ALPENA — Northeast Michigan lacks efficient broadband access, but projects both on a national and local scale aim to change that and spur economic development efforts in the Alpena area.
In summer 2023, 24% of homes in Alpena County, 47% of homes in Presque Isle County, 37% of homes in Montmorency County, and 35% of homes in Alcona County lacked internet with download and upload speeds the federal government considers minimal, according to data from the Federal Communications Commission.
Erik Frederick, chief connectivity officer at the Michigan High Speed Internet Office, is leading the efforts to connect everyone to the internet from city to countryside in Michigan. He is in charge of allocating federal Broadband Equity, Access, and Deployment — known as BEAD — funds to entities around Michigan that will help close the digital divide.
BEAD is a national program funding broadband infrastructure projects across the country.
Internet access “impacts nearly every sector of our lives,” Frederick said. “It is a foundational tool.”
With high speed internet access, it is estimated that households and businesses could save $1.8 billion to $2.7 billion annually, Frederick stated.
The biggest barrier to connecting Michigan is geographic location.
The majority of the approximately 500,000 households that lack efficient internet access in Michigan are located in rural areas. Other geographic obstacles preventing the installation of broadband infrastructure include waterways and areas with rock beds close to the surface, said Frederick.
Frederick stated that BEAD is set to clean up the areas that similar grant programs have left without internet. Broadband networks are not designed to target specific locations, making it difficult to reach rural households.
BEAD intends to bring high-speed internet to these areas, despite the obstacles.
Primarily, BEAD focuses on infrastructure, but there are other facets that go into ensuring digital equity, Frederick stated. People also need access to the devices themselves and the skills to use those devices.
Digital equity is central to the work at the state internet office, Frederick said. All challenges need to be addressed.
“We can’t just stop at infrastructure,” he said.
“It’s like water,” Mike Mahler, economic development director at the Alpena Area Chamber of Commerce, said of the internet. “Everyone expects it everywhere they go. I think broadband fits in that same category.
If fiber isn’t available in an area, then incoming businesses or households are not going to spend the money to live and work there, he said.
In Alpena proper, broadband access is in a good spot. In fact, Mahler is concerned about households and businesses in the area having more options than necessary.
One company working to install broadband access across Northeast Michigan is the Presque Isle Electric and Gas Co-op. The co-op began connecting customers to the internet in 2021. As of March 20, there were 3,800 active internet accounts.
Doug Cheek, chairman and director of the Alcona County Economic Development Committee, said that, in a case study of a county similar to Alcona County, it was shown that implementing broadband access caused significant increases in every aspect of economic activity and opportunity.
The Alcona County Economic Development Committee has entered a public-private partnership with Cherry Capital Connections to improve Alcona County’s broadband infrastructure.
“Infrastructure is poor in Alcona County,” Cheek said. Cherry Capital and Cheek’s committee were heavily involved in the pre-registration period of BEAD and are part of the application process for funding now.
Nearly 3,500 locations in Alcona are eligible for BEAD funding. The partnership’s initiative is to build an open access network that will be available for internet providers to use to service customers. The open access network is intended to lower the price of internet access as providers do not have to build their own network but instead just have to join the one that Cherry Capital builds, Cheek said.
Looking to the future, Cheek said that, in the best-case scenario, Alcona County officials will get “the shovel in the ground” this summer. He estimates it will take about two years to build the infrastructure in Alcona County and about five years total to clean up loose ends. However, changes in the federal administration due to the recent election could change the BEAD timeline.
Overall, Cheek said, “Alcona is in a good position.”
Tim Maylone, the CEO of Cherry Capital, said that BEAD creates a “good foundation” for building accessible broadband. However, future innovation will reveal flaws in infrastructure that will require a second or even a third round of programs like BEAD, Maylone said.
Currently, projects are in need of a larger labor force. A lack of labor makes getting projects done in the four years prescribed by BEAD “a tight timeline”, Maylone said.
“The demand for internet is not going down,” said Maylone. “We are excited to be a part of all that.”
By REAGAN VOETBERG News Staff Writer
ALPENA — In Michi-
gan, the federal Broadband Equity, Access, and Deployment program is still on track to give people across the state high speed-internet access by 2030.
Through the BEAD program, the state received $1.6 billion — the fourth-largest allocation of all states and territories in the U.S. — to build broadband infrastructure in areas with little to no high-speed internet access, according to the Michigan Department of Labor and Economic Opportunity.
The BEAD program was established by the Infrastructure Investment and Jobs Act, which then-President Joe Biden signed into law in November 2021.
The Michigan HighSpeed Internet Office released their BEAD Program Five Year Action Plan in August 2023, laying out the details of fund allocation and the process behind it. Currently, the HighSpeed Internet Office is in the application phase of the plan, the state said in a news release on Jan. 9. There is a 90-day application window for entities to apply for funds from the grant to build broadband infrastructure. The state is in the process of reviewing these applications.
If an entity’s application and proposal is accepted, that entity would then use the money to service unserved and underserved locations around Michigan. Unserved and underserved locations are determined by the internet speed readily available in the area.
