Dharma's Council Newsletter, June 14, 2026

Neighbors,

City Council meets Monday, June 15th at 7 p.m. Here is a run-down of the agenda.

City Council Meeting, Monday, June 15th at 7 p.m.

• Meeting Agenda

• Agenda Response Memo: Council Member questions and staff answers

Agenda Highlights

CONSENT AGENDA

• Second Amendment to Southtown Development Agreement (CA-4). Council will consider a second amendment to the Southtown Development Agreement for 1601 S. State Street. This update aligns the agreement with the revised site plan approved by Planning Commission on April 7, 2026. The changes remove an outdated “premium floor area” provision and update the parks contribution calculation. The revised plan allows an 8-story building with 289 apartments, 41 parking spaces, and an on-site energy system designed to generate the building’s power needs.

• Resolution to Amend Ann Arbor City Budget for Fiscal Year 2026 (CA-22). Council will consider a year-end amendment to the FY26 city budget. These amendments are used to align the adopted budget with actual spending and revenue before the fiscal year closes. One item I have asked staff to explain at our meeting tomorrow is an $890,000 Climate Action Millage amendment for contracted services. Two meetings ago, Council was told there were unspent FY26 rebate funds available to support a $500,000 limited-time EV rebate program. This amendment now appears to add Climate Millage spending authority for contracted services, but the agenda item does not specify what those services are.

• Purchase of Property at 800 Victors Way for Affordable Housing (CA-26). City Council will consider a resolution to support the Ann Arbor Housing Commission’s acquisition of 800 Victors Way, currently known as Avia Lofts, for affordable housing. The proposal would provide $1.2 million from the Ann Arbor Affordable Housing Fund toward the purchase and redevelopment of the property. The Housing Commission’s nonprofit development arm would acquire the 114-unit building, with a purchase price capped at the lower of $14.2 million or the appraised value, plus development and closing costs. Most of the acquisition would be financed through 501(c)(3) tax-exempt bonds issued by the Ann Arbor Housing Commission, with additional funding expected from sources including the Ann Arbor Area Community Foundation, Sequel Companies, and the Affordable Housing Millage. The project would convert all 114 units from market-rate housing to affordable housing for households at 80% of Area Median Income or below. At least 40% of the units would be permanently restricted for households at 60% AMI or below, with the possibility of deeper affordability for some residents through Housing Commission rental vouchers. This is one important tool in the affordable housing toolbox: buying existing apartments and making them permanently affordable, alongside the work of building new affordable units.

PUBLIC HEARING ITEMS

• John Street Street Vacation and Utility Transfer Agreement (C-1). Council will consider a request from the University of Michigan to vacate John Street, the one-block street between South Fifth Avenue and South Division Street. The University owns all of the property on both sides of John Street, and staff indicate that the street no longer serves other public or private users. The vacation would allow the University to use the area for future development, including Phase II of its Central Campus Student Housing Complex. The resolution also addresses utilities in the right-of-way. Because the public sanitary and storm sewer infrastructure in John Street serves only University-owned parcels, the City would transfer ownership and responsibility for those utilities to the University. The City would also release a related sanitary sewer easement that is no longer needed. Planning Commission recommended approval unanimously. Staff state that the vacation will not affect public vehicle or pedestrian access or the city’s transportation network.

ORDINANCES AT FIRST READING

• 3785 Varsity Drive Rezoning (C-1). City Council will consider the first reading of a rezoning for 3785 Varsity Drive, a vacant 1.26-acre parcel south of I-94 and north of Ellsworth Road. The request would rezone the property from M1, limited industrial, to C2B, business service, to allow a proposed 50-unit apartment development. The site is mapped as “Transition” in the newly adopted Comprehensive Land Use Plan. Transition areas are intended to allow a more flexible mix of housing, commercial activity, and employment uses over time. This site is also near jobs, near an AAATA bus route, and next to an existing multifamily development. I support adding more housing in more parts of the city, especially near jobs and transit. But this request raises a real implementation question. The zoning rewrite that will define our future Transition district has not happened yet, so this proposal uses C2B as an interim tool. C2B allows multifamily housing, but it was also written for auto- and truck-oriented commercial uses and allows non-principal-residence short-term rentals. The future Transition category, by contrast, is supposed to be designed more intentionally: mixing housing, jobs, and commercial uses while managing nuisance concerns, supporting walkability, and considering restrictions on short-term rentals.

• UDC Amendment on Exceptions to Height Limits (C4). City Council will consider the first reading of an amendment to the Unified Development Code related to height limit exceptions for sustainable and affordable housing developments. Since 2023, the City has allowed qualifying sustainable or affordable housing projects to exceed the normal height limit by up to 30 percent. This amendment would tighten the sustainability pathway by requiring projects to be fully electric, not just capable of becoming all-electric later. The amendment would also keep the solar requirement, while allowing a partial fee-in-lieu option when a project provides solar collector surface area equal to at least 20 percent of the building footprint.

NEW BUSINESS - COUNCIL

• Resolution Directing the City Administrator to Develop a Comprehensive Anti-Displacement Plan for the City of Ann Arbor (DC-4). City Council will consider a resolution directing the City Administrator to develop a framework and roadmap for a comprehensive anti-displacement plan. The resolution asks staff to return within 90 days with a report defining displacement in Ann Arbor, identifying populations and areas at higher risk, inventorying existing City tools, reviewing practices from other cities, and outlining a process for developing a full anti-displacement plan. The resolution focuses on renters, homeowners on fixed incomes, older adults, low- and moderate-income households, communities of color, and small locally owned businesses. Displacement risk is real, especially when redevelopment affects older lower-cost housing, naturally occurring affordable housing, or small commercial spaces. It is also true that housing scarcity is currently a significant displacement pressure in Ann Arbor. Practical tools that can move forward alongside zoning reform would be useful. My concern is making sure this does not become another broad planning process that delays creating and implementing the zoning changes called for in the Comprehensive Land Use Plan we just adopted. (Sponsor: Harrison)

I'd love to hear from you.

Feel free to reach out any time with your questions, concerns, or ideas:

Email: DAkmon@a2gov.org

Phone/Text: 734-492-5866

There are also several ways to share your thoughts with the full City Council:

• Submit an eComment online

• Email all of Council: CityCouncil@a2gov.org

• Speak at a Council meeting (in person or remote):Call the City Clerk’s office at 734-794-6140 starting at 8 a.m. on the day of the meeting to reserve a speaking time.Note: You do not need to reserve time to speak during a formal public hearing.

Thank you for staying informed and engaged!