DDA plan for developing downtown lots gets mixed reviews from Ann Arbor City Council
Downtown Development Authority officials presented a conceptual plan to the Ann Arbor City Council Thursday night, outlining a new process for developing city-owned lots downtown.
An early draft of the plan was discussed at a DDA board meeting in September, and DDA Executive Director Susan Pollay laid out more details in a report to council. Based on the report, the DDA is looking to be more aggressive about facilitating development downtown, and wants to tap the expertise of a real estate consultant to get the right results.
The proposed plan outlines a new process for issuing requests for proposals — or RFPs — for city-owned properties where the city would like to see development happen. And that plan involves a transfer of duties from the city to the DDA.
"In an ongoing way, the DDA would take much more responsibility for redevelopment with things like enhancing our website and adding all sorts of information," Pollay said. "We would meet much more intensely and much more regularly with prospective developers who'd perhaps like to be a part of our community, and with property owners who are already here."
Pollay said a big part of the plan includes gathering public input through community meetings, focus groups and online surveys early on in the process.
"Rather than distributing an RFP and then getting responses to what comes back, we would begin with the community," Pollay said. "Our community loves their town and it's important to talk to them — get their sense of what's missing, what do we have that's great that we don't want to damage, what could we add more of."
The DDA would take the feedback it receives from the community and the City Council and assemble a strategy plan to establish the framework of any future RFPs, Pollay said.
"Our attempt is to add more public input at the front end because that's really where it would be most helpful to understand what our community expectations are," she said.
The proposal received mixed reactions from council members, who didn't take any action on it Thursday. It was presented during a working session before the council's regular meeting.
"As a concept plan, it's very interesting. Whether it's going to resonate with everybody on council, I'm waiting to see," said Council Member Sabra Briere, D-1st Ward. "It doesn't generate any money for the DDA unless something gets built, so the question is — does it generate anything for the city, or does it take a burden off of city staff?"
Council Member Stephen Kunselman, D-3rd Ward, said he has no faith that changing the city's RFP process would facilitate redevelopment of city-owned lots downtown.
"It's just a repackaging of an RFP called an RFP just done by the DDA," he said. "I have no confidence in it being anything different. As I've said, politicians make poor developers."
Kunselman said he'd rather see the city place deed restrictions on the properties it owns downtown and put them up for sale to get them back on the tax rolls.
Council Member Sandi Smith, D-1st Ward, said she likes the DDA's proposal. Smith serves by appointment of the mayor on the DDA's governing board.
DDA board member Roger Hewitt, joined by DDA Executive Director Susan Pollay, addresses the Ann Arbor City Council Thursday night.
Ryan J. Stanton | AnnArbor.com
"I think it's a good plan," she said of what Pollay laid out. "I don't know that there's any reason for us to be collecting surface parking lots. It's not good urban planning, nobody wants to walk by them, we don't like to look at parked cars."
Under the current process for developing city-owned properties downtown, the City Council first votes to distribute an RFP. A member of city staff drafts the RFP, which is placed on the city’s website and distributed to developers who express an interest in the property.
After responses come in, the city sets up an advisory committee approved by the City Council, and then interviews are held with developers.
"What the DDA is proposing is a conceptual framework that looks a little bit different," Pollay said. "The first phase of it would be to begin by taking a step back and assembling all together all the information that is currently available on the downtown properties."
Pollay said the DDA proposes tapping the expertise of a real estate consultant that would be an advocate on behalf of the DDA and the city throughout the process.
Smith said a new approach could only benefit the city by expanding the tax base and bringing new residential and commercial projects to downtown Ann Arbor.
Council Member Tony Derezinski, D-2nd Ward, said he's in favor of the DDA's approach.
"I think it has a lot of good elements to it, particularly the public input they've built into it," he said. "Again, we're trying to get to what is the vision we want for the downtown area, and they're addressing that in a very helpful way, and also, frankly, getting the expertise that we need. We have four or five sites here that we're going to be doing. We do not have the expertise, nor do we have the time to do the analysis that really is needed."
