Lenny Avery

ALPENA – Lenny Avery, Target Alpena executive director, presented Target Alpena’s semi-annual report to the Alpena Municipal Council on Monday, highlighting topics such as Quality Opportunity Zones (QOZs) and housing.

Avery began his presentation by discussing goals for Target Alpena in 2026.

“In 2026, we are going to be focused on strengthening the system that supports business growth, long-term advancement, and also provides access to capital,” Avery said.

Avery discussed QOZs and their potential role in driving economic development in the area.

According to the IRS, QOZs are federally designated, economically distressed census tracts designed to spur development by offering significant tax benefits for investments.

The program was officially enacted as part of the 2017 Tax Cuts and Jobs Act, signed by President Donald Trump.

“These are capital gain investments, let’s say you’re a business that owns a business downstate, and you’re being taxed on that business … you can offset that tax by investing in a rural community,” Avery explained.

Avery is hopeful the current zone can be expanded to provide additional opportunities for economic growth.

“The zone is currently from the Second Avenue bridge to Nowicki’s Sausage,” Avery said. “The expansion zone that is being proposed by the Trump Administration will take you all the way down to where the mall is, and out to Hillman.”

Avery said he will be traveling to Lansing on Thursday to meet with Governor Gretchen Whitmer to discuss Alpena’s QOZs.

“I am going to meet with the Governor and her team to discuss the importance of Quality Opportunity Zones and why she should approve this map,” Avery said.

Avery next provided an update on the Downtown Development Authority (DDA) and its recent successes, noting a recent facade improvement grant secured by Anne Gentry, DDA executive director.

“Our DDA is rocking and rolling; they received over $831,000 for facade improvements within the DDA,” Avery said.

Avery explained that the grant was awarded by the Michigan Economic Development Corporation (MEDC) and that the money will need to be fully spent by September 2027.

During his presentation, Avery noted housing as a continuing challenge for Alpena.

“That is the one thing that most businesses communicate to us; we can’t find qualified workers, because they are not here, due to a lack of housing,” Avery said.

Avery mentioned a recent housing needs assessment that included a housing task force in Alpena.

“We saw that just in Alpena alone we need over 35 units of housing, which includes single-family and multi-family,” Avery added. “That is a lot.”

Avery stated that approximately 6,000 people commute in and out of Alpena on a daily basis.

To help boost housing development in the Alpena area, Target Alpena created a development company under the umbrella of its organization.

“We created a new 501(c)(3) called Lake Huron Regional Development Corporation,” Avery said. “That company started in August of last year, and I am pleased to report that as of January of this year, we will receive over $420,000 for a one-million-dollar ad development in a neighboring community.”

Avery concluded his presentation with an update regarding the demolition of the former Decorative Panels International site, which he said should be completed in a year and a half.

“The clean-up has begun with asbestos abatement and will soon turn to demolition,” Avery said. “The owner is indicating it will take 18 months for the entire site to be shovel-ready.”

Josh Jambor can be reached at jjambor@thealpenanews.com.