News File Photo The former Decorative Panels International in Alpena is seen from Thunder Bay in this News file photo from August 2022. The auction to sell the property has been pushed back until the end of January.

ALPENA — The auction to sell the former Decorative Panels International property in Alpena has been pushed back until the end of January.

The move could impact how and when the Alpena Municipal Council votes on a proposed zoning change that could reshape the shoreline and neighborhoods in Alpena’s north side.

The auction was slated to run Monday through Wednesday, with a minimum bid of $1 million, but the dates of the real estate broker site Ten-X, which was hosting the auction, were moved back to Jan. 21 through 23.

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

It wasn’t immediately clear why the auction was pushed back, but the council is considering rezoning the property from industrial to waterfront property, allowing different types of development at the site but prohibiting a large plant like DPI from operating may be a factor.

It was also revealed several weeks ago by the Michigan Department of Environment, Great Lakes, and Energy that there are significant environmental issues with the property, including per- and polyfluoroalkyl substances, or PFAS, in the soil. The environmental concerns and the cost of remediation could have also played a role in the delay of the auction.

A message was sent to Nancy Miller, DPI stakeholder engagement specialist, and Decorative Panels President Daryl Clendenen seeking comment on why the auction was moved.

A vote on the proposed zoning change could happen as soon as Monday, but the city is under no timeline to approve the proposed zoning change.

Officials at DPI say that, if the city changes the zoning, it could hamper the bidding process and interested buyers could be spooked away.

Scott Dienes, an attorney for DPI, has urged the city to work with DPI to find an alternative solution to rezoning but did not rule out a lawsuit if the city rezones the property.

Mayor Cindy Johnson said DPI had not officially informed her of any change to the auction dates and until it does, she said the council will continue to sort through public input on the proposed zoning change and decide on the best direction on the issue.

“The city council acts independently from DPI and DPI has not informed me of any rescheduling of their auction,” Johnson said. “The council will continue to review proposed changes to our zoning ordinance and will allow public comments during our meeting on Monday. We are committed to making the best decision for Alpena’s future.”

The Alpena Planning Commission has worked for 18 months to update the city’s zoning ordinance but left the council to decide how to handle the zoning for the DPI property.

A zoning request was not made by DPI before or after it closed.

The council has been split on the proposed rezoning of the waterfront property, which has 5,000 feet of Lake Huron shoreline and nearly 90 acres of land overall. The plant was built in 1950 but has undergone improvements over the decades.

Councilman Mike Nowak and Erin Cane have publicly shared their opposition to the rezoning claiming eliminating large manufacturing opportunities limits job growth and higher wage employment.

Johnson and Councilwoman Karol Walchak have expressed support for the rezoning, which left Councilman Danny Mitchell as the potential tie-breaking vote.

Mitchell appears as if he has made up his mind on what direction he will take when there is a vote. He said after listening to the opinions of his constituents and DPI dragging its feet to conduct the auction he is ready for a vote.

“I allowed them three weeks to see what happens with the auction, but moving it changes things. That really did it for me because I now wonder how many more times they will delay it,” he said. “I’m in favor of mixed-use on that waterfront, with light manufacturing close to the former Lafarge-side of the property and the rest being used as mixed-use on the waterfront. The minute they moved the auction, that did it for me.”

Mixed-use is a combination of commercial, residential, and light industrial and would fall under the proposed waterfront zoning.

No matter what becomes of the zoning and property, it is unlikely development would begin in the short term. There are many environmental challenges to address, as well as possible retrofitting of the plant if it is used for a different manufacturing need.

Still, if the zoning change is approved, Mitchell said it sets the stage for Alpena’s future and waterfront.

“I don’t suspect anything is going to happen overnight, but it’s a start,” he said. “I think a majority of the people want this change.”

City officials are still seeking input on the proposed rezoning of the DPI property. Monday’s council meeting begins at 6 p.m. in the council chambers at City Hall.

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