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Kline's Lot Development and Sale

At a glance

  • What: Purchase and sale agreement for the Kline's Lot at 309 S. Ashley Street in downtown Ann Arbor; property previously committed to affordable housing; purchase approved with amendments and allocation of proceeds to Strategic Property Acquisition Fund.
  • Where it stands: Sale agreement approved September 8, 2026, as amended. Proceeds from sale ($9.7 million) allocated to Strategic Property Acquisition Fund on September 22, 2026.
  • Amendments: Public alley access maintained with reasonable alternative access provisions; short-term rentals limited to 10 percent of residential units; commitment to all-electric commercial spaces.

Development Details

The Kline's Lot is located at 309 S. Ashley Street. Resolution 26-1479 (R-26-359) approved the purchase and sale agreement with three amendments addressing concerns raised in public comment.

Amendments (all accepted as friendly by Council):

  1. Public alley access: Purchaser must maintain access through public alley and easements, with limited temporary interruptions only where necessary for safety and reasonable alternative access available. Purchaser must work to minimize utility interruption impacts. Requirement survives closing.
  2. Short-term rentals: Limited to no more than 10 percent of residential units in the project.
  3. All-electric commitment: Purchaser commits to work in good faith with commercial tenants on all-electric connections for commercial spaces.

Strategic Property Acquisition Fund: September 22 vote allocated $9.7 million from the Kline's Lot sale to establish the Strategic Property Acquisition Fund (Resolution 26-1500, R-26-374), approved unanimously with 8-vote requirement satisfied.

Public Comment

September 8 (Kline's Lot sale agreement):

Opposition:

  • Alan Haber - urged Council to preserve property for affordable housing
  • Ralph McKee - opposed breaking prior affordable housing commitment
  • Ashley Schafer (Main Street Area Association) - urged delay for member input
  • Ilene Tyler - concerned about impact to historic properties

Support:

  • Mark Madonna - supported market-rate housing needs; better use than surface parking lot
  • Marianne James (The Ark) - raised concerns about impact to The Ark; urged alley widening and sidewalk access

Other concerns:

  • Jeff Crockett - concerned about loss of downtown businesses

September 22 (Proceeds allocation):

  • Tricia Hackney - expressed concern about process and lack of affordable housing in Ann Arbor

Sources

Log

2026-09-08 - City Council

Resolution 26-1479 (R-26-359) approved as amended with 10 members present, unanimous vote satisfying 8-vote requirement. Three amendments accepted addressing public alley access, short-term rental limits, and all-electric commercial spaces. Extensive public comment both supporting and opposing the sale.

2026-09-22 - City Council

Resolution 26-1500 (R-26-374) approved allocating $9.7 million from Kline's Lot sale proceeds to establish Strategic Property Acquisition Fund. Unanimous vote satisfying 8-vote requirement. Public comment from Tricia Hackney regarding process and affordable housing concerns.

2026-09-22 - City Council

Proceeds allocation discussed: $2.5 million to the Ann Arbor Housing Commission, $500,000 to the Shelter Association, $250,000 to Alpha House, $2 million for a police records management system and $550,000 for Ann Arbor-Saline Road street lighting. Public comment criticized the sale price and broker fee.