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Future of Alpena DDA projects could be decided soon

News Photo by Steve Schulwitz Bob’s Bullpen owner Bob LeFevre sets out a comic book while at the store on Friday. The comic book store and attached restaurant operate in the Alpena Downtown Development Authority district. The DDA board is trying to expand the boundaries of the district, as well as rework its tax collection plan.

ALPENA — The effort to expand the boundaries of the Alpena Downtown Development Authority and rework its tax collection plan and their futures could be decided in the coming weeks.

It is expected public hearings on both proposed projects will happen in early December.

The DDA hopes to expand the district’s boundaries down Chisholm Street to the bridge near MyMichigan Medical Center Alpena, as well as further down 2nd Avenue on Alpena’s north side. It would also include a portion of 9th Avenue near Players Pub and Grub.

Along with the expansion, the DDA is also in the process of updating its current tax increment financing plan.

A TIF is a financial tool used by local governments to fund economic development. The DDA collects a small portion of tax funding from local tax collecting units such as the City of Alpena, Alpena County, and Alpena Community College. A small portion of taxes collected for local millages also will be diverted to the DDA to help cover the costs of improvements in the district and promote economic development within the district.

The DDA also levies a 1.98 special assessment on commercial and residential properties within the district. Property owners pay just under $100 a year for the owner of a $100,000 house for the assessment.

Anne Gentry, executive director for the DDA said the DDA board will meet Tuesday to vote on a resolution requesting the Alpena Municipal Council schedule a public hearing for the amended and restated development plan and TIF plan. She said the council is slated to decide on scheduling a public hearing at its meeting on Oct. 3 and, if approved, individual hearings on the expansion and TIF plan will be held on Dec. 5.

“For ease of public notification and because the expansion and TIF plan are tied together, putting them on the same date just makes sense,” Gentry said.

Gentry said the added revenue from the expanded DDA and TIF, will help the DDA focus on improvements throughout the district. She said besides short-term goals such as beautification projects, events, and grants for businesses, the money will also help fund long-term goals.

“The new TIF plan will have more clarification on projects for the district,” Gentry said. “It will basically explain what we do with the funds we collect, so things like a parking garage, or yearly allocations like public art, will be outlined in the plan.”

Tax collecting units have until Feb. 3 to determine if they want to opt out of the TIF capture, Gentry said. She said so far, ACC is onboard with the project, as is the city. She said meetings with the commissioners for Alpena County are ongoing, but, so far, the county board hasn’t tipped its hand as to whether or not it will allow a portion of its tax revenue to be diverted to the DDA.

Gentry said should the county opt out, it could force the TIF plan to be amended again and possibly nudge the city and college to reconsider their financial support.

“The city has the largest financial lift, so if the county opts out, it might make them reconsider if they want to support it because you want to have buy-in from all the jurisdictions,” she said. “We hope we don’t have to go down that path.”

If things go as planned, the municipal council could adopt an ordinance for the expanded district in late February.

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