Trees and Development

Skip Navigation LinksHome » Departments » Forestry » Trees and Development

Canopy loss fee

Any projects that propose the removal of a city-owned street or park tree will be required to pay a canopy loss fee.   The canopy loss fee is a conservative estimate of the value the city-owned tree has to the community.  The canopy loss fee is determined by subtracting the total caliper inches of replacement street trees from the total DBH (diameter at breast height) inches of trees removed multiplied by the current average tree replacement cost per caliper inch.  The canopy loss fee is part of the Public Services fees that are approved by City Council.  

The current canopy loss fee rate is:
$207/inch for shade trees
$182/inch for ornamental trees 

Canopy loss fee examples

Example A:                 

Trees to be removed:  12" Norw​ay Maple, 6" Hackberry and 6" Sweetgum
Total DBH inches of trees removed= 24"
Replacement trees:  Three, 2" caliper trees
Total Caliper inches of replacement trees = 6"

Canopy Loss Fee Calculation:  (24" - 6") x $207/inch = $3,762

Example B:

Trees to be removed:  8" Callery Pear, 4" Eastern Redbud
Total DBH inches of trees removed= 12"
Replacement trees:  Five, 2" caliper trees
Total Caliper inches of replacement trees = 10

Canopy Loss Fee Calculation:  (12" - 10") x $182/inch = $364


Street Tree Escrow

As a requirement for approval of a plat or site plan and in accordance with the Unified Developmet Code, developers are required to pa​y a street tree escrow fee for the purpose of planting and maintaining trees on the public street right-of-way abutting the new development. The street tree escrow rate is $1.30 per linear foot of street frontage.  In situations where there are existing street trees meeting City standards, the street frontage amount can be reduced by 45 feet for every existing acceptable tree. 

The street tree escrow must be paid prior to issuing building permits.  A request to refund the street tree escrow must be submitted in writing to:

City of Ann Arbor
Attn: Street Tree Escrow
PO Box 8647
Ann Arbor, MI 48107-8647 

A request may also be submitted by fax 734.994.1744 -- ATTN: Street Tree Escrow​ 

Please refer to the project na​me and number on refund request.  The refund will be processed after satisfactory site inspection for long-term survival of planted ​trees, typically one year after the trees have been planted.  The street tree escrow will not be refunded if there were no street trees planted. 





​Forestry Public Works
Wheeler Service Center
4251 Stone School Road
[email protected]