This month’s update is an easy one to write. If you have not already heard the news, Alpena won the grant lottery. It was announced earlier this month that our grant was approved to support the redevelopment of the former Habitat for Humanity site. The amount of the grant is just short of five million dollars. Some details of the grant:

• The grant program was the MEDC RAP (Revitalization and Placemaking) Program
• The program used ARPA funds awarded to the state
• There were 182 grant requests submitted totaling $500 million
• 22 grants were approved totaling $83.8 million
• Three grants were approved north of M-55
• Traverse City $1.0 million
• Marquette $3.9 million
• Alpena $4.967 million
• There were six requests in Region 3 (10 counties), ours was the only one supported under the program

I learned of the possibility of this grant program back around year end. The local MEDC staff brought it to my attention so I could decide whether it made sense for us to pursue on behalf of regional project(s). As the program was being drawn up, I was looking for projects that might fit in both Alpena and Presque Isle Counties. I had conversations with staff from Alpena and Rogers City about projects that might make sense. There were many elements that needed to be included in the projects to make them viable contenders. When the evaluation process was complete there was only one project that could forward under this program. The project was the mixed-use development planned for the former Habitat for Humanity Restore site. Here are some of the details about that project:

• This is a two-story mixed use project:
• Lower-level retail – Five spaces
• Upper-level apartments – 15 units; one to three bedrooms
• Lower-level tenant targets include:
• Day Care
• Restaurant
• Health-related business
• While these are targeted businesses, there is no guarantee that is what will end up there. The proposed design and look of the building is amazing and would be such a great addition to our main business corridor and downtown.

The grant process will take a little time to sort through as will the planning process. The hope is they can commence next spring with a completion date sometime in 2024. Per the program requirements, the project must be complete by December 31, 2026.

Special thanks to Anne Gentry and Montiel Birmingham for their help in supporting the grant application. Teamwork makes the dream work.  

Lastly, the extraordinarily high inflation that has been so widely reported has caused the Federal Reserve Board to take dramatic action in the last three months in raising interest rates to cool the overheated economy. The goal is to slow down the economy, with the rise in interest rates, no doubt it will impact development activity. Their goal is 180 degrees apart from our goal which is to encourage and promote development. No doubt some of the projects that have been on the table and in discussion could be jeopardized by these recent actions. Time will tell. The cost of borrowing is a cost no different than the materials needed for construction. Higher interest rates equal higher development costs, which make the hurdle higher for project viability.  

More to come next month, in the meantime, be well!  

Mike

Our economic development breakfast is coming up soon:

Good Morning Alpena Breakfast – Yesterday, Today, Tomorrow

Date: Friday, November 4, 2022

Time: 7:00 a.m. breakfast, 7:30 .m. program

Location: Alpena Senior Citizens Center, 501 River St.

Details: Cost is $10 per person and registration is required in advance to info@alpenachamber.com or 989.354.4181. Sponsored by Wolverine State Credit Union.

NEMROC, Inc.

Northern Title & Escrow Agency

Northern Eye

Nowicki's Sausage Shoppe/The Old Polish Corner

Omega Electric & Sign Company Inc.

Ossineke Industries

Plowman's Collision Service

Pompeyos Mexican Grill

Presque Isle Township

R.A. Townsend Company

RE/MAX New Horizons

Red Brick Tap & Barrel

Ramada Alpena/Sneakers Bar, Grill & Arcade

Real Estate One of Alpena

ServiceMaster Home & Office

Sherwin Williams

Skiba Insurance Service

SkyWest Airlines

Specification Stone Products

Star Staffing Alpena

Straley, Lamp & Kraenzlein P.C.

Stratford Group Ltd.

Suez

Switzer Veterinary Clinic

Tarkington Family Dentistry

Team Elmer's

The Drug Store/Northern Exposure Framing & Matting

The Home Depot

Thunder Bay Accounting

Thunder Bay Electric, Inc.

Thunder Bay Eye Care

Thunder Bay Family Dentistry

Thunder Bay Fyzical Therapy & Balance Centers

Thunder Bay Tree Services, LLC

Thunder Bay Winery/Regalo Luxury Gifts

True North Radio Network

W.G. Benjey Inc./S&A Company

Weinkauf Plumbing & Heating, Inc.

Werth Development, LLC

West Design Center, LLC

White, Wojda and Curtis

Wolgast Corporation

Young Appliance, Electronics, Furniture & Mattresses

Zen 24 Hour Fitness Center