News Photo by Steve Schulwitz Anne Gentry, Alpena Downtown Development Authority executive director, looks at one of the city’s new zoning maps on her computer on Tuesday. The Alpena Municipal Council voted on Monday to change the zoning for the Decorative Panels International property from heavy industry to waterfront and mixed-use.

ALPENA — The rezoning of the property owned by Decorative Panels International from heavy industrial to waterfront and mixed-use could reshape Alpena’s northside and shoreline.

The Alpena Municipal Council voted 3-2 to rezone the property during its meeting on Monday night when it approved an update to its zoning ordinance after receiving a great deal of public support from residents.

Future development plans could take years however and DPI says if the property isn’t sold, the old factory would likely stay unused and fall into disrepair and decrease in value.

The plant closed early this year and laid off more than 150 employees.

The property is slated for auction at the end of January, and DPI says the new zoning will limit interest from potential bidders. Once the property is sold, future projects would need to fit the new zoning, and per- and polyfluoroalkyl substances (PFAS) soil contamination and other environmental issues would have to be remediated. The old factory could likely need to be torn down, which could cost more than $10 million.

There are many hurdles a future developer would have to address before any real improvements on the lakeshore property can be implemented, but some local officials already have visions of what the property could look like down the road and the impact it could have on the city’s future.

Alpena Downtown Development Authority Executive Director Anne Gentry said she has supported the rezoning since it was announced it was a possibility.

She said the proximity of the DPI property and the downtown could allow for them to be directly linked someday and people can easily move from the current downtown to a new section of it.

“I think the opportunities for that property downtown are immense,” she said. “I think the public comment shares the thoughts we have that the property needs to be mixed-use and not heavy industry again.”

Gentry said she envisioned public waterfront access with a trail along the beachfront, as well as businesses and apartments above them. She said a street would likely be added, but there is a lot of potential for the property.

Decorative Panels President Daryl Clendenen has urged the council to not rezone the property during public comment at several meetings. He said doing so would make the property harder to sell and develop and could risk nothing being done to the land eventually leading to the plant’s value dropping and impacting the city’s tax roll.

“It could tax a buyer three to five years and high costs for the remediation will take someone with deep pockets,” Clendenen said. “Keeping the DPI site zoned as it is, increases the chance it is developed sooner and provides a greater tax base for the community. If it is changed, it could lead to nothing being done on site for many years and the property could fall into disarray and have no economic benefit to the city.”

Mary Beth Stutzman, Alpena Area Convention and Visitor Bureau president, said today, Alpena’s economy is more diverse than it was years ago when it depended on manufacturing. She said it is time for a change and the rezoning of the DPI property and steps to clean up the pollution are steps she supports.

“The redevelopment value of the land for lodging, beach area, or other complementary waterfront development is far greater than trying to resell the polluted property for more polluting activity,” she said. “It’s really important for the future of the community that we start to think outside the box of Northeast Lower Michigan, what got us to this point in time, and what is needed to maintain and improve quality of life for residents.”

Mike Mahler, Alpena Chamber of Commerce economic development director, said he would have worked with developers no matter if the property was rezoned or not. He said the outlook and cost of a developer having to demolish or repurpose the old plant and the cost of cleaning up the environmental issue are somewhat cumbersome, but he will work hard to make sure a business or businesses that fit the new zoning are recruited.

“We’ll play the hand that we are dealt,” he said. “We’ll help with grants, working with the Michigan Department of Environment, Energy, and Great Lake, or Brownfield to help with clean up.”

Clendenen said that some potential bidders for the property were getting fidgety before the council’s vote on the zoning. He said the new zoning, coupled with the environmental issues could make the property hard to sell. The auction has a starting bid of $1 million, but much more investment is needed.

Mahler said people in Alpena shouldn’t expect immediate development on the land because of the challenges associated with it.

“No matter what happens, it’s going to take a long, long time and a lot of money,” he said.

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