On May 15, 2026, Governor Kathy Hochul announced the project awards for three Finger Lakes communities — the City of Canandaigua, the Village of Brockport, and the Village of Phelps — through New York's Downtown Revitalization Initiative (DRI) and NY Forward programs. The announcement released $19 million in state funding across 23 projects that include new housing construction, streetscape upgrades, building rehabilitations, civic infrastructure, and waterfront investment — all moving toward construction contracts in the coming months.

What Happened

The three communities received their DRI and NY Forward awards in early 2025 and have since worked with Local Planning Committees and state-assigned consultants to develop Strategic Implementation Plans (SIPs) identifying the highest-priority investable projects. The May 15 announcement formally released those project slates. Localities must hold Pro-Housing Community certification under Governor Hochul's program to be eligible — all three communities are certified.

The 23 projects span building rehabilitation, new residential construction, streetscape and public space improvements, and civic building preservation. The programs are designed as "plan-then-act" initiatives: once projects are awarded, the state works with local partners and developers to move from planning to construction contracts, typically within 12 to 24 months of the award.

Canandaigua: $9.7 Million Across 10 Projects

Canandaigua received the largest award as the Round 8 DRI winner ($10 million total; $9.7 million in funded projects). The project slate includes:

• 100 South Main Street renovation — $1,248,000: Convert an underutilized Main Street building into new apartments and restore the facade
• 88-92 South Main Street upper-floor residential conversion — $791,000: Renovate upper floors into new apartments
• Coach Street pedestrian connector — $1,925,000: New pedestrian connection between Main Street and Bemis Street with streetscape improvements
• Phoenix Street pedestrian redesign — $1,310,000: Pedestrian-friendly redesign supporting outdoor dining
• Central on Main public space — $1,144,000: Expand and improve the downtown's central gathering plaza
• 143 South Main Street housing reactivation — $772,000: Convert vacant second floor into apartments and restore facade
• 97 South Main Street arts hub — $870,000: Renovate a historic building into a creative and community space
• Canandaigua City Hall preservation — $651,000: Masonry repair, finishes, and sitework on the historic civic landmark
• Peacemaker Brewing expansion — $389,000: Addition expanding event and performance capacity
• Small Project Grant Fund — $600,000: Rolling grants for building improvements, facades, and business ventures

Three of the ten Canandaigua projects directly involve converting underutilized or vacant upper-floor commercial space into apartments, reflecting the broader pressure on Finger Lakes communities to add housing supply. Finger Lakes 1 reported the awards on May 17, noting that the DRI funding is designed to leverage private investment and attract additional developers to the corridor.

Brockport: $4.5 Million Across 6 Projects

Brockport, a Round 3 NY Forward recipient, received $4.5 million for six projects centered on its Erie Canal waterfront corridor and downtown Main Street. Key construction projects include:

• Canal-front workforce housing at 60-90 Clinton Street — $1,500,000: Convert a vacant lot into a new apartment building on the Erie Canal waterfront
• Clinton Street streetscape — $1,412,000: Streetscape improvements to improve pedestrian experience and connect to Main Street
• 41 Clark Street townhomes — $820,000: New townhome construction on a blighted downtown parcel
• Brockport Welcome Center accessible venue — $286,000: Retrofit and expand accessible outdoor seating for events and gatherings
• Brockport Fire Station modernization — $137,000: Replace outdated overhead bay doors with full-view doors
• Small Project Grant Fund — $345,000

Phelps: $4.5 Million Across 7 Projects

Phelps, also a Round 3 NY Forward recipient, received $4.5 million targeting streetscape work, park activation, and the rehabilitation of the historic Phelps Hotel as a downtown anchor. Projects include:

• Phelps Hotel rehabilitation — $975,000: Restore dining, bar, banquet, and rooftop terrace
• Phelps Community Center multi-purpose conversion — $1,350,000: Reimagine cafeteria into teaching kitchen, flexible event space, and outdoor plaza
• Crooked Bridge Park improvements — $750,000: ADA-accessible trail, pavilion, and creek access
• Main Street and Church Street streetscapes — $550,000
• 114 Main Street housing and commercial upgrade — $292,000: ADA access, third-floor studio apartment conversion
• Smokin' Tails Distillery outdoor deck and speakeasy — $292,000
• Small Project Grant Fund — $291,000

Why This Matters to Construction Professionals

DRI and NY Forward awards represent funded, shovel-ready (or near-shovel-ready) projects that move from planning to construction contracts within 12 to 24 months of the award announcement. For contractors active in the Finger Lakes and Genesee-Finger Lakes corridor, this announcement is a lead list: masonry and facade restoration in Canandaigua, new residential construction on the Brockport canal waterfront, civic building renovation in Phelps, streetscape work across all three communities. Projects at this scale typically go out for competitive bid through local or regional general contractors, with construction management often coordinated through the state's Empire State Development or the Department of State.

The concentration of upper-floor residential conversions in Canandaigua also reflects a pattern visible across the region: older mixed-use Main Street buildings with vacant upper floors are becoming viable conversion targets as state funding programs provide gap financing that private dollars alone cannot close. Contractors who have experience with occupied-building rehabilitation, masonry restoration, and tight downtown logistical environments will be well positioned for these awards.

Implications for Developers and Owners

Developers watching Canandaigua in particular should note the context: the announcement notes that Canandaigua's downtown is expected to see growth related to the semiconductor industry, specifically the broader investment activity associated with the Finger Lakes semiconductor corridor and Micron's presence in the region. That demand signal — younger, higher-income workers moving into smaller Finger Lakes cities — is shaping the housing conversion priority visible across the DRI project list.

For Brockport, the canal-front workforce housing project at 60-90 Clinton Street is the most directly construction-intensive single project in the slate: a new apartment building on an Erie Canal waterfront lot that recently had compromised structures demolished, leaving a cleared site. This project was identified as having prior shovel-ready planning work completed.

What to Watch Next

Following formal award, the next steps are project contracts between the state (through ESD and DOS) and local project leads, followed by design development, permitting, and contractor procurement. Expect construction activity across the three communities to begin ramping through late 2026 and into 2027. The Small Project Grant Funds in all three communities will generate additional small-scale construction and facade work on an ongoing basis as applications are processed.

Bottom Line

Nineteen million dollars in state-funded construction and rehabilitation is heading to three Finger Lakes communities. From canal-front housing in Brockport to historic hotel restoration in Phelps to upper-floor apartment conversions on Canandaigua's Main Street, the DRI and NY Forward awards announced May 15 represent a tangible, near-term construction pipeline for contractors and developers active in the region.

Sources

• Governor Hochul — 23 Transformational Finger Lakes Projects announcement, May 15, 2026
• Finger Lakes 1 — Canandaigua DRI projects, May 17, 2026
• Rochester Business Journal — DRI/NY Forward awards for Canandaigua, Brockport, Phelps, February 2025
• Empire State Development — Finger Lakes DRI/NY Forward projects