Local in Ann Arbor

Unless you have just arrived from Mars, or possibly Denver or Atlanta, you are aware that the City of Ann Arbor has been locked in a mighty political struggle for years.  The majority (The Powers That Be, formerly the Council Party) has been pushing an agenda to make Ann Arbor into a high-tech generator of wealth.  They have been fighting off insurgent challengers to their authority since approximately 2006. (Some history is in this post.) The rebels are sometimes called “Townies” (see  What Does It Mean to Be an Ann Arbor Townie? ) but most often simply the Neighborhoods. This August primary may very well be the telling blow that decides the future direction of our city. This is a war about the very nature and future of Ann Arbor.  Will we suffer the same fate as many high-tech communities? Or will we be able to sustain our community, our culture, and our home, all which have made Ann Arbor the very special place it is? And will it continue to be a city where the citizens have real influence over its direction?

The Nature and Future of Ann Arbor

So what is the war about?  The very nature and future of Ann Arbor. Here are the two outcomes:

(1) Ann Arbor will go the way of so many other centers of technological enterprise. We will dedicate our governmental priorities and our infrastructure into making the city attractive (as we believe) to the high-tech workers needed for successful startups. Real estate will become prohibitively expensive as money rushes in to take advantage of the wealth being created. Residents of modest income will be displaced as the cost of living increases. Developers will also take over many of the public spaces and familiar institutions. Much of the casual charm of the city and its sense of community and shared culture will be lost.

There are many accounts of the effect on the community of a high-tech community with too much money flowing in for the citizenry to compete. San Francisco and Silicon Valley are the prototypes.  This lengthy documentary shows in full detail what happens when money rushes in after scarce real estate. San Francisco 2.0

(2) Ann Arbor will plan to keep housing and local businesses in place by countering some of the actions and decisions that are leading to displacement. This will be done with careful planning and citizen involvement. Ann Arbor will still continue to evolve and will still support enterprise, but will make it possible for a wide spectrum of residents to live and participate in the community. It will be a resilient community where changes in the built environment will be adaptive, not abrupt, where the future is anticipated but the past is respected. We will have a city that is to human scale, that includes restorative green spaces and accessible public areas.

There is a process for this. See, for example, Boulder. “The city’s infrastructure, design, and neighborhoods are driven by public investments and land use decisions. Choices made today will last for generations. These choices also must be considered on multiple scales and across issues and systems. Facing a future with so much uncertainty will ultimately require flexible and adaptive systems that do not lock the Boulder community into a single pathway.”  (From Boulder Resilient Cities post)

The Placemaking Agenda

There has long been an effort to transform the city from a sleepy college town to a high-tech success story.  The aim was economic development.  A guy named Rick Snyder helped to start an incubator called the “IT Zone” in downtown Ann Arbor (1999) and also launched SPARK (2005) which then (2007) merged with the IT Zone  Meanwhile, Washtenaw County passed a resolution naming Ann Arbor and Ypsilanti downtowns as Smart Zones. These were part of a push by Governor Jennifer Granholm to bring economic revival to Michigan via high technology centers. They allowed school taxes to be captured for economic development in the named centers. (Technically, the taxes are repaid to the local schools by the state, but it is complicated.)  Our Local Development Finance Authority administers those funds.  Since then, SPARK has infamously received substantial allocations from both Washtenaw County and Ann Arbor City.  In the same general time period, Gov. Granholm also launched her Cool Cities initiative, which was presumably modeled after the Richard Florida “Rise of the Creative Class” book and theory.  The basic precept is this: to be successful in economic development, cities must install quality of life enhancements that will attract the young “creatives” (who turn out to be mostly tech workers).  There was quite a push for this in Ann Arbor around 2010, as I reported. All this met with the agenda of the Powers, who set to the job of transforming Ann Arbor into a different place, one that would support a technology-driven enterprise culture.

The word for this type of activity is placemaking and it is now a major field of study and implementation. Much of this is discussed in this post: The Placemaking Agenda and Ann Arbor Politics.  The post was written to explain the election of 2014, and most of it remains entirely pertinent today, including the promotion of friendly candidates by the Michigan Talent Agenda. (The MTA is widely known to be run by Ned Staebler, though his name does not appear on the website.) Note the word “talent”.  That is the key to entrepreneurial success, as explained in many different pages. The basic concept is to make Ann Arbor a place that appeals to a different class and type of people, especially those who will lend themselves to a technology-driven enterprise culture.

