Hello neighbors!
This week, Ann Arbor City Council will approve a budget for FY2027 and fee adjustments across multiple departments. The rest of the agenda includes zoning amendments to permit short-term-rentals (C-1), City rebates on electric cars with funds from the Climate Action millage (DC-6), and communicating concern to the University of Michigan about the loss of future tax revenue if the University buys property from Concordia University (DC-7).
“Tax Base”
This week, City Council expresses concern about the potential loss of future tax base if the University of Michigan moves forward with the purchase of Concordia University property.
DC-7 (26-0832) Resolution Expressing Concern with the University of Michigan’s Potential Acquisition of Concordia University Property
The Concordia property has been tax-exempt for over sixty years— it was purchased by the Lutheran church in 1962.
https://www.cuaa.edu/about/history.html
A staff memo acknowledges that “While the Concordia property is not currently on the tax rolls, its acquisition by the University of Michigan stifles the City’s interest in seeing it become a tax generating parcel that serves community needs.” It further explains that “any erosion of the tax base is a cause for concern.”
Council’s interest in tax-generating parcels was slightly different three months ago, when it approved a record-breaking brownfield plan to benefit a campaign donor.
On February 2, Council approved a brownfield plan that will divert 30 years of future tax revenue – over $350 million – to support a private development called Arbor South.
https://a2council.com/ann-arbor-city-council-february-2-2026/
https://www.wemu.org/wemu-news/2026-02-04/ann-arbor-city-council-approves-arbor-south-plan
This week’s resolution regarding the preservation of potential, future tax base is sponsored by four people who voted to approve the tax subsidy for Arbor South: Council Members Jon Mallek, Chris Watson, Travis Radina, and Mayor Christopher Taylor. A fifth sponsor of this week’s resolution – Council Member Jenn Cornell – missed the Council vote on Arbor South because she was absent. Cornell serves on the County Brownfield Authority committee which also voted on the Arbor South plan. Cornell was absent for that County committee meeting and missed that vote as well.
The $350 million tax subsidy for Arbor South has not yet been approved by the Washtenaw County Board of Commissioners. At a meeting earlier this month, the Board postponed a decision.
https://www.wemu.org/wemu-news/2026-05-07/washtenaw-county-board-of-commissioners-delays-vote-on-arbor-south-brownfield
The County Board will reconsider Arbor South this Wednesday, May 20. If you share City concerns about the preservation of future tax base, consider contacting your representative on the board. Three Commissioners represent Ann Arbor:
Andy LaBarre (District 7) labarrea@washtenaw.org
Yousef Rabhi (District 8) rabhiy@washtenaw.org
Katie Scott (District 9) scottk@washtenaw.org
A2Council Update Video
After every City Council meeting I send out an “A2Council Update” newsletter, which includes a summary video. Here is my A2Council Update video from the Council meeting of May 4, 2026:
County Edition
Earlier this month, the Washtenaw County Board of Commissioners discussed a contract with the Humane Society and bond debt to fund an East Side Recreation Center. The Board postponed a plan for $350 million in tax subsidy for Arbor South, a private development in Ann Arbor. (City Council approved the plan in February.)
Ann Arbor City Council Meeting Agenda
Below is my summary of issues on the City Council Agenda this week, with links to more information about each of them. If you have comments about any of these issues, you can email all of Council at CityCouncil@a2gov.org
Ann Arbor City Council Meeting
Monday, May 18, 2026 7:00PM
Ann Arbor City Hall (2nd Floor)
301 E Huron St, Ann Arbor 48104
The full agenda (including a link to the latest published PDF agenda, and instructions for dialing into the meeting) is on the A2Gov Legistar website:
https://a2gov.legistar.com/MeetingDetail.aspx?ID=1368503&GUID=E6940153-36C9-4E0C-A762-107724E1E388
City Council meetings are broadcast live by CTN on Comcast (channel 16) and AT&T (channel 99) and online at a2gov.org/watchCTN
Meetings are also streamed live on the CTN YouTube channel:
https://www.youtube.com/user/ctnannarbor
How to reserve public comment
People that wish to comment at a City Council meeting must sign up with the City Clerk’s office in advance. Speakers are allotted 3 minutes, with the first 15 speakers allowed to speak in a 45 minute session near the beginning of the meeting. Remaining speakers will speak at the end of the Council meeting. Public comment can be made either in person or remotely via phone/Zoom audio.
