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Melching provides update on former DPI plant

Courtesy Photo Debris from the former Decorative Panels International plant(DPI) lies on the ground, as demolition work is now underway. The old saw mill was closed in 2024 and sold earlier this year.

ALPENA — Melching Inc, the new owner of the old DPI site, said there is still a lot of demolition and clean-up work needed at the old plant, but interest in the property by developers is already beginning to rise.

Although it could be a year or more before the property is ready for development, it is already being marketed on the commercial real estate website loopnet and the ad states the land could one day be perfect for a resort, hotel, or a mix of commercial and housing.

The old plant closed in 2024 and about 200 employees lost their jobs.

“I guess that’s the million dollar question,” owner Doug Melching said. “It is under demolition right now. The main manufacturing plant is about halfway demolished.”

There are significant environmental issues at the property left behind from its last owner, Decorative Panels International. Melching explained what it’s been like dealing with the pollution and how it is working with the Department of Environment, Great Lakes, and Energy (EGLE).

“We are doing all the clean-up in cooperation with Michigan’s EGLE,” he said. “There is a lot of cleanup involved. The first three months we devoted entirely to asbestos removal in the main plant. The power plant also has a considerable amount of asbestos and we just got started on that. Once that’s completed we can finish the demolition.”

When asked specifically when the property will be at the stage where workers can be employed and construction can begin, Melching stated the following.

“I believe it will be shovel ready in about a year. But, there is so much to do,” Melching explained. “We are still working on getting a developer to work with. What we are trying to do is prepare the way for a number of groups that are interested.”

Melching went on to explain his plans to find the right developer, or the right group of developers.

“We are meeting in January with a handful of potential investors. I can’t give you the names of some of them because we are still vetting those candidates,” Melching said. ” I will say we are working closely with Clark Construction out of Lansing. They are a development construction manager.”

The property is listed as a 90 acre lot. Melching discussed possible plans for parcels of the property in the near future. A price tag for the property was not available on the website.

“Construction is at least a year out, but we might be able to do some site work next summer. Possibly some infrastructure development. There is a lot there that has to be removed,” he added.

The amount of clean-up work that must be done yet to prepare the site for development is considerable. Particularly the three lagoons on the property.

“We have to properly close the lagoons. That is going to take up to a year. But because the site is so large we should be able to do some type of construction work,” Melching said.

What type of development it will be, is still undecided. However, according to the commercial Loopnet, it is planned for “commercial, residential, and resort uses.”

“It’s a really beautiful site, it’s right on the water. Once that industrial blight is removed there is a great view of the lake,” Melching said. “We are hoping for mainly mixed use of the property, with commercial, residential and hospitality. That is the plan moving forward.”

Melching still feels strongly about the project.

“So far so good. I am still quite positive this is a really good project for Alpena, the community, and this portion of Northern Michigan,” he said. “Alpena has a lot of opportunities here. Once we get everything cleaned up it will be a beautiful site.”

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