ANN ARBOR, MI — There are now two phases to the University of Michigan’s plan to add student housing on Central Campus.
The first phase, the construction of a 2,300-bed dormitory on the site of Elbel Field, is already underway due to UM owning the land involved.
The specifics of the second phase are being discussed more at the university’s Feb. 16 Board of Regents meeting.
What’s clear at this point is UM plans to acquire blocks of private property south of downtown Ann Arbor. It’s working with UM Regent Ron Weiser, a real estate investor who founded the McKinley Inc. property management firm, to buy the property along South Division Street between East Madison and Hill streets.
Weiser’s intent is to transfer ownership of those properties, at cost, to the university, officials said.
Weiser declined to discuss how many properties he was purchasing or their selling price once transferred to UM, indicating details will be made clearer at the Feb. 16 meeting.
The additional student housing will be north of the UM Sports Coliseum, 721 S. Fifth Ave., and adjacent to the former Fingerle Lumber property UM purchased in 2018. Most of the Fingerle site is the new location of the Michigan Marching Band practice field, since it is being relocated from Elbel Field.
Read more: New 2,300-bed residence hall project approved for University of Michigan
The creation of student housing, both the 2,300-bed dorm and beyond, will help students find affordable housing options on campus, UM President Santa Ono said.
“We are grateful for Regent Weiser’s ongoing assistance in acquiring these properties,” Ono said. “Phase two is slated to begin after the completion of phase one. Property acquisition is occurring at this time to allow for the smooth transition of current residents and begin site preparation in anticipation of construction.”
Ann Arbor city officials discussed the plans with UM prior to its announcements of both phases, said City Administrator Milton Dohoney. The city is meeting with UM officials to work on infrastructure load implications, public transportation impacts, need for community engagement and potential timelines, he said.
The loss of private property on Ann Arbor tax rolls is a “always a concern,” Dohoney said, adding that is part of discussions with UM.
“I cannot say exactly what the potential lost tax revenue would be yet, but that is being worked on,” he said. “At the same time, it is undeniable that this community needs more housing options at all levels.”
City Council Member Erica Briggs, D-5th Ward, expressed concern about how UM is acquiring land through Weiser, an elected member of the board of regents. She said it could involve UM buying nearly 50 properties from Weiser.
“Obviously, we need more housing, but there are some pretty large-scale implications for doing this type of development with the city,” she said.
Briggs said UM has indicated the second phase of its Central Campus student housing project includes the two blocks bound by Fifth Avenue to the west, Madison Street to the north, Division Street to the east and Hill Street to the south, an area filled with many old rental houses.
City assessor records show McKinley already has acquired more than a dozen of the nearly 50 properties there that aren’t owned by UM.
Briggs expressed concern UM could use eminent domain over private property owners who do not wish to sell their land. Eminent domain refers to the right of state entities to acquire private property with “just compensation,” according to Michigan law. UM used eminent domain in 2013 to obtain two properties on South Division Street.
However, Dohoney said eminent domain has not been an issue raised at this point.
“No residents have approached our administration indicating anything about the discussions regarding the acquisition of their homes,” he said. “Nor has that been a topic of discussion between the university, and our team.”
UM can currently house 11,353 students in university housing, officials said, adding that the Central Campus housing project aims to “ease market pressures for undergraduate and graduate students who prefer off-campus housing in the community.”
The UM regents meeting is 4 p.m., Feb. 16 and can be viewed online at https://umich.edu/watch or in person at the Ruthven Building, 1109 Geddes Ave.
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