Mayor John Hieftje noted only a small number of spots exist in downtown Ann Arbor where any development will happen now or in the future.
"If you take out the university property, the city property, the county property, and then overlay the historic districts — because I'm not sure everyone realizes that all of the areas that many of us love in the downtown are going to be that way forever, they're historic districts — you find out you don't really have much of downtown left that's ever going to change," Hieftje said.
There have been multiple instances in recent years when the city sought to develop properties through its own RFP processes. Only one of them has resulted in a development: the Ashley Mews condominium project at Main and Packard, which was finished in 2001.
The 2005 RFP for the city-owned lot at Fifth and William resulted in a legal battle with the developer, and nothing was ever built. The 2006 RFP for First and Washington resulted in the selection of developer Village Green, but the project has not yet started.
The 2007 RFP for 415 W. Washington netted three responses, but after interviews, no further action occurred. City officials now are trying to figure out a new plan for the site.
The RFP process started last year for the Library Lot — atop a new underground parking structure being built on South Fifth Avenue — has been slow to progress. With the help of a consultant, a city advisory committee is evaluating two hotel and conference center proposals.
"Whether the DDA benefits is really not that important. It's whether the downtown benefits," DDA board member Roger Hewitt said Thursday night. "The major benefit for our downtown, I think, is taking what are currently vacant or surface parking lots in downtown that are sort of dead spaces and making them active vibrant spaces — with density and activity and all the sorts of things you want to see in a viable downtown that a surface parking lot doesn't give."
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529.
Comments
My2bits
Fri, Nov 12, 2010 : 10 a.m.
Selling the properties now would be short-sighted, and it would net low proceeds. The reason for that is the same as the reason there is little development: the overall economic climate. The only thing being built now are high end student towers. Nothing else will succeed until the economy improves. Then there will be a clamor for those properties, and they will be more valuable. Whether the city sells them or is part of the development process at that future date - we can debate that - but don't sell them now and get very little for something that will be very valuable in the future.
Mature Townie
Sat, Nov 6, 2010 : 6:17 p.m.
Hummmm! It appears the tax paying voters in Ann Arbor are VERY happy with the folks that make these choices. They just voted more of the SAME, back in! YOU get what you vote for people!!
HENDRIX242
Fri, Nov 5, 2010 : 1:09 p.m.
After speaking to many of my customers of my downtown business, I feel the DDA is out of touch with common or less wealthy people. Many people do not come downtown for hours on end. They come to pay a ticket, buy strings from Herb David or socks from Sam's, they come to do errands, which is still business. They want to do business quickly and conveniently, not drive / walk up and down parking garages dragging children along. I hear people complain about the library lot and bemoan the now lack of accessibility. Many people cannot confidently drive in parking structures, they prefer to pull in to ground level parking spot. Watching people parallel park in front of my store is source of non-ending amusement for me; I often wonder how those SUV / minivan drivers handle the narrow lanes & spots of parking garage. Many people do not possess the level of spatial awareness to drive a vehicle, much less a big one. Getting rid of all surface parking downtown I believe is short sighted. The library lot on Fifth was an easy in & out. While they may be unsightly, it's certainly nothing good landscaping couldn't correct. Another problem is that the public does not vote on the DDA. City Council is more accessible and accountable. If the city were to sell the surface structures, maybe it should do so with deed restrictions that some of that space be used for a grocery store. In past DDA & city studies, urban planners have recommended a grocery store as a means of improving Ann Arbor's vitality & viability. I fear that remaining available land will just go to sweetheart deals for developers who want to put in a TGICHILLIBEE's, making Ann Arbor more like ANYWHERE, USA. If we the citizens of Ann Arbor own this land, if we sell it, it should be done by elected officials, not appointed, in an open and accountable manner.
a2grateful
Fri, Nov 5, 2010 : 12:01 p.m.
If Veracity's numbers and projections are right, it will be an interesting year for the DDA and city. In this scenario, the city may have run out of benefit of their annual DDA bailouts. Use of over half of one's reserves in a year? Ouch... if that's not a warning of a rocky reef on the shore's horizon, nothing is. The new motto for a2 city gov, in action if not in word, is, "We shop 'till we drop... because we can!" Or how about this, "I spend therefore I am (Consumo ergo sum?)."
