Finger Lakes $42.6M Regional Economic Development Funding

Finger Lakes Region, NY — The Finger Lakes Regional Economic Development Council (REDC) has been awarded $42.6 million in state funding to support 48 strategic development projects across the region, according to an announcement by New York State Empire State Development officials on December 30, 2025. The funding is expected to leverage more than $160 million in additional public and private investments, creating a total regional economic impact exceeding $200 million, according to Rochester Beacon reporting.

Program Overview: Regional Economic Development Councils

New York State's Regional Economic Development Council program represents a bottom-up, locally focused approach to economic development. Governor Kathy Hochul's Office of Development commented on the initiative:

"Gov. Hochul's REDCs continue to recommend proposals that will create jobs and spur new growth through a locally focused, bottom-up strategy to economic development. By awarding state funding to projects that align with regional priorities, New York is investing in new ideas, new efforts and new developments to promote community growth throughout the state." — Hope Knight, President, CEO and Commissioner of Empire State Development

Finger Lakes REDC Funding Details

Program Scope:

• Total Award: $42.6 million to Finger Lakes region
• Projects Funded: 48 strategic development initiatives
• Regional Leadership: Co-chairs DeAnna Burt-Nanna and Bob Duffy
• Additional Allocation: $10 million reserved for future high-impact projects
• Projected Economic Multiplier: $160+ million in additional public and private investment
• Total Regional Impact: $200+ million in combined investments

Key Funded Projects

The Finger Lakes REDC announcement highlights three signature projects demonstrating the breadth and impact of the program:

Henrietta Infrastructure & Housing Supply Initiative — $3.27 Million

Project Sponsor: Town of Henrietta

Project Scope:

• Funding: $3.27 million grant (Pro-Housing Supply Fund)
• Primary Work: Fair Avenue infrastructure extension and upgrade project
• Infrastructure Components:
  • Fair Avenue road extension
  • Existing trunk sewer relocation to new road alignment
  • Water line installation
  • Storm sewer system installation
  • Electric and gas line installation to service area
• Housing Impact: Infrastructure improvements will support 550 new housing units
• Housing Mix: Senior housing and market-rate affordable units
• Additional Components: Retail plaza, municipal recreation facilities, and community spaces

The Henrietta project exemplifies how infrastructure investment enables housing development. By extending and upgrading utilities and roads, the town creates the foundation for substantial new housing construction that would not otherwise be feasible. The project's integration of senior housing, affordable units, commercial space, and public amenities demonstrates smart mixed-use planning.

Headwater Foods Regional Food Hub — $3 Million

Project Sponsor: Headwater Foods (Regional Food Hub)

Project Scope:

• Funding: $3 million grant
• Project Type: Food hub headquarters and operations center
• Location: City of Rochester (site remediation of former gas station)
• Facilities: New headquarters and operations center
• Infrastructure Improvements:
  • Cold storage capability
  • Light food processing facilities
  • Improved food distribution systems
• Regional Impact: Expand and diversify markets for state farms and food businesses
• Community Benefit: Improve access to affordable, healthy food in historically distressed area
• Site Transformation: Remediation and redevelopment of vacant gas station property

The Headwater Foods project addresses multiple regional priorities: agricultural economic development, food access equity, brownfield remediation, and downtown revitalization. The regional food hub model supports New York State farmers by creating aggregation and distribution infrastructure.

Phelps Housing Development — $2.88 Million

Project Sponsor: Village of Phelps

Project Scope:

• Funding: $2.88 million grant
• Project Type: Housing development and economic revitalization
• Location: Village of Phelps, Ontario County
• Housing Units: 144 new residential units
• Housing Types: Single-family homes, patio homes, apartments
• Development Scale: 25% increase in village housing stock
• Strategic Impact: Addresses housing shortage in small upstate communities

The Phelps project demonstrates how REDC funding supports smaller communities. A 25% increase in housing stock represents transformational development for a village, potentially reversing population decline and strengthening the local economic base.

Regional Economic Development Context

The Finger Lakes region (encompassing parts of Monroe, Ontario, Seneca, Tompkins, Yates, and neighboring counties) faces specific economic development challenges and opportunities:

• Agricultural Heritage: Rich farming traditions support food production and agribusiness
• Tourism Assets: Wine Country, historic sites, and natural beauty drive tourism
• Population Trends: Rural areas facing population decline in some communities
• Housing Challenges: Limited new construction and aging housing stock
• Infrastructure Needs: Aging utilities and transportation systems requiring modernization
• Workforce Development: Competition for skilled labor requires education and training investment

The REDC's strategic allocation of funding addresses these challenges through place-based investment aligned with regional strengths and priorities.

State-Level Housing Initiative Context

The Finger Lakes $42.6 million allocation is part of Governor Hochul's broader $2 billion housing initiative announced in December 2025, which targets 24 housing developments across New York State with the goal to create or preserve more than 6,600 affordable, supportive, sustainable, and modern homes statewide.

This state-level commitment demonstrates New York's recognition that housing affordability and supply are critical economic development issues affecting quality of life, workforce retention, and regional competitiveness.

Construction & Economic Opportunity

Collectively, the 48 Finger Lakes projects represent significant opportunities for regional construction firms, contractors, and service providers:

• Construction Jobs: Multiple projects across diverse geographies and project types
• Subcontracting Opportunities: Large projects typically require numerous specialized trades
• Equipment & Materials Supply: Sustained demand across project portfolio
• Professional Services: Architecture, engineering, environmental consulting
• Workforce Development: Training and apprenticeship opportunities
• Local Vendor Opportunities: Community-focused projects often source locally

Project Implementation Timeline

REDC-funded projects typically follow these phases:

1. Planning & Design (1-2 quarters): Finalize designs and secure all permits
2. Procurement (1 quarter): Competitive bidding for construction contracts
3. Construction (1-3+ years): Depends on project complexity and scale
4. Completion & Occupancy: Projects open to users/customers
5. Ongoing Operations: Long-term management and maintenance

Contractors should monitor REDC projects throughout their development lifecycle to identify bidding and subcontracting opportunities.

What Happens Next

With the announcement and fund allocation, project sponsors will begin detailed planning, design finalization, and permitting processes. Early bidding opportunities may emerge in Q1/Q2 2026 as projects move toward construction. Regional contractors should:

• Monitor project websites and sponsor communications
• Reach out to project developers and sponsors
• Prepare qualifications and bid teams
• Plan workforce and equipment allocation
• Consider subcontracting partnerships

For construction professionals across Rochester, Syracuse, and the greater Upstate New York region, REDC funding announcements represent important opportunities. Follow Westside Construction Group's blog for continued coverage of regional development funding, project announcements, and industry opportunities across New York.