Title
Resolution to Sell 123 W. Summit (formerly part of 721 N. Main) to the Ann Arbor Housing Development Corporation ($44,000.00) (8 Votes Required)
Memorandum
The Ann Arbor Housing Commission (AAHC) is requesting City Council approval to sell 123 W. Summit (formerly part of 721 N. Main) to the Ann Arbor Housing Development Corporation (AAHDC), a Michigan nonprofit whose sole member is the AAHC, for $44,000.00. 721 N Main was appraised in 2019 for $2,430,000.00 for the entire 5.26 acre parcel. However, the 123 W. Summit parcel has not been appraised.
On April 1, 2019, Ann Arbor City Council adopted Resolution R-19-138 directing the City Administrator to collaborate with the Ann Arbor Housing Commission (AAHC) to provide coordinated analysis on the feasibility of city-owned properties as potential locations for affordable housing. That resolution incorporated previous resolutions R-19-110, R-19-111 and R-19-116.
The Ann Arbor Housing Commission led the analysis along with support from a staff team and several contractors to determine the feasibility for 11 sites including review of land use and zoning, environmental conditions, financial resources, site-specific costs, and overall risk among other factors. The analysis, three potential portfolio scenarios, and next step recommendations were presented to City Council at the Nov.18, 2019 City Council meeting.
As part of the analysis, it was determined that 721 N. Main had numerous site challenges including a FEMA Hazard Mitigation Grant deed, restricting the floodway and floodplain permanently as open space for the conservation of natural floodplain functions. The northwest corner of the site that abuts W. Summit Street was the only portion of the site that was not in the floodway or floodplain and is suitable for affordable housing development. Therefore, a .33 acre parcel in the northwest corner was split from the 5.26 acre parcel known as 721 N. Main for the purpose of developing affordable housing.
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