Ann Arbor could develop 2 affordable housing sites ASAP, analysis finds – MLive.com

The Y Lot (Ben Allan Smith | The Ann Arbor News)

Editor's note: This story was updated to include an additional resolution on the agenda.

ANN ARBOR, MI - Ann Arbor could move quickly to develop more affordable housing.

City Council will consider seven resolutions Monday, Nov. 18 related to possible affordable housing developments on city-owned plots.

Of 11 potential development locations submitted for review, city staff found sites at 121 E. Catherine St. and 404 N. Ashley St. were immediately ready to be developed as affordable housing, according to an analysis to be presented Monday by the Ann Arbor Housing Commission.

The analysis includes proposed development designs prepared by Carlisle Wortman Associates.

Under one resolution, City Council would direct the housing commission to pursue development at those two spots. Five other resolutions call for development depending on funding, more study or community engagement on a number of other sites. Another resolution calls for 353 S. Main St. to be analyzed for affordable housing possibilities. A separate resolution asks for the privately owned 2857 Packard Street to be similarly evaluated.

City Council in April directed city staff to work with the housing commission and Washtenaw County's Office for Community and Economic Development to evaluate select city-owned properties for possible development of affordable housing.

Ann Arbor adds to list of potential affordable housing sites

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Council wants the city maintain ownership of the properties and for developers to accept Housing Choice Vouchers and offer affordable rates for renters making 60 percent of the area median income or less - about $60,720 a year or less for a family of four in Washtenaw County.

Three potential portfolio scenarios for the sites will be presented Monday, according to the resolutions on the council agenda.

They come as the city launches a public engagement process in December on affordable housing and the development of two city-owned vacant lots that were evaluated - 350 S. Fifth Ave., known as the Y Lot, and 425 W. Washington St.

Here's a breakdown of city staff's findings and recommendations so far:

121 E. Catherine St. possible development (Courtesy of Carlisle Wortman Associates)

121 E. Catherine St. and 404 N. Ashley St.

Both 121 E. Catherine St. and 404 N. Ashley St. are ready for development, according to city staff.

They're recommending City Council direct the housing commission to develop the sites, zoned D2 for medium-density mixed residential and commercial development, utilizing a ground lease after the appropriate environmental reviews, site plan approvals and applications for funding are filed.

An estimated 120 to 170 units combined of affordable housing, targeting those making 60% of the area median income, could be developed, according to the resolution.

An evaluation found both sites have high potential to receive Low-Income Housing Tax Credits, and other federal and state funds for affordable housing, according to the resolution. They're also in the Downtown Development Authority district and eligible to receive financial support from the authority.

404 N. Ashley St. possible development (Courtesy of Carlisle Wortman Associates)

"If tax credits are secured for both sites, the sites could be developed with very little local financial support compared to the other sites," according to the resolution.

The location on Catherine Street - currently a parking lot - would take an estimated $15.3 million to develop.

The Ashley Street location - currently under lease by the University of Michigan for its Community Dental Clinic - could take $17.8 million to develop.

2000 S. Industrial Hwy. possible development (Courtesy of Carlisle Wortman Associates)

2000 S. Industrial Hwy.

A four-acre parcel of land, currently zoned as public land, could garner 50 to 165 affordable housing units if sufficient funds are found, the city review found.

The spot on Industrial Highway is currently used for the Ann Arbor Housing Commission, part of the water system, parking and warehouse storage.

Due to its location next to a railroad, the property could not get Low-Income Housing Tax Credits in support of households making 60% of the area median income, according to the analysis.

Still, development could be possible through housing revenue bonds, the sale of other public land - such as the Kline lot - and other local funding sources, according to a memorandum.

2000 S. Industrial Hwy. (Google Maps)

The affordable housing would target households making up to 80% of the area median income, or $80,960 for a family of four.

City Council is asked to direct the housing commission to develop it's office, maintenance facilities and the affordable housing units, dependent on obtaining the funding, conducting environmental reviews and getting site plan approval.

A memorandum for the resolution suggests City Council could, alternatively or in addition to, direct staff to conduct more analysis on possible funding for mixed-income housing and units targeting those making 60% of the area median income.

The estimated cost of development is $37 million.

Kline lot possible development (Courtesy of Carlisle Wortman Associates)

The Kline lot

The Kline lot at Ashley and William streets could garner a whopping 400 to 600 or more housing units, along with retail space, according to city staff analysis.

However, based on the size, it's likely that a private developer's aid or a sale would be necessary to develop the site.

The property, in D1 zoning for high-density mixed use, is about 1.25 acres in size and scored highly competitive for Low-Income Housing Tax Credits, but would be well over the funding cap set by the tax credits.

If the maximum tax credits were obtained, it would allow for 125 tax credit units and 475 market-rate units, according to a memorandum. Otherwise, proceeds from a sale to a private developer could subsidize other development projects that are less competitive for the tax credits.

The Kline lot (Google Maps)

The site would take an estimated $136 million to develop and is appraised at about $13.7 million is sold.

However, the loss of parking from the site could have a large impact on downtown.

City Council has been asked to direct city staff to work with the DDA on community engagement for the development of the Kline lot as well as the nearby lot at First and William streets.

216 W. William St. (Google Maps)

Ryan Stanton | The Ann Arbor News

First and William streets

The less-than-an-acre parking lot at First and William streets, zoned D2, is not suitable for housing because it's entirely in a floodway and floodplain, city analysis showed.

