Ann Arbor sells Kline's lot for 450-unit

Ann Arbor City Council has unanimously agreed to sell a prime downtown property to a luxury housing developer. The council voted 10-0 on Tuesday, September 8, to approve a sales agreement with the Hines development firm for the city-owned Kline's lot.

Despite objections from some community members who wanted the site preserved for affordable housing, the council decided to proceed. Mayor Christopher Taylor argued the project would bring hundreds of new residents to downtown Ann Arbor. "At the end of this project, there will be hundreds of new neighbors in our downtown," Taylor said.

The Development Deal

The sale sets the stage for a significant mixed-use development. The city is expected to receive a minimum of $14.175 million from the sale, which translates to $31,500 per approved housing unit. The project will be constructed in two phases and will include at least 450 housing units alongside a minimum of 10,000 square feet of ground-floor commercial space. The development still requires standard site plan approval from the city, which will provide further opportunity for public input.

Jennifer Hall, the Executive Director of the Ann Arbor Housing Commission, supported the sale for market-rate housing. Hall suggested the city could direct the revenue from the sale toward affordable housing projects at other locations. She explained that creating an affordable housing development on the Kline's lot itself would be difficult. Council Member Erica Briggs cited this reasoning as influential in the council's decision-making.

Addressing Parking and Downtown Shifts

Council members addressed concerns about the loss of public parking from the current lot. They noted that nearly 3,000 parking spaces exist within two or three blocks of the site. Briggs provided data on four nearby parking structures, stating their average occupancy rates range between 19% and 37%. Council Member Jenn Cornell calculated the overall average occupancy rate for these structures to be 27.7%.

The discussion also touched on broader changes in downtown dynamics. Briggs observed a shift in foot traffic patterns since the COVID-19 pandemic. While daytime visits have decreased, overall foot traffic has increased, with activity concentrating more in the evenings and weekends. Employee visits have declined by 21% due to changing workplace requirements. "A vibrant, healthy downtown will increasingly rely on folks who live and visit downtown," Briggs stated.

Future Hopes and Logistics

Several council members expressed hopes for the project's commercial component. Council Member Jon Mallek said he looked forward to exploring the possibility of a full-scale grocery store for the new ground-floor space, an idea supported by Council Member Travis Radina.

The city also addressed logistical concerns from neighboring businesses. Officials stated the alley behind the lot, used by The Ark concert venue and other Main Street businesses, would be widened and converted to a two-way alley. Space for dumpsters and trash compactors will be preserved. Council agreed to amendments ensuring access to the alley and easements during construction, aiming to minimize disruptions for The Ark and other entities.

Council members framed the decision as ending decades of debate over the site's future. They argued it was time to transition the property from a parking lot to a higher use that adds residential density to the city core. Council Member Jen Eyer emphasized the importance of new residents for local businesses. "The more that we can populate our downtown with residents, the more our businesses are going to thrive," Eyer said. Joe Giant, the city's economic development director, called the agreement a good deal for Ann Arbor.