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dda proposed boundary expansion

The Alpena Downtown Development Authority (DDA) is evaluating an expansion of its boundaries to continue the growth we have seen in our current DDA district. The boundary expansion would allow property owners in the new district to have access to DDA programs and initiatives, as well as access state-wide grants that are only available to properties within designated DDA districts.

The Alpena DDA is an Authority of the City of Alpena that was formed in 1980. State law enabled municipalities to establish DDA's (overseen by a Board of Directors with the ability to hire staff) in 1975 with the mission to correct and prevent deterioration within the established DDA district, encourage historic preservation, acquire and dispose of interests in real and personal property, to create and implement development plans in the district, and to promote the economic growth of the district. DDA's focus is on historic, commercial, and mixed-use areas: traditional downtowns.

Since our organization was formed in 1980, our current downtown district has seen a significant amount of investment, resulting in increased property values and rental demand for commercial and residential properties both within and surrounding our district. We have seen more foot traffic, tourism, and community pride that has benefited our businesses and residents throughout our community. We believe expanding our boundaries would be a positive step for the continued growth of Alpena as a whole.
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public hearing & next steps

The City of Alpena has organized a public hearing on the expanded DDA Boundaries and 2022 Amended & Restated Downtown Development & Tax Increment Financing Plan for Monday, December 5, 2022 at 6:00 pm. The meeting will be held at Alpena City Hall Council Chambers (208 N. First Ave). with the option to attend virtually. As part of the hearing, there will be time for the public to comment on the expansion. Members of the public can also submit written comments to City Council members. You can find their contact info here.
PUBLIC HEARING NOTICE
PROPOSED BOUNDARY MAP
2022 AMENDED & RESTATED PLAN
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red= existing DDA district
blue= proposed expansion

Timeline:
November 2022: Public hearing notice requirements occur, including notifying all affected property owners via mail of the upcoming public hearing

Monday, December 5, 2022 at 6:00 pm: Public hearing takes place at Alpena City Council Meeting

Sixty day period begins where taxing jurisdictions can opt out or propose an alternate tax capture

February 2023: Alpena City Council considers formal adoption of the updated DDA Ordinance, which will officially expand the DDA boundaries and adopt the 2022 Amended & Restated Downtown Development and TIF Plan


benefits of being in a designated dda district

for property owners

  • Increased property value, including increased demand for both commercial and residential rentals
  • Access to DDA Facade Improvement Grants & Retail Recruitment Grants
  • Access to grants through the Michigan Economic Development Corporation (MEDC) for property renovation
  • Assistance with business recruitment and retention

for business owners

  • Increased foot traffic due to beautification, walkability improvements, and "buzz"
  • Participation in cooperative marketing opportunities and promotional events
  • Networking opportunities with other businesses
  • Access to grants for business expansion
  • Beautification projects and improved streetscapes

for home owners

  • Increased property values for homes located within or nearby dda districts
  • Beautification of nearby commercial areas (lighting updates, tree planting, flowers)
  • Increased walkability
  • Sense of neighborhood pride

community benefits

The goal of our organization is to create a sense of place and community within the district. We strive to create a more vibrant, walkable downtown that encourages community investment and pride and acts as a vital hub of commerce, culture, and activity.  A healthy downtown improves the entire community's quality of life. Through our activities, we hope to inspire pride in the community and attract additional investment, jobs, businesses, and housing.
 
Many state funding programs for property redevelopment are only open to properties located within a DDA district. Grants through the Michigan Economic Development Corporation (MEDC) have been crucial for projects to come to life in our current district—the renovation of Red Brick Tap & Barrel (109-111 River St)., Alpena Furniture (325 N. Second Ave), as well as nearly 35 apartments added through the Rental Rehab Program. Additionally, DDA staff has successfully written nearly $100,000 in Match on Main grants that have allowed businesses to launch, expand, and reactivate underutilized space (Red Brick’s alleyway project, HopSide Brewery’s outdoor dining area, JJ’s expansion, and Presque Isle Farm building renovation at 205 W. Chisholm). These programs are only available to projects within an established DDA district. The MEDC estimates that every $1.00 of MEDC investment leverages an additional $3.88 in private investment and results in an increase in $5.13 in nearby commercial property value and $1.05 in nearby residential property value (citation here).

