Ben Carlisle and Megan Masson-Minock help with downtown zoning in Ann Arbor
Three years ago, Ann Arbor’s City Council approved “new downtown zoning premiums to entice developers to include more affordable housing in developments.” Ben and Megan are helping the city analyze and review the outcomes and consider changes.
The intersection of Huron and Ashley streets in downtown Ann Arbor on Feb. 9, 2023. Ryan Stanton | The Ann Arbor News
A history of downtown Ann Arbor developments and how often developers have taken advantage of affordable housing, green building and residential use premiums to increase building floor area in projects. Carlisle Wortman Associates Inc.
For nearly 60 years, the city of Ann Arbor has used “zoning premiums” to entice developers to build bigger in exchange for features that benefit the greater good. Back in the 1960’s this was the “inclusion of pedestrian amenities like plazas.” Over time these have incentivized residential premiums such as affordable housing and public parking. In 2019, after several high-rise “luxury branded” residential projects were developed, the affordable housing premium was highly touted to developers as a way to expand density in their projects. However, the affordable housing premium has not been used effectively.
Ben and Megan appeared before the Ann Arbor Planning Commission to begin the conversation surrounding city’s goals and how to move forward with this important zoning issue. In doing so, they presented the city with data showing if premiums were used and which types were used between 2002 and 2022 for downtown projects. The data showed that developers were not utilizing the affordable housing premium often enough for the premium to be effective. Ben reported that developers had shared that “it’s difficult to finance and manage affordable housing.” There has, however been some positive movement with affordable housing initiatives in downtown Ann Arbor thanks to “a new affordable housing millage approved by Ann Arbor voters in 2020.” This has allowed for two large economical projects to begin — “one in partnership with nonprofit Avalon Housing in Kerrytown and one next to the Blake Transit Center — while several other sites are being eyed.”
The elephant in the room continues to be that “much of the private development downtown over the past decade or so has been high-rise apartments geared toward University of Michigan students or smaller-scale, high-end condos, with little affordable housing.” Megan pointed out that while more housing downtown is desirable, city policies are driving low-rise, luxury housing… there’s such a strong demand for student housing that it inflates downtown property prices. Megan also demonstrated how other communities nationally and within Michigan have addressed incentivizing affordable housing through downtown zoning, mixed-use development and public transit with reduced driving. CWA has had some discussions with city leadership and most so far have said “the downtown zoning is not working to implement plans and policies and should change, and the affordable housing premium is difficult to implement.”
During Ben and Megan’s meeting with the Planning Commission, city officials discussed Ann Arbor’s goals for housing affordability, diversity and sustainable buildings, including building electrification, and the possibility of improving and strengthening premiums in those areas, as well as the possibility of allowing bigger buildings as by-right projects in some cases.
We at CWA will continue to assist the Ann Arbor Planning Commission and City Council with any zoning changes and look forward to continuing to assist the city with it’s plans for the future.
Source for all quotes: https://www.mlive.com/news/ann-arbor/2023/02/is-ann-arbors-downtown-zoning-working-city-leaders-dont-think-so.html