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ALPENA ­– The Alpena Downtown Development Authority intends to expand its boundaries well beyond the downtown, but it is possible property owners in the new section of the district may have to pay a special assessment tax to continue to help fund the DDA and its programs.

Anne Gentry, DDA executive director, said the new boundaries could extend further down 2nd Avenue past Miller Street, and encompass more of Chisholm Street with businesses as far as 11th Avenue.

For decades, Gentry said, the city has imposed a 1.98127 mill assessment on property owners in the DDA, which equates to about $100 for a property assessed at $100,000. Those who own property in the expanded DDA boundaries will likely have to pay the assessment.

The DDA also receives funding from tax increment financing (TIF) too. The funds from it, coupled with the assessment, help pay for DDA operations, beautification projects, for grants to business owners to help improve their facilities and events.

The TIF funding for the DDA is given to it from the local units of government after they receive property owner’s taxes. The TIF is only applied to any increase on the assessed value of property within the district. It is not a tax increase set by the DDA, but set by property values in municipalities like Alpena and Alpena County, who share a portion of the taxes with the DDA.

The DDA hopes the move benefits the small businesses who, as of now, lie just on the fringe of the district, by helping them to make improvements to their structures, as well as hosting events that could increase foot traffic and sales.

Gentry said the DDA district has expanded four times over the years and it has helped make the business district become more vibrant and successful. She said she hopes the same occurs in the new areas.

“We want to see the city and neighborhoods thrive that aren’t right downtown,” she said. “Having larger boundaries allows us to service more people for things like our facade grants. Then there is the promotional side, where we would promote events.”

There is also a chance the boundaries for the social district, which allows for alcohol to be purchased and consumed in public places outdoors and in some other businesses, could be expanded to businesses not currently eligible, Gentry said.

The DDA hired consultant Beckett and Raeder to help with the logistics of the boundary expansion. Gentry said it should have completed its work and analysis in about a month and a half.

A meeting will then be held with the consultant in late February or early March to discuss the analysis, Gentry said.