Unserved locations have no internet connection available at a speed of at least 25 megabits per second download and 3 megabits per second upload, according to the BEAD website. Underserved locations have internet available at a speed of at least 25/3 Mbps but less than 100/20 Mbps.
There are about 248,000 unserved and underserved businesses and households eligible for BEAD funding, said Eric Frederick, chief connectivity officer at the High-Speed Internet Office. There are nearly 500,000 unserved and underserved locations in Michigan overall, according to the Action Plan, but BEAD funding will only cover about half of those locations. Frederick stated that there is a “big job in front of us,” but that “the response has been good.”
Pre-registration began in June 2024, and “quite a few” organizations leaped on to the opportunity, said Frederick.
If all goes to plan, projects should start breaking ground later this year, according to the High-Speed Internet Office’s plan. It is estimated that projects will continue until 2030, with the end goal being to connect every household and business in Michigan to high-speed internet.
At the implementation of the five year plan, the counties of Alcona, Alpena, Cheboygan, Crawford, Iosco, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, and Roscommon had a combined 46,275 underserved locations and 4,947 unserved locations, according to the state’s BEAD plan.
In total, about 55% of households in northeast Michigan had adopted broadband connection, according to the state plan, which is lower than the state average of 69%.
The plan states, “The low rate of household broadband adoption is reflective of the low rate of broadband availability.”
There are also higher-than-average numbers of rural population in Northeast Michigan, according to the plan. Rural areas are especially challenging to reach with broadband infrastructure, Frederick said.
News Photo by Reagan Voetberg
Bruce Honeycutt surfs the internet at Turn the Page Bookstore recently.
Courtesy Photo Cherry Capital Connections workers unload supplies at a broadband infrastructure construction site in this undated photo provided by the company.
Photo Courtesy of Metro Creative Services
‘Close the financial gaps’ Northeast Michigan leaders working to overcome housing shortage that stifles economic growth
By STEVE SCHULWITZ News Staff Writer
ALPENA — In order for cities, townships, and counties to grow and develop, a quality stable of available housing is a must, and leaders in Northeast Michigan are doing their best to address the local housing crisis.
Nationwide, there is a shortage of available housing to purchase or rent, and rural communities like those in Northeast Michigan often struggle to recruit new residents, job talent, and new development until that shortage is addressed, officials say.
In other words, without adequate housing, future development will be held back some.
Bolstering the inventory of housing units won’t be accomplished overnight, and it could take years before there is a significant increase in housing availability in the Alpena region.
Local, state, and federal governments know the housing shortage is a serious issue and are pouring money into addressing it. There are programs that help rehabilitate houses that have fallen into disrepair so they can be sold and occupied and other initiatives that help local officials recruit developers who could build housing units to add to the depleted housing market.
Mike Mahler, Alpena Area Chamber of Commerce economic development director, said housing is one of his top
priorities. Mahler is part of the local housing task force and other partners have already had some successes, with some homes added to the local inventory.
Mahler said the costs of buying and renting a home locally is high. He said we have a housing shortage in part because of the number of Airbnb and other short-term rentals in the area, because of the high cost of building new housing, and because people are not selling their homes and upgrading the way they might have in the past.
Mahler said there is ample interest in Alpena, in terms of economic development and in the number of people considering moving to the area, but the lack of housing sometimes prevents them from doing so.
Some housing units have been refurbished and placed on the market, and through outreach efforts, there is an increased interest in larger housing projects.
Last year, a large housing project, called the Gardens of Alpena Senior Living Community, was announced. It is slated to be built on the Alpena-owned property on U.S.23 North.
A developer has a purchase agreement with the city to purchase land to construct 68 independent living units and 60 assisted living units. The project is not expected to be completed until sometime in 2016.
Mahler said developers face challenges in heightened
By STEVE SCHULWITZ News Staff Writer ALPENA
— Housing shortages aren’t overcome overnight, but some progress has been made in addressing the housing crisis in Northeast Michigan. In Alpena County alone, an estimated 1,600 housing units are needed, but it could take years and millions of dollars of investment from the local, state, and federal governments and private investors before the housing market improves.
Local leaders from the area housing task force, the Alpena County Land Bank, economic development firm Target Alpena, and Habitat for Humanity Northeast Michigan are working to unravel the housing problem and construct new housing of all types.
Progress may be slow, but, behind the scenes, talks with state and federal developers and other partners continue the push to improve the housing issue.
Alpena Chamber of Commerce Economic Development Coordinator Lenny Avery said housing doesn’t just spring out of nowhere, and the Alpena area had to start at the bottom in its planning process. He said the county landbank was able to acquire grants that helped remove some old houses on Bedford Street to make the property ready for construction of new homes, and an additional grant was received to have a housing assessment done.
Avery said the data from the assessment was eye-opening, because it showed that about 17% of people in Alpena live in poverty. He said that data is not attractive to potential developers who have to navigate high material costs and high interest rates to develop housing. Because they want a decent return on their investment, they have to charge high rent and sale prices, which many in the area can’t afford. That, Avery said, is why it is challenging to get housing developers to build in Northeast Michigan.
“That really makes it hard for investors, because we aren’t Traverse City or Petos-
key,” he said. “Our markets are totally different, and what people can afford there people here may not be able to afford.”
