May 20, 2025
FOR IMMEDIATE RELEASE
May 20, 2025
Contact: press@michigan.gov
Gov. Whitmer Announces Funding for New Housing in U.P., Adding 22 Homes
LANSING, Mich. -- Today, Governor Gretchen Whitmer announced Michigan Strategic Fund (MSF) Board support for a placemaking project in the Upper Peninsula that will add critical housing to the Chassell Township community.
“Today’s investments in the UP will add 22 more units of quality, affordable housing in Chassell Township,” said Governor Whitmer. “Thanks to our comprehensive economic development strategy, we’re securing more advanced manufacturing projects, building up our cities and towns, and making it easier to start or grow a business in Michigan. Let’s keep working together to make every part of Michigan a place where anyone can live, work, and ‘Make It.’”
This approved project builds on the state’s ‘Make It in Michigan’ economic development strategy through developing attractive, thriving communities where people want to build a life and businesses have the support to thrive.
“We are creating pathways to opportunity and growth across the state,” said Lt. Governor Gilchrist II. “This project demonstrates our commitment to ensuring that everyone—no matter their background or ZIP code—has a fair shot to succeed. Together, we’re Standing Tall for a Michigan that works for all of us.”
“Revitalizing our communities and assisting Michigan’s small businesses are key pillars in the state’s ‘Make It in Michigan’ economic development strategy of supporting People, Places, and Projects,” said Quentin L. Messer, Jr., CEO of the MEDC and Chair of the MSF Board. “Today’s approved project continues to deliver on this strategy for the people of Michigan. I’m grateful to Governor Whitmer, our bipartisan partners in the state legislature, and the volunteer MSF Board for their ongoing support of the economic development tools, including the Business Attraction and Community Revitalization budget line, that make these supports happen. Work remains, yet we are encouraged as we assist developers in creating housing for Michigan communities.”
Redevelopment of blighted property to add 22 residential units, commercial space in downtown area of Chassell Township
Overview: The MSF Board approved a Michigan Community Revitalization Program (MCRP) performance-based grant for a redevelopment project that will add critical housing and commercial space in the downtown area of Chassell Township, a community in the Upper Peninsula’s Houghton County.
The $1.5 million MCRP grant approved for developer T&J Properties of Chassell, Inc. will support the redevelopment of a blighted, land bank-owned property into a mixed-use development, resulting in an anticipated total capital investment of $4,514,337. The new 19,400-square-foot building will add 22 residential units – 16 one-bedroom and six two-bedroom apartments – and one commercial unit. This project is the first downtown mixed-use development for T&J Properties owner Dan Palosaari, who has worked in the construction industry for 42 years and is a Chassell resident.
The community is supporting the development with a local portion of Housing TIF capture of up to $387,762, use of township property for parking for the project, and a $100,000 low interest loan.
Why It Matters: Chassell is a rural community with a population of 1,875 in 2023. This redevelopment project is a top priority for Chassell Township, aligning with the community’s vision to add density to the downtown area and housing to a growing region of the Upper Peninsula. The project builds on the MEDC’s commitment to developing attractive places and uplifting communities across the state.
What They’re Saying:
“I am excited to get this project underway as it will be great to do this for the Township of Chassell and surrounding areas,” said T&J Properties owner Dan Palosaari. “This building will be a landmark in Chassell for years to come.”
"Chassell Township embraced the MEDC’s Redevelopment Ready Community process, worked to update and improve the application and enforcement of land use ordinances, invested in community amenities and infrastructure, and were ready for T&Z Properties of Chassell when they stepped forward to look at this property," said Jeff Ratcliffe, executive director of the Keweenaw Economic Development Alliance. "This project will be transformational for Chassell and our area, providing much needed housing and demonstrating how a project like this can happen."
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