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 submitted this rendering for Ann Arbor City Apartments when it was approved in 2008.
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.
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529.
Comments
David
Mon, Oct 11, 2010 : 6:22 p.m.
This is a fiscal disaster waiting to happen.
Speechless
Tue, Oct 5, 2010 : 12:48 p.m.
"So then, the goal is to increase the number of people living in the center of town to reduce sprawl and increase business downtown?..." Yes, I would think so. "... Don't we also live in the 21st century where pretty much everybody around here expects to be able to travel independently any time?..." That's a very 20th century notion. Gas prices at the pump today will seem ridiculously cheap compared to a decade or two 'down the road.' Easily extracted sources of oil are expected to gradually dry up, while the U.S. has spent more than a generation mostly squandering its great opportunity to develop alternative fuels. Years from now, a tiny RFID device used for entry onto local mass transit may become a pretty important personal item. "... Division St. squeezed to two lanes. Bike lanes drawn, seemingly, onto every downtown street. Two way streets narrowed by bike lanes...." Horrors!
ShadowManager
Tue, Oct 5, 2010 : 8:48 a.m.
I think the city needs to find a way to close off either First or Washington street for an entire year while they build the underground parking. That's working so well and making things so convenient and fun over at the Library lot...why not spread the love around?
Killroy
Tue, Oct 5, 2010 : 8:41 a.m.
The only thing missing from this grand plan is a trolley system similar to what they have in Portland,OR. Then this could work.
alterego
Tue, Oct 5, 2010 : 7:48 a.m.
So then, the goal is to increase the number of people living in the center of town to reduce sprawl and increase business downtown? Don't we also live in the 21st century where pretty much everybody around here expects to be able to travel independently any time? Then, unfortunately everybody living in town will need a car and a place to put it. Unless we all prefer they park on the street which would certainly increase traffic congestion.
Steve Hendel
Tue, Oct 5, 2010 : 6:55 a.m.
@Alan Goldsmith: i guess the question is, does the $9 million in bonds INCLUDE the land cost of $3 million? In other words, will the developer be reimbursed all or part of what they have laid out to 'acquire' the land? I would guess that the developer WILL be reimbursed for that portion of the land attributable to the parking structure, since that structure will be owned by the City. Anyone know for sure?
racerx
Tue, Oct 5, 2010 : 5:44 a.m.
600 space underground parking garage at the Library lOT, 244 space parking structure, 11 story building, 156 apartments also downtown. Division St. squeezed to two lanes. Bike lanes drawn seemingly, onto every downtown street. Two way streets narrowed by bike lanes. Yup. This is a city that is really moving towards a non-motorized plan. Oh, can't wait to get out or into dodge at quittin' time! Is the city finally beginning to see that it can't have it both ways? On one hand they want to limit car use by including bike lanes and reducing traffic lanes, but, in their quest for revenue they are building or allowing parking structures to capture the funds that they will generate. Yup. Sounds like a sure fired urban plan to me. If the city would assume that the average UM worker will be living at this 156 apartments, guess again! The average salary at the U is about $35K, so I highly doubt these people will be moving into these buildings, thus, this is why they drive, because they can't afford to live in the city!!