News Photo by Steve Schulwitz The old Decorative Panels International plant in Alpena sits closed on Monday. The city council is considering changing the zoning for the property, but DPI is threatening litigation because a change could impact how much it can be sold for at an upcoming auction.

ALPENA — The Alpena Municipal Council is seeking public input about a potential zoning change for the Decorative Panels International property.

The city is considering changing the zoning where the former DPI plant stands from I-2 General Industrial to WD Waterfront District. An attorney for DPI has threatened litigation if the zoning change proposal becomes a reality.

On Nov. 12, the Alpena Planning Commission approved the proposed zoning ordinance changes but denied the change to the DPI property until residents could have their voices heard. If the proposed change is made, it will allow for mixed-use development on the waterfront, some light industrial, and possibly some housing.

The plant closed in February and laid off more than 150 employees.

Decorative Panels President Daryl Clendenen told the council that a change of zoning could make it harder to sell the property, which will go up for auction for the minimum bid of $1 million from Dec. 16 to 18. He said there are several developers interested in bidding, but he doesn’t have details of what their intentions are. Clendenen said DPI spent a lot of money cleaning up and restoring the property to market it as an industrial site, but now that word spreads about the proposed zoning change, some potential bidders are feeling uneasy.

“Right now, I have industrial buyers looking at the site, who are nervous,” he said. “There is a chance some of them will pull out.”

The zoning ordinance hasn’t been updated since 2010.

Scott Dienes, an attorney for DPI, said the company is prepared to argue its case in court on the grounds that the city needed to update its master plan before the zoning ordinance could be altered.

Alpena updates its master plan every five years and an amended version is expected next year.

“The state law has a process that you really should be following and you’re not following it right now,” he said. “Your comprehensive plan should be in place and then the zoning ordinance should follow that plan, not vice versa.”

Monday’s council meeting was only the first reading for the new ordinance and the second reading will be on Dec. 2, when the council could vote on the matter.

Mayor Cindy Johnson said the council is not bound by a timeline and it doesn’t need to rush a vote. She said getting as much feedback from the community is critical.

Residents are urged to make public comment on how they want the city to proceed in the zoning for the former DPI property or on anything else in the new proposed zoning ordinance.

Steve Schulwitz can be reached at 989-358-5689 or sschulwitz@thealpenanews.com. Follow him on X @ss_alpenanews.com.