The Ann Arbor City Council met in Larcom City Hall Monday evening to pass the Downtown Development Authority’s new Development and Tax Increment Financing Plan. The plan expands the DDA district by 84 acres, reforms the DDA’s funding model, allocates approximately $986 million to the DDA over the next 30 years and outlines 150 potential new infrastructure projects.
The Ann Arbor DDA was founded in 1982 to encourage economic growth and prevent the degradation of the city’s infrastructure, and the DDA’s current TIF plan has been in place since 2003. City staff have held open house events and planning sessions with residents and local stakeholders since 2023. The council affirmed its support of DDA expansion in December and held a public hearing for the TIF Plan in February.
The DDA is funded through tax increment financing, which allows tax revenue generated in a designated district to be set aside for infrastructure improvements. Under the current plan, DDA revenue growth is capped at 3.5% per year [COPY: make sure this stat is in a link. could not conf]. The new plan removes this cap, instead requiring 30% of growth revenue to be distributed to local taxing authorities, including Washtenaw Community College, the Ann Arbor Area Transportation Authority and the Ann Arbor District Library.
City Administrator Milton Dohoney Jr. began the meeting by introducing the city’s proposed budget for fiscal year 2027. The city’s funds would total $649,830,579, a slight increase from the $638,467,788 budget adopted for fiscal year 2026. City Council is expected to vote on the FY2027 [COPY: may just be referred to as “FY27”] budget on May 18.
The council then held a public hearing for the DDA’s Development and TIF Plan. During the hearing, Jeff Crockett, member of the Ann Arbor Preservation Alliance, raised concerns that the plan would neglect sites in the Old Fourth Ward, Ann Arbor’s historic district, in favor of new development.
“The final version of the plan was revised and published only five days ago with very little opportunity for public input on the finished plan,” Crockett said. “Other concerns include no mention of historic districts within the DDA boundary, as there was in the 2003 plan … given that the expanded DDA district includes numerous other historic sites, the plan’s omission of historic districts and sites is unacceptable.”
Nick Lemmer, executive board member of the State Street District, [COPY: reword title: a member of the State Street District’s executive board] praised DDA Executive Director Maura Thomson for leading transformative projects in the district, including the William Street Bikeway, State Street redesign and public restroom installation.
“(The plan) prioritizes the kind of infrastructure, public space and ongoing investment that downtown needs to remain vibrant, accessible and economically strong,” Lemmer said. “Downtown does not take care of itself. It requires consistent, thoughtful investment and coordination, and the DDA, under Maura’s leadership, has demonstrated that it can deliver on that responsibility.”
Prior to voting on the plan, Thomson addressed the council and said the plan will further their goals across the city.
“Your vote tonight is the culmination of over two and a half years of work — we have been very thoughtful in drafting a plan that we believe reflects the values and goals of this community,” Thomson said. “As we have said from the beginning of this process, the DDA is a tool to support city-wide values, address complex problems and support a thriving downtown.”
The DDA district [COPY: link doesnt conf exact number]currently includes 67 [COPY: lol] city blocks. The TIF plan would expand the DDA’s boundaries for the first time since its founding, moving the northern border to include 19 [COPY: could not conf exact number] new blocks from Kinsley Street to Depot Street. The DDA expansion area includes corridors in Ward 1, such as North Main Street, one of the most dangerous streets for pedestrians with some of the oldest infrastructure in the city. Thomson said DDA investment in this area would help connect downtown with the Huron River and other neighborhoods throughout the city.
“38 of the 150 identified projects fall within those 19 blocks — without expansion, the DDA would not be able to participate in those projects,” Thomson said. “Furthermore, some of the infrastructure in this area is some of the oldest in the city, with water mains on North Main Street dating back to the 1880s. We believe that this expansion also unlocks the opportunity to connect our downtown to the river and to the north side of town by making some investments in key locations.”
The plan’s 150 potential infrastructure projects are organized by strategic value to the city, with Phase I [COPY: is there a link for this specific phase? need to conf name and content. the original link to these projects does not explicitly name “phases”] outlining the projects the city hopes to complete over the next 10 years. Phase I projects include repairs and redesigns to the Ann Arbor Farmers Market, Sculpture Plaza and Liberty Plaza, as well as reconstruction of segments of Washington Street, Ann Street, Fifth Avenue, Beakes Street and Division Street. Along with reconstruction, dedicated bus lanes may be installed on Huron Street, Fifth Street and Division Street. [COPY: cant conf bus stop stuff] The DDA also plans to extend the Division Street Bikeway north to the Broadway Bridge interchange and reconstruct the interchange itself.
Potential projects described in the rest of the plan include bus stop and sidewalk upgrades, geothermal energy expansion, utility replacements and installations of streetlights, bollards and outdoor dining spaces.
Councilmember Cynthia Harrison, D-Ward 1, said she believes the new funding model and expanded district will strengthen pedestrian safety in her ward.
“The TIF capture lets us leverage additional dollars to fix streets, utilities and public spaces,” Harrison said. “Without this, we’re really limited to what the city can fund on its own, and we already know that means delays and gaps. Sidewalks are a perfect example, and in parts of my ward they’re missing, too narrow or unsafe. This expansion funds both the major projects that fill those gaps and the ongoing repair work that keeps people from tripping, falling or avoiding that area altogether.”
The Development and TIF Plan also allows the DDA to create a service team responsible for maintaining cleanliness, a response to increased trash and graffiti downtown. Further planning for the Downtown Service Team will begin at next Monday’s City Council work session. Councilmember Erica Briggs, D-Ward 5, said the service team will help deliver the cleanliness that residents and businesses have called for.
“Our DDA is respected by our business community, and there’s a desire for it to do more,” Briggs said. “We have a vibrant downtown, but we also hear consistently from members of the public and downtown businesses that there are desires for improvements, including a cleaner downtown. But the tools and the funding to make these improvements are built into the plan, so I’m excited to support that tonight.”
The plan was unanimously approved.
All other items on the agenda — including construction contracts and a resolution to expand the Ann Arbor District Library — were passed by the council.
Daily Staff Reporter Niko Wilson can be reached at nikow@umich.edu.
