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Council reviews long-term tax abatements

Submitted by on March 19, 2019 – 12:56 amNo Comment
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An annual report on businesses that received long-term tax abatements from the City of Alpena shows most of those companies have fulfilled their end of the bargain in regards to capital investment and job creation.

The Municipal Council reviewed an annual monitoring report Monday night, that included a summary of five businesses receiving long-term tax abatements of up to 12 years.

The report showed Alpena Lodging, LLC, which owns the Holiday Inn Express in downtown has failed to submit a report for 2018.  In addition, City clerk/treasurer and finance director Anna Soik has sent two letters and an email to the company, but has yet to receive a response.

The four other businesses have all met capital investment goals, and all but one has met employment goals.

Alro Steel has met or exceeded both goals on a 12-year abatement that ends on December 30, 2019.  So has Dean Arbour Ford for a seven-year abatement that ended December 30, 2018.

Douville Johnston Corporation has also exceeded both capital investment and employment goals on a nine-year tax exemption.

David Kneeshaw received a 10-year abatement to revamp a former restaurant on State Avenue.  Kneeshaw met an investment goal but employment is down slightly from the original projection.

The four companies that submitted 2018 monitoring reports represent over $4.4 million in capital investment, and employ approximately 69 full-time workers.

One of the major goals of the tax abatement program is to assist companies to re-invest and stay in the community.  The other is job retention and/or creation.

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