State Board Approves Land Deal Despite Local Pushback
The University of Michigan Board of Regents unanimously approved a $60 million purchase of Concordia University Ann Arbor's 140-acre campus on May 21, despite opposition from the Ann Arbor City Council and state lawmakers.
The Ann Arbor City Council unanimously passed a resolution Monday evening expressing concern over the acquisition. The council cited the University's tax-exempt status as a setback for the city's economic development goals, according to The Michigan Daily.
"The University's tax-exempt status would make the purchase of Concordia's property a setback for the city's economic development goals," said Councilmember Jon Mallek, D-Ward 2.
Mallek also argued that the University has burdened the city by hiring 9,000 employees and increasing total student enrollment without expanding housing and infrastructure accordingly, The Michigan Daily reported.
What the Regents Plan to Do With the Land
University Regent Paul W. Brown (D) told the Board that Concordia University Wisconsin approached U-M with interest in selling the property to another educational institution.
"Concordia reached out to us and expressed their interest and maybe requirement to sell it to another institute of education, and that was a reality that we were happy to take advantage of," Brown said.
Brown said the University plans to make Concordia's facilities available for local use in the short term. The University intends to preserve the historic Earhart Mansion and Chapel of the Holy Trinity, along with park and river access along the Huron River, according to The Michigan Daily.
"I've already been in touch with some of the local schools and sports teams in the areas that need additional facilities, and we look forward to making it available to them, preserving the historic house and the chapel on the property and providing a park and river access along the Huron River," Brown said.
Concordia's Decline and the Sale
Concordia University Wisconsin has faced financial pressures in recent years. Federal data showed enrollment fell from nearly 6,000 students in 2016 to nearly 3,700 in 2024, according to the Milwaukee Journal Sentinel.
The school's tax forms show it ran a deficit in six of the last eight years, with deficits ranging from $2 million to $6.3 million, the Journal Sentinel reported.
Concordia plans to continue its graduate health care programs in physical therapy, occupational therapy, physician assistant studies, and nursing at a separate campus about three miles away on Plymouth Road, according to university spokesperson Scott Rudie.
"We recognize that news of this transition may be difficult for many members of the Concordia community," Rudie wrote in an email to staff. "However, this transition follows a long process of careful prayer, discernment, and consultation regarding how Concordia can best carry forward its mission in Ann Arbor in a rapidly changing higher education environment."
The tentative closing date for the sale is on or before June 30, according to the Milwaukee Journal Sentinel.
A State-Level Decision With Local Consequences
The University of Michigan Board of Regents is a state entity, with members appointed by the Governor and confirmed by the Senate. The Board's decision on the Concordia purchase represents a significant shift in land use and tax policy for Ann Arbor.
The council's resolution highlighted the lack of a public plan for the land's long-term use, The Michigan Daily reported. State lawmakers also voiced opposition to the deal, though the Board proceeded with the unanimous vote.
The purchase raises questions about how a state-controlled public university's expansion affects local municipal finances and planning authority in Ann Arbor.