To overcome the challenges, Avery said the state needs to find a way to allocate more money to rural areas and developers who want to build housing. He said subsidies can help developers offer lower prices and still get their money back and a slight profit on their investment.
“If we don’t take advantage of the programs that are out there, and, we don’t get the buy-in from the government,” Avery said, “this could linger for 30 to 40 years. We need subsidies to be able to really get the ball rolling.” At least one project may add some homes to the local market. There is a proposed housing project for seniors on U.S.-23 North called the Gardens of Alpena, which would offer 68 independent living units and an additional 60 housing units for assisted living and memory care. When and if seniors begin to move into that new complex, they could leave their homes, putting more houses on the market.
If that project becomes a reality, it is expected it wouldn’t be completed until sometime in 2026.
Other proposed housing projects have fallen to the wayside because of the cost of investment, rate of return, or because of other logistics.
A developer intended to create apartments above commercial businesses on the property at the foot of the 2nd Avenue bridge, but it appears that project is no longer in the cards.
Another project, in which a developer was interested in building as many as 400 new homes near the Gardens of Alpena, also seems to have died. The developer had a purchase agreement with Alpena city government, which owns the property, but the Alpena Municipal Council voted earlier this month to terminate the deal because officials said the developer did comply with the conditions of the potential sale.
News Photo by Steve Schulwitz
Concrete tech program paves the way to one man’s success
By REAGAN VOETBERG News Staff Writer
ALPENA — One of Alpena Community College’s most successful training programs is its concrete technology program, through which Espiridion Villarreal, transportation technician at the Michigan Department of Transportation’s Transportation Service Center in Alpena, got his start.
Villarreal grew up downstate.
variety of what you want to do, where you want to go.”
There are jobs open in states all over the country, from Wisconsin to Colorado to Tennessee.
His first job after college was at Rock Products, a ready mix concrete company based out of Saginaw. He worked as the plant manager at the company’s plant in Kinde.
By REAGAN VOETBERG News Staff Writer
ALPENA — Despite a number of challenges such as a lack of available housing, Alpena has the foundation it needs to bring more skilled talent to the area, officials say.
It all starts with the variety of training programs offered at Alpena Community College. Listed on the college’s website are more than 75 programs of study, including unique offerings tailor-made for local industry, such as the utility arborist, electrical systems technology, and concrete technology programs. Through dual enrollment, high school students can
get their start at ACC. In the President’s Report from Jan. 15, ACC President Don MacMaster said dual-enrolled and Early College students accounted for 57.3% of students enrolled in the spring 2025 semester. In addition, the number of spring 2025 enrollees increased 0.5% from spring 2024, according to the President’s Report. The graduation rate at ACC is 50%, compared to the 27% at similar Michigan community colleges, the report said. Over one-third of contact hours come through online, hybrid, and remote courses, according to the President’s report. Paige Gordier, vice president of instruction at ACC,
praised the college’s faculty and staff for their technological expertise.
“The instructors who have mastered these skills are dynamic and enthusiastic about teaching,” Gordier said in the college’s spring update. “The experiences of the distance students are just as good as that of those who are in the face-to-face class with the instructor.”
In particular, the college’s concrete technology program has been a huge success, officials say. In the World Center for Concrete Technology building on ACC’s campus, students can peruse a bulletin board filled with job applications for those in the program.
“There’s a lot more of these sheets than they have graduates in the program,” MacMaster said.
The concrete technology program operates through a partnership with Besser Co.
Students come from all over Michigan and some from around the Midwest to earn a two-year Associates degree in concrete technology, MacMaster said.
“They will emerge highly employable in working with concrete,” he said.
The World Center for Concrete Technology also trains people who are already employed in the concrete business to advance their skills to earn promotions or become more valuable in their current position, MacMaster said.
While ACC has had a lot of success in training people for employment, barriers to employment still exist.
One factor that could push potential employees away from Northeast Michigan is work culture, said Jackie Krawczak, owner of Jackie Krawczak LLC, which hosts leadership workshops.
“It’s not just about pay, it’s not just about vacation time, but does their work align with their whole life?” Krawczak said. “Do they have flexibility? Are they adding value? Do they feel cared about?”
According to Krawczak, Northeast Michigan can no longer use the excuse that there is a cheaper cost of living here to draw talent. The cost of living here now is similar to other parts of the state and country. Companies have to be competitive when it comes to wages and benefits.
Krawczak also believes that companies can capitalize on the lifestyle in Northeast Michigan.
“In my opinion, we have a phenomenal lifestyle up here — low crime, outdoor activities, friendly people, and a very giving community,” she said.
In Krawczak’s observation, there are plenty of job opportunities available. Sometimes, people struggle to find a job because they are not willing to do something that the job requires or they don’t meet the minimum expectations of the job.
“It’s either there’s a big mismatch in skillset or there’s something that’s keeping them from getting that job,” she said.
In high school, as he was researching colleges, he came across ACC and the concrete technology program.
Ultimately, he decided to pursue a career in the military and joined the Marine Corps out of high school.
He stayed in the Marine Corps for four years and then reconsidered his options. Villarreal revisited the concrete technology website and researched the program further.
“There’s a 99.5% job placement,” he said. “That was huge for me.”
