A Downtown Development Authority (DDA) is a component unit of the City government that focuses its work within a defined downtown boundary.

They build infrastructure and manage programs to maintain a healthy downtown environment and support the area's long-term success. 

The mission of the Ann Arbor DDA is to undertake public improvements that have the greatest impact in strengthening the downtown area.  We focus on infrastructure and maintenance projects that advance community goals and strengthen downtown. Read more about what we’ve accomplished in our Outcomes Report and the Projects section of our website.   

Separately, under a contract with the City of Ann Arbor, the DDA manages the municipal parking system. Parking revenue is limited to investments in the parking system. Conversely, TIF revenue does not contribute to the parking system. 

The DDA is not a membership organization like a downtown merchant association. While both DDA’s and merchant associations focus on strengthening downtown, the Ann Arbor DDA focuses on public infrastructure while merchant associations focus on business advocacy and event management. Learn more about each merchant association here:  

• Kerrytown District Association

• Main Street Area Association

• State Street District

The Ann Arbor DDA primarily relies on Tax Increment Financing (TIF) to fund public improvement projects. TIF is also used to leverage state, federal, and non-profit grant dollars to increase the overall investment in downtown infrastructure, programs, and housing.

Tax Increment Financing (TIF) is the capture of a portion of taxes within an established district to fund capital improvements, including work on streets, sidewalks, public utilities, and parks.

TIF is the only revenue-sharing tool in Michigan to fund downtown infrastructure projects and maintenance. In Ann Arbor, regional contributions from the County, Library, Ann Arbor Area Transportation Authority, and Washtenaw Community College help fund capital projects and maintenance in a regional downtown. 

Without this tool in place, all future infrastructure projects, affordable housing support, and maintenance costs would be the responsibility of the other governmental units.

1. Does TIF increase my taxes?

No. TIF directs a portion of tax capture within the DDA District toward strengthening downtown and advancing community goals. It does not increase property taxes through a millage or special assessment.

2. How can TIF be used? 

TIF can be spent on projects in approved TIF plans, with a focus on activities that would not happen without this funding tool. TIF cannot be used for the personal benefit of a person or corporation.

A development plan is required to establish the DDA's boundary and identify the future activities and projects the DDA will undertake to benefit the downtown area and the broader community. 

Development Plans expire after 30 years and are typically updated every five to ten years. Our current plan was created in 2003. 

We are updating it, and our Tax Increment Financing Plan, to make them more relevant for the current and future needs of the Ann Arbor downtown area. 

The new plan will be updated to: 

- Reflect updated City goals 

- Align with updated State statutes 

- Address new and emerging needs downtown 

- To ensure transparency and well-informed stewardship of our downtown area 

The Development Plan and Financial Plan must be updated together, as required by state statute. 

We are funded by tax increment financing (TIF). DDA's across the state are required to prepare a tax increment financing plan. A tax increment financing plan includes the estimated TIF revenue the DDA will collect and how those dollars will be used to implement the projects and programs in the Development Plan.  

In 2013, Ann Arbor City Council changed the City Code to restrict DDA TIF funding starting in 2016. This change restricted the DDA’s TIF revenue to 3.5% growth annually. Our scope is determined by our funding. If this restriction continues, the DDA will continue to focus on capital projects and maintenance but accomplish less over time. Identified infrastructure needs will take longer to implement, and some will not be addressed.   

If this restriction is changed and more funding is available, then we have the potential to do projects more quickly, take on larger projects, and/or add new programs and services with additional funding.  

At a base level, we see the DDA as a tool to accomplish community goals. So, we are using a variety of sources from our community to create our new Development Plan and identify potential needs and projects for the future.

1. Ann Arbor Comprehensive Plan

The Ann Arbor Comprehensive Plan is a document created by the City, and informed by community member feedback, that shapes the goals, values, vision, and future priorities for the city.

This effort is ongoing and we are working in coordination with the City in order to advance community goals and strengthen downtown within our boundary.

2. Other key planning efforts

Adopted: Recently adopted plans will continue to guide our work, including the A2 Zero Plan, Ann Arbor Moving Together Towards Vision Zero Plan, and TheRides 2045 Long Range Plan.

Underway: In addition, key initiatives across City Departments are identifying needed infrastructure investments in streets, sidewalks, bike paths, parks, affordable housing, clean energy initiatives, and public utilities. Those that overlap with the DDA’s role and boundaries will be reflected in the new Development Plan.

More information:

• Downtown Circulation Study

• City Capital Improvement Plan and Infrastructure Asset Management

• Development of City-owned Properties as Affordable Housing

• Parks Asset Management Planning

No. Despite the word “development” in our name, the DDA is not responsible for constructing or approving private development downtown. The DDA does support the community’s goal of diverse housing downtown. To that end, the DDA provides affordable housing grants and invests in infrastructure, like new water mains, to support the Ann Arbor Housing Commission's ongoing development efforts. 

The DDA also reviews site plans for compliance with the Downtown Street Design Manual. 

There are a variety of ways to get involved with this project. 

1. Apply to be a DDA Board Member 

We have some board vacancies. Up to twelve volunteer board members serve on the DDA and represent a variety of downtown interests as required by the State DDA statute. See the member roster on the City’s Legistar page and consider applying to be on our Board.  

2. Join the Downtown Development Area Resident Consultancy Council (DDARCC) 

If you live within the DDA boundary, then you're eligible to join this council.

Join today to advise the DDA on the creation of this development plan and future plans. The state legislation that created the DDA also provided for the creation of a Downtown Development Area Resident Consultancy Council (DDARCC). This group of residents living within the DDA boundary acts in an advisory capacity on the DDA’s proposed development and TIF plans. See the member roster and apply to this council on the City’s Legistar page.   

3. Participate in an Engagement Session 

We'll be hosting engagement events with Ann Arbor residents and community members soon. Please sign up for our newsletter to see when future engagement events are scheduled!