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Council rejects first reading of Ashley Muse PUD amendment amid short-term rental concerns
Summary
On first reading the council failed to advance an ordinance to amend PUD terms at 414 South Main (Ashley Muse) that would have allowed D1 permitted uses on Floors 2'7, a change opponents said would permit non-owner-occupied short-term rentals and risk converting long-term housing to transient use.
The Ann Arbor City Council on May 18 voted down a first-reading ordinance to amend the Ashley Muse planned unit development so Floors 2'7 would allow all D1 permitted uses, including non-owner-occupied short-term rentals (STRs).
Councilmember Disch introduced the ordinance as a first reading; Planning Commission materials indicated the developer sought flexibility to permit non-owner-occupied STRs though the petitioner told the commission they currently had no plans to operate units as non-owner occupied STRs. Planning Commission had judged the request reasonable because Ashley Muse sits adjacent to D1 properties and a hub-designated area in the future land use plan.
Opponents on council said the change would effectively create less-regulated hotel-style uses in downtown housing recently converted from office space and risk reducing long-term housing supply. "What you're talking about is essentially a less regulated hotel in our downtown," Councilmember Adena said. Several councilmembers said they preferred a broader policy discussion of STR limits during the land-use implementation process rather than resolving that policy in a single project decision.
City staff confirmed that current D1 regulations permit non-owner-occupied short-term rentals and other commercial uses in mixed-use districts. Councilmember British asked whether rejecting first reading would send the item back to the Planning Commission; staff advised that a first-reading rejection would end consideration of the ordinance.
The roll-call vote on first reading recorded one yes vote and multiple nos; the motion failed and the ordinance will not advance.
Councilmembers who opposed first reading said they plan to consider STR policy more comprehensively through the land-use implementation process before changing uses in newly converted long-term housing.
