Governor Hochul Delivers Transformative Progress Toward New York State’s Historic Drive to Revitalize Downtown Albany

Governor Kathy Hochul today announced major milestone achievements of the historic $400 million Championing Albany's Potential (CAP) initiative, her vision to revitalize the Capital City's urban core. Ten strategic projects across the downtown core that realize and reinforce the priorities of theDowntown Albany Strategy were awarded more than $18.6 million in CAP funding to create new housing, promote historic preservation, and enliven downtown with long-term, lasting energy and economic growth. An additional $21 million in funding will support streetscape upgrades including beautification and placemaking improvements to enhance commercial corridors and benefit Downtown Albany's small businesses. Additionally, the renewal of the Liberty Park district, a long-blighted and underutilized section in Downtown Albany, will be led by Columbia Development and Galesi Group and feature a comprehensive mixed-use redevelopment plan. This announcement coincides with the release of the Reconnect the Empire State Plaza Report, designed to serve as a blueprint for investments that break down barriers between the Plaza and its surrounding community.

"One year ago, I called on Albany residents, businesses and community leaders to help shape a stronger future for Albany and today we are delivering the first major milestone on that shared vision," Governor Hochul said. "Not only are we forging a monumental path forward for Liberty Park, but we are also awarding visionary projects, launching vital tools for downtown businesses and continuing to strengthen Empire State Plaza's connection to Albany's core for residents and visitors of our historic capital city. I am proud to see so much progress in just one year and can't wait for the next steps for the revitalization of Downtown Albany."

As part of Governor Hochul's $400 million CAP Initiative, the Downtown Albany Strategy was developed to help guide $200 million in State investments. Created with input from thousands of residents, workers, students, business owners and community leaders, the Downtown Albany Strategy was released in February and represents a vision for new economic growth guided by community priorities. The Downtown Albany Strategy identified the redevelopment of the Liberty Park district - an eight-acre gateway to Downtown Albany - as a key opportunity for large-scale development including housing, public space and neighborhood destinations. Up to $40 million in Empire State Development funding was dedicated under the broader CAP Initiative to advance the Liberty Park district.

Championing Albany's Potential Projects

Today, Governor Hochul also announced the first 10 projects that have been awarded funding through the CAP Initiative. As outlined in the Downtown Albany Strategy, $200 million in funding is being awarded by Empire State Development through three tranches: the Transformative Projects Fund ($120 million), the Housing Investment Fund ($40 million), and the Community Investment Fund ($40 million). These 10 projects were collectively awarded more than $18.6 million, leveraging nearly $97.5 million in additional private and public investments, and will create nearly 300 units of housing:

• Common Alley Too, LLC - The Rose Apartments - $500,000 Grant (Housing Investment Fund): This project includes the redevelopment of 927 Broadway to convert the building's three upper floors into 14 units of workforce housing and to divide the first floor into an additional unit and two commercial spaces. Total Project Cost: $5.2 million
• Gordon Development - Park Place on Pearl - $3.5 Million Grant (Housing Investment Fund): The six-story office building at 39 North Pearl Street is 97% vacant and includes a two-level parking garage. This project will convert the upper floors into 43 multi-family residential units with ground-floor commercial retail space. Total Project Cost: $14.2 Million
• Historic Albany Foundation - Van Ostrande-Radliff House Restoration - $150,000 Grant (Community Investment Fund): The grant will specifically fund the sewer connection to the house at 48 Hudson Avenue, and the remaining activities that cannot be completed until the sewer is connected: installation of the main entrance with ADA-compliant ramp, internal water and sewer connections, and exterior work above the ramp area including painting, lighting and signage. Total Project Cost: $300,000
• In Our Own Voices, Inc. - LGBTQ Community Empowerment Equity Hub - $850,000 Grant (Community and Public Spaces Investment Fund): The project involves the construction of a modern, ADA-compliant facility on Lark Street that includes four affordable transitional housing units, a youth drop-in center, a food pantry, a community gathering space, workforce development classrooms, and business incubator suites. Total Project Cost: $3.5 Million
• Jankow Companies - Downtown Office Transformation - $6.5 Million Grant (Transformative Projects Fund): This project includes two buildings: the historic high-rise at 54 State Street will be converted from offices to 120 residential apartment units and the offices at 30 South Pearl will be renovated to a Class-A level office space. Total Project Cost: $45 Million
• JJ Property Holdings NY, LLC - 84 North Pearl Street - $775,000 Grant (Housing Investment Fund): A vacant five-story commercial building with plans to convert to multi-family housing of approximately 12 residential units and one commercial unit. Total Project Cost: $3 Million
• JJ Property Holdings NY, LLC - 5 Clinton Square - $600,000 Grant (Housing Investment Fund): This project will convert a vacant five-story office building into nine market rate apartments. Upgrades include new HVAC and electrical systems and converting the downstairs commercial space into a residential unit. Total Project Cost: $2.4 Million
• Redburn Development Partners - Union Station - $4 Million Grant (Transformative Projects Fund): The grand lobby of the historic building at 575 Broadway will become an interactive, immersive event and virtual reality venue, complemented by a restaurant and bar. The exterior of the building will feature advanced projection mapping, transforming it into a living art installation that illuminates the skyline. Upper floors will be converted into 50 workforce housing apartments, affordable at 80% Area Median Income, increasing downtown residency. Total Project Cost: $16.5 Million
• Redburn Development Partners - Kennedy Garage - $1.5 Million Grant (Housing Investment Fund): This project at 45 Columbia Street will convert 2.5 floors of underutilized parking into 37 additional apartment units, advancing the Downtown Albany Strategy's making the downtown core an active 24/7 social district. Total Project Cost: $6.5 Million
• Redburn Development Partners - 61 North Pearl - $250,000 Grant (Housing Investment Fund): The project will convert a portion of the vacant commercial space into six additional apartments and set aside a portion of funding for commercial tenant fit-up for a restaurant. As part of the project, modest improvements will also be made to the adjoining Steuben Alley pedestrian corridor, including new exterior storefront lighting, signage and landscaping. Total Project Cost: $877,000

