Village Green apartment project in downtown Ann Arbor close to breaking ground, officials say
Village Green submitted this rendering by BKV Group for Ann Arbor City Apartments when it was approved for downtown in 2008.
A downtown apartment project nearly five years in the making is finally gearing up to break ground by July, Ann Arbor Downtown Development Authority officials said today.
The project at the corner of First and Washington is being undertaken by Farmington Hills-based developer Village Green.
The DDA's governing board today voted 10-0 to approve an amendment to the parking agreement between Village Green, the city of Ann Arbor and the DDA.
The changes made to the agreement give the DDA and the city additional assurances related to Village Green's redevelopment of the city property. The mixed-use project includes apartments and a multi-story public parking structure to be owned by the city of Ann Arbor.
"It is moving forward, and we expect it to happen," Mayor John Hieftje said of the long-awaited project. "The whole problem has been to get financing, and as we know that's really been hurting everyone. But it appears that logjam is breaking open."
Village Green CEO Jonathan Holtzman addresses the Ann Arbor City Council last June.
Ryan J. Stanton | AnnArbor.com
The DDA will buy and manage the 244-space parking structure on behalf of the city once the deck is completed, said DDA board member Roger Hewitt.
Hewitt said the agreement with Village Green needed to be amended to clarify details related to the design and construction of the parking structure, including the DDA and city rights to request design changes, as well as opportunities for inspection during construction.
"Essentially it deals with language changes that assure that the 75-year life of the deck that is required in the agreement is adhered to in the construction," Hewitt said. "There are a number engineering concerns and inspection concerns that we're addressing in this amendment, so the DDA is assured we are getting what we're paying for."
In response to a request for proposals, Village Green was selected by the city in 2006 to redevelop the city property. The city, DDA and Village Green then entered into a parking agreement in October 2007 that was later amended in 2008.
Village Green is expected to build a 156-apartment, 11-story (8 above grade) building known as Ann Arbor City Apartments with a four-level, 244-space parking deck. The parking is going to be financed with a $9 million bond issued by the DDA.
The property is at the corner of First and Washington, where the city demolished a parking deck and solicited bids from developers to pursue the public-private partnership.
The city intends to sell the property to Village Green for about $3 million — money the city's administration has counted on being able to put toward the police-courts building addition to city hall at the corner of Fifth and Huron downtown. The project timeline, which runs through 2012, calls for the developer to close on the sale in June.
DDA board member Newcombe Clark expressed concerns today that the project is nine weeks behind schedule. He specifically said he was worried about issuing bonds too soon.
DDA executive director Susan Pollay said the bonds won't be issued until construction is nearly complete. Though behind schedule, she said Village Green expects to have construction documents submitted to the city in March, and the project should break ground in July.
The entire project is supposed to be complete by the end of 2012.
Other downtown projects
DDA board members also received a report today on Transportation Committee and staff work plan items, which shows ongoing projects include:
- Monitor motorcycle/moped/bicycle use to focus areas of highest demand
- Reinstall on-street bicycle racks this spring
- Increase publicity/visibility of the DDA website bike parking request form
- Seasonally remove abandoned bicycles to free up bike parking
New work plan items may include:
- Explore installing seasonal dedicated on-street motorcycle/moped parking
- Be available to provide input to AATA on its countywide 30-year transit plan
- Discuss the city/AATA/DDA Connector Study next steps
- Investigate how to encourage more taxi use downtown
- Work with AATA to develop plan for South Fourth Avenue, e.g. U-M Blue buses, Greyhound
- Unify DDA/getDowntown/RPS communications
- Collaborate with getDowntown to communicate evening parking/transportation options
- Reorganize the DDA website content regarding parking and transportation
- Encourage the use of electric/hybrid vehicles, e.g. charging stations
- Do a spring-time walk around, opportunities to make downtown more walkable
Ray Detter, chairman of the Downtown Area Citizens Advisory Council, also addressed the DDA today to offer praise for the city's new downtown design guidelines, which are posted online.