Villarreal left the Marine Corps in 2016 and started at ACC that fall. He bought a house in Alpena and moved himself, his wife, and his daughter upstate. His first job in the area was at the Habitat for Humanity, where he started before his first semester.
“In my two years of school, I had my son, built a family here in Alpena, and made a lot of friends,” said Villarreal.
Villareal completed his summer construction internship, a core requirement of the concrete technology program, at TYME Consulting Engineers, based in Livonia.
Villareal earned his degree in 2018.
“I was offered quite a bit of jobs,” he said. “That’s another great thing about the program is, even as to your internship, you have a vast
Villareal had been working at Rock Products for about a year when his wife’s old boss in Alpena asked her to come work up there for a summer.
“She actually called me up and said, ‘Hey, like, I love Alpena. You gotta start finding a job up here,’” he said.
Villareal’s search took about a year before he landed a position at MDOT. He started there in 2020.
Most of his work is done in the summer. He helps inspect construction sites on state-owned roads such as M-32. During an inspection, Villareal will make sure construction workers are using the right materials and using them correctly. He also tests materials like compacted aggregates, which are geological materials like sand or rock “compacted” to increase their weight per unit volume, according to Cemex. Day-to-day operations at the construction sites are meticulously documented.
In the winter, Villareal spends his time looking over and collecting data on future job sites. Once data is collected, he compiles it into a submittal for the design team to consider. Additionally, he goes through various trainings to keep his certifications and licenses up to date.
Villareal’s pathway is not the only route to take after graduating from the concrete tech program.
“The possibilities are almost endless,” Villareal said.
ECONOMIC
Overall, Krawczak sees a lot of potential for economic growth in Alpena.
People can move to the area and work for a company located elsewhere through remote work, where those people may have just come up for the summer in the past. There is also potential for growth in Alpena’s brick-
News Photo by Reagan Voetberg
First-year Alpena Community College concrete technology students, from back, Zak Melkus, Vaughn Hunt, and Kaleb Donajkowski calculate the volume of a bucket recently at the college.
News Photo by Reagan Voetberg Espiridion Villarreal works on his computer in his office at the Michigan Department of Transportation’s Transportation Service Center in Alpena.
Funding improves road quality
By STEVE SCHULWITZ News Staff Writer ALPENA
— How much tax revenue a county road commission receives from property owners is a big determining factor in how many road projects can happen each year and how healthy their road system is.
Road commissions utilize state and federal funding to maintain and rebuild streets, but some municipalities in Northeast Michigan take it upon themselves to invest more than others.
In Alcona County, each of the county’s 12 townships have a property tax — also called a millage — that helps cover some of the cost for road repairs and maintenance. That injection of money has improved roads throughout the county.
In some instances, how-
Having
tax for roads.
“They help choose and pay for the projects,” he said. “If we had a county millage, then some townships may have more projects than others and some people would be upset by that.”
In Alpena, Montmorency, and Presque Isle counties, some townships have property taxes earmarked for roads, but, to make largescale street improvements, more investment from the state is needed, officials say.
Earlier this month, new state House Speaker Matt Hall unveiled a $3.1 billion road plan that would help upgrade crumbling infrastructure in Michigan. The funding would be drawn from the state’s corporate income tax, utilizing surplus money from the general fund, and other money from the gasoline tax.
By STEVE SCHULWITZ News Staff Writer
ALPENA — Northeast Michigan streets near business districts are in better condition than roads in the neighborhoods and other main streets around them, according to state data.
Quality roads may be considered a plus when a developer considers opening a business in an area and subpar roads count as a negative when people look to move to the area and choose a place to live, economic development officials say. In Rogers City, road conditions have drastically improved in business districts and on heavily used main streets.
Mayor Scott McLlennan said that, about seven years ago, the city conducted a road assessment for every street in the city.
From that, the city crafted a 20-year plan to address road conditions, and the road system has improved significantly because of the execution of that plan.
He said that, when road projects are chosen, the location, amount of traffic flow, and whether any utility work below the street is needed are key factors.
McLennan said roads and even sidewalks have an impact on development, growth, and progress. He said that, if a local government can’t maintain streets or sidewalks, it could make a potential developer wonder if the local government is responsible.
“Streets are part of the equation for developers, as are sidewalks,” he said. “The condition of streets can reflect the health of a community and, if you see bad streets or sidewalks, businesses ask why that is and there could be doubts about development.”
Finding funding to complete road projects is the biggest hurdle local road officials face. County road commissioners depend on federal and state funds to pay for projects and offer matches for projects in townships.
The problem is that streets are deteriorating faster than work can be done, and large-scale investment is needed to bring the roads up to snuff, roads officials say.
Jesse Campbell, Alcona County Road Commission managing director, said Alcona County is lucky because each of the townships in the county have property taxes that allocate money specifically for road improvements.
He said that, before a township proposes road projects, he does a ridealong with township officials to find which roads need work. Sometimes, he said, roads subjected to abuse from tractor-trailers or other heavy vehicles needed for businesses or projects need to be addressed.
He said that, over the last decade, there have been a lot of road improvements in his county. He said that, not long ago, the county would have to close many streets during the spring thaw and impose restrictions, but he said there are few roads now that are impacted that way because they are improved.
