Ann Arbor News - Midtown plan has lofty goals
Midtown plan has lofty goals -
Trendy shops, restaurants seen as draw to revitalize Division Street area
BY TOM GANTERT
News Staff Reporter - Source The Ann Arbor News
On a recent sunny afternoon, Frances Todoro-Hargreaves surveyed the intersection of Division and Washington streets in what could be called the midtown area of downtown Ann Arbor.
She was surrounded by surface parking lots, a vacant one-story building, an old two-story house and a nondescript, five-story bank office building - nothing that would attract a downtown consumer.
It's a place where people pass through to get somewhere else.
"Right now, why would you walk here?'' asked the project manager for the McKinley Towne Centre redevelopment.
Todoro-Hargreaves says that will change once that pocket of downtown is transformed into a thriving "destination'' place, flush with housing, trendy shops and restaurants with outdoor seating.
McKinley has plans to do just that. The idea is to build a place between the well-traveled Main and State streets on either end of downtown that will capture shoppers, visitors and residents.
McKinley, which is already one of the biggest real estate holding companies in Ann Arbor, paid $17 million for the entire project site, said Todoro-Hargreaves. She expects it will be worth $85 million once completed.
At its core is the former TCF Bank building, which fronts on East Liberty Street, at the corner of Division Street, but runs a block north to Washington. It is undergoing extensive remodeling both inside and out.
When it is complete the building will have about 100,000 square feet of office space on four floors. Perhaps more significant, though, is that there will also be 40,000 square feet of new retail and restaurant space on the main floor along Liberty and Division streets.
To kick-start the transformation, McKinley also plans to add about 130 condominiums and apartments in nine-story and 10-story buildings that will be built catty-corner from each other at Division and Washington streets. Those two buildings fit in with the city's drive to bring more residential development downtown.
Both of those buildings will also have retail, including restaurants and shops, on the ground floor.
The company has already signed Bar Louie, an upscale national chain restaurant/bar that is popular with urban professionals in Chicago, as a tenant in the Towne Centre. Bar Louie will go in the corner of the building at Liberty and Division streets.
Bar Louie is expected to be open by January. The Towne Centre portion of the project, which includes remodeling of the existing building plus a one-story addition in an adjoining parking lot, is expected to be completed by Sept. 1. TCF Bank, the old owner, is moving its headquarters elsewhere but will keep a branch in the building.
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McKinley is following the playbook prescribed by many local architects as necessary to create an attractive hot spot.
- The retail will be on street level and the storefront will be at sidewalk level. That's unlike the nearby office building at 301 E. Liberty St., considered to be a design failure by local architects because of inconvenient stairs that lead up to storefronts set back away from the sidewalk.
- Pedestrians will be able to look into the retail stores. For Bar Louie, for example, the developer will have the existing cement walls blown out and replaced with windows so pedestrians will be able to see into the restaurant. That's considered pedestrian-friendly architecture.
- McKinley is trying to attract "magnet" tenants, such as Bar Louie, which doesn't yet have another restaurant in Michigan.
- Unique retail and dining experiences is what will attract,'' said City Council Member Chris Easthope, D-5th Ward. "The key is unique."
But Peter DiCola, a graduate student at the University of Michigan, said there is nothing unique about Bar Louie. He is from Chicago, as are a lot of people at U-M, he said.
"It's the kind of bar you'd find in the bottom of a hotel in Lincoln Park,'' he said. "The kind of places that are cool are like ABC (Arbor Brewing Company). It's local people committed to the town.''
- The area will be well-lit at night. The McKinley Towne Center building will be uplighted, in which lights from underneath are projected onto the building. The sidewalks will be lighted from above. The outdoor eating areas will be lighted.
- Washington Terrace, the 10-story condominium building to be erected at the northeast corner of Washington and Division streets, will be set back 10 feet, which will allow for outdoor eating, highly popular on Main Street during the summer. Pricing for the condos is expected to start at about $220,000.
- At the McKinley Towne Centre, the first floor will have a 5,000-square-foot spot that could draw a major retailer or another restaurant.
Several other local developers say they think the project will be a success.
Peter Allen, who is building the Kingsley Lane condominium project in the northwest part of downtown, said the street-level retail will attract people.
"I think that adds to the excitement,'' Allen said. "The excitement at the sidewalk are important urban principles. ... The goal is to make all those streets exciting at night and day with a good variety of retail.''
Ed Shaffran, a developer and former chairman of the Downtown Development Authority, said the McKinley project "could be a new Kerrytown.''
