Courtesy Photo This is a rendering of what some proposed houses may look like if constructed in Alpena. A developer has proposed building more than 400 housing units on U.S. 23 North.

ALPENA — A proposed housing project in Alpena could put a major dent in the local housing crisis if it becomes a reality.

On Monday, the Alpena Municipal Council voted to approve a property-sale agreement with developer Tommy Dault, Jr. which would sell him about 70 acres of the city-owned land on U.S.-23 South for $10.

In exchange, Dault and his team would install the needed roads and infrastructure, and then build hundreds of housing units for people to purchase or rent.

The estimated cost of the proposed project is $111 million or higher and the first wave of construction could begin next year.

In his report to the council, Dault said once the property is ready to build on, the intention is to build what is called Legacy Point of Alpena, which would be a private neighborhood in Alpena.

If completed, 401 brand-new housing units, 165 for sale and 236 for rent, would be erected just a handful of miles from downtown Alpena.

The cost of the new homes would begin at about $190,000 for a two-bedroom, $245,000 for a three-bedroom, and $325,000 for a four-bedroom unit. Some of the homes would have garages, while others would offer carports.

Estimated rental rates are $1,050 for a one-bedroom, $1,300 for a two-bedroom, and $1,550 for a three-bedroom unit.

All of the homes will be pre-built off-site and then installed when complete. Dault said it takes about 12 to 16 weeks for each house to be built.

Dault said six homes will be constructed at the site to serve as examples for people to use when considering which type they would like to purchase. He said not all of the housing units would be built at once and progress would be determined by demand.

“It is about a five-year total project,” Dault said. “We will start on the north end with rental properties and then put the six single-family homes up for sale. Then we will expand from there. Our focus will be on the absorption rate, which means how fast we can sell them and how fast we can rent them.”

Alpena Area Chamber of Commerce Economic Development Director Mike Mahler said the housing crisis in Alpena has forced people who want to move into the area to abandon their ideas. He said Legacy Point of Alpena would give locals and future residents many housing options and would totally change the housing landscape in Northeast Michigan.

“This would pretty much fill our need for housing,” Mahler said. “This project is the best-case scenario. It has entry-level options, mid-level options, and higher-end options. If it all comes together, it will provide people with things to consider at any stage of their lives. This would be a huge win for us.”

The proposed project also includes a community center for the residents of Legacy Point which would include an indoor pool, a gym, and a walking trail throughout the development.

For families, a kids’ park with a fenced playground, self-cleaning restrooms accessible year-round, a pavilion, and a lush one-acre grass area is also planned. A dedicated dog park will offer a fenced space with water and play structures for people who have pets.

A combination gas station, bakery, and restaurant is also expected to be built near the new private community.

City Manager Rachel Smolinski said the city is selling the property for so little because it doesn’t have the money to install all of the needed infrastructure to make the project a reality. The new homes would also be added to the city’s tax roll when purchased, which would bolster the property tax revenue. Smolinski said there is a clause in the purchase agreement that allows the property to reverie back to the city if the project falls through or doesn’t meet expectations.

“If the development is not consistent with the agreement, then that property can come back to the city,” she said.

Smolinski told the council the sale of the property could be closed by the end of January.

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