News Photo by Steve Schulwitz Spenser Fisher, a salesman at McInerney Chrysler Dodge Jeep Ram, adjusts a seat in a car at the dealership on Tuesday. The business will be included in the Alpena Downtown Development District if it extends its boundaries. It might also mean a tax increase for property owners in the expanded district.

ALPENA — People who own property in the proposed expanded boundaries of the Alpena Downtown Development Authority district will soon learn how much more they might pay in taxes to help fund the DDA and its initiatives.

The proposed expansion would encompass Chisholm Street to the bridge near MyMichigan Medical Center Alpena, River Street from the Holiday Inn Express to 9th Avenue and move further down 2nd Avenue to Clark Street. It would also include a portion of 9th Avenue near Players Pub and Grub.

The DDA is funded with Tax Increment Financing, which captures the year-to-year growth in property values on an annual basis and reinvests those dollars in public facilities as defined by the statute within the TIF district.

The DDA also receives about a 1.98 mill from a special assessment on properties within its district.

The TIF also captures tax revenue from Alpena County and the City of Alpena, as well as Alpena Community College. A portion of the tax money collected from local millages also goes to the DDA.

Each entity has the option to opt out, which could force the DDA to go back to the drawing board or scrap the plan completely, DDA Executive Director Anne Gentry said.

“The county, for instance, could say it doesn’t want to contribute and that would make things more difficult,” Gentry said. “If one of them were to opt out, then we would have to reevaluate if it is worth expanding because our budget isn’t going to increase and we’re already limited in what we have and what we do.”

The DDA board voted Monday to send information to property owners explaining the DDA’s goals are for the new areas, how the money will be used, and how much they could have to pay in increased taxes.

“The property owners in these new areas will be notified and sent information about the DDA, and what the benefit would be for them to be in our district, as well as how much their taxes will go up,” Gentry said. “Then we will reach out to our local taxing jurisdiction because they will be affected.”

Gentry said the expansion of the DDA, and the additional revenue from the TIF, will help to revitalize the areas. She said business owners and residents could expect beautification projects, such as new lighting, hanging flowers, bike racks, and other amenities the current district enjoys.

Businesses in the new sections of the DDA would also be privy to DDA programs, such as the facade grant program that helps make improvements to storefronts and hosting events that could lure more traffic to that area of the city.

Board member Matt Wojda said educating the property owners and making them aware of the details of the expansion to the expanded TIF is the proper thing to do so they aren’t caught off guard if the plan becomes a reality. He said reaching out to property owners in the proposed expansion area now allows for the DDA to answer questions and address concerns.

“One of the reasons we want this feedback is because those properties are going to be affected. We think it makes sense to include them in the DDA, but it only makes sense if we get community buy-in,” Wojda said. “If there are people who don’t want to be involved, we want to hear from them too, as well as those who support it.”

John Fisher, sales manager at McInerney Chrysler Dodge Jeep Ram, said owner Mike McInerney is in support of the DDA expansion, which would include the car dealership.

Fisher said he believes the funding and support the DDA could provide would breathe a breath of fresh air into a section of town that has been somewhat ignored. More investment near the dealership, Fisher said, could also lead to more development in an area in need of it.

“Nobody likes to see their taxes go up, but there are a lot of run-down buildings around here and if we can rectify that, it would make this area more appealing for not only the public, but future businesses,” Fisher said.

Ben Young’s family owns Players Pub and Grub on 9th Street. He has been supportive of the DDA expanding since consideration for doing so began. He said having the same opportunities as the businesses in the heart of downtown will help those that fell just outside the current boundaries.

“The upside potential for the businesses is huge,” Young said. “We can see what the DDA has been able to do in the past and we think the same can happen over by us. I think it can make us all look good and more attractive.”

Gentry said after corresponding with the property owners, the current TIF plan needs to be updated to include the updated boundaries. She said that could begin this summer. The Alpena Municipal Council also needs to sign off on the plan and expansion.