ANN ARBOR, Mich. – Ann Arbor’s city council has approved a deal to transform a downtown parking lot into a new library, housing units and open public space.
The 11-member council voted unanimously Monday, April 20, to approve a sale agreement between the city and the Ann Arbor District Library, according to a release from the city.
The agreement now heads to the Library Board.
“This is a major milestone for our community,” said City Administrator Milton Dohoney Jr. “With this agreement in place, we are following the direction voters gave us and making way for a new downtown library, more housing and better use of a key city-owned site, all while ensuring the function of the Library Lane parking structure.”
Under the agreement, AADL is set to build a new downtown library spanning both the city-owned Library Lane underground parking structure and the current library site. A pedestrian bridge over Library Lane would connect the two buildings.
According to the city, planned elements include:
- A new, modern downtown library to replace the current facility
- A mix of housing units, including affordable units, senior units, units aimed at the arts community and market-rate units
- Approximately 10,000 square feet of outdoor public space
- Space within the library for small businesses and community use
The city retains ownership of the underground parking structure.
The site has been at the center of a community debate for years. In 2018, voters approved a measure envisioning the lot as a park. Seven years later, it was still a surface parking lot.
The latest chapter started at the August 2025 ballot, where Ann Arbor voters approved Proposals A and B, city charter amendments that authorized the sale of air rights above the Library Lot to AADL for $1.
The vote cleared the legal path for this week’s agreement.
A lawsuit filed ahead of that August election alleged voters were being misled by the ballot language, with plaintiffs asking a Washtenaw County judge to halt the election entirely.
Previous coverage --> Lawsuit challenges Ann Arbor ballot proposals over library development plans
Mayor Christopher Taylor credited voters with pushing the project forward.
“Ann Arbor voters want their government to deliver positive, progressive change and this agreement delivers,” said Taylor. “Thanks to the voters’ decision on Proposals A and B, we can look forward to a revitalized area of our downtown with a state-of-the-art library, programmable public open-space, and 100s of units of housing.”
Officials said the new library will improve accessibility, create more space for programming and allow the library to expand its services.
AADL will now move into the next phase of planning, which includes selecting development partners, engaging the community on design and advancing plans through the city’s approval process.
Construction timelines have not been determined yet.
City officials said the current downtown library is expected to remain open through at least 2029.