November 2017

ANN ARBOR, MI — While plans are underway to add 375 more public parking spaces to downtown Ann Arbor by winter 2019, hundreds more could disappear.

The Downtown Development Authority’s leases for two parking lots in First/Huron and Fifth/Huron end Nov. 30, meaning a loss of 222 spaces from the public parking system starting Dec. 1.

There is still a chance that they may function as short-term private car parks. The city is in discussions with the owner about this, but it is expected that they will eventually be redeveloped.

Additionally, there is talk of closing two city-owned public parking lots at 415 W. Washington and First/William as the city moves forward with its new Treeline urban pathways plan. These lots have long been envisioned as anchor parks along the future trail, although there may also be private development.

The transformation of these two lots could remove an additional 261 spaces from the public parking system, although when this might happen is uncertain at this time. The city is in the process of finalizing the Treeline plan and the implementation phase is next.

City Council and the Downtown Development Authority held a joint meeting Monday evening, Nov. 13, to discuss parking issues, including the planned loss of those 483 public parking spaces.

City leaders are in talks with the owner of the two lots along Huron, Ann Arbor-based developer First Martin Corp., and are considering allowing the company to temporarily operate them as a private parking lot open to the public until the properties are redeveloped. But there are zoning compliance considerations still under consideration.

The DDA has leased the First/Huron and Fifth/Huron lots from First Martin for years, using them as public parking.

DDA executive director Susan Pollay said First Martin was not offering the option of renewing leases now. She said she understood First Martin wanted to redevelop the properties, although she did not know of any specific development plans.

“Not renewing leases is a way to make redevelopment of these lots more possible,” Pollay said, praising First Martin as a developer. “They’re good developers and good community members. So if that’s what it takes to get them redeveloped, that’s a win for everyone.”

Company representatives could not be reached for comment for this story.

The Fifth and Huron lot across from City Hall has been marketed as available real estate for years while being used as a parking lot.

The lot at First and Huron runs the full length of the block from Huron to Washington and from First to Ashley. It is known as Brown Block and is a popular parking spot for downtown visitors, including patrons of Downtown Home and Garden and Main Street restaurants and shops. The lot is often full at peak times.

Pollay said the loss of the Brown Block as a public parking lot from December 1, which is Midnight Madness, the start of the downtown holiday shopping season, would be a bad time, but there are discussions between the city and First Martin on the possibility of allowing the company to operate the lot as a private parking lot at this time. Pollay noted that the use of the Brown Block as a parking lot predates zoning.

City Administrator Howard Lazarus confirmed the city is talking to First Martin about zoning compliance issues.

“And we hope to work together with them,” he said. ‘We do not intend to close these grounds while they work towards full compliance, as the availability of parking – while not a public good – serves a public benefit.

Lazarus said he believes a solution can be found administratively, but he is asking the city attorney to review the case to determine if action by city council is necessary.

“As long as there are good faith efforts to keep moving forward, it is in the public interest to keep these spaces available,” he said.

Councilman Chuck Warpehoski, D-5th Ward, expressed some concern over First Martin’s permission to operate a private parking lot downtown, noting that the city would not allow developer Dennis Dahlmann to do so on the lot Y, even in the short term.

“I think there’s a reason why our D1 zoning doesn’t list parking as an approved primary use,” he said. “So I think if it’s a transition while other things are going on, I guess I can deal with it. The board and the DDA have taken a pretty strong stance on that when we looked at Lot Y. I think we should be consistent regardless of ownership I don’t think we should be playing favorites with that.

Warpehoski said not having private parking in competition with the city’s public parking lot is another consideration.

“And I think we should be consistent with our zoning to make sure we don’t let a primary use that we don’t want take up a lot of our streetscape,” he added.

The DDA said total parking revenue from the two First Martin lots in the prior fiscal year was $536,303, net of rent and taxes. Since the DDA shares 20% with the city, the loss of these lots equates to a loss of $107,260 per year for the city at current rates.

Additionally, the two city-owned lots at 415 W. Washington and First/William generated $367,625. The loss of these would equate to a reduction of $73,525 in city revenue per year at current rates.

Assuming current parking rates, the 375 new spaces expected to be added to the Ann/Ashley Garage could generate nearly $1 million per year in new revenue, including nearly $200,000 per year in new revenue for the city. , according to the DDA. It is estimated that it will cost approximately $18 million to add the three floors.

Council member Jane Lumm, an independent from the 2nd Arrondissement, said she was concerned the public parking system could lose a network of more than 100 spaces given the level of parking demand.

She also noted that the city and DDA agreed to allow a Chicago-based developer to lease 361 public parking spaces in the Library Lane and Fourth and William garages to support a 17-story development on the library lot owned by the city on Fifth Avenue.

Lumm said she thought it would be wise to consider other parking capacity measures beyond the Ann/Ashley addition.

Other options being considered by the DDA include a four-story, 370-space vertical addition above the Liberty Square garage and a 747-space garage on the Kline lot at Ashley and William Streets with a mix of underground and parking garages. area.

Pollay said the DDA is also asking its engineers to explore the possibility of adding more than 375 spaces to Ann/Ashley

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Council member Kirk Westphal, D-2nd Ward, said he was worried about knee-jerk turning to increasing parking capacity. He suggested the city is undervaluing downtown parking and wondered if rate changes could meet parking demand.

City and DDA leaders acknowledge there is no certainty about how much parking will be needed in the future as the way people get around changes and self-driving cars come online .

Lazarus said he thinks it’s critical the city at least moves forward with adding Ann/Ashley now.

Pollay said the DDA is considering raising downtown parking rates, which could help fund the Ann/Ashley addition.

She announced potential rate changes for spring 2018, raising monthly permit costs by $10 to $35 per month, while on-street parking rates would increase by 10 cents per hour. Hourly parking rates would remain unchanged.

The DDA tentatively plans to hold a public hearing on the rate changes in January 2018, followed by board approval in February and implementation of the new rates in April.

Monday night’s meeting presentation also covered potential economic development opportunities, one being to allow private development on city-owned land at 415 W. Washington, a degraded property across from the YMCA, and to use tax raised fundraising revenue to help fund the Treeline Urban Trail.