News photo by Steve Schulwitz The former Decorative Panels International plant in Alpena sits idle on Friday. The plant is being sold to Melching Inc., which has plans for the property.

ALPENA — Melching Inc., a Norton Shores company that specializes in demolition and environmental remediation and has experience preparing large industrial properties for mixed-use development, has agreed to purchase the Decorative Panels International property in Alpena.

The deal could close next month.

The company specializes in asbestos remediation, plant decommissioning, and demolition, the business’s website says.

In a news release, Doug Melching, owner and president of the firm working to buy the DPI property, said his business intends to seek input from the Alpena community on a site redevelopment plan and plans to address environmental contamination at the property.

“We wish to find a financially viable use for the Alpena site that meets the needs of the community,” Melching said. “We will work with local, state, and federal resources to develop a site plan that complements the surrounding area and provides a sense of place.”

Melching has hired an environmental consultant to help navigate safe redevelopment of the site. The company has also communicated with city representatives to better understand local development initiatives and plans to continue seeking input from local stakeholders.

In February, DPI announced the closure of its Alpena plant and laid off more than 150 employees there.

In December, the Alpena Municipal Council rezoned the property on Ford Avenue from heavy industrial to waterfront, which the city hopes will spur mixed-use development along the shores of Thunder Bay on the northern end of town.

Currently, according to the Melching website, the company is working on a complete demolition and environmental cleanup of a 1.2-million-square-foot paper mill and power plant in Muskegon.

That project is similar to what needs to be addressed at the former DPI site.

Melching is restoring the Muskegon property from an industrial site dating back to 1898 to a mixed-use commercial and residential property, similar to what some Alpenans have said they’d like to see happen at the DPI plant.

The downstate project has an estimated cost in excess of $10 million in demolition, along with an additional $2 million in asbestos abatement and remediation.

Concrete removed from those buildings and foundations will be crushed and recycled onsite.

Alpena Mayor Cindy Johnson said Friday the prospect of Melching developing the DPI property into something the community supports and addressing environmental contamination there is a good first step.

“We are excited to collaborate with Melching Inc. to develop the former DPI site,” Johnson said. “This project represents new opportunities for our community, and we look forward to exploring the possibilities together and working closely with our residents to shape the future of this space.”

Earlier this month, the Michigan Department of Environment, Great Lakes, and Energy provided the Alpena Municipal Council an update on contamination at the old plant.

The state reported that six tests detected perfluorooctanesulfonic acid (PFOA), a specific per- and polyfluoroalkyl substance (PFAS), in the groundwater at DPI. Four of those tests showed a level of PFOA nearly double the state maximum limit for groundwater.

The state is still awaiting more test results from DPI to determine the extent and severity of the contamination.

“We still have to find out how large the plume is and where it is going, and see the whole extent of the contamination,” EGLE’s Lisa Kruse told The News last month. “We have to see if it is going into the Great Lake or the (Thunder Bay River). We are still in the first phase of this.”

Kruse also added EGLE’s Remediation and Redevelopment Division, Water Resources Division, and Air Quality Division all are working with DPI in regard to lagoons on the property and air pollution matters.

Following the closure in February, DPI says, company officials developed and implemented a decommissioning plan for the Alpena facility focused on identifying, removing, and disposing of waste materials and mothballing the wastewater treatment plant and lagoons.

DPI has kept regulators and the city informed of site activity.

DPI’s Daryl Clendenen in a news release praised Alpena and the community and added that the company intends to work with Melching not only to finalize the sale but also on future plans, if needed.

“Alpena is a great place to live and work, and we are grateful for the past 60 years of support and stewardship from the City of Alpena,” Clendenen said. “We are excited to extend our support to Melching as they work toward a successful redevelopment of the DPI Alpena site.”

Alpena Area Chamber of Commerce Economic Development Director Mike Mahler said that, if Melching completes the sale, demolishes the plant, and addresses the environmental issues, that would be a good start to getting the property in shape for future development.

Mahler added that he will also work with Melching and provide any assistance that it needs.

“I will say having the plant torn down and not sitting there decaying is a great thing,” Mahler said. “I have already told the city that I would like to be involved in the conversations and process and find a way to assist all of them if they would allow me to.”

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