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ALPENA -- A nearly $5 million grant from the Michigan Economic Development Corp. for a project in Alpena that would have added housing and new businesses has been reclaimed by the state.
The project slated for the former Habitat for Humanity site on Chisholm Street would have added two- and three-bedroom apartments on the upper floor of the new facility and commercial space on the street level.
It was announced last year that the project had been canceled due to rising interest rates, as well as higher material and labor costs.
Local development officials hoped they could convince the MEDC to allow Target Alpena, the primary development organization in Northeast Michigan, to utilize the money for another project in Alpena, but that is not in the cards now.
Mike Mahler, the economic development director for the Alpena Area Chamber of Commerce, said he tried to convince the MEDC to allow the money to be used for a potential development project at the site of the former Alpena Power Company office in downtown Alpena. He said the state was reluctant to do so and now, it appears, the money will not be used in Alpena.
There is currently a proposed project for the property on the Thunder Bay River where the old electric company stood that would also add housing and business space, but the project is still in its infancy.
"The ship has sailed as far as us being able to use the money in Alpena," Mahler said.
Mahler said he continues to communicate with the MEDC and is hoping at least a portion of the $5 million can be used for other projects in the area, just not in Alpena. It could be a tough sell, as the state has indicated it would allocate the grant funding for a project in Flint.
"We are trying to get at least a portion of the funds for a pair of projects in Presque Isle County, but it really won't benefit anything we have going on now in Alpena," Mahler said. "The state needs to find a home for this money and I encouraged them to allow us to use some of it for two ongoing projects near Rogers City."
The projects Mahler spoke of pertain to a trailhead project near Onaway and a new boutique hotel near the shore of Lake Huron in downtown Rogers City.
The developers of the mixed-use facility on Chisholm Street, Chris Lawrence, Bruce Dietz, and Tim Fitzpatrick, had complete design plans for the project and at least one large tenant to lease to, before the financial scope of the project changed.
The Program of All-Inclusive Care for the Elderly, also known as PACE, was expected to lease a portion of the lower level of the building to provide elder care to seniors in Alpena but eventually decided to move its operations to a revamped vacant business where the former Ripley Street Station grocery stood more than a decade ago.
It is unknown at this time what the future plans for the old Habitat site are.