Title
Resolution of Intent Regarding 350 S. Fifth Avenue
Body
Whereas, In the past four decades, the income gap in the Ann Arbor Metro Area has grown 33.2%, widening the divide between our wealthiest and poorest neighbors (1);
Whereas, Housing is one of the largest expenses a household faces (2);
Whereas, 350 S. Fifth Ave (the “Property”) was originally home to the Ann Arbor YMCA, providing public recreational space and 100 units of affordable housing;
Whereas, In 2008, the demolition of the old Ann Arbor YMCA building resulted in the closure of 100 affordable housing units;
Whereas, In 2015, the City of Ann Arbor (“the City”) adopted a goal of building 2,800 new units of affordable housing by 2035, or 140 new units per year (3);
Whereas, Since adopting this goal, the City has only netted 18 new affordable housing units (4);
Whereas, Economic diversity is pivotal to the vibrancy of our community, the health of our economy, and the success of our downtown businesses;
Whereas, Housing located near centers of employment and public transit decreases traffic congestion and promotes economic activity, both of which enhance residents’ quality of life; and
Whereas, Within the last five years, the City has had tremendous success utilizing public-private partnerships to construct, operate, and maintain thousands of affordable housing units (5);
RESOLVED, That the City will utilize the Property to create the greatest quantity and quality of affordable and workforce housing units in downtown Ann Arbor;
RESOLVED, That by August 31, the City Administrator will recommend to City Council a process to follow which addresses the following requirements:
• The City will maintain some ownership of the Property (e.g. land lease)
• The City will seek to recapture the cost of exercising its rights in the Property while ensuring a sustainable financial model
• The Developer will offer a mix of unit types and rent levels
• The Developer will maximize the number of affordable and workforce housing units with a maximum of 110% of Fair Market Rent as defined by the US Department of Housing and Urban Development
• The Developer will accept Housing Choice Vouchers
• The Developer will dedicate 50% of the ground floor to active and/or public uses;
RESOLVED, The City may explore options with interested users to dedicate the ground level and levels immediately above and below for public use purposes and partner with a developer to incorporate these uses;
RESOLVED, If the City fails to reach an agreement to create a project that includes affordable housing (e.g. land lease) within 48 months of the City exercising its rights in the Property, then the prior three Resolved clauses will expire; and
RESOLVED, If the City fails to reach an agreement and the Property is developed under current zoning without restrictions, the City will dedicate a minimum of 50% of all future proceeds from the sale or lease of the land to the Affordable Housing Fund; and
RESOLVED, If the City concludes the sale of the development rights at 319 S. Fifth Avenue to Core Spaces as authorized on April 17, 2017, $5 million from the sale price will be used to fund affordable housing and the remainder or the sale proceeds will be used to retire any debt incurred in the purchase of the property at 350 S. Fifth Avenue.
(1)<http://www.ewashtenaw.org/government/departments/community-and-economic-development/plans-reports-data/housing-and-infrastructure/2015/washtenaw-county-affordability-and-economic-equity.pdf>
(2)<https://www.bls.gov/news.release/cesan.nr0.htm>
(3)<http://a2gov.legistar.com/LegislationDetail.aspx?ID=2170983&GUID=A684749D-7CC8-4399-ABE7-3A38F9AB6540&Options=&Search=%20> <http://www.ewashtenaw.org/government/departments/community-and-economic-development/housing-and-community-infrastructure/affordable-housing-1/2016FinalAnnualReport.pdf>
(4)<http://www.ewashtenaw.org/government/departments/community-and-economic-development/housing-and-community-infrastructure/affordable-housing-1/2016FinalAnnualReport.pdf>
(5)<https://www.a2gov.org/departments/Housing/programs/Pages/default.aspx>
Sponsored by: Councilmember Ackerman and Mayor Taylor
As amended by Ann Arbor City Council on May 1, 2018