ESD is also committing up to $20 million to support locally-sponsored public realm and streetscape enhancements. This funding will complement the City of Albany's recent Request for Qualifications for design and engineering services, and focus on the Central Business District defined by the RFQ. That area includes Washington Avenue starting at S. Swan Street east to Eagle Street; Eagle Street between Elk Street and Howard Street; State Street between Eagle Street and Broadway; Pearl Street between Pine Street and Market Street; Broadway between Pine Street and Division Street; as well as roadways contained within.

Additionally, ESD has designated $1 million for a Small Business Development Fund targeted in CAP investment areas and commercial corridors. Working with local organizations, this program will focus on smaller scale projects that support small business growth, remove blight, and enhance visitor and resident experience. Qualified expenses include façade and exterior enhancements, small business fit up and equipment upgrades. The program will require a grantee match for each project awarded. Liberty Park Transformation

Through a competitive process, Capitalize Albany Corporation - the City's economic development organization - selected a master plan proposal from Columbia Development and Galesi Group. This transformational proposal envisions three phases consisting of new office space, housing, programmable creative space, experiential retail and parking, and unified by converting an existing street into a pedestrian walkway connected to community green space. Under the proposal, the entire Liberty Park site would be redeveloped, alongside the historic Van Ostrande-Radliff House. The selected development team will work with Capitalize Albany and New York State over the coming months to finalize the terms of the project.

Collectively, these projects, initiatives, and the redevelopment of the Liberty Park district represent up to $80 million in funding commitments from the original $200 million in funding. Additionally, these announcements come just one year after Governor Hochul opened the first public workshop for the CAP initiative.

Reconnect the Empire State Plaza

As part of today's milestone announcements, Governor Hochul highlighted the release of the Reconnect the Empire State Plaza Report. Led by the New York State Office of General Services (OGS) and backed by a $25 million investment through the Governor's CAP initiative, the project aims to transform the historic government complex into a more accessible, engaging, and inclusive public space for all New Yorkers.

Built on valuable input from Albany residents, state workers, students, local business owners, and community leaders, the report outlines targeted upgrades that will make the Plaza easier to navigate and more welcoming, fostering everyday community engagement and significantly enhancing the overall visitor experience. These include traffic calming measures and green space enhancements to South Swan Street, improved navigation and signage, an expanded Empire State Plaza Visitor Center, and enhanced pathways connecting the Concourse and Plaza levels.

The report also identifies four future aspirational, visionary concepts that have the potential to strengthen the Plaza as a dynamic destination that encourages gathering, exploration, and repeat visits, while deepening its connection to Downtown Albany. More information about the Reconnect the Empire State Plaza project and report are available at ogs.ny.gov/reconnect.

Empire State Development President, CEO and Commissioner Hope Knight said, "Under Governor Hochul's leadership, we continue to advance strategic projects that align with the comprehensive Downtown Albany Strategy and leverage New York State's historic investment in Albany's urban core. Today's announcements collectively represent the latest in our accelerated efforts to deliver crucial and sustainable progress for the Capital City and its residents, visitors and workforce."

New York State Office of General Services Commissioner Jeanette Moy said, "The legacy of the Empire State Plaza is complex. Driven by ambitions to create a modern center of government, the Plaza's history has, and continues to shape, the lives of thousands of workers, visitors, and residents of the Capital Region. Under Governor Hochul's leadership, we have a historic opportunity to reconnect the Plaza with Downtown Albany, strengthening the space as a cultural destination, supporting our workforce, and inviting the community in. To develop this vision, we have incorporated feedback from thousands of residents, employees, and visitors, ensuring this vital civic space remains dynamic, relevant, and alive for generations to come. I am deeply grateful for Governor Hochul's $25 million investment, which empowers OGS to realize new possibilities at the Plaza and complement the investments being made across Albany through the CAP Initiative."