To sign up for public comment, please go to or call the City Clerk’s Office at 734-794-6140 on the day of the meeting between 8:00 AM and 5:00 PM. At 4:00 PM, all speakers that have signed up are randomly ordered in “priority groups”. After 4:00 PM, speakers are added to the end of the applicable priority group in the order received. No new speakers will be added to the list after 5:00 PM. For more information, visit the City’s website:
https://www.a2gov.org/city-council/council-meetings-overview/
Questions to the Agenda
In preparation for a Council meeting, Council members can ask questions of staff about scheduled agenda items. Questions must be submitted by noon on the Wednesday before a Council Meeting, and answers are returned the next day (Thursday) by 5pm.
AC-1 (26-0836) Agenda Response Memo and eComments – May 18, 2026
This agenda item has a PDF attachment with all questions raised by Council Members, and the answers provided by staff.
No Council Members asked questions to the Agenda this week
Communications from the Mayor
MC-1 (26-0748) Reappointments – Confirmations
These 32 appointments from the Mayor were presented at the previous meeting, and will therefore be voted on at this Council meeting.
MC-2 (26-0762) Appointments – Confirmations
This appointment from the Mayor was presented at the previous meeting, and will therefore be voted on at this Council meeting.
- William Bryan – Human Rights Commission
Consent Agenda
Below is the list of items included on the Consent Agenda. If no one on Council specifically requests that an item be pulled for discussion, the whole of this list will be approved in a single vote.
CA-1 (26-0763) Resolution to Approve the Closing of Streets for the 2026 Glacier Highlands Neighborhood Association Annual Memorial Day Parade, Monday, May 25, 2026
CA-2 (26-0764) Resolution to Close N. Fourth Avenue and E. Ann Street for the 29th Annual African-American Downtown Festival, Friday, June 5, 2026 to Saturday, June 6, 2026
CA-3 (26-0765) Resolution to Approve the Closing of Streets for the In Step with Sam 5K on Sunday, June 7, 2026 from 8:00 A.M. until 10:00 A.M.
CA-4 (26-0788) Resolution to Approve Street Closing for The Event on Main from 5:00 P.M. on Wednesday, June 17, 2026 through 6:00 A.M. on Friday, June 19, 2026
CA-5 (26-0687) Resolution to Approve a Construction Contract with Fonson Company, Inc for the Packard Water Main at Malletts Creek Project (RFP 26-20; $821,178.15)
CA-6 (26-0708) Resolution to Approve an Agreement with the Michigan Department of Transportation (MDOT) and National Railroad Passenger Corporation (Amtrak) for the East Medical Center Drive Bridge
CA-7 (26-0675) Resolution to Amend a General Services Contract with Farmer & Underwood Trucking, LTD. for Aggregate Materials and Hauling Services for Excavation and Street Sweeping Waste, ($49,841.00 Increase, Total Contract Not to Exceed $399,841.00 Annually)
CA-8 (26-0713) Resolution to Approve a Purchase Order with Cogsdale Corporation for Annual Software Maintenance and Support for FY 2027 ($176,283.21)
CA-9 (26-0736) Resolution to Approve the Public Defender Services Contract with Washtenaw County ($207,517.16)
CA-10 (26-0804) Resolution to Accept a Sidewalk Easement at 333 E. William Street from Core Ann Arbor William, LLC (8 Votes Required)
CA-11 (26-0805) Resolution to Accept a Public Access Easement at 333 E. William Street from Core Ann Arbor William, LLC (8 Votes Required)
CA-12 (26-0807) Resolution to Approve a Grant Agreement with the Michigan Economic Development Corporation and to Approve and Authorize Execution of Sub-Grant Agreements with the Ann Arbor Housing Development Corporation and the Ann Arbor Area Transportation Authority and Appropriate Grant Funding ($4,300,000.00) (8 Votes Required)
Public Hearings
Anyone wanting to comment on these issues may speak for 3 minutes, without having specifically reserved time. Issues subject to public hearing will also be up for a vote by Council later in the meeting.
PH-1/B-1 (26-0642) An Ordinance to Amend Sections 2:402, 2:408, and 2:410 and to Add Section 2:413 (Rate Schedules) to Chapter 35 (Sustainable Energy Utility) of Title II (Utilities and Services) of the Code of the City of Ann Arbor (ORD-26-13)
A rate schedule for the Sustainable Energy Utility (SEU) for municipal solar arrays and homes in the Bryant Neighborhood PILOT program. Moving forward, City departments will pay fees to the SEU for solar installations and battery storage at City buildings: $14 per month for every installed solar energy kWDc and $14 per month for every kW of battery storage capacity. Customers in the Bryant neighborhood will pay a flat fee of $600 annually: $75 per month (April – September) and $25 per month (October – March). The SEU anticipates having 100-150 customers in the Bryant neighborhood, where the City would install solar arrays on homes as part of a PILOT program.
Ordinances – Second Reading
In order to amend the city code, Council must vote to approve the change, via ordinance, at two Council meetings. The following proposed ordinances were approved at a previous Council meeting, and are also subject to a public hearing as listed above.
