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Public criticizes city procurement and asks for transparency on affordable-housing proceeds

Ann Arbor City Council · March 2, 2026
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Summary

Public commenters urged the council to review procurement awards (BA13) and questioned where proceeds from a downtown land sale were allocated, asking that sale revenue support the affordable-housing fund created by a voter-approved millage.

During public comment, resident Tom Stolberg challenged the city’s application of its best-value procurement policy and urged greater transparency about the disposition of downtown land-sale proceeds.

Stolberg said the BA13 contract award showed an "apparent seven-point advantage" for a union contractor and that the winning bid was hundreds of thousands of dollars higher than a rival, arguing taxpayers may be paying more without added value. He asked the council whether proceeds from the sale of the Klein lot (described by the speaker as more than $14 million) would be directed to the affordable-housing fund created by a voter-approved millage.

Council members later referenced the difference between best-value and lowest-bid procurement, with one council member noting voters amended the charter in 2021 to permit considering factors such as safety, apprenticeships and benefits. Another council member referenced a construction tragedy that underscored the desire to prioritize safety and training.

The council did not take any new procurement action at the meeting; the comments remain part of the public record and could prompt future follow-up or requests for accounting of sale proceeds.