City of Ann Arbor and Ann Arbor District Library finalize agreement for new downtown library, housing and public space

- Apr 21, 2026
Parking lot site of Library Lane in Ann Arbor with cars parked and blue sky with buildings in the background

The City of Ann Arbor and the Ann Arbor District Library have finalized a sale agreement to advance a transformative downtown project that will deliver a new library, housing and vibrant public space.

This agreement allows for the development of a new library atop both the city-owned Library Lane underground parking structure and the current downtown library site, connected via pedestrian bridge over Library Lane, with housing developments above the library on both sites.

The 11-member City Council approved the agreement unanimously on Monday, April 20. (Video is available of the discussion.) The agreement now goes to the Library Board.

The agreement follows voter approval of City Charter amendments in August 2025 authorizing the city to sell the air rights above the city’s Library Lot parcel to AADL.

“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.”

What the project includes

The agreement enables AADL to build above the city’s Library Lot parcel, in addition to its current parcel, while the city retains ownership of the existing underground parking structure.

Planned elements of the project include:

  • A new, modern downtown library to replace the current facility
  • A mixture of housing units such as affordable units, senior units, units aimed at the arts community and market rate units
  • Approximately 10,000 square feet of public, outdoor space
  • The library spanning both sites above Library Lane
  • Opportunities within the library for small business and community use

A voter-approved path forward

The agreement implements the framework approved by voters, including the sale of air rights above the city’s Library Lot parcel to AADL for $1, along with commitments to public benefits such as housing and open space.

Mayor Christopher Taylor emphasized the significance of the public’s role in shaping the project.

"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, programable public open-space, and 100s of units of housing."

A new chapter for the downtown Ann Arbor library

AADL has identified the need for a new downtown library to better serve current and future patrons. The new development will allow the library to expand services, improve accessibility and create more space for community programming.

“We're looking forward to creating an amazingly welcoming, accessible, and inspiring Downtown Library project, including new housing and public space that reflects what our community has told us it wants,” said AADL Director Eli Neiburger.

How the agreement works

Under the agreement:

  • AADL will be responsible for design, development and construction of the project
  • The development must meet agreed-upon requirements, including a public library, housing and public open space
  • The project will proceed through standard city development and construction processes
  • The parking structure, which was designed to support development over it, will continue to operate during construction except for required, temporary closures and incidental interruptions

What comes next

AADL will begin the next phase of planning, including:

  • Selecting development partners
  • Engaging the community on design
  • Advancing plans through the city’s processes

Construction timelines will be determined following design and approvals, with the current Downtown Library expected to be in operation until at least 2029.

A transformational opportunity

This joint city-AADL project represents a long-discussed opportunity to activate a central downtown site with a mix of civic, residential and public uses.

By combining a new library, housing and open space in one location, the city and AADL aim to create a lasting community asset that serves residents for generations to come.

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Media Contacts: 

City of Ann Arbor Contact: Steve Kilar, Communications Director, skilar@a2gov.org

AADL Contact: Richard Retyi, Communications and Marketing Manager, retyir@aadl.org

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