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Council considers 12 year tax abatement for new downtown apartments

Submitted by on May 22, 2020 – 12:36 amNo Comment

The Alpena Municipal Council is considering another tax abatement for a company that wants to add additional apartments to its building at the corner of Second Avenue and River Street.

When council next meets on June 1, it will review an application for a Neighborhood Enterprise Zone (NEZ) Certificate for Thunder Bay Properties, which owns the downtown building.

The company wants to add an additional five apartments within the building, which already has some tenants. The estimated cost to build each new apartment is roughly $109,000.

The NEZ Certificate, which must be approved by the State Tax Commission, would allow the company to pay taxes on the current value of the five apartments before renovations, for up to 12 years. By the end of the 12th year, taxes would be based on the new assessed value.

City council is expected to discuss the tax abatement when it meets June 1.