Courtesy Photo This is a rendering of a proposed project for a senior living complex called The Gardens of Alpena Senior Living Community. The proposed $48 million project would be located on a portion of the city-owned property off U.S.-23 North and feature 128 apartments, in two structures.

ALPENA — The proposed $47 million senior living facility on U.S.-23 South will not happen unless the developers receive public financial assistance.

The developers of The Gardens of Alpena Senior Living Community have requested that the Alpena Municipal Council establish a new U.S.-23 Corridor Improvement Authority, create a new district, and institute a Tax Increment Finance, or TIF, plan to help pay for the housing project.

A TIF is a tool used by local governments to fund economic development. With this type of plan, a portion of property taxes collected by local governments would given back to the developers for their investment in the project.

The council will not take action on the request until early next year after the TIF plan, development agreement, and formation of the authority and district are shored up.

To help the project move forward, the city has a purchase agreement with the developer for city-owned property on U.S.-23 South. The city would sell the land to the developer for $1, but the developers have committed to paying for the extension of the road and needed utility work that would run water and sewer lines from the city’s mains to the property.

In a presentation to the council, Mac McClelland, director of Mac Consulting Service, LLC, told the council that without the authority, district, and TIF plan, the project would not move forward. He said the property owners in the district, if created, would be the Gardens, Alpena Community College, and Alpena Public Schools.

A TIF plan would allow the developer to capture tax increases, such as the property taxes the Gardens would add to the tax roll, to help cover construction expenses. The tax capture would be limited to the Gardens of Alpena property and exclude any future development by the college or school district.

“Because of increased construction costs and interest rates, it presents a significant financial challenge and really can not proceed without some level of community financial support,” McClelland said. “In this case, it would be in the form of property tax relief. The expenses are just too high and the project just wouldn’t be able to move forward without the support we are discussing.”

The Gardens, if completed, would include 128 apartments, in two structures, as well as a host of amenities and recreational offerings. To run the facility, about 100 staff would be needed, which would also boost the area’s employment numbers.

The council could vote to establish the authority and district on Feb. 3 and approve the development agreement and TIF plan on March 3.

Steve Schulwitz can be reached at 989-358-5689 or sschulwitz@thealpenanews.com. Follow him on X @ss_alpenanews.com.