small amount of additional future air rights if it proceeds with a second phase of development. If the purchaser does not construct the Proposed Development within 5 years, the air rights revert to the City. The City will retain ownership of the ground-level property and up to 25 feet above.
Staff
Prepared by: Atleen Kaur, City Attorney
Reviewed by: Christopher Frost, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City of Ann Arbor is interested in supporting efforts to increase the supply of housing in the City, per direction from Council Resolution R-24-108;
Whereas, The Proposed Development is intended to create additional housing near campus, and the developer will be able to increase the developable space by use of certain air rights over 616 S. Forest;
Whereas, The City is retaining ground-level property rights and has no strategic need for the air rights above the property;
Whereas, An independent property appraisal concluded that the market val...
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