Even DiCola said he thinks it could turn into the hot spot its developers are hoping.
"Maybe,'' he said. "It's not a long walk from everything else. It's not far from the (Michigan) Theater. I could see people walking there after a movie instead of down to Main Street.''
The project will rely heavily upon parking structures.
For Metro 202, there will be one parking permit for each of the 44 apartments to be used at the city-owned Liberty Square parking structure. Washington Terrace will have 107 underground parking spots provided for residents.
Patrons will have also have access to the nearby parking structures at Maynard Street and Fourth and Washington streets.
Not everyone is in favor of the project.
City Planning Commissioner Ethel Potts doesn't like the architecture. She says too many of the downtown's proposed taller buildings look the same.
She also said nine- and 10-story buildings dwarf the rest of the surrounding area.
"These massive buildings ... these are going to overpower it,'' Potts said. "It's not so much height as it is mass and architecture.''
Tom Gantert can be reached at tgantert@annarbornews.com or 734-994-6701.
Ann Arbor News - Downtown Residential Scene set to explode
Downtown residential scene set to explode
City officials hope market won't become saturated
BY TOM GANTERT - News Staff Reporter Source Ann Arbor Newshe Ann Arbor City Council has said it wants more residents downtown.
Developers have been listening.
There are about 800 residential units being proposed in nine projects for the downtown area right now. To put that in perspective, from 1990 to 2000, only 274 housing units were added to downtown, including the Ashley Mews project at the south end of the Main Street retail district.
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Developers say more downtown residents will bring renewed life to the downtown scene. City officials are crossing their fingers, hoping that market won't be saturated.
So far, so good. The developers are reporting strong sales in the three projects that have started selling units. Prices range from $210,000 for base units to $1.2 million for penthouses.
Liberty Lofts, at First and William streets, has sold 49 of its 68 units, including its 15 penthouses. Ashley Terrace, at Ashley and First streets, has sold 42 of its 92 units. Loft 322 on 322 E. Liberty St., has sold all 21 of its units.
"It seems to be working,'' said Jean Carlberg, a member of the City Council and the Planning Commission. "The demand we hoped was there seemed to be realized.''
But Carlberg is also cautious with her optimism.
"You have to also keep in mind that we only have one that is actually there for someone to see,'' said Carlberg, referring to Liberty Lofts. "A question everyone has is, 'What is the length of time it will take all of these to be purchased?'''
Joey Scanga, a consultant from Calthorpe Associates hired by the city to review its downtown zoning, published a report that had growth scenario estimates.
Scanga's report estimated a medium expectation growth scenario would capture 746 units by 2015. The city's goal was to have 2,000 additional residences in the downtown by 2030.
Developers say the key will be the timing.
Some of the proposals are far from being approved. For example, Glen Ann Place - proposed for Glen Avenue between Catherine and Ann streets - has 112 rental units on hold. It was approved by the City Council and the Planning Commission, but the city's Historic District Commission rejected it, leaving it in limbo.
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"We think there is a market,'' said Ed Connell of Joseph Freed Associates, which is involved with Ashley Terrace, Washington Terrace and Glen Ann Place. "If all of those units hit at all the same time, will it affect absorption? Of course.
"If it is staged over time, the market will correct itself. The long-term prospect for Ann Arbor is good. Is it going to absorb 800 units in one year? Probably not.''
Fred Beal, a developer who served on the city's Downtown Residential Task Force, said it could take as long as five years for some units to come to fruition.
As long as projects are selling units, more will continue.
Developer Peter Allen plans to break ground in August on his Kingsley Lane project, which will include 46 to 50 condominiums with a nine-story building at the corner of Kingsley and Ashley streets in northwest downtown.
"We expect we will do just fine,'' Allen said. "All the competition is going to wait and see how we do.''
Local developer Ed Shaffran has his doubts that market demand is strong enough for the numerous housing projects.
He said there is some demand. "But is everybody competing for the same 20 people out there? I don't know,'' he said. "If there is a huge demand for housing, it is certainly under the $300,000 price point.''
Shaffran said that can't be met in the downtown. "Not unless you want (a condo) the size of a closet,'' he said.
Developer Scott Chappelle of Strathmore Development said the city needs downtown residents.
"If the downtown business district is not able to gain rooftops, it is going to continue to struggle,'' Chappelle said. "Businesses follow rooftops. It's that simple. If you don't have a critical mass of residents living and spending their money downtown, you are going to have problems.''
Tom Gantert can be reached at tgantert@annarbornews.com or 734-994-6701.
