The City of Huntsville and the Huntsville Housing Authority have secured a significant $50 million Choice Neighborhood Implementation (CNI) Grant from the U.S. Department of Housing and Urban Development (HUD).

The goal of the grant, as outlined by the City’s longterm goals, is to help transform the area surrounding Butler Terrace and Johnson Towers into a mixed-income community now known as Mill Creek.

“This project has been five years in the making, with a dream coalition of community and federal partners,” stated Mayor Tommy Battle. “We now have the opportunity to create a neighborhood that centers on residents’ needs and provides essential housing for our workforce.”

The Mill Creek redevelopment, valued at over $350 million, encompasses a 27-acre site located west of Memorial Parkway between Seminole Drive, Clinton Avenue, and Governors Drive.

The project aims to replace distressed public housing with high-quality, mixed-income housing, and introduce critical services such as healthcare, childcare, and retail options.

Tony McGinnis, Executive Director of the Huntsville Housing Authority, emphasized the project’s mission during the Wednesday morning announcement.

“This grant significantly aids our efforts to develop and preserve safe, affordable housing for all qualifying individuals and families, free from discrimination. We are eager to leverage this support to create vibrant, inclusive communities,” said McGinnis.

The project benefits from the commitment of 27 partners and stakeholders, including Huntsville Hospital, which has pledged $27 million to establish 125 workforce housing units and a healthcare clinic on-site.

“The Choice Neighborhoods Initiative offers a unique opportunity to enhance healthcare access while addressing our workforce housing needs,” said Jeff Samz, CEO of Huntsville Hospital. “We are excited to be part of this transformative project.”

McCormack Baron Salazar, an urban community developer, will manage the site’s redevelopment in five phases over eight years, resulting in 705 mixed-income housing units.

Councilman Devyn Keith of Huntsville City Council District 1 was also present at the event.

“The Mill Creek project sets a new standard for neighborhoods. As Huntsville grows, we must continue to find innovative and affordable housing solutions,” said councilman Keith.

The redevelopment will feature approximately 580 new residential units, with Huntsville Hospital contributing an additional 125 units for its staff.

The first phase, set to begin within 10-12 months, includes an 84-unit Universal Design building at Governors Drive and 1st Street, set to house current Johnson Towers residents by 2027. Subsequent phases will add senior and family housing, retail amenities, and extensive infrastructure improvements, including new streets, public art installations, and the development of Mill Creek Park.

Significant milestones include the groundbreaking of a new Food City store on Governors Drive and the upcoming Pedestrian Access and Redevelopment Corridor (PARC) project. The PARC will feature a 1,400-foot cable suspension bridge connecting Mill Creek Park to Memorial Parkway, enhancing pedestrian and cyclist safety.

Further plans involve converting the Martin Luther King Jr. building into a “Smart Space” facility with early learning classrooms, a food pantry, and recreational areas. Greenway and multiuse path connections to Brahan Spring Park and John Hunt Park are also in the works.

An Affordable Housing Manager will soon be appointed within the City’s Community Development Office to develop and implement strategies for affordable, secure, and sustainable housing.

The multi-phase redevelopment is expected to span approximately eight years, with various infrastructure, small business, and public art initiatives planned throughout the project timeline.

The project’s milestones are as follows:

2025: Small business and commercial façade renovation grants become available.
2026: Infrastructure improvements, including the Broglan Branch enclosure and Mill Creek Park plans.
2026-2027: Small business enhancement efforts begin, including workshops and credit courses.
2028-2030: Placemaking and public art initiatives launch, featuring sidewalk art, artistic bike racks, and murals.
2031: Mill Creek Park amenities, including new trails, playgrounds, and recreation areas, are installed.
2032: Public art installations are completed.
2033: Final grant report submitted to HUD, marking the project’s completion.