"They've done a very good job," Detter said of those who worked on them.
Detter also relayed concerns about the University of Michigan's request to have the city permanently close a one-block portion of Monroe Street near Dominick's bar and restaurant.
In addition to having an adverse impact on the business, Detter said the Citizens Advisory Council is worried about the potential loss of at least 16 on-street parking spaces. The DDA has determined it would cost about $45,000 per space to create new structured parking spaces replacing those on-street assets if they were lost.
"Closing the street definitely would be a disaster for Dominick's," Detter said, adding he also saw "no benefit to the city" by getting rid of what he considered "needed on-street parking."
DDA board members Leah Gunn and Sandi Smith were absent.
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529.
Comments
Bill
Fri, Feb 4, 2011 : 1:16 p.m.
As for closing the Monroe block, I actually think Casa Dominick's would benefit from the closure and that foot traffic and seating capacity would actually increase. A pedestrian mall in from of a restaurant/bar? We should all be so lucky!!!
Ryan J. Stanton
Thu, Feb 3, 2011 : 5:36 p.m.
Tom Crawford, the city's CFO, said the agreement took a little longer than originally planned because the city was coordinating with three parties involved. But by going to council on Monday, everything is on track with the revised timeline. "We did administratively extend 90 days because it took longer than anticipated to get the Parking Agreement amendment completed which is going to Council 2/7," he wrote in an e-mail. "A project like this has many strands of activities going on at the same time. This one did take longer than we planned. We're looking at the other strands now to make sure we're on track."
Ryan Munson
Thu, Feb 3, 2011 : 4:38 a.m.
Are architectural renderings ever cited in news articles?
Ryan J. Stanton
Thu, Feb 3, 2011 : 4:01 a.m.
Just found this from a May 14, 2008, article in Concentrate: "Farmington Hills-based Village Green Companies has set the ground breaking for Ann Arbor City Apartments before the end of the year." <a href="http://www.concentratemedia.com/devnews/annarborcityapts0008.aspx" rel='nofollow'>http://www.concentratemedia.com/devnews/annarborcityapts0008.aspx</a>
Mermaidswim
Thu, Feb 3, 2011 : 1:37 a.m.
Mr. Stanton, There is an architectural rendering of the design shown in this article, which is protected by copyright. Please list the name of the architect who designed this project.
Sallyxyz
Thu, Feb 3, 2011 : 12:05 a.m.
JohnnyA2: I don't think they have publicized the rents for this project, but you can be sure that most units will be pricey. After all, don't developers get into this business to make a huge profit? And remember, all those rich students in A2 are ripe for the picking.....well, let's see how many more apartment buildings can continue ripping them off. I do think it's not a great time to add more rental property to downtown when there are vacancies at Ashley Terrace right in the same neighborhood. Not to mention the vacancies at other new construction locations, such as Plymouth Road, over the Panera's, and also at Green and Plymouth. Those have been vacant for a long time. I think they were initially going to be condos that didn't sell, so they are trying to rent them unsuccessfully. Why keep adding high end apartments to a saturated market?
Bill
Wed, Feb 2, 2011 : 11:11 p.m.
Didn't they just finish Ashley Terrace last year and doesn't Ashley Terrace still have quite a few vacancies? See exhibit (a): <a href="http://www.piperpartners.com/ashleyterrace.html" rel='nofollow'>http://www.piperpartners.com/ashleyterrace.html</a> So, now an even large PUD with 156 apartments is going to sprout right in front of the Pig and Cavern Club? Where the tenants going to come from? Farmington Hills as well?
bugjuice
Thu, Feb 3, 2011 : 2:40 p.m.
Could you show me where this development is a PUD? I could find no reference anywhere. Do you know what a PUD IS? Did it ever occur to you that maybe some of the condo owners (not apt tenants) would spend some time and money at some of the clubs and restaurants along 1st St?
johnnya2
Wed, Feb 2, 2011 : 11:35 p.m.
