News Photo by Darby Hinkley Tim Nijenhuis, of Hamilton, Ontario, on Tuesday takes some measurements of the mural he’s been working on behind Hopside Brewery in downtown Alpena. The mural is one of this year’s additions to the Alpena Downtown Development Authority’s Fresh Waves Mural Project. It features a depiction of Jesse Besser surrounded by cinder blocks, paying homage to Besser’s contributions to the concrete industry.

ALPENA — Alpena County commissioners on Tuesday considered using some of the money the county received from the American Rescue Plan Act to help fund an expansion of the Alpena Downtown Development Authority district as more business owners came forward in support of the proposal.

The county received about $5.5 million from the federal government’s stimulus plan meant to offset losses caused by the coronavirus pandemic. The county has about $1.6 million left.

The agreement for DDA services in the expansion area would cost the county about $375,000 over 30 years. If the federal money can be used for the DDA expansion, the county could pay for the entire amount up front.

County Administrator Mary Catherine Hannah said Tuesday she would have to learn more about whether the ARPA money can be used for an agreement with the DDA.

The proposed expansion would extend the DDA boundaries out of the city core down Chisholm Street to the George Washington Bridge and farther down 2nd Avenue. Both of those areas have vacant properties ripe for development and buildings that need investment to spruce them up. DDA officials said including those properties in the DDA district significantly improves property owners’ chances for grants.

After a four-to-four vote on a motion to enter into a 30-year service contract with the DDA failed because there was no majority, discussion began to center around whether using ARPA money was prudent. The idea seemed to intrigue a majority of the board.

A vote to table the issue until Hannah can provide clarity on the use of the APRA funds passed seven to one.

Over the last year, the county and DDA have gone back and forth with proposals to help financially support the DDA expansion.

At the last Board of Commissioners meeting, some commissioners wanted periodic opt-out options, and the DDA responded with two proposals, including a 30-year deal with a review after the 10th and 20th years. Under that plan, if the county does not see at least 2% growth in taxable value, the county would pay less.

If the 2% growth mark is achieved, the county would pay $2,500 a year for the first five years and the amount would increase incrementally to peak at $22,500 a year for the final five years of the contract.

Commissioners John Kozlowski, Brenda Fournier, Robin LaLonde, and Jesse Osmer voted against that plan, while Commissioners Burt Francisco, Travis Konarzewski, Bill Peterson, and William LaHaie voted for the agreement.

Mike Mahler, president of the DDA board and economic development director for the Alpena Area Chamber of Commerce, told commissioners the expansion would spur growth while helping to increase the county’s tax revenue. He said that, if the expansion does not move forward, future development opportunities in those areas of the city will be few.

“Beautifying and occupying the buildings that are underused should be a priority,” Mahler said. “There are many properties that would benefit from this expansion, but, absent of it, it is highly unlikely. Nothing is going to happen down there. The cost of construction is high, so grants really do matter, and growing the tax base should be part of the long-term plan for the county.”

Six owners of businesses in the proposed expansion area spoke on Tuesday in support of the plan.

Melissa Tolan-Halleck, owner of Clem’s Bait and Tackle, said her business would be included in the expansion area and her business and customers would benefit from it. She said she has witnessed how the current DDA district has thrived and wants to see the same thing happen near her.

“The DDA would be a great asset for us, and there would be a lot of funds we could match if we are a part of the DDA,” she said. “Money that would not just benefit our business, but other businesses, too. We have lots of ideas for our little spot on the river, and the DDA could help bring that to fruition.”

Brian Peterson owns the Old Polish Corner and Nowicki’s Sausage Shoppe on 2nd Avenue. He said there are a few other businesses near him, but opportunities for more. He said the DDA and the programs it offers can help reinvigorate Alpena’s north side.

“There are several commercial buildings on the 2nd Avenue corridor that I am actively renovating, and it would be nice to be able to access DDA funds and have businesses feather in around me,” Peterson said. “The downtown has come so far in the last 10 years and to be able to extend that farther would continue to make Alpena an attractive place for visitors and residents.”

Alpena has committed $1.3 million of its tax collection to the expansion project and Alpena Community College has also signed on to commit a portion of its tax revenue toward expansion.

If the county fails to lend some financial support, the Alpena Municipal Council — which has final say on the proposed expansion — could vote to not move forward.