A plan for 342 new apartments on Ann Arbor's south side stalled Monday night when City Council turned down the rezoning it needed.
On Oct. 19, council denied the conditional rezoning for the Woodbury Gardens apartment complex at its second reading, according to the City of Ann Arbor's project page. MLive reported that the proposal was rejected after council members said transit-corridor zoning was a poor fit for an established residential area. MLive's headline quoted the proposal being called "a zoning Frankenstein."
What was proposed
The request would have rezoned the existing 41.292-acre Woodbury Gardens development, which includes Astor Drive, Wisteria Drive and Woodbury Drive, according to the city. The land is now zoned R3 and R4 multiple-family and PL public land. The owner asked for TC1, the city's transit corridor district, with conditions capping building height.
A related site plan at 1310 Wisteria Drive would have partly redeveloped one parcel with three seven-story buildings containing 342 apartments and a five-level parking garage, the city's project page says. MLive reported the plan would have demolished 33 existing apartments.
City records show the rezoning needed eight votes to pass.
A long road through city hall
The proposal had a rocky path, according to the city's timeline:
- June 2025: Site plan received.
- Jan. 21, 2026: The Planning Commission denied the site plan and rezoning.
- July 7, 2026: The proposal returned, and the Planning Commission recommended approval of TC1 with conditions. City records show that vote was 7-1.
- Sept. 22, 2026: City Council approved the rezoning on first reading. MLive reported that vote was 10-1.
- Oct. 19, 2026: Council denied the rezoning on second reading.
The swing between first and second reading is unusual. Developers often treat a strong first-reading vote as a sign the project is on track.
Why TC1 was the sticking point
TC1 is meant for sites along major transit corridors, where taller buildings and more density are expected. The Woodbury Gardens site is an existing apartment complex surrounded by residential streets. MLive reported that council members said TC1 was a poor fit there.
Ann Arbor has been pushing for more housing. At the same Oct. 19 meeting, council asked the Planning Commission to draft zoning changes allowing more housing density in areas south and east of downtown and the University of Michigan's Central Campus, in line with the city's new Comprehensive Land Use Plan, according to a city summary of the meeting. But this vote shows that support for density has limits when the zoning tool doesn't match the neighborhood.
What's next
The city did not report a next step for the project. The owner could return with a different zoning request or a revised plan, but nothing has been announced.
Why it matters for contractors
Three seven-story buildings and a five-level parking garage would have been a big job for Washtenaw County concrete, steel, framing and MEP contractors. For now, that work is off the table.
The bigger lesson is about risk. This project lost at the Planning Commission, came back and won there, then cleared council on first reading 10-1, and still failed. For contractors pricing pre-construction work or holding crews for a project like this, a first-reading vote is not a green light. Until final approval and permits are in hand, the job isn't real.
It's also a reminder that how a project is zoned matters as much as what's being built. Ann Arbor's council has supported more housing. It still balked at using a transit-corridor district in an established residential area. Builders working with developers on rezonings should push for a zoning approach that fits the neighborhood, not just the one that allows the most units.
Watch for the zoning amendments council asked for near downtown and Central Campus. Those could open up new areas for denser housing.