Ann Arbor close to finalizing sale of Village Green property
Image courtesy of developer
"We've signed the purchase agreement and are scheduling the actual closing," said Tom Crawford, the city's chief financial officer.
"The developer is working out a logistical issue with the property owner on the south, which needs to be resolved before we actually do the closing, but we are likely within a couple weeks or days of having it closed," Crawford said.
Village Green plans to construct a 155-unit apartment building called Ann Arbor City Apartments, rising 104 feet into the downtown skyline. In addition to apartments, the project includes a 244-space parking garage to be owned by the city and managed by the Downtown Development Authority.
The Ann Arbor City Council agreed in October 2010 to authorize up to $9 million in general obligation bonds to help pay for the parking structure. Of the 244 spaces planned, about 72 are expected to be held for residents, leaving 172 spaces for the general public.
The City Council last month approved the purchase agreement for the sale of the city-owned property at the southeast corner of First and Washington to Ann Arbor City Apartments LLC, the successor-in-interest to Village Green Residential Properties LLC.
The council originally decided in August 2006 to enter into negotiations with Village Green based on recommendations of a review committee that looked at proposals for the site.
At the time, the city anticipated the redevelopment of First and Washington as a Planned Unit Development that would increase downtown residential density and diversity, replace public parking spaces on the site, maximize the financial return to the city for the sale of the land, and maximize tax revenues captured by the DDA.
Since that time, negotiations among the city, Village Green and the DDA have resulted in an approved purchase agreement, site plan, parking agreement and resolution of all conditions for acquisition of the property by Village Green consistent with the city's goals, officials said.
Ann Arbor City Apartments LLC, a Delaware-based company, was created on Oct. 18, 2011 to be the successor-in-interest, according to city documents.
"Documents are getting signed and it's looking like it's heading to an actual closing," said DDA Executive Director Susan Pollay. "They have the purchase agreement in hand, they have the affordability agreement I think pretty well in hand, construction drawings are I think 99 percent done, and I think all the elements are pretty much there."
Pollay said the general sense she gets from talking to city officials is "they're at the finish line and documents are getting signed and ... they're pretty well on their way."
Less closing costs and other fees, the city estimates net proceeds from the sale to be a little less than $3.1 million. City officials have been counting on a portion of that money to help finance the police-courts building addition to city hall that was completed this past year.
The council's resolution last month appropriated $2.5 million of the sale proceeds to the Municipal Center project fund, $500,000 to a risk fund as reimbursement for an advance made in June, and the rest to the general fund after adjustment for city closing costs.
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at email@example.com or 734-623-2529. You also can follow him on Twitter or subscribe to AnnArbor.com's e-mail newsletters.