DOWNTOWN DEVELOPMENT PROGRAMS

Downtown Alpena has many programs to support, grow and attract business in Downtown Alpena:  Following are brief descriptions of 6 of these programs:  1)Façade Grant; 2) Low Interest Loan Program; 3) Neighborhood Enterprise Zone; 4) Rental Rehab Grants;  5) Business Support Team; 6) Downtown Gift Certificates

DOWNTOWN ALPENA FAÇADE GRANT PROGRAM

The DDA façade grants programs will award grants under the program in any amount requested from a minimum award of $500.00 up to a maximum award of $ 5,000.00.  Applicants for a grant must provide a matching amount to their grant request based on a dollar for dollar basis.  An applicant’s proposed improvement project total can exceed $ 10,000.00; however the DDA’s participation will still be limited to a maximum amount of $5,000.00.

For more information, please click here or  call Lynn Kolasa
at 989-356-6422.

DOWNTOWN LOW INTEREST LOAN PROGRAM

Loans provided by this program are to be used for exterior and interior rehabilitation to existing buildings within an area defined by the Downtown Development Authority.

Maximum loan amount is:  $50,000 per building
First Federal and Bank of America  have agreed to provide up to a maximum of $100,000 in total loans with up to $50,000 per loan customer (minimum loan $10,000) for implementation of the program.  Each institution has agreed to look at projects on an individual basis and may increase the maximum loan amount.  Loan pricing will be as follows:  a floating rate of prime (as listed daily in the Wall Street Journal) minus one hundred basis points (1%); or a fixed rate at the five year treasury rate plus 250 basis points (2 ½%) with a five year term.  The lowest rate on any loan offerings will be will be 4.25%.

For more information, please click here or call Lynn Kolasa
at 989-356-6422

DOWNTOWN NEIGHBORHOOD ENTERPRISE ZONE

• The property owner must file an application for an NEZ certificate before a building permit is issued.  The City has 60 days for City Council to take action to approve or deny your request.
• After filing your request, you are ready to get the permits and start construction.
• If your application is approved, you will be eligible for tax abatements on the improved part of your rehabilitated facility or part of your new facility.
• Applications are available at the DDA office, 235 W. Chisholm, City Assessor’s Office at City Hall, or on the City’s web site at alpena.mi.us
• For more information, call Lynn Kolasa ,DDA Executive Director at 356-6422 or Jeff Shea, City Assessor at 354-4252

DOWNTOWN RENTAL REHAB GRANT PROGRAM

DOWNTOWN BUSINESS SUPPORT TEAM

We have put together a group of ten professionals, including fellow business owners, attorneys, accountants, bankers and economic assistance specialists (“counselors”) who will typically act in business support teams of two or three in order to give assistance on a strictly confidential basis to any concerned business owner who requests it.  The specific make-up of the team will depend upon the nature of the business and its problem.  At the owner’s option the assistance may include interviews, on premise visits, review of business records, and delivery of advice in the form of a written assistance plan.  We ask that the owner refrain from seeking individual advice because the counselors act strictly as a team.

The program is purely voluntary and confidential
For more information, please call Lynn Kolasa, 989-356-6422

DOWNTOWN RETAIL INCENTIVE PROGRAM

ADVANTAGES TO LANDLORD:

1. Prescreen businesses for tenancy
2. Monitoring of business  to help assure longevity of tenant
3. By forgiving ½ of rent, helps guarantee occupancy and maintenance of vacant spaces by tenant
4. Active promotion of space by the DDA, and support in recruitment of business for their vacancy
5. Helps maintain building integrity by keeping it occupied
   

DDA WILL: 

1. Screen all applicants to assure the business is appropriate for downtown needs
2. Assure that all applicants have a business plan created with the support of and/or reviewed by the Small Business Development and Technology Center (SBDTC)  at Alpena Community College.
3. Provide ongoing "team support" (old triage program)
4. Monitor the business regularly, through the DDA Economic Committee, including the required quarterly financial reports required of the business
5. Promote the vacant spaces and help recruit the appropriate retail businesses for that space
6. Assist with the rent (which will be capped) per the matrix herein.  But, the DDA’s obligation to contribute will terminate upon default by the new business under the lease, in which event landlord’s sole recourse will be against the new business.
   

LANDLORD WILL:

1. Agree to reduce rent by 50% the first year, graduated reductions the following year, as presented in the sample matrix herein.
2. Cooperate with DDA regarding terms of lease with tenant
3. Agree to a 2 year lease
4. Agree in writing to the terms of the program set forth by the DDA
   

NEW BUSINESS WILL:

1. Provide a business plan for approval by the DDA Economic Committee
2. Demonstrate (some) business experience (OR) past participation in a business start-up workshop, or agree to orientation sessions if deemed appropriate by the DDA Economic Committee
3. Agree to monitoring by the DDA Economic Committee or DDA Business Support Team including:
   
   • Providing quarterly financials for review
   • Notification (to) of the DDA Economic Committee of any problems as they occurAgree to be available to the DDA Economic Committee for review of business activities
   • Agree to a minimum two year (graduated) lease
4. Agree to repayment of DDA rent support if they leave the downtown before 2 years
5. NOTE: The landlord may not also be the “new business” (tenant) locating within his/her own property.  “Tenatn” means any business in which landlord is in any way involved, whether as owner, stockholder, member, manager, operator, employee, consultant or otherwise.

RENT PARTICIPATION MATRIX

DOWNTOWN GIFT CERTIFICATES

In 2009, the DDA hopes to initiate a gift card program which will make these purchases more convenient, and more user friendly for the recipient.