Alpena approves economic development agreement for Gardens of Alpena senior living project with financing proof requirement
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Summary
Council approved an economic development agreement among the US‑23 North Corridor Improvement Authority, the city and Gardens of Alpena LLC to support a senior living project estimated at more than $47 million and added language requiring a construction lender commitment letter before tree clearing.
The Alpena City Council approved an economic development agreement to support the Gardens of Alpena senior living development and added a requirement that the developer deliver proof of construction financing before beginning tree clearing on the site.
City Manager Rachel Smolinski told council the US 23 North Corridor Improvement Authority (CIA) had created the development area and that the authority had approved the same agreement on Oct. 14. The project is described in the agreement as a senior living center with independent living, assisted living and memory care units and an estimated investment of more than $47,000,000.
Council discussed an amendment to the project-scope language in section 2.1 to require the developer to "deliver satisfactory proof of financing (a commitment letter from the construction lender) and commence tree clearing" only after that proof is provided. The councilmember motion to add that wording and approve the agreement carried; staff said the developer agreed to the change.
Developers on hand introduced team members including architect John Maricich and operator Steve Williamson and said financing discussions were ongoing. A developer representative said, "We have been diligently trying to finalize the both the equity and the financing. And we've been close 2 or 3 times, but now we're down to 1 that we think is very serious ... we're all committed 100%." The transcript shows Mac McClellan and Jim Boris (financing partner) also participated by phone or were listed as partners.
The agreement uses a tax‑capture reimbursement mechanism through the CIA to reimburse certain development costs from incremental taxes generated by the project, consistent with the authority's enabling action under Act 57 of 2018. Council members recorded assent during roll call after the amendment was added and the motion to approve passed.
Staff and the developer did not provide a final construction schedule in the meeting; the added financing-language ties initial site work (tree clearing) to delivery of a commitment letter from a construction lender.