It worked! Ann Arbor has attracted a number of technology startups, some of which have even stayed in town. A recent highlight: the sale of homegrown Duo Security for $2.53 Billion to Cisco (reported by MLive). Every day seems to bring a new announcement of a start-up or the growth of one, or other similar successes.  We have succeeded in importing “talent” and others. The overall effect of the placemaking efforts has indeed been to bring in more people, which means more need for housing.  It must be acknowledged that the University of Michigan plays a part in this, since the student population continues to increase.  A local blogger, TreeDownTown, has written a useful overview of the student housing picture, in which he concluded that the massive downtown buildings recently built as student-directed luxury units are barely keeping up with demand.  But the overall drive to bring in new “talent” has also meant an influx of affluent new residents who are willing to pay well for housing that satisfies their wish for close-in (to downtown) quality living.  For the first time in several decades, Ann Arbor’s population has grown noticeably.  According to the United States Census Bureau, Ann Arbor City’s population is estimated to have grown from 113,934 to 121,477 between 2010 and 2017, an increase of 6.6%.  That is over 7,500 people looking for housing. Meanwhile, the price of houses is going up and Ann Arbor, according to this 2017 article, is said to be the least affordable housing market in Michigan.

Development, Gentrification, and the Loss of Local Character

One outcome of this drive to transform Ann Arbor has been a strong development push. This has sometimes been led by revisions of downtown zoning (the DDA has been heavily involved in promoting development) but neighborhoods adjacent to downtown have been heavily affected even without changes in zoning. The young population who were the target of all this promotion want to live near downtown, in a nice place, within biking or walking distance.  This has put great pressure on the neighborhoods near downtown.  It has also driven up the value of downtown property to unimaginable heights.

Each time a major development is proposed, it brings out the neighborhood who are fighting to maintain the distinct character of their home territory. For example, Germantown (a neighborhood at the southern edge of downtown, roughly between William, Packard, Madison, and Main) was devastated by the loss of seven historic houses that were the heart of the neighborhood. The Powers opposed a historic district and approved an ugly student-oriented development (City Place) instead. (See Heritage City Place Row.)  Other more recent battles have been over 413 E. Huron, unaccountably zoned D1 right next to a residential neighborhood that is also a miracle of historic preservation, now the Foundry Lofts;  and the Broadway Lowertown site, which TreeDownTown accurately described as a better deal that could have been had by the City.  Battles have also been over the fate of the Library Lot, an Ann Arbor treasure and one of the very few open spaces remaining in the downtown. See Core Spaces and the Soul of Ann Arbor. With the Taylor caucus (the Powers) holding tight, most often with 8 votes but always with a majority, development after development has been approved over the cries of the residents.  The face of Ann Arbor is indelibly changed already.

These individual battles often obscure the true nature of the war itself. The Neighborhoods, who are not really a party or a coherent group, emerge over and over again as residents fighting for the survival of their community. What is at stake in many cases is displacement, as well as loss of local connections and culture. Displacement has already happened in some areas as gentrification has meant replacement of older structures, often affordable rentals or modest owner-occupied houses, with extremely high-end expensive condominium developments.  These are in the desirable near-downtown zone in areas such as Kerrytown, Water Hill, or the Summit Road neighborhood. In classic gentrification style, these were once areas where Black families were grouped because of segregation. Often they had already attracted new owners because they were affordable and had a certain raffish charm. But now the next phase is occurring. For example, Tom Fitzsimmons has built numerous attractive condominiums on former one-house lots or combined lots to create larger developments. New policies appear directed at ensuring such dense development in formerly single-family neighborhoods. As high-priced denser housing sells in each location, the surrounding land becomes more valuable, and simple market pressure causes displacement of renters.

Affordable Housing, the Confusion

One thing everyone agrees with is that housing in Ann Arbor has become unaffordable. But while “affordable housing” is a desirable goal, few agree on what that is and how it should be achieved. To some, affordable housing is targeted to very low income individuals, is subsidized by a variety of governmental programs, and is administered by the Ann Arbor Housing Commission, Avalon Housing, or perhaps other nonprofit or governmental providers. This was the concept presented at a recent Council working session by Jennifer Hall, the Director of the Housing Commission. The AAHC was created to oversee the Federal public housing in Ann Arbor but is becoming the housing and community development department in its reach. (Ann Arbor’s Community Development Department was subsumed by the Urban County in 2008.)  Hall and Washtenaw County’s Teresa Gillotti made a very thorough case of the needs for subsidized housing and called for a millage to pay for new housing.

