ANN ARBOR, MI – A controversial student housing development on Ann Arbor’s north side may go forward following a legal dispute.

City Council voted 7-4 Tuesday morning, July 2, to settle a lawsuit with Indiana-based Trinitas Development LLC, allowing a slightly scaled-back version of the project council rejected last year.

But they still don’t like it.

“It’s essentially force-fitting a massive student housing facility at a location miles away from campus in a residential setting. It doesn’t get much worse than that,” said Council Member Jane Lumm, a 2nd Ward independent who voted in favor of settling.

Trinitas sued the city after council voted 10-0 last September to reject plans for an apartment project called the Cottages at Barton Green, slated for 32 acres next to M-14 at 2601 Pontiac Trail.

Trinitas had at one point proposed 221 apartments with 710 beds in 92 buildings, with more than 550 surface parking spaces, a clubhouse, pool and other amenities.

Responding to concerns from neighbors and city officials, the developer agreed last year to eliminate 10 apartments, including all six-bedroom units, eliminating 28 beds and 28 car parking spaces, and deferring 26 other car parking spaces. That wasn’t enough to convince council to approve the plans at the time.

After recent legal negotiations between the city and developer, the city’s attorneys presented council with a settlement agreement that limits the development to a maximum of 690 occupants and reduces the amount of car parking while increasing bicycle parking.

Council members who voted to approve the deal Tuesday indicated they were doing so reluctantly, they still think it’s a bad project and they sympathize with neighbors who oppose it.

But based on advice from the city’s attorneys, they didn’t want to face the risk and uncertainty of continuing to fight the lawsuit.

Lumm said it was a terrible, gut-wrenching choice, but she didn’t see a path forward that would result in a better outcome.

“I think I speak for the vast majority of folks in this neighborhood, and up and down Pontiac Trail, when I say this project stinks,” said Council Member Jeff Hayner, D-1st Ward, who voted against the settlement, along with Anne Bannister, Jack Eaton and Ali Ramlawi.

Council properly rejected the development for good reason previously, Hayner said, arguing it negatively impacts nearby intersections, the environment and people’s quality of life.

He expressed concerns about the loss of green space, stormwater impacts and traffic congestion, saying this type of growth is inappropriate and will make the corridor “miserable.”

Some council members and residents who spoke out against the settlement deal raised concerns about the placement of a proposed crosswalk on Pontiac Trail, saying it would be dangerous.

The city’s staff indicated those concerns can be addressed during the civil design phase.

Deputy City Attorney Kevin McDonald outlined the general terms of the settlement as follows:

The development can have a maximum of 690 occupants, reduced from the 1,002 that would be allowed under city ordinance, with exceptions for children, caregivers or otherwise as required by law.

No six-bedroom units allowed.

The number of parking spaces must be reduced from 559 to the city-required minimum of 422, with an additional 137 reserved spaces that will be deferred and may be constructed using pervious materials if the city or the developer demonstrates a need for them.

An additional 50 covered bicycle parking spaces must be provided.

Trinitas must pay the city $346,000 for future intersection improvements at Pontiac Trail and Barton Drive.

Other offers made to the city by Trinitas last year are incorporated, including green initiatives throughout the development and a shuttle bus to serve tenants.

Calling it “gut-check time” for council, Ramlawi argued those changes weren’t enough to justify reversing the city’s denial of the project.