$5M grant to help build apartments, possible daycare in Alpena

ALPENA -- The state has awarded Target Alpena $4.97 million to help pay for a mixed-use redevelopment project in downtown Alpena that would bolster housing and commercial space in the city and may include a badly needed daycare close to downtown.

Ground could break in the late spring, with construction completed in summer 2024.

On Wednesday, the Michigan Strategic Fund approved Target's funding request to help defray the cost of the project, which may lead to as many as 15 two- and three-bedroom apartments built on the upper level of the structure and commercial business space on the ground level where the Habitat for Humanity ReStore once sat on Chisholm Street.

Alpena Area Chamber of Commerce Planning and Development Director Mike Mahler said the developer, Bruce Dietz, of Alpena, would also like to have a daycare opened in the space.

Mahler called the project important, because it could address some deficiencies in the Alpena area. He said officials welcome new housing wherever it is constructed, and the city badly needs additional commercial space, too.

Mahler said that, although having a daycare facility in the new building is not a done deal, if it becomes a reality, that also would help fill a critical need.

"This is huge, because we are developing what is essentially dead space right now," he said. "We are adding housing and commercial space, which is needed, because there really aren't any vacancies downtown. We still have businesses who want to open downtown, but we just don't have anywhere to put them."

Alpena City Manager Rachel Smolinski praised Target, Dietz, and her team for acquiring the needed money to move the project forward.

"This is a huge win for the Alpena community," Smolinski said in an email to The News. "The project will bring much needed housing units, daycare, and additional retail space to the City. I would like to thank Target Alpena for their leadership role in putting together the application as well as the developer and city staff for their support. This was a team effort and the type of collaboration that is needed to move our community forward."

Mahler said that, without the grant funding, the odds of the estimated $11 million project moving forward were close to zero. Now, Mahler said, all signs point to the project moving forward.

Besides the possible daycare, Mahler said the bottom floor would be ideal for another restaurant and retail shops. He said he wouldn't anticipate much of an issue finding tenants to sign leases to move in.

Bruce Dietz and his wife, Julie, called the project a good one for Alpena.

"It was a team effort and we all played a part in the process," Bruce Dietz said. "All of our partners had an assignment, and we ended up putting together the type of project that the state was looking for. I would like to thank Mike Mahler for leading the charge and keeping everyone on track. We're all very excited about the whole project."

Much work remains before construction will begin, Dietz said. This fall and winter, the engineering and architectural work will be done and the bid process will commence. He said that, if those tasks are complete, work on the site could begin in the late spring.

Overall, 22 grants were approved through the state's Revitalization and Placemaking Program, totaling nearly $84 million in investment.

Communities will use the funding for projects like housing developments, park improvements, and rehabilitating historic buildings.

Steve Schulwitz can be reached at 989-358-5689 at sschulwitz@thealpenanews.com. Follow him on Twitter @ss_alpenanews.com.