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Construction set to begin in early 2026 on Mill Creek Choice Neighborhood Initiative

Published on July 30, 2025

Construction is expected to begin early next year on the first phase of the Mill Creek Choice Neighborhood Initiative just west of Memorial Parkway along Governors Drive.

Dennis Madsen, Manager of Urban and Long-Range Planning, presented an update to the Planning Commission earlier this month that outlined a modified site plan for the site, which sits between Governors Drive and Clinton Avenue with an eastern border of Seminole Drive.

rendering of large brown-colored building in neighborhood
Artist rendering of the universal design building, which is planned to be the first facility constructed at Mill Creek.

The Planning Commission also unanimously approved a resolution of support for the Mill Creek Transformation Plan.

Mill Creek is a partnership with Huntsville Housing Authority (HHA) that will invest $350 million into a mixed-income community with workforce housing, medical and childcare services and retail options. The City last year received a $50 million grant from U.S. Department of Housing and Urban Development (HUD) as part of the Mill Creek project.

The first phase of the plan is an 84-unit universal design building that will be built on the southwest corner of the site, followed closely by a 100-unit senior housing facility in phase two. Madsen said that will allow residents in Johnson Towers, which is also on the Mill Creek site, to relocate to the new facilities. Johnson Towers will then be razed to make room for future phases of Mill Creek.

“Most of the residents at Johnson Towers will move to one of those two new facilities,” Madsen said. “And the great thing about that is that they only have to move once into a new building. HUD prefers to minimize the disruptions for the residents who are on site.”

graphic outlining the phasing plan for Mill Creek

 

Phases 3, 4 and 5 are planned for about 400 units of family housing. Separately, Huntsville Hospital will construct a facility along Seminole Drive with at least 125 housing units for its employees.

Altogether, plans call for more than 700 units of housing at Mill Creek, which will include workforce, public and market rate housing.

Madsen also stressed that there is more to Mill Creek than just housing.

“Another key part is about the atmosphere that you have,” he said. “It should have quality streetscaping, quality public spaces. A big part of this and the City’s participation is the Mill Creek Park.”

Plans call for part of the park to include a capped area over the concrete culvert that currently divides the site. The City has already been working with the U.S. Army Corps of Engineers to overhaul the culvert so that it can accommodate a park.

“It will allow us to create a linear park that runs through the middle of this neighborhood,” Madsen said. “It gets rid of that disruption.”

Mill Creek has a timeline to be built out in eight to 10 years.


View the Mill Creek Update Powerpoint Presentation 

View the Mill Creek Update Video


ARCHIVE

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What’s next: City leaders set sights on Mill Creek community 

Breaking down the Mill Creek Choice Neighborhood grant

Significant Mill Creek development earns prestigious $50M HUD grant