Developer finalizing downtown Ann Arbor apartment project
Ann Arbor’s downtown housing boom is just a memory now - thanks in part to the many projects proposed but never built in the last decade.
But one proposal is still making its way to the Planning Commission, and its developer says even today’s economic climate would support it.
“The market’s still strong for the product we’re offering,” said Jeff Helminski of the Moravian Co., developer of the eponymous project. "The market we’re trying to serve (with The Moravian) - we think it’s still there.”
That market is the young professional.
And the product is a four-story building over a level of parking on East Madison between Fourth and Fifth avenues.
The Moravian is taking shape after Helminski’s partnership was unsuccessful in getting approval to build a 14-story tower called The Madison on the 0.85-acre parcel in 2008.
He came back to the city with the new plans in December that year, and has been fine-tuning the proposal - with planning staff - over successive months.
“We’ve essentially been working with planning ever since to craft a project that they could be supportive of,” Helminski said.
The new configuration calls for 63 units - three dozen three-bedroom apartments, nine one-bedrooms, eight two-bedrooms and seven four-bedrooms - plus three efficiencies that will be dedicated as “affordable.”
In addition, there are three live-work units that are “not actually connected to the living space,” said Alexis DiLeo, the city planner assigned to the project.
The proposal is a PUD, or planned unit development, which means it’s not following existing zoning. But in return from some community benefits, the developer seeks approval anyways.
In the case of the Moravian, the affordable housing and fulfilling one of the goals of the master plan - rezoning the current manufacturing district to residential use - are among the benefits cited by Helminski. Others are creating public open space on site and removing a blighted industrial building, along with the potential to build a geothermal heating system for the building.
The exchange: approval to build the four stories with 63 units - a total of 164 beds.
“The issues are similar to the Madison … the proposal is much smaller, but it is a large building relative to the neighborhood,” DiLeo said.
Planners and Helminski have been communicating about potential changes, and it recently was the topic of a Planning Commission work session. It comes back for a public hearing on Oct. 6, DiLeo said.
Since the original submission, some things have been changed - such as the architecture, he said.
“(They) worked a lot to make it appear as if it might be two or three buildings with additions … to break down the scale,” DiLeo said.
The scale of the buildings will be one issue when the plans go to the public hearing at Planning Commissions.
But Helminski also has had to consider the scale of the investment.
The number of bedrooms and floors will make the project workable, he said.
“We can still make the project work at that scale,” he said. “The biggest factor is the construction costs. The wood frame construction allows it to work.”
Pricing for the apartments have been estimated at from $700 to $1,250 per bed, less than in the recent student high-rises built on the edge of campus.
Helminski said the lack of competition downtown - new higher-end rental construction has been rare, and rental demand seems solid near Main Street - will work in his favor if the project is approved.
“The investors behind this believe in the market,” Helminski said. “Even though the economy has done what it’s done and the world of debt financing has done what it’s done, we believe there’s a lack of supply.
“…The market we’re trying to serve hasn’t gone away,” he said.
Paula Gardner is Business Director at AnnArbor.com. Contact her by email or at (734) 623-2586.
Comments
zags
Sat, Sep 19, 2009 : 7:05 p.m.
Anyone with half a brain knows 3 and 4 bedroom units equals undergraduate student housing. Grad students for the most part don't rent 3 and 4 bedroom units. I know because I own and manage rental properties catering to grad students west of State Street. And DagnyJ: This current school year has the highest amount of vacancies that I've seen in 15 years. Just look at the craigslist ads. Rents are flat or have dipped slightly. Students (parents) have been very price conscious the last two years.
Tom Whitaker
Thu, Sep 17, 2009 : 11:04 p.m.
