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Alpena -- Target Alpena Corp. is seeking a $2.6 million state grant that, if approved, would pay a bulk of the cost to tear down the former Fletcher plant on Alpena's north side.
The property's owner, Jeff Konczak, is paying an additional $500,000 toward the demolition.
Konczak said he has a good grasp on what he intends to develop on the land once the old mill is removed. He said he wants to incorporate certain components of the old plant, but he wants to hold off any announcement about the project for now.
Mike Mahler, Alpena Area Chamber of Commerce economic development director, said Target would handle the grant process and lead the demolition project, which would also go through the Alpena County land bank.
"The site will not be improved until the plant comes down, but this is a critical first step in creating investment and increasing the local tax base.
Mahler said he should know if the grant is approved later this winter or early spring. If the money is approved, he said the plant would be torn down this year.
On Tuesday, Mahler updated the Alpena Municipal Council on current and upcoming development projects.
He said construction of the new Aldi and Hamilton Inn and Suites on M-32 is ongoing and Target is still working with a developer who wants to develop the old Alpena Power Company property on the shore of the Thunder Bay River in downtown Alpena. The developer wants to have commercial businesses on the street level and apartment units on the upper levels.
Mahler said there is still a lot of work to do to make the project a reality but things are progressing.
Mahler said the former property of Habitat for Humanity on Chisholm Street is for sale. Local developer Bruce Dietz intended to construct a mixed-use development with commercial businesses and apartments. Late last year, it was announced that inflation and rising material costs forced Dietz and his partners to cancel it.
The anchor tenant, which was supposed to be a facility for a Program for All Inclusive Care for the Elderly, needed more space, however, and intended to move into the former Ripley Street Station store.
Mahler said PACE is also now considering the former Neiman's Family Market as a new location.
"Either shopping center would benefit from the project," Mahler said.