U-M’s Concordia Deal Raises Concerns for Ann Arbor Officials

Regents are expected to consider the $60 million purchase this afternoon as city leaders raise housing and tax-base questions.

The University of Michigan could move closer to taking control of one of Ann Arbor’s largest remaining campus properties this afternoon, with Regents expected to consider a $60 million purchase that city officials say raises major questions about housing, tax revenue and the future of the former Concordia University campus.

The U-M Board of Regents is expected to consider the purchase Thursday afternoon, May 21. The proposed acquisition appears on the Regents’ agenda as “4090 Geddes Road, Ann Arbor, Michigan.”

U-M is seeking authorization to purchase approximately 140 acres, including administration buildings, classrooms, residence halls, athletic facilities, the historic Earhart Manor and a chapel. University materials say the property would “further the university’s mission and its options for future development.”

The $60 million purchase would be paid for with central reserves, with a tentative closing date no later than June 30, pending Regents approval, environmental review and other due diligence.

U-M has not announced a specific future use for the property. In a statement reported by WXYZ-TV, the university said it will evaluate how the site may support long-term educational, research or health-related priorities.

That open-ended future has drawn concern from Ann Arbor officials, who say the land could support housing or potentially return to the tax rolls if sold for private development.

Ann Arbor City Council voted May 18 to pass a resolution urging U-M not to acquire the Concordia property. The resolution says the city is “especially concerned” about the university acquiring the property with “no stated community centered use.”

The resolution also says the 187-acre Concordia property “presents a significant opportunity to close the housing supply gap,” while acknowledging the land alone would not solve Ann Arbor’s housing shortage.

City officials also raised concerns about the long-term effect of U-M land purchases on the city’s tax base. According to the resolution, U-M has purchased property in Ann Arbor more than 90 times in the past 25 years, resulting in the loss of $2.4 million annually in city property tax revenue.

While the Concordia property is not currently on the tax rolls, city officials said U-M’s acquisition would prevent the possibility of the land becoming tax-generating property in the future.

If the purchase moves forward, the city asked the university to consider a partnership that could allow part of the land to be used for community needs.

The purchase comes as U-M’s separate high-performance computing project with Los Alamos National Laboratory remains under public scrutiny in Ypsilanti Township. Some local readers have questioned whether the Concordia property could become another possible computing or data center site.

Paul Corliss, U-M’s assistant vice president for public affairs and internal communications, told Crain’s Detroit Business the Concordia property is not being considered for the U-M-Los Alamos high-performance computing project because it lacks the specialized infrastructure and high-voltage electrical transmission capacity required for advanced high-performance computing operations.

For Ann Arbor officials, however, the Concordia question is broader than one possible use. The city’s resolution frames the issue as a rare land-use decision in a city facing limited space, housing pressure and ongoing concern over tax-exempt institutional growth.

Concordia University Wisconsin and Ann Arbor said Ann Arbor operations and core academic programs will continue at its Plymouth Road campus, including graduate health care programs in physical therapy, occupational therapy and physician assistant studies, along with online programs serving teachers and school leaders throughout Michigan.