Title
Resolution to Approve a Transformational Brownfield Plan for 350 South Fifth Avenue
Memorandum
The proposed resolution approves a Transformational Brownfield Plan to support development of approximately 330 affordable units, ground floor retail, and enhancements to the Blake Transit Center, representing a total investment in excess of $200 million. The project is being co-developed by the Ann Arbor Housing Development Corporation, ("AAHDC"), a Michigan non-profit corporation, whose sole member is the Ann Arbor Housing Commission ("AAHC") and Related Midwest, who was selected through a competitive solicitation process (collectively, the "Developer").
This project would represent the City's first use of the Transformational Brownfield Plan. As described in the attached Staff Report, in addition to capturing incremental increases in property taxes generated by the project, Transformational Brownfield Plans allow for the capture of additional non-local taxes generated by the development, including during the construction phase. These include personal income tax, sales and use tax, and withholding tax.
Affordable housing projects at any scale are difficult to finance, and traditional TIF financing is typically not a good fit for these projects because they are often exempt from property taxes or contribute only a nominal amount through a PILOT arrangement. The Transformational Brownfield Plan is therefore well-suited to this project, as it captures taxes that remain applicable to the project and would not exist but for the project. City Council approved a PILOT for this project on December 15, 2025.
Over the proposed 30-year capture period, the project is estimated to generate more than $29 million in capturable taxes. Of this amount, approximately $1.5 million is attributable to property tax increment, with the balance consisting of non-local taxes generated by construction and ongoing economic activity.
Providing a substantial number of affordable units...
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