Washtenaw County’s 2015 study of Housing Affordability and Economic Equity reviewed the demographic differences (income, educational attainment, etc.) between Ann Arbor and the City of Ypsilanti and concluded that Ann Arbor should add (subsidized) affordable housing while Ypsilanti should add market-rate housing intended to attract Ann Arbor’s highly educated population. The evident intent was to homogenize the population of the two cities. (Pittsfield Township was included in the study but has not been much involved in the conversation.)  Jack Eaton was the sole CM to vote against adopting this concept, which he called “social engineering”.  He has been beat up about that ever since.  But in point of fact, the study made no useful suggestions for creating affordable housing and merely imposed targets on both communities that they are unlikely to meet.  The subsidized housing discussed would most often not be accessible to working families making 60-80% of median income (e.g. roughly $44,000 to $57,000).  Those would need what is often called “workforce housing”, which must also be subsidized because it is still below market.  This means that many service personnel and even public employees like schoolteachers and city staff have difficulty in affording housing here.

What must be acknowledged is that everyone who can afford to do so wants to live in Ann Arbor. Thus, the limited land mass in the city has virtually become an extractable resource. Parcels that were previously considered to be virtual wasteland are now being expensively developed.  This creates several classes of people who find living here unaffordable.  Among them are, yes! two-income professional couples.  It is just that expensive.  According to Zillow, the median sales price of a house in Ann Arbor is now about $400,000. Unless one is either very high-income or bought in many years ago, buying a house in Ann Arbor is becoming nearly unreachable.

A new group supportive of the Powers has been insisting loudly that our current neighborhood residential structure must be altered. These self-named YIMBYs (Yes In My BackYard) seem resentful of current residential homeowners, whom they often term “wealth hoarders” because of unearned appreciation in real estate value. Downzoning Upzoning (which allows denser development in single-family neighborhoods) has been called for.  The YIMBYs believe that by building more housing units, regardless of the price, somehow housing will become more affordable and available to them in the desirable areas. Ironically, some appear to be hoping that single-family houses will become available after everyone else moves into the high-priced condos.  Much discussion of these options occurs on a Facebook group called Ann Arbor YIMBY.

Generally, it appears that some major restructuring of the landscape might be proposed in order to allow for more housing of any type, but especially denser market-rate housing. The two Mayoral candidates have weighed in. Jack Eaton has proposed a number of possible approaches to housing lower-income Ann Arborites. It includes using City land to start cooperatives.  Chris Taylor appears to stay with the tried-and-true approach via the Housing Commission but also (somewhat ominously) notes:

If we are to be inclusive, we must also be open to development that will create homes people can afford. This will be disruptive and will involve trade-offs. If we do not begin to explore and experiment now, we will not meet even our modest affordability goals.

The Neighborhoods are not united on all subjects and are not really a coherent group. But generally they wish to retain both their homes and their quality of life.  (Yes, lots of complaint about the roads.)  Gentrification is a threat. So are increased taxes and increased fees. Recently a water rate restructure has reduced the cost of water service to multifamily developments such as are built by developers, while increasing the cost to certain single-family homes. While the City’s basic tax rate has not increased, allocation of City funds to such multi-million dollar projects as the Treeline ($55 Million) (a greenway conservancy that is already attracting more high-value development along the railroad tracks in what were once the old industrial properties and the lowest value) and the Fuller Road Train Station (ca. $80 million) creates potential tax demands for the future. These are high-risk projects that will encumber current or future City budgets, without bringing direct benefits to current residents.  Thus, the Neighborhoods can anticipate either higher taxes, or loss of services, or both, in the drive to bring “talent” for technology to town.

The Citizenry as Decision Makers

Some have accused the Neighborhoods of being elitists and implied that they are worse. But actually, the shoe is on the other foot.  The whole thrust and focus is to wealth creation at the expense of long-time residents, many of whom are not particularly well off. Who owns the city? Current residents and businesses, or a future populace who are not here yet? Should a small group of elected and appointed officials make all the decisions and determine the course of the city? Or should the citizenry be empowered to help set the course?

Ann Arbor has a strong tradition of citizen involvement, and I believe this is one reason for the strength and vitality of the town. We have a City Charter that requires a number of decisions to be based on a vote of the people, or a supermajority (8 votes) of our elected representatives. We have public comment at meetings and open meetings act/freedom of information act requirements for governmental transparency.  With leadership from the former CM Sabra Briere, we have many steps in our development process that make citizen access to planning documents practically global.  (I remember when I had to go to the department physically and beg to see them.)  There are a number of citizen task forces and committees that produce advisory reports.  But some CM have found contributions from the public to be a tedious intervention, sometimes remonstrating from the bench.