Kingsley Lane Featured in the Ann Arbor News
Mayor urges caution on building projects
N. Main developer says precedent already has been set
Tuesday, April 18, 2006
BY TOM GANTERT
News Staff Reporter
With a new set of development guidelines still being worked out, Ann Arbor Mayor John Hieftje says the city needs to be cautious as it deals with a surge of proposals to bring taller buildings downtown.
While the nine- to 14-story buildings might fit in some areas of downtown, they don't make sense in others, Hieftje said. Most of the projects are residential condos, or a mixture of residential, office and retail, and fall in line with the city's desire to bring more people to live downtown.
"We are in a sensitive period right now,'' Hieftje said. "People are bringing a lot of proposals to the city and we do not yet have a new plan in place. I want us to be very careful here.''
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For instance, the mayor said, he is OK with plans for the 10-story Ashley Terrace on Huron and Ashley streets and the nine-story Kingsley Lane on Ashley and Kingsley streets.
But, Hieftje said, The Gallery, a proposed 11-story project on North Main Street near Kerrytown on the site of the old St. Nicholas Greek Orthodox Church, is too tall for that part of downtown, which he said is a key entrance to the city.
That doesn't sit well with developer Michael J. Concannon. He said the city has already set legal precedence allowing taller buildings, such as the 14- and 12-story towers for the proposed William Station on the site of the old YMCA building.
"You can't pass a 11-story building for one guy and then say, 'We don't like your 11-story building,''' Concannon said.
The project would include a mixed-use residential building as high as 11 stories that would include 100 condominium units. It would also include an adjoining four-story building facing North Fourth Avenue. That would have retail on the first floor and 18-20 residential lofts. It would include four levels of underground parking.
The brewing controversy highlights an interesting battle the city may face as it tries to pick and choose where tall buildings will fit in the downtown area. While the mayor opposes The Gallery at 11 stories, he went along two weeks ago when the City Council approved developer Peter Allen's proposal for a nine-story condo building on Kingsley Lane, just a couple of blocks west of Concannon's project. Hieftje said that building doesn't stick out nearly as much as The Gallery and it is in a place that isn't a gateway to the city.
Mark Wyckoff, president of the Planning & Zoning Center, Inc. in Lansing and considered an expert on Michigan zoning, said courts have allowed municipalities that freedom.
"The community has to draw the line somewhere,'' Wyckoff said. "There has to be a rationale basis for drawing the line. It can't be arbitrary. The courts tend to let the municipalities make those decisions without interference.''
For nearly three years, Hieftje has said there are places in Ann Arbor that are OK for taller buildings - places like Huron Street and some portions of William Street.
Hieftje said he went to the proposed site of The Gallery at 414 N. Main Street and surveyed the surrounding area. He said it is right next to a residential neighborhood and is several blocks north of Huron Street.
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"I think it is too tall,'' Hieftje said. " ... I would be more comfortable with something four to six stories.''
Concannon said it's not possible to build a project that size and still provide the 224 underground parking spaces, something he said has great value to the city. He said Kerrytown would have free access to 44 parking spaces after business hours.
He also said the project has the support of the city's Planning Commission, which approved it by a 6-2 vote, and the Kerrytown District Board, which represents a collection of businesses and a handful of residents.
Keith Orr, owner of the Aut Bar and a member of the Kerrytown District Board, said they didn't like the original design, which he described as a big block. The design was changed to a nine-story structure with a two-story penthouse on top. There were also concerns about the traffic flow, and the developer changed the design by moving the entrance.
"I appreciate the responsiveness to the community concerns,'' Orr said. "My preference would be something smaller. It's larger than I would do, but given the responsiveness, the design is something I think I can live with.''
Hieftje and Christine Crockett, president of the Old Fourth Ward Neighborhood Association, said the city plans don't support a building that tall.
The Downtown Plan, approved in 1988, limits building heights to three to four stories in that area because it borders a neighborhood, city staff said.
The downtown plan is in the process of being updated following the recommendations of an urban planning firm, hired by the city last year. The city is in the process of reviewing just what will be adopted from the report compiled by Calthorpe Associates.
The consultant firm's recommendations of building height for the North Main/Kerrytown area was three to five stories. The report also allowed for additional stories if the developer met certain community goals, such as underground parking and affordable housing.
Concannon said his project could go higher than 11 stories under Calthorpe's incentive plan.
That site has become a focal point for building-height debates in the past two years.