“People can just look around and see the improvements,” Campbell said. “I think the road conditions reflect well on the community and could be a factor in whether to invest in the area or not.”
State Rep. Cam Cavitt, R-Cheboygan, who represents Northeast Michigan in the state House, said roads impact many aspects of a person’s life. He said it impacts com merce and the state government is doing what it can to im prove roads, especially in rural areas. He said state laws often limit how many road projects can happen at once, and that has also put municipalities behind the eight-ball for making road improvements.
ever, the increase in revenue has slowed some viable road projects because there is too much funding.
According to Alcona County Road Commision Managing Director Jesse Campbell, the townships’ road funding is a good thing, but the abundance of cash also limits the work his staff can do because, for most township projects, the Road Commission offers the township a 50% match in funds. Because the townships have enough money in their coffers for many projects, the Road Commission does not have the funds to match all of them.
Still, Campbell said, having township-specific projects is a good thing, because each municipality is getting what they pay for, which may not be the case if the county levied a countywide
Hall wants the bulk of the money used to fix local roads in cities and townships. Money could also be used to help municipalities pay for water and sewer infrastructure projects. It is not known when or if there will be action taken in the state House or what the appetite for the proposal is in the state Senate.
State Rep. Cam Cavitt, R-Cheboygan, who represents Northeast Michigan in the state House, said investment in Michigan’s roads and bridges is something that has been promised to residents in the state for many years.
He said state government must fulfill those promises.
“We just have to do it,” Cavitt said. “We have promised to ‘fix the damn roads,’ and now we need to get it done.”
“Good roads are essential to Michigan’s economy and our quality of life,” Cavitt said. “Whether it is getting kids to school, goods to market, or families safely home, reliable infrastructure impacts everything we do. I wish I could wave a magic wand and fix all of the roads overnight, but
Alpena Road Commission trucks groom a road in Alpena County in this undated photo provided by the
After a rough start, 2024 turned positive
It is the time of year when I am asked to write a column recapping economic development activity for 2024, peek ahead to 2025, and share my thoughts and expectations on what is to come. I have a lot of projects I will not be able to address, given the word limit I must work within, so I will focus on some of the larger economic development elements.
Here goes!
Last year was a bit unusual in that we had real swings in terms of our economic development news. It was a roller coaster.
The end of 2023 was akin to riding the roller coaster up to the top (without the stress-inducing clicks as you are being carried to the peak) without knowing there would be a drop coming. Things were good and all trending positively as 2023 came to an end. COVID-19 was distant in our rearview mirrors, and things were back to normal. Investor interest was high, as evidenced by announcements late in 2023 of the Hampton Inn and Aldi coming to the Alpena area.
Then came the start of 2024 and, in February, we suddenly found ourselves having crested a peak and suddenly descending.
The tipping point was the news of Decorative Panels International shuddering its Alpena facility and eliminating all the jobs at the plant.
That caught the community off-guard.
ects were both taking shape. By summer, we learned of the plans for an Ollie’s Bargain Outlet to take over a significant portion of the former Nieman’s location in the Thunder Bay Shopping Center. That was great news, given that the U.S.-23 South corridor needs a boost. By late fall, the store was open.
Also, during the summer, we learned that PACE — the Program of All-inclusive Care for the Elderly — intended to bring their programming to our side of the state and, better yet, make a big investment into the former Peebles location a little farther south on U.S.-23, bringing more activity into that often-overlooked part of the community.
Both projects helped reoccupy underutilized shopping centers/strip malls, which was great to see.
Later in the summer, Edward Jones elected to add a new location and were the first developers of the city-owned land on the north end of town just off U.S.-23. The sale and construction of the new location on Hemlock Lane began this summer and was open for business by the fall, bringing activity to land that has sat ready for development for a decade.
There was a secondary impact of the closure on the companies that served the plant.
In the immediate aftermath of the announcement, I was involved with a couple of different investor groups that expressed interest in touring the facility to assess the viability of purchasing it and continuing to run it as a hardboard plant. For those investors who toured the facility the week of the announcement, it became clear there was no path forward. Key employees were highly recruited and the standing orders from the largest DPI customers were already being shopped. Once those orders shifted to the DPI competitors, it was all but impossible to save the facility and the business.
Within a month of the announcement, it appeared the plant would never reopen as a hardboard facility. The loss of key staff, customer orders, and the costs of repairing years of deferred maintenance items were too onerous.
It was time to start thinking about what could become of the plant and the land on which it sits.
The city’s Planning Commission began the process of reimagining the site and how it could be incorporated into the long-term plans of the neighborhood, the Alpena Downtown Development Authority, and the city in general.
The community made clear they no longer had interest in industrial production coming from that location. Outside of the gross domestic product impact of direct and indirect employment, there were few benefits associated with the facility (particularly in that location).
Also, not long after the DPI announcement, we learned of the plans to close the Fresh Palate.
After 15 years in a high-profile downtown location, the loss of that anchor business was significant. For me, it is not a coincidence that the beginnings of the turnaround of our downtown began about the same time the Fresh Palate opened. When the restaurant opened, it was among the early drivers of foot traffic into our downtown.