Recent actions on the part of the Powers seem to indicate that they consider themselves uniquely qualified to make all the decisions.  They have supported massive redactions in FOIAed documents and most recently supported the signing of a contract by the Mayor and staff, in contravention of the Charter requirement that a vote of 8 CM is required for such action. (They knew they didn’t have the votes.)

This Is It. Vote.

This election may be a decisive battle, since credible challengers against the Powers are running in every race. (Full information on the election and candidates can be found on the Ann Arbor Votes page. Additional insights from these interviews on All About Ann Arbor.)

All four Ann Arbor wards which have incumbents running also have a challenger.  The First Ward has two candidates running for an open seat; one of them has declared his allegiance to the Powers so is treated here as one of them. The other has affiliated himself with the bloc I am calling the Neighborhoods.   Note that each of these candidates has a personal history and individual positions on many issues. None of them are running in a slate. Nevertheless, their places on the chessboard are clear.

Candidates running for City Council in Ann Arbor, August 2018

The race for Mayor is key and the battle is being vigorously fought.  The current Mayor, Christopher Taylor, is challenged by current 4th Ward Councilmember Jack Eaton.  They are very distinct, not only in their views but in their voting records.  Here is a very comprehensive account of their voting records on key issues, as reported by the Ann Arbor News.

This is it, folks. Ann Arbor is at a turning point. Please vote.

Disclosure: I am Jack Eaton’s campaign treasurer and I have supported the objectives of the Neighborhoods for years.

UPDATE:  I have been reminded that Council and Mayor terms have now been extended to four years. This election is more meaningful than ever.

SECOND UPDATE:  This was quite a turnover election. The only “Powers” candidate who survived was Ward 3 Julie Grand, but in addition Mayor Christopher Taylor held an authoritative lead. (Jack Eaton remains as a 4th Ward CM for three years until a new contest.) So Mayor Taylor will now be presiding over a Council where the numbers have turned against him.  He’ll have only 4 votes (including his own) against a potential bloc of 7 votes.  I predict that the Neighborhoods representatives will not operate in the strict discipline of the old Powers bloc, since they are all individuals with independent viewpoints. But it should not be business as usual.

Important note: the new Council will not be seated until the General Election in November. So we have a dangerous period ahead of us where a lame-duck Council may yet take actions.

THIRD UPDATE:  Obviously, the course of business on Council is likely to shift noticeably beginning in November. Mayor Taylor will not be able to command a supermajority as he has been accustomed to, now that the majority (7) has shifted to the Neighborhoods. (Note that neither “party” has a supermajority.)  But we should not expect that drastic changes will occur. For one thing, the Mayor has great influence over the agenda.  Also, at least a couple of the newcomers are showing signs of independence. They will assume their place at the table, not just count as a number.

I thought Ali Ramlawi’s election night comments (video) were very heartening.  They were evidently spontaneous and from the heart.  Here is a transcript of the remarks.  A couple of notable excerpts:

We’ve got a lot to do. I mean, other than the 4th Ward, all the races are close. You know, it’s just like national politics, it’s pretty divided. 50 to 50 almost, you know, give or take a couple percentage points, there’s a lot of work to do. The work has just started. We need to be bigger people and better people, reach across the aisle and work with folks who think differently than us.

I think we can actually have an honest discussion for the first time in a long time. I think the Mayor and Mayor’s party has had a majority, a supermajority where they didn’t really have to take into consideration what other people thought. For the first time in their career, they have been sobered by the fact that there is a great part of Ann Arbor who doesn’t feel comfortable with their decision-making. and who want a different voice and they elected that. So it feels empowering but at the same time there is a lot of responsibility that comes with that and I need to find ways to bridge the gap and be able to make a difference and move things forward in a way that takes all parts of our community together and don’t just shut out a part of them because they don’t have representation on Council.

FOURTH UPDATE: This article from the Wall Street Journal lists Ann Arbor as among the top cities for growth based on the tech culture.  Some of the downside is mentioned.

GENERAL NOTE: Comments are moderated. I do not allow anonymous comments. I deleted an anonymous commenter who gave an address of “gmail@gmail.com”.  Funny, yes?  Discussion is welcomed, but you must own up to your comments and avoid abuse.

This entry was posted on August 5, 2018 at 9:39 pm and is filed under Basis, politics. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site.