In 2004, the Toll Brothers proposed 14-story and nine-story towers there for a project called the North Main Condominiums. The Planning Commission voted 8-0 to table it. The Toll Brothers pulled out.
There are several other major projects under way or proposed for downtown. That includes the 10-story Washington Terrace and the nine-story Metro 202 on opposite corners of East Washington and Division streets; the Liberty Lofts in the old Eaton factory on Liberty and First streets; and the five-story Loft 322 condominiums on Liberty Street, next to Seva restaurant. The 10-story Glen Ann Place was approved by the City Council and the Planning Commission but rejected by the Historic District Commission. Glen Ann Place is located on Glen Avenue between Catherine and Ann streets, just outside of what is considered downtown.
Tom Gantert can be reached at tgantert@annarbornews.com or 734-994-6701.
Downtown comes of age as residential neighborhood
A new report recently released by the Downtown Alliance shows that in the past five years Downtown New York has achieved a balanced mix of commercial, retail and residential activity, emerging as a vibrant 24-hour, seven-day-a-week community.
The report, entitled "Downtown New York: A Community Comes of Age," describes a broad-based public/private initiative that is attracting residents and corporate tenants alike to Downtown New York by residential projects and services, proximity to work, unique architecture, parks, schools and abundant transit. The area employs no fewer than 400,000 workers on a daily basis and lures 7.2 million tourists annually.
Read the rest here...
Read the article in the Ann Arbor News.
The council gave its approval to the Kingsley Lane project, a residential development at the northwest corner of downtown that will include nine-story tower. Developers say a model will be open by May 18 and construction completed within a year to 14 months.
Happy and car-smart in Ann Arbor. Aligning our goals with reality.
In a recent opinion piece in this space it was rightly pointed out that even for the most committed lovers of downtown, life without access to a car is hard to imagine. Ann Arbor is not, and may never be, a city where one can live comfortably car-free.
Car-free is not a realistic, or even desirable, goal for downtown Ann Arbor development. Our goals, our policies, and our new downtown development should, instead, be car-smart. I believe that car-smart development is a critical tool in building a , vibrant, and affordable downtown.
Let me describe a few characteristics of what I mean by car-smart development. It begins by acknowledging a few critical realities.
The cost to build underground parking downtown is currently $35,000 to $50,000 per space, and going up. When translated into increased mortgage, taxes, and maintenance that “free” underground parking space imbedded in the cost of a new downtown condo is adding $300 to $400 per month to the cost of living downtown.
Besides never being free even if “included,” downtown parking has another interesting characteristic. It is a relatively classless commodity. Its cost will be essentially the same whether it holds a brand new BMW or a five year old Ford, or whether its owner lives in the $200,000 condo on the 2nd floor or the $800,000 penthouse on the 9th floor. The implications are significant.
The penthouse buyer will happily pay the extra few percent for the convenience of indoor parking. Indeed, they may want a second space if available. On the other hand, most of the entry level professionals, young working couples, and retiring boomers also eager to live downtown are on a more modest budget. This group will look differently at that "free" parking space which is adding 20 to 25 percent to their monthly costs. They don't need their cars any less, but they will be more interested in lower cost options as long as they are "convenient enough." According to the recent Calthorpe study these and other middle income groups make up almost 60 percent of the target market for a diverse and representative distribution of downtown residents.
The good news is that there are practical and exciting options available. For example, car-smart public policy would recognize the inefficiency of encouraging underground parking for every new residential unit at the same time city-owned parking structures sit largely unused most evenings and weekends.
Car-smart downtown living recognizes that not all lifestyles require a parking space tucked under or directly behind residential unit. Consider for example, that the walk from most of the new downtown developments to their closest city-owned parking structure is shorter than the walk to the entrance door from many locations in the vast Briarwood parking lot.
There are other car-smart options being developed in communities throughout the country. As the first generation of new residential units are filled in the next few years, downtown Ann Arbor will have the density to support commercially viable cost-efficient car-sharing programs such as Zipcar and Flexcar. Just Google these two programs to get a feel for what car-sharing friendly policies could do for Ann Arbor.
Our own Ann Arbor is experimenting with innovative transit options like The Link. It is underused at the moment. But it is ripe for success with the addition of another 500 or more permanent downtown residents jumping on for a quick trip to campus, the movies, one of the wonderful downtown grocery options, or dinner and a little car-free nightlife.
About the writer: Mark Berg has a Ph.D. in Urban & Regional Planning. He is a partner with Peter Allen in the expanded Kingsley Lane development recently approved by Planning Commission.