I think many of us noticed the steady increase and interest building in our downtown area over the last decade.
The opening of the Fresh Palate was among the first elements of the turnaround.
Those two negative announcements early in the year were a harsh way to start 2024, given how well things ended in 2023.
Despite this auspicious beginning to 2024, by mid-spring, the Hampton and Aldi proj-
On the heels of the Edward Jones purchase, another developer elected to finalize their proposal for a project adjacent to the new Edward Jones office. That became the Alpena Gardens project. The developer presented an offer to the city this fall, laying out their plans for a $50 million investment that will create 100 jobs (70 full-time). That project could potentially help with our housing shortage by giving seniors a viable housing option, allowing them to sell their existing homes and take up residence in one of 68 independent living units to be built as part of the project.
Also this fall, plans were unveiled for a new gas station and convenience store and food stop at the corner of Airport Road and M-32. That project is known as Jet’s Junction.
What is nice is that all parts of the area were being favorably impacted by development activity from the north, south, and west.
Lastly, near the end of the year, it was announced the city had an offer for the remaining city property on U.S.-23 North (approximately 70 acres) to build approximately 400 units of housing.
That was great on so many levels.
The city executed the agreement, but the developer never returned it.
That was a huge disappointment and a great reminder of the nature of this work. There are so many elements that can impact a deal, many of which are outside of our control. It reinforces my own experience that, just because a project is announced, it is no guarantee that the project will become reality.
With the benefit of hindsight, for me, the story of 2024 was a tale of both positive and negative.
I would argue that the positive trumped (no pun intended) the negative.
We had many great outcomes, given the rough start to our year. We may look back in 10 years and recognize the closure of DPI as a watershed moment that really helped to expedite the renaissance of the north side and the downtown area overall.
My hope is that, in the long term, we will see some overall significant positive development that occurs on the former DPI site.
We need to recognize that the redevelopment of DPI will take time. That is a large parcel, and the costs to remove and clean up what is there are significant.
In the meantime, we have plenty of opportunities to celebrate in the coming year that will continue to build on our overall momentum as a community.
As is often the case, my optimism is well-placed as I look toward 2025 and beyond.
Mike Mahler is economic development director at economic development firm Target Alpena.
Unemployment Rates by County in Michigan 2024
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Housing,
Continued from Page 2C
costs of building new housing from the ground up. He said housing projects come with a large price tag, and developers who pay for the projects have to sell or rent the properties for more than what many in the community can afford to try to recoup that investment.
He said there may be some light at the end of the tunnel, however, as material costs and interest rates are beginning to come down.
“There are many developers that have reached out to discuss with me available land for subdivision development,” Mahler said. “The conversations centered on parcels from five acres to 20 acres. The lack of contractors, the excessive cost of building materials, lower local rental rates, and elevated interest rates are all significant factors in determining the viability of these projects. Some building material prices have declined in 2024, and there is an expectation of further interest rate cuts in 2025, which could help
Talent,
Continued from Page 3C
and-mortar businesses, Krawczak said.
Pamela Richardson, president and CEO of Star Staffing Alpena, said in an email to The News one obstacle facing Northeast Michigan in getting people to relocate is their inability to find affordable housing.
Richardson said that, because of the number of people retiring, local companies have a lot of openings that need to be filled.
Many companies are offering more benefits than they had in previous years to incentivize potential hires. Most businesses care about the well-being of their employees, she said.
Richardson noted that, in certain fields, there are plenty
Roads,
Continued from Page 4C
the reality is that the state cannot do it all, as only 7.9% of Michigan’s public road network is under the authority of (the Michigan Department of Transportation). Through my work on the Appropriations Committee, I have learned that, logistically, only 10% of roads can be closed in a year without significantly impeding traffic and disrupting emergency vehicle response times. This means that, even if we had unlimited money — which we do not — and unlimited workers — which we are also short on — it would still take a minimum of 10 years to fix all of our roads.”
In Alpena, the downtown area, 2nd Avenue, and Chisholm Street are scored as in good condition by the Michigan Transportation Asset Management Council.
A portion of 2nd Avenue beyond the 2nd Avenue Bridge on the north side was rated as poor, but, in 2024, the city completed a large improvement project on that stretch of road and that grade should bounce up when the state issues new grades.
By MATT OTT - AP Business Writer
WASHINGTON — U.S. consumer confidence dipped for the second consecutive month in January, a business research group said Tuesday.
The Conference Board reported that its consumer confidence index retreated this month to 104.1, from 109.5 in December. That is worse than the economist projections for a reading of 105.8.
December’s reading was revised up by 4.8 points but still represented a decline from November.
The consumer confidence index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.
Consumers appeared increasingly confident heading into the end of 2024 and spending during the holiday season was resolute. In the face of higher borrowing costs, retail sales rose 0.4% in December and stores generally reported healthy sales during the winter holiday shopping season.
The board said that consumers’ view of current conditions tumbled 9.7 points to a reading of 134.3 in January and views on current labor market conditions fell for the first time since September.
The measure of Americans’ short-term expectations for income, business and the job market fell 2.6 points to 83.9.
