Ann Arbor City Council agrees to issue $9 million in bonds for Village Green parking structure
The Ann Arbor City Council agreed Monday to authorize up to $9 million in general obligation bonds for a new public parking structure downtown.
The bonds will be used to finance a substantial portion of the costs of constructing a four-level, 244-space parking structure in conjunction with the Village Green development at the southeast corner of First and Washington streets.
Village Green has plans to build a 156-apartment, 11-story (8 above grade) building known as Ann Arbor City Apartments.
Approval of the bond issuance came Monday in a 10-0 vote following a minute-and-a-half discussion in which Council Member Stephen Kunselman, D-3rd Ward, asked for more details.
Tom Crawford, the city's chief financial officer, said the developer will finance and build the parking deck, and the city will issue bonds once the deck is near completion, which is expected to be around June 2012.
Crawford said in a memo to council that the city will have latitude in determining the specific form of bond based on financing approaches legally available at the time of bond issuance — resulting in the lowest interest cost to the city.
Debt service on the bonds, which are backed by the city's full faith and credit, is expected to be paid with revenue from the city's public parking system.
Village Green has approved site plans on file with the city, as well as an approved development agreement. It also has an approved parking agreement with the city and the Ann Arbor Downtown Development Authority.
The city plans to sell the property at First and Washington to Village Green for about $3 million — money the city's administration has counted on putting toward the police-courts building addition to city hall at the corner of Fifth and Huron.
A project timeline running through 2012 shows the developer plans to close on the sale in June. Construction documents are expected to be completed around February.
Council Member Sandi Smith, D-1st Ward, was absent from Monday's meeting.