Mike Mahler

ALPENA — Target Alpena Economic Development Director Mike Mahler issued his final development update on Wednesday before he hands the regions over to freshly hired Lenny Avery.

In his report, Mahler provided updates on the former DPI plant property and the Gardens of Alpena project on the city property on U.S. 23 South. He also voiced his support for his replacement Lenny Avery and shared what the job means to him.

DPI

Mahler said he recently toured the site with city officials and was amazed at how much has been taken down already.

He added there are separate piles of steel and concrete scattered on the property and that he didn’t fully appreciate how much material there was to remove until he saw it in person.

“It is hard for me to gauge how much has been taken down and how much is still standing but I can say it is a real undertaking,” Mahler said in his report. “To complete the job, the materials need to be sized in a manner that will allow it to be loaded and hauled away. I know several options are being evaluated including taking by boat versus truck. Either way, it will take many trips by each to remove such a large facility.”

Mahler added that there are various developers interested in the site for projects that they specialize in such as housing, retail, or lodging.

The property is owned by Melching, who already has the land listed for sale and pitches it as a perfect location for a large hotel or resort.

“It remains to be seen what will come from this interest but there are many of us working with the city proactively to develop cost profiles for the elements needed to support large scale development,” Mahler said. “The options are endless for this location and could truly impact the community for years to come. A complete development and buildout will take decades. Of course, it always starts with the first shovel in the ground which has already taken place.”

City U.S 23 South property

In October, the Alpena Municipal Council approved a development agreement for the Gardens of Alpena project. The developer already took care of the tree clearing, but before the project can move forward, the developer and city want to make sure the equity and bank loans are in place, Mahler said.

The end financing is already arranged, but the construction loan is the riskiest piece of any deal, so this has been the challenge for them.

“The lenders they are working with are all large regional or national banks that tend to focus on urban markets and more densely populated regions,” Mahler said. ” Pitching them on why it is a good idea to loan $35 million into a community of 10,000 is a bit of a lift.”

The market study more than supports the need and the rents they anticipate already are being collected in the region with waiting lists, so eventually a lender will approve this deal.

“I know this group is committed to this project as I speak with them bi-weekly,” he said. “The developer and his team are up here often meeting with the contractors and the city’s staff.”

At the same time, there is a housing developer doing an analysis for housing on the remainder of the property the city owns north of town, Mahler said. The developer is collaborating with a seasoned team of residential builders, and they are exploring all options to determine if there is a viable path forward. He said the developer has met with the leaders in Alpena to talk about the project and are determining a total cost profile.

Most recently they came up and met with the college and hospital leadership to talk about their needs and how this project might assist them. Both groups were supportive of additional housing to help each organization more effectively recruit to the community.

The approach for this proposed project by the developer has been textbook. If they get to an announcement that they intend to acquire and move this development forward, rest assured it will be based upon a solid understanding of all matters relevant to success.

Mahler added that demolition on the former Big Boy on Chisholm Street has begun, which paves the way for future development. Property owner Eric Peterson, who utilized funding from the Alpena County Land Bank to help with demolition costs, told The News after he acquired the property that he had several ideas, including commercial business space and housing units in a new building, which would sit on the shore of the Thunder Bay River. Mahler said he is yet to learn what the property owner has in mind now.

“I do not know the specifics as many things have been discussed with the owners of the site but at least now the process of development can soon begin,” Mahler said in his report.

Final Thoughts

Mahler said there were several viable candidates to replace him, but Avery has earned the chance to help lead the chamber and Target Alpena forward in the years to come.

“The nominating committee of the board elected to give Lenny the opportunity to write the next chapter in Target’s history. His hard work, passion, intelligence, and ability to open doors all over the state made him the right choice for the job,” Mahler said. ” Lenny is about to begin his fourth year with Target and has a strong grasp on the needs of the community and the region.”

Mahler also highlighted how Target has changed and grown under his leadership and how he expects Avery to continue to push Target forward.

“Target has changed considerably. From 1989 until 2022, it was a one-person show,” he said. “Today we have seven staff plus a contract employee from the Small Business Development Center (SBDC) assigned to work with us exclusively. We have so many more resources we can leverage to support Alpena and Presque Isle and solve many of the issues that we need to solve to move our communities forward. Lenny has been a big part of this build up and will do an excellent job once I step away at year end.”

Mahler also wanted to give thanks to everyone who worked with him and helped to help Alpena grow. Mahler was critical in helping to bring Aldi to Alpena and the new Hamilton Inn and Suits, which is across the street from the grocery store on M-32. He also helped lure Starbucks to Alpena, as well as the instacare next door to it. He said watching the interest in Alpena increase and projects become realities, was rewarding.

“I want to thank all of you for your support for Target and our mission. When I took on this role six years ago, I was so excited to keep the momentum building,” he said. ” I could not have scripted a finer way to end my working career than taking this position to help a community that has been so good to me. When I moved here 30 years ago, I did not know a single person but never felt like an outsider. I have had the privilege of getting to know so many of you through various professional or social situations. From early on, I always felt welcomed and appreciated, which meant the world to me and our family. Using the balance of my working years to help the community was the best way I could think of to pay it forward.”