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Washtenaw County board votes to opt out of Ann Arbor DDA tax-capture expansion
Summary
Following debate over accountability and privatization concerns, the board voted by roll call to exercise its statutory option to exempt county taxes from capture within the proposed Ann Arbor Downtown Development Authority expansion area.
The Washtenaw County Board of Commissioners voted March 18 to opt the county out of tax increment capture proposed in an Ann Arbor Downtown Development Authority (DDA) expansion.
Commissioners debated the measure at length. Commissioner Brent Maciejewski said he would oppose the opt-out because he represents small DDAs in his district, but he later explained his reasons and ultimately voted to opt out as an accommodation to colleagues. Commissioner Robbie/Robey argued that DDAs are unelected bodies that can divert taxes to privatized services; she said such dollars should remain under the control of elected officials. Commissioner Lebar, while calling the DDA a "good partner," said he would support the opt-out vote in order to preserve future flexibility.
After two technical edits suggested by Corporation Counsel (including inserting the statutory citation pursuant to MCL 125.4201 and clarifying the scope of the proposed expansion area), the board approved the opt-out motion by roll call. The motion passed on the record; the board recorded a mix of yes and no votes during the roll call and the clerk announced the item passed.
Why it matters: Opting out prevents the county's property-tax portion from being included in the DDA's proposed TIF capture area unless the county later votes to opt in. Supporters framed the vote as protecting county revenues and democratic accountability; opponents said opting out could hamper cooperative economic development partnerships.
What comes next: The opt-out does not permanently bar future agreements; commissioners discussed that the board may opt in at a later date if circumstances or intergovernmental agreements change.