ShadowManager
Fri, Nov 5, 2010 : 11:55 a.m.
Dear DDA, No development downtown can be complete unless they close off a few streets for a year so the construction guys can take their time and not be bothered by annoying things like people wanting to park, shop at donwtown businesses or use the library. --- from the Committee to Keep 5th Avenue Closed for a Year.
Martin
Fri, Nov 5, 2010 : 10:10 a.m.
On the surface, the Ann Arbor.com survey question as to who should direct the planning and development of downtown Ann Arbor is remarkable for its plain dumbness. On the other hand, it is clear that even the successful and often highly educated members of the DDA and the city council cannot answer this question. So, here is the answer: professional and qualified city planners, urban designers, and architects, people who have been specifically trained to do exactly this work. By the way, if Ann Arbor.com staffers, the DDA, or city council members also need to know who to call if they get sick, please do let me know. I might again be able to point them in the correct direction.
xmo
Fri, Nov 5, 2010 : 9:48 a.m.
What's all of the Fuss about, the residents and the City Council do not want any developement in Ann Arbor because it will destroy the planet. So, go back to your coffee an let's talk about something important like medical marijuana.
Veracity
Fri, Nov 5, 2010 : 9:30 a.m.
The DDA avoided a budgetary deficit this past year by using up half of its reserves. As the budget stands for this year anticipated revenue and the remaining reserves will not cover expenses and a deficit will result (if legally allowed, that is). Despite the imminent financial debacle the DDA wishes to float a $9 million dollar bond issue in order to build a subterranean parking structure for the developers of Village Green City Apartments. This "gift" will cost the DDA an additional $801,000 in servicing costs yearly for the next 20 years. Since the bond issue can not be supported by either present taxes or from parking revenue, the DDA will force a millage or a city income tax. Either way Ann Arbor citizens will end up paying for this obligation which so blatantly benefits a private developer. Why would the DDA do this? ADDENDUM: FY 2010/2011 Budget for Downtown Development Authority Total Expenses...................................... $25,779,945 Excess of Revenue Over Expenses...... ($5,756,643) - Estimated Beginning Fund Balance........ $8,881,861 Estimated Budgeted Ending Fund Bal..... $3,125,218
AAresident
Fri, Nov 5, 2010 : 7:32 a.m.
Well, so far there has been a real lack of public process in the major city development projects: Police Courts Building, Library Lot under ground parking, Fuller parking garage, First and Washington general obligation bond for another parking garage. So now the DDA and the City Council are saying they want public input? That's surprising!
a2grateful
Fri, Nov 5, 2010 : 7:31 a.m.
Agree with foobar417, as well. The City has minimal development expertise, and no money left for this folly. Their recent projects have been failures (former YMCA for example, as well as those listed in article). Their current developments of underground parking (not needed), and hotel and conference center (not needed), are at great risk of failure. Of course, said risk of failure falls squarely on the shoulders of taxpayers. Sadly, there are not enough city services or employees left to slash to cover the future failure liabilities, much less the current ones. Sell the land and pay for the furniture in the court building. There, we have no juror chairs, but we have a fine folly fountain.
Steve Hendel
Fri, Nov 5, 2010 : 6:45 a.m.
I agree with foobar417. Let's also remember, as long as we are discussing the best way of determining the wishes of the community regarding development, that the City Council (not the DDA, not outside consultants, and not small but noisy NIMBY groups) is the only entity involved here which can justifiably claim to represent the will of the people. Nobody hired them, nobody appointed them, you and I voted for them. IF the development process is imperfect, then it's their job to fix it-not just shuck it off to some other group.
5c0++ H4d13y
Fri, Nov 5, 2010 : 6:22 a.m.
Kunselman for Mayor!
foobar417
Fri, Nov 5, 2010 : 6:10 a.m.
The poll would be more interesting if you included the option laid out in the article of deed restrictions and then putting up the lot for sale.