Update: Rochester-Monroe Fund Draws Nine Bids, Mostly Downtown Housing

The state's $225 million Rochester-Monroe Transformation Initiative has drawn at least nine applications, and most of them are housing projects aimed at downtown Rochester, according to WXXI News. This is an update to our earlier coverage of the fund, Rochester's $300 Million Transformation Initiative. The new development is a first look at the actual pipeline: office conversions, vertical additions, small townhouse rentals and a $24 million reuse of a county building, with first awards expected before the end of 2026.

What Happened

WXXI obtained letters of support that Mayor Malik Evans wrote for many of the applications through an open records request WXXI News. The letters were addressed to Laura Fox O'Sullivan, regional director of Empire State Development, the agency running the program. The station reported that the state has received at least nine applications so far and that officials plan to announce the first awards before year end.

Evans framed housing as a core economic need in the letters. "Housing is a critical infrastructure for a growing economy," he wrote WXXI News.

The Program Behind the Applications

Governor Kathy Hochul opened applications on July 23, 2026. The $225 million was committed in the FY 2027 Enacted Budget and is administered by Empire State Development for projects in Monroe County and the City of Rochester Governor's Office. The state listed four focus areas: strategic placemaking, adaptive reuse, innovation infrastructure and public safety. Applications move through the Consolidated Funding Application process, and awards are made on a rolling basis.

To qualify, the state said a project must, among other requirements, have a transformational impact with clear economic benefits such as jobs, visitation, housing or commercial activity; be highly visible and accessible; create benefits beyond its own site; leverage other private, philanthropic or public money; and show long term operational and financial viability Governor's Office. The release did not set a minimum project size or a cap on individual grants.

The same budget includes $75 million for High Falls State Park, a 40 acre park around an 80 foot waterfall in downtown Rochester, bringing new state funding for the area to $300 million Governor's Office. The state said phased park construction is expected to begin in late 2026. We covered that project in Rochester's First State Park Takes Shape.

The Projects Seeking Money

WXXI described a list that leans heavily toward residential reuse of existing downtown buildings WXXI News:

• Former RG&E headquarters, 89 East Ave. Landers Management proposes converting the building into 87 workforce and market rate apartments. CEO Peter Landers confirmed an application but declined further comment. RG&E moved out in 2020. In an August 11 letter, Evans called it "one of Rochester's most prominent vacant historic buildings" and said renovation carries "extraordinary rehabilitation and construction costs" that private investment alone cannot cover.
• One East Avenue, at East Main Street. Gallina Development, led by partner Rob Gallina, proposes adding seven floors of apartments. WXXI also reported a plan to convert floors two through eight into mostly one bedroom units aimed at young professionals.
• Townhouses near The Strong National Museum of Play and School Without Walls. A proposal for 11 three and four story townhouse apartments built over individual garages on vacant lots.
• University Avenue and North Union Street. A plan to demolish a former restaurant at the southeast corner and build a three story mixed use building with 26 apartments over ground floor space.
• 691 St. Paul St. Genesee Valley Real Estate Co. LLC is seeking $6 million toward a $24 million project for about 90 market rate apartments with first floor retail and office space. Monroe County is moving its Department of Human Services out of the building in January to the former Carestream building on Verona Street. "Prompt reinvestment will prevent a significant vacancy," Evans wrote in an October 5 letter.
• 690 St. Paul St. Evans endorsed a proposed housing conversion, citing the planned High Falls State Park nearby. WXXI noted that affordable housing and a daycare are also proposed across the street.
• Broadway and South Union Street. A vacant lot in the Wadsworth Square area is being eyed for townhouse rentals.
• First Federal Plaza. Evans backed a previously announced mixed use renovation on East Main Street.
• Former Richford Hotel, Chestnut Street. A conversion into 86 apartments.
• Former Monroe County Savings Bank, 35 State St. Renovation and restoration of a long stalled project.
• NetCorps at Sibley Square. An expansion of the startup incubator to fill the entire sixth floor.

