How the Water Street Redevelopment Could Address Ann Arbor’s Staffing Crisis

The housing crisis in Washtenaw County has created significant challenges for businesses in Ann Arbor. With rising housing costs, many employees are forced to live farther away, leading to longer commutes and difficulties retaining staff. However, a new development in Ypsilanti—the Water Street Redevelopment Project—offers a potential solution. This transformative initiative promises to not only address housing affordability but also bolster staffing and business stability across the region.

The Water Street Redevelopment: A Collaborative Effort

The Water Street Redevelopment Area spans 38 acres along the Huron River, adjacent to downtown Ypsilanti. This long-awaited project is being propelled forward by funding from various sources:

A $4.38 million appropriation from Senator Jeff Irwin's office, extended through December 2025 and administered by the Michigan Economic Development Corporation (MEDC).

A $3 million grant secured through Congresswoman Debbie Dingell's office in partnership with HUD's Economic Development Initiative.

Additional applications, such as a $4 million EPA Cleanup Grant, are in progress to further address site contamination.

The funds are being used for critical activities such as brush clearing, site testing, excavation of contaminated areas, and infrastructure improvements. These efforts set the stage for mixed-use development, including much-needed affordable housing and commercial spaces.

Addressing Contamination for a Sustainable Future

The Water Street site has long been hindered by contamination from its historical use as a storage yard and junkyard. This redevelopment project includes the removal of hazardous materials, making the land safe for future residents and businesses. According to Ypsilanti City Manager Andrew Hellenga, “This funding is crucial for redevelopment… removing environmental hazards and paving the way for new opportunities.”

Benefits for Ann Arbor Businesses

The redevelopment of Water Street offers a ripple effect of benefits for Ann Arbor:

1. Affordable Housing for Employees: As more affordable housing becomes available in Ypsilanti, employees working in Ann Arbor will have closer and more economical living options.

2. Improved Workforce Stability: Proximity to affordable housing reduces commute times, helping businesses attract and retain employees.

3. Economic Growth: With additional residents in the area, local businesses in both Ypsilanti and Ann Arbor are likely to see increased patronage, fostering a stronger regional economy.

4. Community Engagement: Planned community sessions will ensure the development aligns with local needs, creating a thriving and inclusive environment.

A Vision for the Future

Senator Jeff Irwin emphasized the project’s potential: “Water Street is an exciting opportunity for new housing and to activate the river... Movement on the project gives residents hope for future job growth as well as new housing and recreation opportunities in the City of Ypsilanti.”

Similarly, Mayor Nicole Brown expressed enthusiasm for returning the property to the tax rolls and making it profitable for Ypsilanti and its residents: "This is one of the city's last pieces of undeveloped property, and we are excited to leave it better than we found it.”

The Water Street Redevelopment is more than a local project—it’s a regional solution. By addressing the housing crisis in Washtenaw County, this initiative has the potential to stabilize staffing for Ann Arbor businesses, reduce commute burdens, and drive economic growth throughout the area. As development progresses, the collaboration between local governments, community leaders, and residents will ensure a sustainable and prosperous future for both Ypsilanti and Ann Arbor.

Stay updated on this transformative project by visiting the City of Ypsilanti’s website.