The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
EGLE grant will help transform a contaminated industrial site into new housing and new jobs in Jonesville
October 08, 2026
The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is awarding $2 million in brownfield redevelopment funding to a project that will bring new housing and new jobs to Jonesville. The project will turn the former Klein Tools site at 121 Water Street into a mixed-use development with more than 40 residential apartments units plus retail/commercial space and a restaurant.
The 2.89-acre site sits in the center of downtown Jonesville and is bordered by the St. Joseph River. From 1884-1945 it hosted more than 20 businesses including a print shop, paint shop, machining, and auto repair. Vaco Products took over the property in 1945 and started manufacturing hand tools. Klein Tools bought the company in 1986 and operated on site until 2008. Klein sold the property to the city of Jonesville in 2010.
Environmental assessments at the property have found petroleum, metals, and chlorinated solvents in soil and groundwater. The EGLE brownfield funding will pay for:
- Additional environmental investigations.
- Lead and asbestos surveys and abatement.
- Demolition of part of the existing building.
- Transportation and disposal of contaminated soil.
- Installation of vapor mitigation systems beneath the future buildings.
The new owner plans to rehabilitate part of the existing building into a 25,000 square-foot restaurant with apartments and construct a 14,000 square-foot building with apartments and retail space. The project is expected to cost $20 million and create at least 33 new jobs.
Redevelopment of this property has been a long-time priority for the city since becoming vacant in 2008. “The City of Jonesville appreciates the financial and technical support provided by the Michigan Department of Environment, Great Lakes, and Energy,” said Mayor Gerry Arno. “We are grateful for their partnership, as well as the commitment of our outstanding local developer, DH Roberts Construction. This project represents an exciting investment in the future of our downtown, and we look forward to breaking ground soon."
The redevelopment will improve the appearance of downtown Jonesville, bring more people to live and shop in the city, and create new tax revenue for the city. Construction is scheduled to begin in late 2026 and be finished by January of 2029.
EGLE is concurrently working with Klein Tools to ensure the company’s environmental obligations are satisfied at the site.
More than half of EGLE’s annual budget supports local projects, protects public health and the environment, and helps create economic growth and jobs for Michigan workers. Redevelopment increases the value of brownfield sites and other nearby properties. In 2025, the EGLE Brownfield program provided more than $23 million in brownfield incentives to 76 projects in 52 Michigan communities. These projects are projected to create more than 440 housing units, 600 jobs, and result in more than $675 million in capital investment.
Media Contact:
Author: