Significant Mill Creek redevelopment earns prestigious $50M HUD grant

Published on July 17, 2024

The City of Huntsville and the Huntsville Housing Authority have been awarded a prestigious $50 million Choice Neighborhood Implementation (CNI) Grant from the U.S. Department of Housing and Urban Development (HUD) to help revitalize and transform the area surrounding Butler Terrace and Johnson Towers.

The grant sets the stage for a $350 million investment to redevelop the 27-acre site, now known as Mill Creek, into a mixed-income community with workforce housing, medical and childcare services and retail options.

"It took five years of planning and a dream coalition of community and federal partners to bring this project to fruition. This exceptional model allows us to create a new neighborhood - one that centers on the needs of residents and provides housing for workers who are the backbone of this city." - Huntsville Mayor Tommy Battle

Jennifer L. Collins, U.S. Housing & Urban Development (HUD) Regional Administrator for Region 4, speaks at Huntsville City Hall Wednesday, July 17, 2024, as Mayor Tommy Battle looks on. The City was awarded a prestigious $50 million Choice Neighborhood Implementation (CNI) Grant from the U.S. Department of Housing and Urban Development (HUD) to help revitalize and transform a distressed area surrounding Butler Terrace and Johnson Towers.

The Mill Creek project area is located west of Memorial Parkway between Seminole Drive, Clinton Avenue and Governors Drive. The multi-year plan will replace distressed public and assisted housing with high-quality, mixed-income housing that is well-managed and responsive to the neighborhood.

"This prestigious grant will significantly aid us in furthering our mission of developing and preserving a high standard of safe and affordable housing for qualifying individuals and families, ensuring these opportunities are free from discrimination," said Tony McGinnis, Executive Director of the Huntsville Housing Authority (HHA). "We look forward to leveraging this support to create vibrant, inclusive communities and enhance the quality of life for our residents."

MILL CREEK REDEVELOPMENT: NEXT STEPS

Huntsville's strength in securing the competitive CNI grant hinged on the commitment of 27 partners and stakeholders. This includes a $27 million investment by Huntsville Hospital to create 125 workforce housing units and to operate a health care clinic on-site.

"The Choice Neighborhoods Initiative is a rare opportunity to improve healthcare access while also making a large positive impact on our workforce needs," said Jeff Samz, CEO of Huntsville Hospital. "We are so excited to bring healthcare to this development and just as excited to offer our employees efficient access to housing. This project checks all the boxes and we're incredibly proud to be part of it."

Another key partner is McCormick Baron Salazar, a leading developer, property manager and asset manager of economically integrated urban communities. The firm will redevelop the project site in five phases over eight years to ultimately provide 705 mixed-incoming units.

SEE THE MILL CREEK REDEVELOPMENT PRESENTATION

"This is no longer a plan," said Joe Weatherly, Senior VP Development, McCormick Baron Salazar. "This is no longer an application. It's no longer a pile of paper and a lot of conference calls. This is going to happen."

For District 1 City Council Member Devyn Keith, the CNI grant represents a significant step in providing affordable housing for Huntsville's diverse workforce, a cause he has championed as an elected leader.

"The Mill Creek project sets the standard for what neighborhoods can and should be," said Keith. "Receiving this grant is a significant moment for Huntsville. As we continue to grow, we must work to find more innovative and affordable housing opportunities."

[Link]From left, Jennifer L. Collins, HUD Regional Administrator for Region 4, Mayor Tommy Battle, Huntsville Housing Authority Executive Director Antonio McGinnis and District 1 City Council Member Devyn Keith pose with a $50 million check from the U.S. Department of Housing & Urban Development.

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