Not every proposal has full community support. Wadsworth Square renter Alexis Clemens told WXXI she would prefer a community garden on the Broadway lot. "Adding more housing is not adding value to the people who already have home here," she said WXXI News.

What Is Missing

WXXI reported that none of the proposals include homeownership. Gallina said demand exists, "There's definitely an appetite (for homeownership)," but that ownership units are difficult to deliver inside existing buildings WXXI News.

The letters also did not include one for the ESL Ballpark renovation, which city and county leaders had previously named as a priority. Monroe County is leading that application and did not respond to WXXI's questions about its status. It is not clear from the reporting whether the ballpark application has been filed.

Where Things Stand

The state has not announced any awards. WXXI's count of nine applications is a floor, not a final number, because awards are rolling and the station's view came through letters rather than a complete state list WXXI News. Dollar figures were reported for only one project, the $24 million St. Paul Street conversion. Total project costs and requested amounts for the others were not disclosed.

The program sits on top of a large existing base of state spending. The governor's office said that since 2021 the state has supported nearly $560 million in major capital projects in Monroe County, including $100 million for Inner Loop North, $59.6 million for the Riverside Convention Center, $50 million for the Strong Hospital Emergency Tower and $42.5 million for Seneca Park Zoo Governor's Office. "We have already invested more than $500 million in projects throughout Monroe County," Hochul said in July.

Implications for Owners, Developers, Contractors and Subs

• Adaptive reuse dominates. Most of the named projects are conversions of older office, hotel, bank and utility buildings. That means interior demolition, abatement, new MEP systems, window and envelope work, and code upgrades for residential occupancy, rather than ground up structure.
• Historic buildings bring added cost and review. The mayor's own letter on 89 East Ave. points to extraordinary rehabilitation costs. Owners should budget for preservation review, existing conditions surveys and contingency for hidden conditions.
• Vertical additions are structurally demanding. Seven new floors on One East Avenue would require detailed structural evaluation of the existing frame and foundations, and careful logistics on a busy downtown corner.
• Small infill is in the mix. The townhouse and 26 unit mixed use proposals are sized for regional builders and local trade contractors, not only large firms.
• Timing depends on the state. With awards expected before year end, design and preconstruction for funded projects could move in 2027. State grants usually come with reporting and labor requirements that should be priced early.
• Downtown work will stack up. High Falls State Park, the convention center modernization and these conversions could overlap, competing for the same trades and the same streets.

What to Watch

• The first award announcement from Empire State Development, expected before the end of 2026.
• Whether the ESL Ballpark application moves forward and how much it seeks.
• Cost and unit details for the RG&E building, One East Avenue and Richford Hotel conversions.
• Whether any applicant proposes ownership housing in a later round.
• County timing on vacating 691 St. Paul St. in January.

Bottom Line

The first look at the Rochester-Monroe Transformation Initiative pipeline shows a fund being used mainly to make downtown housing pencil in buildings that private money has struggled to reuse. If the awards land as expected, Rochester's downtown could see a cluster of conversion projects begin in 2027, on top of the public work already planned, including the $59.6 million convention center modernization.

Related Coverage

• Rochester's $300 Million Transformation Initiative: What Construction Professionals Need to Know
• Rochester's First State Park Takes Shape: High Falls Terrace Construction to Begin This Fall
• Rochester's Downtown Construction Cycle Hits $625 Million, and a New Wave of Office Conversions Is Just Getting Started
• Update: Rochester Seeks CM Firm for $59.6M Convention Center Modernization

Image credit: Brian Sharp / WXXI News. Image from the source article.

Sources

• WXXI News, "Mayor backs series of new pitches for downtown housing. Here's what's on tap": https://www.wxxinews.org/local-news/2026-10-19/mayor-backs-series-of-new-pitches-for-downtown-housing-heres-whats-on-tap
• Office of the Governor of New York, "Governor Hochul Announces Applications Are Now Being Accepted for the $225 Million Rochester-Monroe Transformation Initiative": https://www.governor.ny.gov/news/governor-hochul-announces-applications-are-now-being-accepted-225-million-rochester-monroe