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Tax abatement & brownfield plan approved for Dean Arbour Ford

Submitted by on April 29, 2010 – 6:09 amNo Comment

The City of Alpena’s Authority for Brownfield Redevelopment (ADR) approved a tax abatement and a brownfield redevelopment plan Wednesday,  for a proposed auto dealership on the site of the former Fletcher Motel property.

Both the brownfield plan and tax abatement need to be approved by the Municipal Council and the State of Michigan before Dean Arbour Ford signs on the dotted line for the purchase of the property.

City Planning and Development Director Greg Sundin said the brownfield plan includes an 8-year abatement of local taxes only on real property – such as new buildings that go up on the site.  The abatement does not cover the property itself.  A Tax Increment Financing (TIF) plan would also capture school taxes on the property and reimburse Dean Arbour for such things as demolition costs, removal of the existing asphalt, and lead paint and asbestos removal.  

A public hearing on the brownfield redevelopment plan will be held Monday, at the regularly scheduled Municipal Council meeting.  State approvals on the plan and tax abatement should be completed by the end of July.

Dean Arbour hopes to sign a deal on the property and begin demolition shortly thereafter.  It is not known if the company will be able to break ground in 2010, but the plan calls for the $2.5 million showroom and service center to be completed and open in 2011.