You do understand there is a major difference between a condo and rental unit right?
SillyTree
Wed, Feb 2, 2011 : 11 p.m.
Encourage more taxi use downtown: The police have a tough job. They have to keep traffic flowing and allow people to use taxis instead of driving after drinking. If the parking immediately in front of bars and other establishments that server alcohol were made available to taxis after 11 pm, it would be beneficial. As it stands, the police must constantly circle the block near establishments such as Scorekeepers and remind taxis that they are blocking traffic. Sometimes they issue tickets to the drivers which makes them less likely to want to wait for a fare at such an establishment. Most bars et al have a car park close by and the decrease in on street parking that would result is not a big deal. The structures are as convenient or nearly as convenient to any street parking. Just let people do their jobs. Don't make it be about the few. Many would benefit. Also, a limo is not a taxi.
Ben Connor Barrie
Wed, Feb 2, 2011 : 10:31 p.m.
@marzan How would the city go after the Pig and the Cavern Club? The case history of cities using eminent domain to transfer land between private entities is somewhat fraught. The Pig is an institution, and I don't think the powers that be would want to remove it. Isn't the charm of city living being in close proximity to restaurants, bars and venues?
Dog Guy
Wed, Feb 2, 2011 : 10:23 p.m.
A sweetheart deal for an out-of-county developer, a local merchant put out of business to please the university which pays the mayor and some council members, another parking lot is removed--looks like business as usual in Ann Arbor
Will
Wed, Feb 2, 2011 : 9:52 p.m.
Re DeeDee's comment about the replacement cost of the on street parking spaces, I think that the $45,000 figure is what the DDA estimates it will cost to build replacement parking spaces in a structure - not the amount of revenue that these spaces generate.
marzan
Wed, Feb 2, 2011 : 9:42 p.m.
With this building going up I'm concerned about the Blind Pig's future. Is the city going to go after the Blind Pig and the cavern club? They are dropping a residential building right next to two music venues.
johnnya2
Wed, Feb 2, 2011 : 9:40 p.m.
A2.com, Have you heard the proposed rents and square footage of these apartments? Have any been designated for "low income"? How are these going to compare to apartments proposed for Georgetown, I mean Packard Square?
Ryan J. Stanton
Thu, Feb 3, 2011 : 5:37 p.m.
First & Washington site - Approximately 10% of the total units (16 out of 156) will be "affordable". Total units will range from studios to 2 BR/2BA/dens, approx. 500 to 1140 sq. ft. The rents (including the affordable units) range from $595 to about $2,300. Packard Square – the info. the developer has shared with the city is the units would range from 620 to 1,380 square feet and rents would be $780 - $1,300 square feet. 230 units in total including 1/2/3 bedrooms. No affordable units.
Ryan J. Stanton
Thu, Feb 3, 2011 : 4:04 a.m.
I found an article from 2008 that stated there would be 16 affordable housing units included in the project.
Ryan J. Stanton
Wed, Feb 2, 2011 : 10:22 p.m.
I think this is coming to City Council on Monday. I'll see if I can get some of those details by then and report them.
DeeDee
Wed, Feb 2, 2011 : 8:26 p.m.
Definitely closing the block in front of Dominick's is a bad idea! UM throwing its weight around to the detriment of local tax base once again. But, $45,000 per space per year - really??? There are 312 parking days in a year - 365 less sundays, and that means they have to collect $144 per day, or about $12/hour - even in Chicago it isn't that much. Do you mean $4,500?
southern gentleman
Wed, Feb 2, 2011 : 9:40 p.m.
DeeDee, I believe that the block being closed is not the block directly in front of Dominick's, but the block between the current law school building and the new building.
Ryan J. Stanton
Wed, Feb 2, 2011 : 9:06 p.m.
Thanks for raising the question on that point. I have clarified the story to say the DDA has determined it would cost about $45,000 per space to create new structured parking spaces replacing those on-street assets if they were lost. There's apparently no correlation to annual revenues from those spaces.