Capitalize Albany Corporation president Ashley Mohl said, "This milestone reflects nearly a decade of strategic site assembly, planning, preparation, a broadly-marketed RFP, and a rigorous evaluation and selection process. Such a complex but essential undertaking would not have been possible without the support of Governor Hochul, Empire State Development, the Albany Convention Center Authority, City of Albany Industrial Development Agency, and the vision and commitment of Capitalize Albany's Board of Directors. We're looking forward to the long-awaited transformation of this site into a vibrant mixed-use neighborhood and commercial district. Our board and staff thanks all respondents for their thoughtful submissions."

Galesi Group President David Buicko said, "This announcement marks the start of an exciting new era for downtown Albany and the entire Capital Region, and we are grateful to Governor Hochul for making it possible by her leadership through the CAP Initiative. We are honored by Capitalize Albany's confidence in our local team and excited to advance an Innovation District at Liberty Park that brings together the region's leading institutions, employers, and innovators in a dynamic environment designed to foster collaboration, investment, and long-term growth. We look forward to working closely with the Governor, Empire State Development, Capitalize Albany, and our Innovation District partners to build on the significant investment already made and help catalyze a new wave of opportunity for downtown Albany and the Capital Region."

State Senator Patricia Fahy said, "Today is a historic day for Albany and marks a true turning a point in the revitalization of the core of our Capital Region, through the release of up to $80M of the $200M CAP initiative that will reinvigorate downtown Albany, build essential new housing units, and transform the future of our Capital City. Critically, we are creating almost 300 new housing units to help grow supply and lower costs, while attracting new and existing residents alike. Albany's oldest public green space, Liberty Park will be transformed into a vibrant, mixed-use cluster of housing, creative space, retail, and more, while we return Albany's historic Union Station, built in 1899, to use in the heart of downtown Albany. We're building space for mixed-use development, supporting existing small businesses, and building out innovative streetscape designs that will help improve walkability, including at the Empire State Plaza. It's another concrete sign that Albany's day has come, and I couldn't be prouder to have worked with Governor Hochul, Senate Majority Leader Andrea Stewart-Cousins, Assemblymember Romero and McDonald, and residents to make today's announcement reality."

Assemblymember John T. McDonald III, RPh said, "These investments in Downtown Albany will help us build on the momentum already underway. By supporting new housing, small businesses, historic preservation and improvements to our public spaces, we are making downtown a place where people want to live, work, visit and invest. I am particularly encouraged by the focus on transforming underutilized properties and reconnecting the Empire State Plaza with the surrounding community. These investments will strengthen Albany's economy and enhance the quality of life for residents."

Assemblymember Gabriella Romero said, "Albany's future must be built with and for the people who call this city home. These investments represent an important step toward a downtown that is more vibrant, connected, and accessible, with new housing, support for small businesses, preserved historic spaces, and public places where our community will gather. I'm especially encouraged to see investments that will help transform vacant and underutilized buildings into homes and bring new energy to the heartbeat of our city - a needed investment that combats blight and gives light to our most under-utilized/under-developed areas. Albany residents have been clear about the future they want to see, and I'm grateful to Governor Hochul and my other partners in government for continuing to invest in a Capital City that works for the people who live, work, play, and build their lives here."

Albany County Executive Daniel P. McCoy said, "Today's announcement shows that the momentum in downtown Albany is real, and we are starting to see the results of the hard work that has gone into creating a new vision for our city. We're putting vacant buildings back to work, creating new housing, supporting local businesses and bringing more activity to our downtown. I thank Governor Hochul for her continued partnership and commitment to Albany. These investments will help us build on the progress already underway and create a downtown that works for residents, businesses and visitors for years to come."

City of Albany Mayor Dr. Dorcey Applyrs said, "For the first time in a generation, Albany is receiving a transformative investment on this scale. Today, our City gets a tangible first look at how this investment will change our city for generations to come. Governor Kathy Hochul's $400 million commitment has brought hope, confidence, and renewed excitement about the opportunities within a revitalized, lively Capital City. As architect of Albany's 2025 housing audit, I was thrilled to see this first round of announcements deliver more residential housing, addressing a shortage that has impacted our city for too long. The re-purposing of underutilized parking lots and vacant office buildings is a critical step forward in activating our Downtown core. I am grateful to Governor Hochul and Empire State Development for their commitment to enhance our public spaces and create new commercial opportunity, allowing our City to attract more visitors, residents and workers to our streets. Under the Championing Albany's Potential (CAP) initiative, the transformational redevelopment of Liberty Park is moving forward, and I look forward to finalizing those terms with Capitalize Albany and the State in the months ahead. As Mayor, I am honored to be in this seat as we usher in this unprecedented chapter for our city. I am deeply grateful to Governor Hochul for her generational vision as we continue to unlock our city's true potential."