However, city staff have offered a resolution on the site, with an eye to its relation to the Kline lot. In short, it could be used to support the parking needs that developing the Kline lot would require.

A parking deck built on the property would cost less than building an underground parking deck at the Kline lot, according to a memorandum. It can be designed to leave room for a greenway along First Street.

City Council has been asked to direct city staff to work with the DDA on community engagement for the Kline lot and the First and William streets lot, combined.

721 N. Main St. (Google Maps)

721 N. Main St.

Only a small portion of the 5.26-acre site, zoned for public land, at 721 N. Main St. is suitable for housing, the city analysis found.

The site is close to a railroad and has a deed restriction prohibiting any development, even a parking lot, on the floodplain and floodway on the site, according to a memorandum. Most the site is floodplain and floodway.

However, 25 to 35 housing units could be developed on the northwest corner of the property, off West Summit Street.

The site of the City of Ann Arbor Fleet Services building, 721 N. Main St. in Ann Arbor Wednesday, March 6 2019. (Jacob Hamilton | MLive)

This site is not eligible for Low-Income Housing Tax Credit or other federal funding, and alternative funds would be needed to develop the land, the analysis found. Otherwise, the property could be leased with an affordable housing requirement or be sold to subsidize other affordable housing projects.

Development would cost an estimated $7.6 million, The site's appraised value if sold still needs to be determined, but is estimated at $400,000 to $600,000.

City Council has been asked to direct the city administrator to work with the DDA, the Tree Line Conservancy and others to pursue community engagement on the use of the site.

Platt Road and Springbrook Street possible development (Courtesy of Carlisle Wortman Associates)

Platt Road and Springbrook Street

The four city-owned parcels of land at 3400 block of Platt Road and 3400 block of Springbrook Street could support up to 14 single-family affordable housing units, according to a memorandum.

The parcels, totaling about 1.3 acres, sit across from existing subsidized housing and near single-family homes.

It likely wouldn't get Low-Income Housing Tax Credits, and would need significant local subsidy to be developed, city staff found.

3440 Platt Road (Google Maps)

City staff has looked into selling the property to Habitat for Humanity with a resale restriction in favor of long-term affordable housing or developing small, zero-energy modular houses.

The site would cost an estimated $3.1 million to develop and is appraised at $560,000 if sold.

City staff want City Council to direct additional community engagement on the site.

1510 E. Stadium Blvd. possible development (Courtesy of Carlisle Wortman Associates)

1510 E. Stadium Blvd.

A .75-acre plot at 1510 E. Stadium Blvd. isn't a high priority option for affordable housing, according to city staff.

They're eyeing the land, which currently has a former fire station, for temporary or permanent Ann Arbor Housing Commission offices, a maintenance garage or other city offices, as an alternative to the 2000 S. Industrial Hwy.

The location could support eight to 12 affordable housing units but isn't a competitive option for low-income tax credits and would require significant local subsidy for development, according to a memorandum.

Development would cost an estimated $3.1 million.

City Council is asked to direct the housing commission to hire an architect to determine the cost of renovating the existing building and adding an Americans with Disabilities Act-compliant addition, then report back.

1320 Baldwin Avenue (Google Maps)

1320 Baldwin Avenue

The current site of the Ann Arbor Senior Center is a no-go for affordable housing, as far as city staff is concerned.

It's park property, would require a ballot approval to change its allowed use and has a Michigan Department of Environment Quality restriction, according to staff analysis. The senior center also would be lost through development.

The Y Lot is at 350 S. Fifth Ave. (Google Maps)

Five, four-hour community discussion sessions are scheduled on the topic of developing 350 S. Fifth Ave. and 415 W. Washington St.

The 2.2-acre property at 415 W. Washington St., zoned D2, includes a floodplain and floodway, according to the county's Office of Community and Economic Development. It also has a blighted building, is in a historic district, could qualify as a brownfield site and has a railroad noise hazard.

City staff previously recommended a public-private partnership to develop the long-debated 0.8-acre parcel known as the Y Lot at 350 S. Fifth Ave. They called for the city, Ann Arbor Area Transportation Authority, the Ann Arbor District Library and the DDA to create 100 to 200 units of affordable housing and space for community events and meetings.

Ann Arbor OKs contracts for community-driven Y Lot concepts

The development would include the Y Lot, the library's property at 343 S. Fifth Ave. and the Blake Transit Center on South Fifth Avenue.

The DDA pledged $745,000 toward the creation of affordable housing on the property, zoned D1, and the City Council in July agreed to hire local consultant SmithGroup Inc. to develop concepts for the lot.

The city agreed to move $75,000 from the general fund to the planning fund for the cause, with the expectation that $50,000 will be paid back by the AAATA and the DDA.

Blighted property at 415 W. Washington St., Ann Arbor, on Oct. 11, 2017. (Ryan Stanton | MLive)

415 W. Washington St. and the Y Lot

The community discussions will take place:

Those unable to attend a discussion can share feedback on the project webpage or send questions to Derek Delacourt, City of Ann Arbor community services administrator, at

.

353 S. Main St. (Google Maps)

If City Council approves a resolution Monday, the city-owned parking lot at 353 S. Main St. will be evaluated for possible affordable housing.

2857 Packard Street (Google Maps)

If City Council approves a resolution Monday, the privately owned property at 2857 Packard St. will be evaluated for possible affordable housing.

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Ann Arbor could develop 2 affordable housing sites ASAP, analysis finds - MLive.com