Two major Alpena development projects are progressing, but neither has reached the point where construction timing is certain. Mike Mahler, interim director for Target Alpena, said financing work continues for the Gardens of Alpena Senior Living Community, while demolition and environmental remediation remain underway at the former DPI property.
Mahler is serving as Target Alpena’s interim director while the organization searches for a replacement for former director Lenny Avery. In the role, he has been reporting on grants and continuing to work behind the scenes on the Gardens of Alpena and DPI projects.
Gardens of Alpena project still awaiting financing
The Gardens of Alpena Senior Living Community was first proposed in 2024. The planned facility would include 128 apartments in two buildings, along with amenities and recreational offerings.
As of Friday, there was no definitive date for the project to break ground. Mahler said the ideal scenario would be to construct both buildings at the same time, but that decision rests with the developer and depends on financing.
“Ideally, they'd like to build it in the two parts at the same time,” he said. “But it looks more likely it's going to start in a phased approach with the assisted living being the first phase, independent living being the second phase.”
Mahler said building both structures at once would require a lender willing to commit to the two projects simultaneously. The developer is currently arranging financing before construction begins.
“It takes more money to do it at once. It takes a bank that's willing to commit to both projects at the same time,” he added. “I think it ultimately is their goal, but right now they don't have that commitment in place yet.”
A second developer is interested in developing the remaining property for additional housing. That matter will be handled with the City of Alpena. Mahler said the City Council recently extended its letter of interest with the developer and the parties are working toward a purchase agreement.
Former DPI property remains in demolition phase
Melching Inc., a Norton Shores company specializing in demolition and environmental remediation, agreed to purchase the former DPI property in 2025. Mahler said demolition is still underway, with crews having reached lagoons on the site.
He hopes a future developer will take on the property’s infrastructure demands and create a project that could include lodging, retail or a community space. Mahler said the site could serve multiple markets by attracting both short-term visitors and people seeking longer-term reasons to live in Alpena.
“Lodging, retail ... stuff to draw tourism to the community, stuff to draw people to the community both short-term and long-term,” he added.
Mahler described that vision as a long-term solution for property in the heart of the city, with access to downtown. He said the ability for residents to walk from their homes to downtown would address a need Alpena currently lacks.
Downtown Alpena faces turnover and vacancies
Since spring 2025, six businesses have closed or relocated from downtown Alpena. The Olivet Book and Gift shop closed permanently in spring 2025 and remains vacant. Samantha’s on 2nd closed in fall 2025, while Blue Moon Cafe moved into a vacancy in The Center Building.
Sweet Baby James, a boutique infant and toddler store, and the downtown Bigby location also closed during the summer. Noise and Toys relocated to Werth Road last month. Bobs Bullpen left its former downtown location and is moving into the former Noise and Toys space.
The Black Sheep is scheduled to close Sept. 30. Tara Brilinski, owner of Rosa’s Lookout Inn in Spruce, will lease the building from Paul and Kris Conger.
“I was sad to hear they were closing,” Mahler said regarding The Black Sheep. “I was happy to hear we got another viable business coming to town. Somebody with a proven track record.”
Mahler said inflation and higher operating costs have made it difficult for small businesses to remain open. He is disappointed by the closures and relocations but expects vacant storefronts to eventually fill with new businesses.
“I'm disappointed to see things happening but I also understand that it's complicated,” he said. “The world is more expensive today to operate in and inflation's been hard on businesses so I just think that over the long term, though, those empty buildings will get filled again.”
He said long-standing vacancies are more frustrating than ordinary business turnover. Mahler also cautioned that the City of Alpena and the Alpena Downtown Development Authority have limited authority to force property owners to develop or sell buildings.
Instead, the city must balance support, patience and encouragement while preserving collaboration with property owners. Mahler credited DDA Executive Director Anne Gentry with helping generate renewed interest in the downtown.
“Anne's done a great job,” he said. “She's created a lot more interest. Downtown's never looked better.”
