News Photo by Steve Schulwitz The new Parc Cannabis store in Alpena is seen recently. Construction on the store is nearly complete and the new dispensary could be open soon. If the current Alpena Downtown Development Authority district is expanded, the new shop and other businesses near it would be able to benefit from DDA programs.

ALPENA — The Alpena County Board of Commissioners is considering a pair of service contracts that could add a slight boost into promoting economic development.

The board is contemplating a $15,000 contract with economic development firm Target Alpena and a $1,500 contract with the Alpena Downtown Development Authority.

The proposed deals and amounts still need to be approved by the DDA.

Target would continue to work closely with the county administrator, the board’s Economic Development Ad Hoc Committee, and the full board on existing and future projects.

Some of those projects could include the development of properties at the Alpena County Regional Airport, developing housing to meet current and future housing needs, the redevelopment or expansion of the APlex to include a pool, and securing additional tenants for the District Health Department No.4 building.

The DDA would use the money for improvements to structures via facade grants, beautification, and for business recruitment and incentives.

Earlier this year, county commissioners opted not to forward a small portion of county tax revenue to the DDA to support an expansion of the DDA’s boundaries.

The allocation from the county to the DDA would have been about $30,000 over 30 years.

A bulk of the DDA’s revenue comes through tax increment financing, through which a portion of local governments’ taxes on properties within the DDA district are diverted to the DDA.

Tax increment financing brings in about $150,000 for the DDA, but it took 40 years to get to that amount, as the tax only increases when property values in the district increase.

Originally, the county committee proposed $5,000 for the DDA contract, but some of the board believed that was too much and settled on the lower amount.

County Administrator Mary Catherine Hannah explained to the board during its meeting on Tuesday the importance of having Target and the DDA spearheading development.

“Part of the motivation behind the service agreements is to recognize that economic development is an important task for the county, and bringing additional development and investment helps with our tax base and tax revenue,” she said. “Target and the DDA have that as their speciality, and it would behoove us to contract with them for service.”

Anne Gentry, the executive director of the DDA, said she is pleased that the county is considering making an investment for improvements and development in the district. She said $1,500 is a start, but more money in future years will likely be needed to get the type of results everyone anticipates.

“From my perspective, $1,500 is not terrible, because that would be a bit better than the first year of the tax capture,” Gentry said. “But, over 30 years, by the end, that contribution is much higher. The more investment we get up front, the more results are going to happen in the new district.”

The DDA expansion plan would extend the DDA farther down Chisholm Street to the bridge near MyMichigan Medical Center Alpena and farther down 2nd Avenue. Both of those areas have vacant buildings that need tenets and existing businesses that could benefit from DDA grants to make improvements.

Alpena and Alpena Community College are on board with expanding the DDA boundaries, but the county is leery, because some of the money from county property taxes would shift to the DDA. The board formed the ad hoc committee to help find a way to avoid giving up the property tax revenue but still help Target and the DDA with their missions.

The newly updated contract details and amounts will now be considered by the DDA, which could seek more money or reduce the services they would provide through the contract.

“If you look at what we do, one facade grant is $10,000 that we could offer businesses in the expansion area,” Gentry said. “Right now, there are a lot of businesses who are interested in applying, so we know we’re going to have limited funds to work with.”

The Alpena Municipal Council has the final say on whether the expansion plan moves forward or not.