Council briefed on proposed US‑23 corridor authority to help finance Gardens of Alpena senior housing

City officials and consultants updated the Alpena City Council on Jan. 21 about a proposed US‑23 Corridor Improvement Authority that would capture future local property‑tax growth to help finance the Gardens of Alpena, a planned independent/assisted living and memory‑care development north of town. The council received and filed the update.

The Gardens of Alpena developers hold a purchase agreement for roughly 10 acres of city‑owned property along US‑23 and have proposed an independent living component of about 68 units plus roughly 30 assisted‑living and 30 memory‑care units. Consultant Mac McClelland described the project as “a large investment and significant job creation” and told the council that, because construction costs and interest rates increased, “the project really can’t proceed without some sort of community financial support.”

McClelland said the city is pursuing a corridor improvement authority because that tool can capture incremental local taxes and reimburse eligible development costs via a tax increment financing (TIF) plan. He outlined the near‑term schedule: a resolution to establish the authority and appoint its board is planned for the Feb. 3 council meeting, followed by council consideration of the development plan, the TIF plan and a development agreement on March 3.

Why it matters: proponents said the development would put hundreds of new residents and dozens of jobs on the city’s north side and could spur follow‑on investment across the adjacent 70‑acre area. Mike Mahler, economic development director for Target (the local economic development partner), warned the council that earlier developer assumptions about taxable value were optimistic. He said the developer originally proposed an 85/15 split of captured taxes but, after further financial review, is proposing a 90/10 split (90% to developer capture, 10% to taxing jurisdictions) to reflect a lower eligible tax base.

McClelland and others emphasized that corridor CIAs capture only local property taxes (city, county, college and library levies) and do not capture state school operating taxes; that limitation reduces available TIF revenue compared with some developer assumptions. Council members were also told the TIF capture could last up to 20 years and that preliminary estimates included a projected contribution to school districts of roughly $6 million over 20 years once the development is complete and fully taxed, though McClelland said actual outcomes depend on final valuations.

City staff and consultants said the developer remains interested and that the authority’s district boundaries were drawn to ensure at least three property owners inside the proposed district (a statutory requirement), which led to inclusion of Alpena Community College and Alpena Public Schools property in the district map. McClelland said notice and public hearing requirements had been completed and that the county, the college and the library will be asked to review the TIF plan before final approvals.

Council action: the council voted to receive and file the corridor improvement authority update. Separately, later in the meeting the council approved an engagement letter with Warner Norcross & Judd LLP for legal assistance on the Corridor Improvement Authority (not to exceed $7,500), which staff said will support drafting the development and TIF documents and the development agreement.

Next steps: council members were told to expect the formal authority‑establishment resolution and board appointments on Feb. 3 and the development/TIF plan and development agreement for council consideration on March 3. The developers and consultants said work must proceed quickly to preserve project timelines.