The Conference Board says a reading under 80 can signal a potential recession in the near future.
However, the proportion of consumers expecting a re-
further close the financial gaps that exist.”
Rogers City Mayor Scott McLannan said that even small cities like Rogers City are impacted by the housing shortage. He said adding to the existing housing inventory is a high priority, because the housing shortage directly impacts future development and the number of people who can move to Rogers City.
“We know that housing is critical to building a strong economy,” he said. “We have a large shortage of family homes, and that makes it so businesses struggle to find employees. Finding staff is often tied directly to housing or a lack of it.”
McLennan said his city is working with Mahler, economic development firm Target Alpena, and other partners to lure in developers to build more housing. He said there is no easy solution to solving the problem and it’s something that is going to take time to address.
State Rep. Cam Cavitt, R-Cheboygan, who represents Northeast Michigan in the state House, said this region is not unique and the housing crisis is widespread around the state and country. He said the state has programs that can help people purchase homes or help with rent, as well as assist housing investors.
“Housing is the foundation of strong communities and thriving families, and, in Michigan, we recognize the importance of ensuring everyone has access to safe and affordable housing,” Cavitt said. “Through programs like the Michigan State Housing Development Authority, we’re providing resources for first-time homebuyers, offering rental assistance, and supporting affordable housing development projects. These initiatives are critical for addressing housing challenges, boosting our economy, and making Michigan a great place to live, work, and raise a family.”
of opportunities for economic growth. Manufacturing hiring has slowed down, for instance, while most medical-related fields are begging for people.
Mike Mahler, economic development director at the Alpena Area Chamber of Commerce, said Alpena lacks people working in the trades.
“We need plumbers, carpenters, pipefitters, electricians, people who don’t follow the traditional four-year college path,” he said.
“We don’t want contractors coming from Saginaw to build a $47 million facility here,” he added, referring to a senior living community planned for Alpena. “We’d much rather have local companies with local talent.”
Similarly, the entirety of State Avenue, from downtown until Mason Street, is rated as good condition, but drops to fair condition beyond Mason.
Large sections of 3rd Avenue, outside of downtown, 9th Avenue, 11th Avenue, Johnson Street, and much of Long Rapids Road, which are main arteries for motorists, are graded as poor and in need of maintenance.
Similarly, there is a noticeable dropoff in road conditions where Washington Avenue turns into M-32 at the intersection of M-32 and Bagley Street.
The highway is graded in fair condition in front of Walmart, Meijer, and other nearby businesses, but the highway’s rating drops into poor condition beginning at Walter Street and remains that way until just before the county jail and the airport, when it improves to good condition.
M-32 and U.S.-23 are part of the state trunkline, and local government is not responsible for paying for road projects or maintenance of those highways.
cession over the next 12 months remained stable at the low end of the series range.
Though the board’s index has declined the past two months, consumers continue to spend, helping to prop up the U.S. economy since the sharp rebound from the COVID-19 recession in the spring of 2020.
In December, the government said that the U.S. economy grew at a healthy 3.1% annual clip from July through September, propelled by vigorous consumer spending and an uptick in exports. GDP growth has topped 2% in eight of the last nine quarters.
A housing development like that could cause a domino effect. As older people move out of their homes and into the facility, it would open up housing options for young people and families to move in, bringing talent to the area, said Mahler.
Mahler sees progress towards positive economic development, although there is a need for better child care facilities and continued entertainment options to incentivize people to move here.
“Momentum does create more momentum, and we’ve got good momentum right now,” Mahler said.
Alpena County Road Commission Managing Director Ryan Brege said that, because of limited funds, the Road Commission needs to be conscious of the road projects it does. He said that, often, streets in business districts like M-32 and U.S.-23 depend on the state approving and paying for improvements, and those stretches are often in good shape. Brege said the Road Commission focuses on streets still in reasonable condition but beginning to degrade.
“When we select projects, we look at roads that may not be awful now, but are ready to get that way,” he said. “We don’t want to wait until a road is in poor shape and then have to spend more to fix it.” Brege said he is unsure if road conditions impact growth or development.
AP Photo A shopper carries bags down Fifth Avenue on Friday, Nov. 25, 2022, in New York.
By JOSH FUNK, MARK VANCLEAVE and DEE-ANN DURBIN Associated Press
OMAHA, Neb. — Bird flu is forcing farmers to slaughter millions of chickens a month, pushing U.S. egg prices to more than double their cost in the summer of 2023. And it appears there may be no relief in sight, given the surge in demand as Easter approaches.
The average price per dozen nationwide hit $4.15 in December. That’s not quite as high as the $4.82 record set two years ago, but the Agriculture Department predicts prices are going to soar another 20% this year.
Shoppers in some parts of the country are already paying more than double the average price, or worse, finding empty shelves in their local grocery stores. Organic and cage-free varieties are even more expensive.
Some grocery stores have even limited how many eggs shoppers can buy.
“It’s just robbery,” said Minneapolis resident Sage Mills, who bought eggs to bake a birthday cake last week. “Eggs used to be kind of a staple food for us, but now you know, you might as well just go out to eat.”
The bird flu outbreak that started in 2022 is the main reason egg prices are up so much.
