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File #: 21-1024    Version: 1 Name: 6/7/21 Resolution to Amend Source of Funding for Purchase of 2570 Dexter Road
Type: Resolution Status: Passed
File created: 6/7/2021 In control: City Council
On agenda: 6/7/2021 Final action: 6/7/2021
Enactment date: 6/7/2021 Enactment #: R-21-203
Title: Resolution to Amend the Source of Funding for Purchase of Land at 2570 Dexter Road (8 Votes Required)
Attachments: 1. St Joseph Mercy Health Systems Aerial Map w Lot #s.pdf, 2. St Joseph Mercy Health Systems Location Map(1).pdf
Title
Resolution to Amend the Source of Funding for Purchase of Land at 2570 Dexter Road (8 Votes Required)
Memorandum
On February 1st, 2021 City Council approved Resolution R-21-035 to purchase a 0.6-acre property at 2570 Dexter Road from St. Joseph Mercy Health System for $184,000 from Open Space and Parkland Preservation Millage proceeds. The Ann Arbor Housing Commission has committed up to $75,000 for park amenities on this property because it is adjacent to their West Arbor affordable housing development. Pursuant to this resolution, the City signed a purchase agreement with St. Joe's to purchase the property and began conducting due diligence.

Upon review of the survey of the property and consultation with the Housing Commission, staff now recommends that only two-thirds of the property (Lots 250 and 251 on the attached map) be purchased for park and the other third (Lot 252) be purchased with general funds. Parks staff have determined that Lot 252 is not necessary for the planned park amenities and both the Housing Commission and a neighboring parcel owner have expressed interest in potentially acquiring all or part of this lot. This budget amendment allows staff the necessary flexibility to negotiate the sale of all or parts of Lot 252, which would defray some of the City's cost of purchase without affecting park plans. If any of Lot 252 remains under City ownership going forward, it could be combined with the park parcel at a later time.

If all or part of Lot 252 is sold, the proceeds would go back to the General Fund. If all or part of Lot 252 is subsequently added to the park, the General Fund would be reimbursed proportionally from Open Space and Parkland Preservation funds.

Budget/Fiscal Impact:

Total Acquisition Costs $184,000.00
City of Ann Arbor Open Space & Parkland Preservation Millage $110,400.00 60.0%
City of Ann Arbor General Fund $ 73,600.00 40.0%

Other Anticipated Costs
Estimated Due Diligence $20,000.00
Estimated Closing Costs...

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