These programs have a ripple effect on the rest of our community, and as our downtown grows, we believe an expansion of the DDA district—and an expansion of properties who would have access to these tools—would benefit Alpena as a whole.

frequently asked questions

How does the DDA fund its projects and improvements?
The majority of the DDA’s funding for projects and improvements comes from Tax Increment Financing (TIF), which is a tool that allows property taxes to be reinvested into that district. Projects and improvements to be funded through this capture will be outlined in an updated Downtown Development & TIF Plan. With TIF, the DDA "captures" only on the increased property value after the district was established. This capture is redirected from other taxing jurisdictions (the City and County). As the downtown district improves, it has a ripple effect throughout the community.
 The DDA also levies a 1.98 special assessment on commercial and residential properties within the district.

I own a property within the proposed expansion area. Will my taxes be affected?
The majority of the DDA’s funding for projects and improvements comes from Tax Increment Financing (TIF). Your taxes remain the same if a TIF plan is approved for the expanded area. The DDA levies a 1.98 special assessment on commercial and residential properties within the district. If you own a property within the expanded area, you will have received a letter in the mail stating how much this would be.

I own a property within the proposed expansion area. Can I opt out?
Ultimately, the Alpena DDA Board of Directors recommends the expansion of the boundary, which then goes to Alpena City Council for formal approval. Then, the new Downtown Development & TIF Plan is drafted and must also be approved for the TIF plan to go into effect. Once the boundary & TIF plan is approved, there is no way to "opt out" if you own a property within the DDA boundaries.

What is the timeline of expansion?
All property owners who would be in the expanded boundary areas have been sent information about the expansion and a link to a survey to complete to give feedback by June 30, 2022. Alpena City Council has set a public hearing for Monday, December 5 at 6:00 pm on the expansion & Development and TIF Plan. City Council will formally take action in February 2023.

How can I give feedback on the proposed expansion?
If you own a property within the expansion, you will have received a survey to give feedback in summer 2023. Any member of the public can also submit written feedback to the DDA Board of Directors or Alpena City Council for review, or attend an upcoming meeting to share your feedback in person. Please contact the DDA Office for more information by calling 989-356-6422 or emailing anneg@alpena.mi.us

What does "acquire and dispose of interests in property" mean? Can the DDA seize my property?
No, the DDA cannot take, seize, or condemn your property. "Acquire and dispose of interests in property" simply means that the DDA can legally purchase and sell property as any other business or individual can do. For example, the DDA owns its office building, a parking lot, and a public park.

Why is the DDA doing this? Is the DDA doing this just to get more money?
The DDA has expanded its boundaries a handful of times since it was first created in 1980 (1985, 1988, 1989, and 2004). Over the last two years, the DDA has been approached by business and property owners who requested the DDA consider expanding its boundaries to open up funding and other improvements to corridors that currently lie just outside the DDA district.

With the proposed expansion, the first year's TIF Capture is estimated to be less than $5,000, and the special assessment is just around $15,000-- all of which must be invested back into the improvement of the district.  State law has very specific rules on how this money must be spent, and those projects would be outlined in the new Downtown Development & TIF Plan which outlines how the money will be invested over the next 20-40 years. Some of these improvements could be streetscaping, lighting updates, park improvements, or marketing and promotional activities surrounding the new district. DDA's are long-term investments to encourage revitalization of the community and improve the quality of life for residents who benefit from having vibrant, walkable commercial districts.

So, the boundary expansion doesn't "benefit" the DDA as an organization, but it does benefit the property owners who will have access to DDA projects, grants, and improvements and the community as a whole to have a revitalized commercial corridor.

Alpena Downtown Development Authority (DDA)

124 E. Chisholm St.
Alpena, MI  49707
(989) 356-6422
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  • Our Downtown
    • Testimonials
    • Downtown News
  • Plan Your Visit
    • Venues
    • Arts + Culture
    • Food + Drink
    • Shopping >
      • Apparel + Accessories
      • Books
      • Home + Gift
      • Fitness + Outdoor Recreation
      • Specialty Shops
    • Events >
      • Flower Festival
      • Alpena Ice Festival
      • Shades of Fall
  • Grow Your Business
    • Available Properties
    • Grants + Incentives
    • For Merchants
  • DDA Info
    • PROPOSED BOUNDARY EXPANSION
    • Programs + Projects >
      • Alpena Downtown Ambassador Program
      • Downtown Beautification
      • Downtown Dollars
      • Downtown Street Performers
      • Facade Grants
      • Fresh Waves Mural Project
      • Retail Recruitment Grant
      • Social District
      • Social Media Boosted Post Matching Program
    • Press
    • Contact Us
  • Parking