First of all, this site is NOT downtown. This is a NEIGHBORHOOD with a great mix of professionals, students, families, retirees, and workers--both homeowners and renters. With only a few notable exceptions, the houses are well cared for and the rents are very reasonable. People seek out this neighborhood because it is convenient to campus and downtown, yet is remarkably well-preserved with historic houses, trees and lawns. This project is yet another over-priced undergrad dorm-type building--why else would it have so many 3 and 4 bedroom units? And what is this made-up term "workforce housing" anyway? Anyone who has a job, from flipping burgers to President of UM is in the workforce. It is a meaningless, developer-contrived slogan. The reason we keep seeing these projects proposed in neighborhoods is because unsophisticated, inexperienced, and unsuccessful developers can't afford to buy downtown land, so they are trying to push downtown developments into neighborhoods where the land is cheaper. It is Urban Sprawl 101. In this case, the current property owner is heavily in arrears on property taxes and likely an easy target. By next summer, Ann Arbor will have added almost 2000 new student beds (Courtyards, 411 Lofts, Zaragon and UM's North Quad). I'd like two questions answered: 1. How many vacancies are there in these new private dorms that opened this year? and, 2. What is the total UM enrollment this year and what was it last year and the year before? The Moravian site is in a floodplain AND a floodWAY. They are gambling that new FEMA maps will move the floodway boundary to the south, but why would the City insist that the Near North developer remove existing houses in the floodway on North Main, but then turn around allow a brand new residential building in the floodway/floodplain on the south side of town? (I know they haven't allowed this yet, but this should be a deal-breaker on its own.) A PUD must have a definitive PUBLIC benefit to be allowed to circumvent existing zoning. This site is half R4C (medium density residential) and half M1 (a light industrial category). M1 does not allow new residential (this is the half that is in the floodway, FYI). I'm sorry, but three efficiencies that will likely rent for more than those in the existing houses, and a geo-thermal system are not PUBLIC benefits. And removing a blighted building? It's not pretty, but Ann Arbor allowed a lot of these brick box apartments during the last student housing building boom. Lovely aren't they? How about fixing it and adaptively reusing it instead? It's an ideal live-work structure already. That would save more energy than the geo-thermal system.
Jon Saalberg
Thu, Sep 17, 2009 : 1:16 p.m.
As one who walks downtown a lot, I find it ironic that there are "No PUD" signs near the Kerrytown area on some gigantic houses, large enough to be office buildings. They may not be PUDs, but they are certainly not neighborhood-friendly residences.
DagnyJ
Thu, Sep 17, 2009 : 11:39 a.m.
KLK, where is all this unrented student housing? From what I can tell, a few neighborhoods have pushed back against student housing--such as the Golden Ave neighborhood, kind of west Burns Park. The student housing there is being replaced. Also, if there were lots of rentals unfilled, wouldn't rents decline? It's a market thing, supply and demand. What's the average rent these days and how does it compare to three years ago?
Dalouie
Thu, Sep 17, 2009 : 11:34 a.m.
Ed: You are barking up the wrong tree. As long as the developer wants to pay the planning dept. to work with him, they have to. Only the city council can have the final say even if the planning commission says no. The city already said no to this guy once now he wants to try again. Look at the guy on Fifth St. who wants to tear down the seven homes. The city said no 3 times but he keeps coming back. Now they are going to make it into a historic district to finally make him go away but he is still trying. Anyway, this is not the city's fault. The council has been turning down developments if the neighborhood is against it. That of course raises another issue for some who think the town needs more development.
A Pretty Ann Arbor
Thu, Sep 17, 2009 : 10:19 a.m.
This is Student Housing, no matter what is said it will be more student housing in a glut of UNRENTED student housing. At this price point that is what you will attract. Why is the city allowing neighborhoods to be torn down for housing that cannot be supported both from a parking aspect as well as an infrastructure issues? Are they going to pay to update the water and sewer system that was not intended to handle this type of project, a system that is outdated already? Are they going to pay for traffic flow studies - traffic and parking there are already a huge issue - just the other day I saw a semi that was coming into the lumber store almost KILL a driver in a small car. Seriously why are neighborhoods being targeted for destruction???
Phil Dokas
Thu, Sep 17, 2009 : 9:18 a.m.
It would be really fantastic if articles like these about building proposals were to include the conceptual imagery these proposals include. Even blueprints would be helpful. Leaving them out makes me go to other news sites to track down the images and read their articles instead.