Who We Are

What is the Ann Arbor Downtown Development Authority (DDA)?

The Ann Arbor DDA is a component unit of the City of Ann Arbor government that focuses its work within a defined downtown boundary. They build infrastructure and manage programs to maintain a healthy downtown environment and support the area’s long-term success. 

What does the Ann Arbor DDA do?

The Downtown Development Authority (DDA) Act was passed by the State of Michigan in 1975 to give municipalities an economic development tool they could use to rebuild and reposition their downtowns, increase taxable values and encourage private investment. Created in 1982, the Ann Arbor DDA has done a great deal since then to improve the attractiveness, walkability, and vitality of downtown. The DDA is well-known for its large infrastructure projects including constructing parking structures, installing transformative streetscapes, and running the City of Ann Arbor’s public parking system. The DDA also works on a variety of smaller projects in support of its mission, including providing free bus passes for downtown employees, installing bike parking, and providing grants to encourage the creation of new workforce housing units. The mission of the Ann Arbor DDA is to undertake public improvements that have the greatest impact in strengthening the downtown area and attracting new private investments.

How is the Ann Arbor DDA funded?

The DDA utilizes a Tax Increment Financing (TIF) mechanism to finance many of its projects. The DDA’s TIF is derived from some of the new taxes generated by new building construction in the DDA District, which is then directed into downtown purposes with the goal of encouraging economic growth, greater tax values, and private reinvestment. The A2 DDA TIF does not include tax increases created by property value escalation or by inflation. Thus, as the Ann Arbor DDA works to generate increased economic activity in downtown, one important offshoot benefit is tax revenue growth through higher valuations of downtown real and personal property.

The original Ann Arbor DDA District encompassed 67 city blocks, or approximately 271 acres. Of this total, 80 acres are public rights-of-way, 72 acres are in public use, 42 acres contain UM properties, and approximately 1/3 of the DDA District is contained within an historic district. In 2026, an expansion area was approved by City Council with the passing of the updated Development and TIF Plan. This northern expansion area includes 19 city blocks, which makes the total DDA district cover over 80 blocks of downtown space in Ann Arbor.

The work of the DDA is done by a small staff and a Board of twelve citizens appointed by the Mayor and City Council. DDA Board members volunteer their time, talent, and expertise to the DDA for the benefit of the downtown.

Download the DDA 2026 Development and TIF Plan (PDF)

Download the DDA 2003 Renewal Plan (PDF)
Download the DDA 1982 Plan (PDF)
Original DDA Boundary Map (PDF)
DDA Parking Area Map (PDF) (Per City/DDA Parking System Agreement)

Creating a new Development Plan and Tax Increment Financing Plan

In the summer of 2023, the DDA began work on creating a new Development and TIF Plan ahead of its 2033 sunset. The Plan was unanimously approved by City Council on April 20, 2026. The updated Plan is effective starting April 30, 2026.

Explore more details about the Plan on our Engage page.