B-1 (26-0642) is the same as PH-1 above
Ordinances – First Reading
In order to amend the city code, Council must vote to approve the change, via ordinance, at two Council meetings. The following proposed ordinances are being introduced for “first reading”. If approved, the ordinance will be voted on at a subsequent Council meeting (“second reading”), where it will also be subject to a public hearing.
C-1 (26-0715) An Ordinance to Amend Chapter 55 (Zoning), Rezoning of 1.98 Acres from PUD (Planned Unit Development District) to PUD (Planned Unit Development District), The Ashley Mews Development PUD Zoning and Supplemental Regulations, 414 South Main Street (CPC Recommendation: Approval – 7 Yeas and 0 Nays)
Proposed amendments to a Planned Unit Development (PUD) district will permit residential units to be used as short term rentals (Airbnb). The property at 414 S Main was formerly office space and has been converted to residential units. The building is part of a PUD district at Ashley Mews with supplemental regulations that describe permitted uses, including residential. Requested changes to this portion of the PUD district will amend the supplemental regulations in order to allow the same uses as a D1 (Downtown) district. The changes have been requested to permit dedicated non-owner occupied short term rentals in the building.
This request was first submitted in 2022, when staff explained: “The petitioner has expressed a possibility of short-term rental uses by non-owner occupied tenant. While the use is permitted in the D1 Zoning district, the structure of the existing PUD regulations precludes that use in the high rise section of the development.” (Legistar)
At a public engagement meeting in December 2022, residents raised concerns about allowing short term rentals in the building and the property owner’s lack of transparency in explaining future plans. A report on that meeting was submitted to the City. (Legistar) (see page 10-14)
The owners of 414 S Main did not follow through on the 2022 request, but resubmitted the same request in 2025. At a public engagement meeting in December 2025, residents raised similar concerns about short-term rentals. For a recording of that meeting, see:
https://a2council.com/ashley-mews-414-s-main-st-resident-participation-meeting-december-18-2025/The Planning Commission approved this change on April 7, 2026.
https://a2council.com/ann-arbor-city-planning-commission-april-7-2026/
Motions and Resolutions
The following agenda items are motions and resolutions, which are approved or rejected in a single meeting. Agenda items marked “DC” are proposed by Council members, items marked “DB” are proposed by City boards and commissions, items marked “DS” are proposed by City staff.
DC-1 (26-0685) Resolution to Reappoint Elizabeth Riggs, Julius Buzzard, and Jason Boggs to the Greenbelt Advisory Commission (7 Votes Required)
These appointments are from CM Mallek, who serves on the Greenbelt Advisory Commission. They were presented at the previous meeting, and will therefore be voted on at this Council meeting.
- Elizabeth Riggs
- Julius Buzzard
- Jason Boggs
DC-2 (26-0723) Resolution to Reappoint Jonathan Overpeck, Sarah Nedrich, Brooks Curtis, Mobin Mazloomian, Mallika Kothari, and to Appoint Gillian Miller and Anuja Rajendra to the Sustainability Commission (7 Votes Required)
These appointments are from CM Cornell and CM Mallek, who serve on the Sustainability Commission. They were presented at the previous meeting, and will therefore be voted on at this Council meeting.
- Jonathan Overpeck
- Sara Nedrich
- Brooks Curtis
- Mobin Mazloomian
- Mallika Kothari
- Gillian Miller
- Anuja Rajendra
DC-3 (26-0728) Resolution to Reappoint Patricia Manley and Erica Liu to the Independent Community Police Oversight Commission
These appointments are from CM Eyer and CM Harrison, who serve on the Independent Community Police Oversight Commission, and CM Watson, who serves on the Human Rights Commission. They were presented at the previous meeting, and will therefore be voted on at this Council meeting.
- Patricia Manley-Reappointment
- Erica Liu
DC-4 (26-0749) Resolution to Reappoint Non-registered Electors to Ann Arbor Boards and Commissions (7 Votes Required)
These 7 appointments from the Mayor were presented at the previous meeting, and will therefore be voted on at this Council meeting. Seven votes are required because “the appointees are not registered electors of the City of Ann Arbor.”
DC-5 (26-0831) Resolution to Confirm Support for the City’s Ongoing Interventions in DTE Electric and DTE Gas Rate Cases and Other Key Cases Before the MPSC Impacting Ann Arbor Residents
By resolution, Council affirms its support for the City’s intervention and participation in utility cases before the Michigan Public Service Commission, which regulates DTE Energy. Council asks staff to report on results and outcomes of City intervention within two months of each relevant final order.
