Michigan Community Capital Eyes Rockwell Redevelopment as Chelsea City Council Weighs Support

At a July 1 Chelsea City Council meeting, Michigan Community Capital detailed a $19.7M plan to convert the Rockwell building into workforce housing. Council showed early support.

Photo: The Rockwell Building is located  on the corner of Railroad and East streets and is part of Chelsea’s Clocktower complex. Image: Google Streetview

The long-vacant Rockwell building in downtown Chelsea could be transformed into affordable workforce housing if a new redevelopment effort moves forward, but the clock is ticking.

At a special Chelsea City Council meeting on July 1, Marilyn Chrumka, Vice President of Development for Michigan Community Capital (MCC), presented her nonprofit’s proposal to purchase and redevelop the historic building. Chrumka detailed MCC’s plan to invest $19.7 million into the property, converting it into income-restricted apartments for middle-income residents.

MCC is under contract to buy the building and must decide by July 10 whether to proceed with the purchase. Chrumka turned to the city council to gauge its willingness to support the project, especially in the wake of the city manager’s recent departure.

“I just want to hear from Council directly,” said Chrumka. “Since my line to Council, which was Marty [Colburn], is now gone, I’m feeling nervous about this purchase.”

Nonprofit Steps In Where For-Profit Fell Short

The Rockwell project had previously been in the hands of a for-profit developer who walked away due to rising construction costs. MCC was approached as an alternative because, as a nonprofit, it can accept lower returns on investment.

“Because they’re for-profit developers, they just couldn’t make the numbers work. We’re able to do projects on skinnier margins,” Chrumka explained.

MCC’s plan is to maintain the site’s current unit count and layout but add affordability requirements, targeting residents earning 60–120% of the area median income, or roughly $52,000 to $105,000 per year.

Historically, the Chelsea Rockwell building, constructed in 1909, served as a stove manufacturing warehouse and underwent various industrial uses over the decades. The building has been vacant since 1987.

“We’re proposing the apartments will have affordability, so not significantly lower [income residents]. This is very much working middle-class people,” she said.

A New Financial Model

The project’s estimated $19.7 million cost would be funded through federal historic tax credits, Michigan State Housing Development Authority (MSHDA) grants, and $8.5 million in bank and equity financing. However, all previous grants must be reapplied for, including nearly $4 million in funding from the Michigan Economic Development Corporation (MEDC).

“They [MEDC] expressed nothing but excitement and willingness to consider an application,” Chrumka told the council, citing MCC’s successful past partnerships with the agency.

The financial plan would also require a restructured tax incentive agreement from the city, one that matches the project’s long-term financing.

“One area that makes the previous structure so unsustainable is the tax incentives did not match the length of the financing,” said Chrumka. “So I definitely would be looking to structure a longer-term incentive… so that we can keep that affordability.”

Council Shows Cautious Support

Council members welcomed the transparency and expressed general support for the project, though some noted the need for more details.

“I want to say thanks for sharing this. I think I’ve learned more about the Rockwell property and the development plan from you just now than I did from the prior developer,” said Councilmember Eric Keaton.

Councilmember Tony Iannelli asked about the confidence level in regaining previous grant funding. Chrumka reiterated her optimism, citing prior success with MEDC and other state programs.

New Councilmember Kate Henson framed the project as aligning with the city’s goals. “Affordable housing is one of the main reasons I applied to be on city council. If this provides living space for our police officers and our teachers, I am all for that.”

Mayor Jane Pacheco echoed this sentiment. “To me, this fits perfectly with the vision and the goals of council to bring more affordability to our community. You said you’re the right fit developer for this project, and it sure sounds like it for me.”

Next Steps

The city council did not take a formal vote but offered MCC a “warm fuzzy,” as Chrumka described it, to indicate preliminary support while awaiting more information on tax incentives and affordability agreements.

“This discussion gives me a lot more confidence about just diving in, buying the property, and then starting to work to restructure it,” Chrumka said, adding that her goal is to begin construction by late spring 2026.

Chrumka will continue coordinating with city staff and return to the council with further details. In the meantime, she promised transparency throughout the process.