The University of Michigan is by far the largest property owner in the City of Ann Arbor.  With its tax-exempt status, and the recent purchase of the 177 acre Pfizer complex, some are beginning to wonder whether the U contributes enough to the city’s bottom line.

Without the Pfizer complex (a $108 million deal planned to close Summer 2009), the University owns approximately 15% of the property in Ann Arbor.  Although the university is mindful of this affect on city tax coffers, the fact remains there is an affect.  They have made an effort to sell unneeded properties in the last few years to put them back on the tax rolls, these dealings amounted to about a $2 million increase in taxes for local government since 1990.

U of M properties are used for varying reasons and are located all over the city.  Although these properties are tax-exempt, U of M does significantly contribute to the city in other ways:

• They cover 50% of the cost to maintain roads in and around campus
• They spend a significant amount on rent and utilities for the North Campus fire station
• They pay the Ann Arbor Transportation Authority to provide free service for U of M passholders
• They offset education costs for local children

They also contribute to the vitality and intellectual prowess of the city which is a major draw for the area.  At the same time the Pfizer complex tax loss amounts to about $5.4 million a year.

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