Anytime the virus is found on a poultry farm, the entire flock is slaughtered to help limit the virus’ spread. And with massive egg farms routinely housing more than 1 million chickens, just a few infections can cause a supply crunch.
The problem tends to linger because it takes months to dispose of all the carcasses, disinfect barns and bring in new birds. More than 145 million chickens, turkeys and other birds have been slaughtered since the current outbreak began, with the vast majority of them being egg-laying
chickens.
Cage-free egg laws in 10 states may also be responsible for some supply disruptions and price increases. The laws set minimum space for chickens or cage-free requirements for egg-laying hens. They’ve already gone into effect in California, Massachusetts, Nevada, Washington, Oregon, Colorado and Michigan. At a Target in Chicago on Monday, a dozen large conventional eggs cost $4.49 but a dozen large cage-free eggs were selling for $6.19.
Bird flu is primarily spread by wild birds such as ducks and geese as they migrate. While it is fatal to a variety of animals, those species can generally carry it without getting sick, which offers the virus a chance to mutate and thrive.
The virus can be spread through droppings or any interaction between farmraised poultry and wild birds. It’s also easily tracked into a farm on someone’s boots or by vehicle.
Unlike previous outbreaks, the one that began in 2022 didn’t die out in high summer temperatures.
The virus found another new host when dairy cattle started getting sick last March. That creates more opportunities for the virus to linger and spread and unlike poultry, cattle aren’t slaughtered when they get sick because they rarely die from bird flu.
More than five dozen people have also become ill with bird flu and one person died since last March. Nearly all of them worked around sick animals. Health officials haven’t yet found evidence of the disease spreading from person to person.
Farmers go to great lengths to protect their flocks.
Many poultry farms installed truck washes to disinfect vehicles entering their property and require workers to shower and change clothes before stepping inside a barn. They have also invested in duplicate sets of tools so nothing used in one barn is shared.
Some poultry farmers have even invested in lasers that shoot beams of green light in random patterns to discourage ducks and geese from landing.
Dairy farmers isolate any sick cattle and do additional testing before moving animals off the farm — especially if there has been a nearby outbreak or if the cows are being sent to a meat processing plant. The government is also testing milk.
Future vaccines might help, but it’s not practical to vaccinate millions of chickens through shots, and other countries might refuse to purchase meat from vaccinated birds.
Health officials emphasize that any sick birds or cattle are kept out of the food supply. Cooking meat to 165 degrees (74 Celsius) kills bird flu, E. coli, salmonella or anything else. Pasteurization also kills the virus in milk. Raw milk is the only food product linked to illnesses so far.
It is impossible to know how much farmers have spent to seal barns, build shower houses for workers or to adopt other biosecurity measures.
“Over the last five years, my small farm alone has spent hundreds of thousands of dollars on biosecurity,” said Minnesota turkey farmer Loren Brey. “But not only that, it’s the time daily that you’re attending to biosecurity.”
The U.S. Department of Agriculture has spent at least $1.14 billion compensating farmers for the birds they have had to kill. A similar number wasn’t immediately available for how much has been spent to aid dairies.
USDA spokeswoman Shilo Weir said the department also spent more than $576 million on its own response.
The prices of turkey, milk and chicken have also seen some pressure from bird flu.
Mike Vickers, a manager at Sentyrz Liquor & Supermarket in Minneapolis, said he can’t even stock any organic, cage-free or brown eggs right now and is limited instead to selling large or jumbo eggs. He understands the pain customers are feeling.
“It’s the first time in my life that I’ve ever had to be kind of embarrassed on what I’m selling eggs for,” he said. “And it’s not our fault. We’re paying today $7.45 for a dozen eggs. We’re selling for $7.59. We’re making $0.14. That’s doesn’t pay the bills.”
AP Photo Eggs sit for sale at a grocery store, Monday, Jan. 27, 2025, in Windham, Maine.
How communities benefit when consumers shop local
Ideas about shopping are never set in stone, and the pandemic illustrated just how quickly consumer trends and opinions can change. Many individuals are now reevaluating how they spend their hard-earned money, particularly since inflation has affected just how far a dollar can be stretched. When consumers think about which stores to patronize, locally owned businesses may be the smartest option for a number of reasons — not the least of which is the way such enterprises benefit the communities they call home.
More money kept in the community
Shopping locally means that more money will stay in the community. According to recent research from Civic Economics, local eateries return nearly 79 percent of revenue to the community, compared to just over 30 percent for chain restaurants. Overall, for every $100 spent at a local business, around $73 remains in the community, verus roughly $43 when shopping at a non-locally owned business.
Get a personal touch
Local business owners typically are inclined to go the extra mile for their customers and are personally invested in the services and products they are selling. As a result, shopping locally tends to be a personalized experience. Furthermore, a local business owner may be more amenable to ordering products for specific clientele. Such personalized service is typically not accessible when shopping big box stores or other shops where owners are off-site.
Lines are short
Waiting in long lines for checkout or to pick up merchandise ordered online can drain consumers’ energy and contribute to stress. Local businesses tend to have short lines and small crowds, which can lead to a more pleasant shopping experience.
Generates tax revenue
Local businesses generate more tax revenue per sales dollar, according
