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Construction on Mill Creek Neighborhood Initiative set to begin in 2026

August 4, 2025
in News
Construction on Mill Creek Neighborhood Initiative set to begin in 2026
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HUNTSVILLE, Ala. (WHNT) — Construction is expected to begin early next year on the first phase of the Mill Creek Neighborhood Initiative.

The planned site is located just west of Memorial Parkway along Governors Drive.

Mill Creek is in partnership with the Huntsville Housing Authority (HHA), which is providing $350 Million into a mixed-income community with workforce housing, medical and childcare services and retail options.

The City of Huntsville also received a $50 million grant from U.S. Department of Housing and Urban Development (HUD) as part of the Mill Creek project.

You can see the plan for phases 1-5 as the project continues:

  • Phase One: Construction of an 84-unit universal design building that will be built on the southwest corner of the site.
  • Phase Two: Construction of a 100-unit senior housing facility.
  • Phases Three- Five: 400 units of family housing are set to be built.

Separately, Huntsville Hospital will construct a facility along Seminole Drive with at least 125 housing units for its employees.

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

Dennis Madsen, Manager of Urban and Long-Range Planning, 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 destroyed 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.”

According to Madsen, there is more to Mill Creek other than 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.”

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

The post Construction on Mill Creek Neighborhood Initiative set to begin in 2026 appeared first on WHNT.

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