TBTA awarded $678K to expand microtransit into Montmorency County
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ALPENA -- Thunder Bay Transportation Authority will use a $678,366 state grant to launch a microtransit service based in Montmorency County, expanding on-demand rides for residents who currently face long waits or limited options for medical appointments, work, and shopping.
The award is part of nearly $65 million in Infrastructure Projects Authority Fund grants announced Oct. 13 by Gov. Gretchen Whitmer to support transformational public transit projects across Michigan. The funding comes from last year's nearly $2 billion Sustainable Road Funding Plan and is administered by the Michigan Department of Transportation.
TBTA Executive Director Angie Fox said the agency is "so excited for this as it will benefit so many people in Montmorency County."
TBTA's current on-demand Dial-A-Ride service in the Alpena area provides roughly 7,000 rides monthly. Expanding into Montmorency County is intended to address unmet needs at an affordable rate, Fox said.
The new service is scheduled to begin Feb. 1, 2027. Vehicles are expected to be ordered by November 2026. Because new vehicle orders have extended delivery timelines, TBTA will implement the service in phases, using existing vehicles initially while awaiting delivery of planned Americans with Disabilities Act-accessible vehicles, according to Fox.
Locally basing vehicles and drivers in Montmorency County will allow TBTA to respond more efficiently to transportation requests and reduce the amount of time and mileage spent traveling from another location before a passenger can be picked up, Fox said.
"Currently, providing transportation in rural areas can require significant travel time before a driver even reaches the first passenger," she said. "Establishing a local presence would help reduce these empty miles, improve scheduling efficiency, and allow more resources to be directed toward actual passenger trips."
The expanded service is expected to improve access to essential destinations, including medical appointments and healthcare services; employment opportunities and workforce participation; grocery stores, pharmacies and other shopping needs; senior services and community programs; and connections to Alpena for additional services and transportation options.
By improving local access and regional connections, TBTA hopes to reduce transportation barriers for residents who do not drive or have limited access to reliable transportation, Fox said.
Montmorency County, with a population of roughly 9,800, is one of the least populous counties in Michigan's Lower Peninsula and has a high share of residents age 65 and older. TBTA already serves Alpena, Alcona, and Montmorency counties with demand-response, non-emergency medical transportation, and specialized services.
TBTA's Mobility Manager Brandi Anderson is actively working to identify transportation gaps, engage community partners, and coordinate with local schools, organizations, and service providers to determine unmet needs and develop opportunities to expand access for Montmorency County residents, including seniors, individuals with disabilities, families, and youth, Fox said.
Long-term sustainability is essential, Fox said. Startup funding will help establish the service, but ongoing operations will require a combination of funding sources and strategic partnerships.
TBTA intends to pursue a diversified funding approach across multiple revenue streams. For operating expenses, vehicle replacement, and service expansion, the authority will seek federal and state transportation funding alongside additional grants for senior and disability mobility. Operational costs will also be supported through healthcare transportation contracts and an affordable, low-barrier passenger fare structure. Finally, TBTA will build on local partnerships with Montmorency County, senior service organizations, and healthcare providers to address shared community needs and secure financial support.
TBTA will monitor ridership, operating costs, revenue and community demand to evaluate the service's financial performance and determine opportunities for continued growth, Fox said.
The authority will establish performance measures including total passenger trips provided in Montmorency County; the number of trips to medical appointments, employment, shopping and other essential destinations; ridership among seniors and individuals with disabilities; average passenger pickup response time; vehicle utilization and reduction in non-revenue, or empty, miles; cost per passenger trip and revenue generated; and the number of partnerships or transportation agreements established.
"These measures will help TBTA determine whether the service is meeting community needs and where adjustments may be necessary," Fox said.
"Ultimately, TBTA's objective is to develop a sustainable, accessible transportation service that strengthens Montmorency County's connection to essential services and the broader Northeast Michigan region," she said.
The IPAF, established as part of Michigan's Fiscal Year 2026 budget and roads funding plan, provides dedicated, long-term capital for public transportation. The projects represent the first round of funding, not the entirety of the fund. Other awards statewide support new service, capital projects and planning studies in counties including Berrien, Calhoun, Delta, Genesee, and Washtenaw.
State Transportation Director Bradley C. Wieferich said the investments "provide much needed assistance to transit agencies working to connect riders to daily essentials, including health care services and jobs. Reliable public transportation helps communities thrive."
Jean Ruestman, MDOT Office of Public Transportation administrator, said the projects "will have a huge positive impact on the residents in these communities."
Residents seeking information about current TBTA services, including Dial-A-Ride, non-emergency medical transportation or the Rides to Wellness program, can call 989-354-2487 or visit thunderbaytransportation.com.
Josh Jambor can be reached at jjambor@thealpenanews.com.