Alpena DDA expansion may hinge on support from Alpena County

ALPENA -- The Alpena County Board of Commissioners is still trying to determine whether or not to support the expansion of the Alpena Downtown Development Authority district.

At a Finance, Ways and Means Committee meeting Tuesday, the commissioners discussed the proposed project and received an update from DDA on what the path forward should be.

The city and the DDA are trying to convince the commissioners to help financially support the proposed expansion for the next 30 years, which economic development leaders say will spur growth down Chisholm Street and along 2nd Avenue on the city's north side.

The fate of the expansion may lie at the feet of the county, as the Alpena Municipal Council has indicated it prefers that the county pledges its support for the plan for the same duration as the city is committed to.

Alpena Community College has also signed on to commit a portion of its tax revenue toward expansion.

If the commissioners vote to support the project, they would commit about $375,000 over the next three decades, while the city would surrender about $1.3 million in its tax collection.

The DDA said vacant buildings in the proposed expansion areas would likely be redeveloped, which would increase their table value and be added to the county's tax roll, which would generate a long-term revenue boost.

The county would pay $2,500 for the first five years, and the amount would increase incrementally to peak at $22,500 for the final five years of the contract.

The allocation from the county would not impact local millages like youth and recreation, older persons, ambulance, and veterans.

The latest hold up for the county is that it wants to have representation on the DDA board -- something DDA President and Alpena Area Chamber of Commerce Economic Development Director Mike Mahler supported.

Commissioner Jesse Ossmer, who lives in the current DDA district and represents District No. 2, which includes the expansion areas, said he would like to see the county have an opt-out option every handful of years included in any agreement so, if things don't go as promised, the county can step away.

Alpena Mayor Pro Tem Cindy Johnson said insisting on an opt-out could be a deal breaker for the council.

"I can't speak for the entire council, but for me, it would be a non-starter," Johnson said. "This is about the development of these areas and it takes time for these things to happen, but it does happen. But, without the long-term commitment, I'm not sure it's going to pass."

There are ample development opportunities in the proposed expansion areas.

Near the intersection of Chisholm Street, there are several vacant buildings and properties which could be made available for use. A little further down, toward the George Washington Bridge, the former Big Boy Restaurant sits vacant.

Mahler said these properties, and others, have interested developers. He said the sticking point is that, because they are not in a DDA district, it makes it difficult to receive grants to help cover the cost of planning, designing, and construction of a project.

"The money would be a direct business in the expansion area that see no benefit today," Mahler said. "Many grants available today to help businesses aren't available today, unless we do this. Think about the old Big Boy. We don't know what it will be in five years from now. It still might be a restaurant, but it could also be a condo project right on the river. We don't know, but it is a nice piece of property and I know it is more likely someone will develop it if there is availability of grant funds to fix it up."

Commissioner Brenda Fournier has been against the expansion almost since the idea was pitched to the county. She said the county's long-term finances are blurry and making a lengthy commitment isn't wise in her eyes, even if the potential to increase revenue on property taxes is likely.

"I don't think it's a good idea to commit to the county for 30 years because we can't see the future," she said. "We have a lot of other commitments and to do another is not what I think we should do."

Founier remarked that because the city is in a better place financially, it can afford to support the DDA, even if the county could benefit from it financially if development and improvements become realities in the expansion area.

"I wish we had the money the city does," Fournier said.

The idea of an opt-out being added to the proposed expansion deal with the county will be discussed with the city council at an upcoming meeting, but for now, small businesses in the proposed expansion areas and potential developers will have to wait to see where they stand.