It is the time of year when I am asked to write a column recapping economic development activity for 2023 and peek ahead to 2024 and share my thoughts and expectations on what will happen.

Before I comment on development activity, I want to talk about the changes that occurred within economic development firm Target Alpena during the year.

Early in 2023, we doubled our staff by bringing Lenny Avery into the organization to assist the region in grant pursuit and housing development. Lenny had success doing similar work prior to joining Target.

As we close out the year, we are at it again, adding another staff person to focus on small business development and recruitment. The person leading that new focus area within Target is Joe Carr. Joe has roots in the area, being raised in Rogers City. He has been doing that same type of work for eight years in Lansing, working for an economic development organization there.

Those moves toward specialization of tasks and subject matter expertise are part of our evolution and maturity as an economic development organization. We are fortunate that those two men will be sharing their talent and expertise, thereby helping our region.

Please welcome them when you meet them.

In terms of economic development, 2023 was an interesting year.

The headwinds we faced in 2022 did not abate in 2023. The Federal Reserve Board continued to aggressively raise interest rates to slow the economy and reduce inflationary pressures. Despite those moves, inflation remains higher than we have seen in decades. Except for fuel prices, material prices, food, and most everything we touch is more expensive now than a year ago.

On the positive side, we saw some of the supply chain issues that have plagued the auto industry improve through the year. The dealer lots are starting to fill with new car inventory again.

Despite the negative macroeconomic factors, there is still reason to celebrate in terms of development activity in 2023.

As the year began, Hampton announced plans to add a new hotel on M-32. The construction has commenced, and the hotel is beginning to take shape.

Across the road from that site, Aldi acquired the land and has started the process to build a store in our community. That has been six-plus years in the making.

Early in the summer, Marshalls finally opened its new store.

In the fall, there was a groundbreaking for a fifth-generation hangar at the Alpena Combat Readiness Training Center. In addition, more than $50 million was spent on a runway rebuild, assuring many more years of airport and military base viability.

This summer, the Sanctuary Cinema opened, and we saw cruise ship passengers consistently walking around our downtown.

Late spring, a developer flew into town from Fort Lauderdale with his downstate architect and his local development partner to visit the former Alpena Power Co. site. By early summer, they entered into an option agreement to acquire the land for the development of a mixed-use project. That would add 66 units of housing on the riverfront while adding commercial space, including a restaurant and a gym, to our downtown.

While that project is not a certainty, the good news is they are serious about it.

To the north in Rogers City, Tractor Supply began construction of a new store across from Ace Hardware.

There are many more projects I did not mention here, as I am word-limited for this article. Those I did mention represent some of the larger ones, but not all.

During the year, Target Alpena was selected as the lead entity to help facilitate the creation of a regional housing plan for an 11-county area. The state has made it a priority to address the housing shortage statewide. Target was selected to represent northeast lower Michigan, which gives us a seat at the table to help lobby for the tools needed to spur housing development in our rural part of the state.

Late in the year, Target received word that our grant was approved to establish a small business development hub in Northeast Michigan. The grant is for $2.15 million and will allow us to focus on growing and better supporting small businesses.

Small businesses are the lifeblood of most communities, and, now, we will have the resources and talent to give them the attention they need and deserve.

Now for the not-so-good news.

In my 2022 column, I spoke of our success in securing a $5 million grant for the redevelopment of the former Habitat for Humanity site. The developer worked to secure an anchor tenant in 2023 before they commenced with the project. The negative economic forces I mentioned above elevated the cost to the point that the project was no longer viable.

That was among the largest disappointments of the year. Now, the project has been set aside and the grant has been withdrawn.

Given the above as a backdrop, I think we will continue to see economic development progress in the new year.

Momentum creates momentum, and we have many more investor eyes upon our community these days. The county, with Target’s help, will actively market lots on M-32 at the airport entrance. Additionally, we have a newly expanded Alpena Downtown Development Authority boundary, which will open more opportunities for improvement and investment on our main corridor through our city.

There are a few large projects being explored currently. Should any of those become a reality, the impact would be meaningful for the area.

Lastly, we now have the internal expertise and talent to focus on crucial elements of our economy as the year begins.

As is often the case, my optimism is well placed as I look toward 2024 and beyond.

Be well!

Mike Mahler is economic development director for the Alpena Area Chamber of Commerce and Target Alpena Economic Development Corp.