Renovations are on the way to Forest Avenue Plaza in downtown Ann Arbor after the City Council took action Monday night to authorize a $90,000 transfer from the park memorials and contributions fund to the Downtown Development Authority for the project.

The plaza, located in the South University area, is not designated as parkland, but it will be used as open public space within the DDA district, city officials said.

The Forest Avenue Plaza sits adjacent to the Forest Avenue parking structure just south of South University Avenue.

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As part of any site plan review process in Ann Arbor, developers are asked to provide a land donation so new residents can have adequate open space. Two downtown residential developments — 601 S. Forest and Zaragon I — made payments in lieu of land donations to make improvements to the plaza, adjacent to the Forest Avenue parking structure.

The 601 S. Forest development contributed $50,000 and the Zaragon I development contributed $40,000. The improvements are intended to provide an amenity for residents at both developments, as well as other area residents and businesses.

The 854-space Forest Avenue parking structure at 650 Forest Ave. was constructed as a partnership between the city of Ann Arbor and the University of Michigan and was completed in July 2001. The plaza area was intended to be an amenity for the neighborhood, but it "never really clicked," said Susan Pollay, DDA executive director.

"It just isn't functioning as well as it might," she said.

City officials said the plaza has been in need of renovation for years now. Large electric boxes occupy a section of the plaza, trees are in decline, and the pavement is deteriorating.

City staff and the DDA met with the South University Area Association and determined that beautification of the plaza could be accomplished by upgrading paving, replacing landscaping and installing furniture, according to Amy Kuras, the city's parks planner. A public meeting will be held to solicit additional input from area residents prior to a design being developed. The city is asking the DDA to provide design and construction oversight.

Pollay said the actual renovations likely won't happen until September or October, but the planning process begins now. She said she's excited to hear residents' ideas for the site, whether that includes more green landscaping or lots of chairs and tables.

"It's a great opportunity to work in partnership with parks and the South University neighborhood, so we're thrilled," she said. "It'll be an exciting project. And with so many new residents in that neighborhood, it's a joy to think about creating a space so many people are going to be using."

Under a project management agreement with the city, the DDA will submit all proposed plans for city review and approval and provide a complete record of project expenditures. Any unspent money will be reserved for future improvements to the Forest Avenue Plaza.

Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529. You also can follow him on Twitter or subscribe to AnnArbor.com's e-mail newsletters.