Incentives and Taxes
Brownfield Redevelopment Programs
State of Michigan Public Act 381 of 1996, as amended (Brownfield Redevelopment Financing Act), provides financial incentives through Tax Increment Financing (TIF) and credits against the Michigan Business Tax (MBT) to assist in the clean-up and redevelopment of brownfield sites within the state. In accordance with the Act, the City of Alpena has created an Authority for Brownfield Redevelopment. This five-member board has established policies and regulations by which it may approve brownfield plans for qualified redevelopment sites, including TIF plans to provide financial reimbursement for eligible environmental and developmental costs and brownfield MBT credits for up to 12.5% of the development investment. Brownfield plans must be approved by the Alpena Municipal Council. The State of Michigan must approve any brownfield plan including the capture of state school tax funds, as well as all brownfield tax credit requests.
The City has approved three brownfield plans to date, two of which include active Tax Increment Financing components.
Contact: Greg Sundin, Executive Director
City of Alpena Authority for Brownfield Redevelopment
Downtown Incentive Programs
The DDA operates three programs to assist business and property owners within the City’s downtown.
Low-Interest Loan Program
In cooperation with local financial institutions, up to $50,000 in loan funds would be available at one point under prime. The DDA may purchase an additional point under prime on the applicant’s behalf. Funding may be used to upgrade the interior/exterior of downtown buildings.
Facade Grant Program
$5,000 grant to assist in the restoration of building facades. Must be consistent with the historic character and design of the building.
Downtown Retail Incentive Program
Assists new retail businesses to locate in vacant downtown storefronts. Reduces rents by up to one-half (1/2). DDA participates in balance of rent to reduce business costs. Two-year program to assist businesses during the critical initial years of operation. Business Support Group in place to monitor and assist businesses early on.
Contact: Anne Gentry, Executive Director
City of Alpena Downtown Development Authority
Tax Abatement Programs
Industrial Tax Abatement – PA 198 of 1974
50% real and personal property tax abatement for up to twelve (12) years for qualified new construction and equipment.
New Personal Property Tax Abatement – PA 328 of 1998
100% tax abatement on all new personal property for up to nine (9) years for qualified businesses and personal property.
Obsolete Property Rehabilitation Act – PA 146 of 2000
Abatement of all local property taxes on the increased value of rehabilitated, functionally obsolete buildings, and property for up to twelve (12) years. Land and personal property not abated.
Commercial Rehabilitation Act – PA 210 of 2005
Abatement of all local property taxes on the increased value of rehabilitated or replace buildings and redeveloped property for up to ten (10) years. Land and personal property not abated.
Neighborhood Enterprise Zone (NEZ) – PA 147 of 1992
This program: 1) abates 100% of the property taxes on the incremental increase in the real property taxable value attributable to the rehab of a residential dwelling unit or the creation of a residential dwelling unit in an existing commercial building; 2) for a new facility (residence), the property tax rate each year the abatement is in effect is limited to one-half of the preceding year’s Non-PRE (Principal Residence Exemption) state average tax rate or the PRE state average tax rate, whichever applies.
The NEZ can be used in tandem with the City’s Downtown Rental Program to develop new residential rental units in the upper floors of existing downtown commercial buildings, resulting in new housing stock and greater activity in Alpena’s downtown and increased cash flow for the property.
Contact: Adam Poll, Planning and Development Director, City of Alpena
Downtown Residential Rental Development Program
MSHDA funded program that provides 70% of the cost, up to $35,000, to develop new residential rental units in the vacant or underutilized upper floors of existing downtown commercial buildings. Property owners must invest at least 25% of the total project cost. Affordable units (single unit or one unit if two are developed) must be rented initially to moderate income households and rents are controlled for a five-year affordability period.
When combined with the Neighborhood Enterprise Zone Tax Abatement, the development of these units becomes very economically attractive. Provides additional cash flow that, when combined with that of the first floor commercial enterprise, can greatly enhance the overall financial bottom line for the building.
The City applies for funding approximately every two years based on interest from the downtown property owners. Thirteen units have been constructed to date with five additional planned.
Contact: Adam Poll, Planning & Development Director, City of Alpena
Target Alpena Development Corporation Programs
Revolving Loan Fund
Provides up to $50,000 in primary and gap financing for new and existing businesses.
Micro Loan Program
Offers up to $30,000 in primary and gap financing for new and existing businesses.
Broadband Access for Businesses (Alpena Business Consortium)
Provides affordable access to high speed broadband, including I2, to local businesses in conjunction with Alpena Fiber Consortium and MERIT broadband network.
Contact: Jim Klarich, Economic Development Director, Alpena Area Chamber of Commerce Economic Development
Alpena Area Chamber of Commerce Programs
New and existing business assistance courses. Insurance discounts for Chamber members. New and existing business promotional opportunities.
Contact: Jackie Krawczak, President & CEO, Alpena Area Chamber of Commerce
Michigan Small Business Technology and Development Center
Provides resource information, assistance, and educational classes to small business operators and entrepreneurs.
Contact: Carl Bourdelais, Senior Business Consultant