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Alpena County Commissioners accept bid for old Alpena jail property

Courtesy Image This rendering shows what a proposed food and beverage park could look like if built at the sight of the former jail in Alpena. On Tuesday, the Alpena County Board of Commissioners accepted a $229,029 bid from Alpena Marc LLC for the property which intends to build drive-thru Quiznos, Biggby Coffee, and Taco Del Mar restaurants.

ALPENA — Alpena County is on the verge of selling the old jail building on Johnson Street in Alpena.

At Tuesday’s Board of Commissioners meeting, the commissioners voted 7-0 to accept a $229,029 bid from Alpena Marc LLC, which intends to construct small drive-thru locations of Quiznos, Biggby Coffee, and Taco Del Mar restaurants.

Alpena Marc outbid MyMichigan Health, which bid $210,000 and intended to relocate and expand its orthopedic and rehabilitation services into a new building on the property.

Alpena Marc owner Jeff Konczak said work will begin at the property once the sale is finalized, and the new businesses opened around Memorial Day next year.

Konczak expects to invest $1.75 million, and estimates 40 to 55 new jobs would be created.

“Alpena Marc LLC is excited to bring new food and beverage offerings to the northern portion of the City of Alpena,” Konczak said in a prepared statement. “The food and beverage campus will provide fantastic offerings to the hospital employees, college students, Northern Lights Arena visitors, citizens, and US-23 travelers. Environmental and demolition activities will begin immediately.”

Konczak said the food and beverage campus will also feature a covered outdoor dining area.

Konczak now has five business days to place a non-refundable 10% deposit on his winning bid and closing of the sale must be completed within 90 days unless additional time is agreed to by both parties.

The primary reason for the commissioners’ 7-0 vote — aside from Konczak’s bid — is because he would have to pay taxes on the property.

Because MyMichigan Health is a non-profit organization, it would have been exempt from paying taxes, which means the city, Alpena County, and Alpena Community College would have missed out on tax revenue for many years.

“The county would really benefit from the tax revenue and so would the college and everyone else involved,” Commissioner Dave Karschnick said.

Commissioners Brenda Founier and John Kozlowski agreed and each stated they supported Alpena Marc’s project because of the revenue it would generate that the county could use to help pay for other needs.

There is some known soil contamination in the ground at the old jail, but Commissioner Don Gilmet said the small and lightweight BCubed structures to be used for the drive-thru locations would work well despite the environmental issues.

He said the construction process would likely not have to involve digging up the contaminants.

“This is a good use of the property because all you really have to do is pave over the top of it and not really disturb what’s underneath it,” he said.

Chairman Bob Adrian said it was a tough decision for him because expanding the hospital would mean more services for residents, but he also acknowledged the additional tax revenue is needed.

The former jail became available after voters in Alpena County approved a 20-year millage to cover the payment of bonds to be used for a new jail built near Alpena County Regional Airport.

The new jail opened in 2021.

Earlier this year, Alpena County Animal Control Officer Michelle Reid proposed using the old jail as an animal shelter to replace the small one at the Alpena County Fairgrounds, but the commissioners never brought the option up for debate during the meeting.

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