Premiums Evaluation

​Introducti​​​​on

​Consultants Carlisle Wortman Associates, Inc. (CWA) has been engaged to complete an evaluation and make recom​mended changes to the premiums offered for bonus development opportunities for certain zoning districts in the Unified Development Code. 

Public Hearing ​​Notice 

​​Tuesday, Se​ptember 19, 2023, 7:00pm

​The Ann Arbor City Planning Commission will hold a public hearing at its regular meeting on Tuesday, September 19, 2023, 7:00pm, Council Chambers, Second Floor, Larcom City Hall, 301 East Huron Street, Ann Arbor, Michigan on proposed amendments to Chapter 55, the Unified Development Code, of the City Code. Amendments are proposed to Section 5.17.4 (Mixed Use Zoning Districts) and Section 5.18.6 (Premiums) to eliminate all premium floor area options and the change the maximum floor area ratio (FAR) standard of the D1 (Downtown Core) and D2 (Downtown Interface) zoning districts to 'none.' With these amendments, no additional floor area beyond the normal limits will be offered as incentives for amenities, and development in the D1 and D2 districts will only be regulated by maximum height, minimum or maximum setbacks, and building massing regulations, plus any other applicable development standards currently provided in code. ​

Current Prem​iums

Section 5.18.6 of the Unified Development Code offers bonus floor area, more than the normal floor area or floor area ratio (FAR), when certain amenities are provided.  Premiums are currently available in the D1 (Downtown Core),  D2 (Downtown Interface),  C1A (Campus Business) and C1A/R (Campus Business Residential) districts as follows:  

1. ​Affordable Residential Unit Premium - gives increased FAR by incremental amounts when increasing amounts of affordable housing is provided.  In the D1 district, the FAR limit is increased to 550%, 700% or 900% when 15%, 20% or 30% of the residential floor area is dedicated to affordable housing dwelling units, respectively. In the D2 district, the FAR limit is increased to 300% or 400% when 15% or 20% of the residential floor area is dedicated to affordable housing dwelling units, respectively. 
   
2. Green Building Premium - gives increased FAR by incremental amounts when levels of US. Green Building Council LEED certification is achieved. In the D1 district, the FAR limit is increased to 450%, 550%, or 650% when LEED Silver, Gold, or Platinum certification is awarded, respectively. In the D2 district, the FAR limit is increased to 250%, 350% or 400% when LEED Silver, Gold, or Platinum certification is awarded, respectively. 
   
3. Historic Preservation Premium - gives an additional 50% FAR (for 450% total in the D1 district and 250% total in the D2 district) when a historic resource not already within an Historic District is preserved. 
   
4. Pedestrian Amenity Premium - gives up to 8,000 square feet of floor area beyond the normal maximum FAR when certain pedestrian amenity features are provided in the C1A, C1A/R, and D1 districts. 
   
5. Public Parking Premium - gives up to 200% additional FAR in the D1 district (for 600% total) when parking spaces are made available to the general public. 
   

History of Pre​​miums

• 1966- Premium floor area bonuses first offered for 5 types of pedestrian amenities (open plazas, inner plazas, outer arcades, inner arcades and roof plazas). 
• 1994 - Premium options changed to offer increased FAR for residential use or bonus floor area 3 types of pedestrian amenities (arcades, inner arcades, and plazas). 
• 2009 - Premium options changed to offe​​​​r increased FAR for residential use, affordable housing, green buildings, historic preservation, or public parking or bonus floor area for 2 types of pedestrian amenities. 
• 2019 - Premium options changed to offer increased FAR for affordable residential units, green buildings, historic preservation, or public parking or bonus floor area for 2 types of pedestrian amenities.  

Resource M​aterials

• ​​​​​CWA Report - Review and Analysis of Downtown Zoning Outcomes (February 2, 2023)
• Slide Deck:  February 7, 2023 Presentation