DC-6 (26-0800) Resolution to Support Launch of Limited-Time Electric Vehicle Rebate Initiative to Help Abate Rising Fuel Costs (8 Votes Required)
The Office of Sustainability and Innovations (OSI) proposes a temporary expansion of the Home Energy Rebate program to include new all-electric cars. Council will allocate $500,000 of Climate Action millage funds toward giving local residents and businesses discounts of up to $7,500 on brand new all-electric vehicles and up to $4,000 on used all-electric vehicles.
The resolution explains that this is in response to the “very real economic impact” facing Ann Arbor families and businesses due to rising gas and diesel prices.
The least expensive new all-electric vehicles appear to start at about $30,000
https://www.motortrend.com/features/cheapest-electric-cars
In 2024, City Council allocated $4,250,000 toward the Home Energy Rebate (HER) program, to be spent in Fiscal Years 2024-2026. The City signed a contract with “Elevate Energy” to administer the program and invoice the City for costs up to $600,000. (Legistar)
In its first year (June 2024 – July 2025), the HER program provided 523 rebates adding up to a total of $676.533.44. Over a third of that total was awarded in rebates for solar storage and mini/multi-split air-source heat pump systems; the program spent $253,294.67 on 85 rebates, an average of about $3,000 per rebate. Over 15% of rebates (90) were for cargo and standard e-bikes, about 9% of funds spent ($61,490.51). Multiple rebates can be awarded to a single household.
Higher rebates are offered to “income eligible” households, defined as 120% of AMI. Under this standard, a single person household with annual income of $104,200 is “income-qualified.” A five person household with annual income of $160,800 is also “income eligible.”
A ten page End of Year report for the HER program – prepared by Elevate Energy and Michigan Energy Options – can be found here: (link)
DC-7 (26-0832) Resolution Expressing Concern with the University of Michigan’s Potential Acquisition of Concordia University Property
A resolution of mostly Whereas clauses describes Council concern about the acquisition of Concordia University property by the University of Michigan. This property is located at Geddes and Earhart. Council directs the City Administrator to transmit this resolution and a companion letter to the University and “continue working with the administration.”
A staff summary of the resolution explains: “The City Council urges the University of Michigan not to acquire the Concordia property making it at least theoretically possible that it could be shifted to the tax rolls.”
DS-1 (26-0312) Resolution to Approve Fiscal Year 2027 Fee Adjustments for the Ann Arbor Fire Department
Fee rates for AAFD will be adjusted in two categories:
Ambulance transport fees: increased from $621.76 to $717.44.
Lift assist fees: increased from $219.18 to $288.37
The lift assist fee was first introduced in 2024. (Legistar) The fee applies to assisted living facilities, skilled nursing facilities, and ambulance service providers. The fee does not apply to individuals in private residences who call for help.
DS-2 (26-0521) Resolution to Approve Fiscal Year 2027 Fee Adjustments for the Public Services Area
Updates to fee rates in the Public Services area includes City permits and inspections, planning review, forestry, maintenance of meters and storm sewers, and solid waste. Nearly all fees increase, most within the range 5-11%.
DS-3 (26-0569) Resolution to Approve FY 2027 Fee Adjustments for the Community Services Area
The Community Services area adds new fees for park activation events. Attachments do not include any update to other existing fees at City park facilities.
DS-4 (26-0690) Resolution to Approve New Fees for Fairview Cemetery
Fees for grave lots, burial, and cremation at Fairview cemetery will increase.
DS-5 (26-0598) Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2027
A City budget for FY2027 includes the addition of 30 staff. The proposed budget can be found at this link:
https://www.a2gov.org/media/nqxdr0p5/fy27-proposed-budget.pdf
Previous annual budgets can be found at this link:
https://www.a2gov.org/finance-and-administrative-services/financial-reporting/
An overview of the FY2027 budget was presented to City Council on April 20, including recommendations for use of proceeds from the sale of the Kline lot.
https://a2gov.legistar.com/LegislationDetail.aspx?ID=7988565&GUID=3820CB86-14A0-48DF-8F61-C4228CBF4628
In 2021, Jennifer Hall (Housing Commission director) estimated that 400-600 units of affordable housing could be developed on the City-owned Kline lot. In July 2024, City Council unanimously approved use of a broker to sell the Kline lot for private development. In September 2025, City Council unanimously approved the sale of the Kline lot to the highest bidder.
As directed by Council, the property will be sold for market rate (luxury) housing and the City will receive $17.4 million in proceeds. As part of the FY 2027 budget, City Administrator Dohoney proposes that about 18% of the proceeds support housing and shelter needs (Housing Commission, Ozone House, Delonis Center). Nearly 30% of the proceeds will fund property acquisitions and legal services related to buying and selling City property for “economic development.”
Thank you for taking the time to be informed about our local government!
Elizabeth Nelson