ANN ARBOR — Ann Arbor officials have identified a funding solution to build the eco-friendly fire station of the future they’ve been talking about for years.
City Council voted 10-0 Tuesday, Jan. 21, to approve a notice of intent to issue $12 million in capital improvement bonds to finance some or all of the costs to construct, furnish and equip a new Fire Station 4 on the city’s east side.
The plan is to replace the existing station at 2415 S. Huron Parkway, which was built in 1966, with a net-zero station that would be the city’s first carbon-neutral facility.
It will produce energy through geothermal heating and cooling and solar panels, with an energy-efficient design, officials said.
In addition to aligning with the city’s A2Zero sustainability goals, the new station also is being designed to better accommodate firefighters of all gender identities.
Council Member Lisa Disch, D-1st Ward, expressed a “happy hooray,” saying she’s excited about the project and the renewable energy aspect is wonderful.
“It’s another proof of concept,” she said, saying it was exciting when Fire Chief Mike Kennedy presented the plan to the Planning Commission in 2023, but he noted at the time a lack of funding to carry out the project.
“And this is a way of getting money,” Disch said of the city’s decision to incur bond debt.
The city anticipates paying all or part of the debt and interest using funds the city receives from the state of Michigan for providing fire protection to state-owned facilities. The payback period will be up to 20 years.
Kennedy said in early October the city had just received its annual letter from the state on the matter, showing funding was dropping from $1.87 million in 2023-24 to $1.79 million in 2024-25. All the funds go into the city’s general fund and $1 million is transferred to a capital fund for fire station replacement, he said.
The state assigns values to all University of Michigan properties and annually depreciates them, Kennedy said, explaining how the funding amount is determined through a formula.
“However, while the state depreciates all state property, the city of Ann Arbor community value continues to grow,” he said. “This formula eliminates what should be significant increases to UM value with recent property acquisition and new construction.”
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