Rochester’s Terrence Building Demolition Moves Forward With $20 Million State Commitment

New York State has committed $20 million toward demolition of Rochester’s long-vacant Terrence Building, a major predevelopment step for a proposed housing and mixed-use redevelopment on Elmwood Avenue. The funding was announced as part of Governor Kathy Hochul’s Rochester investment package and is tied to clearing the former Rochester Psychiatric Center tower for future redevelopment New York State Homes and Community Renewal.

For Rochester construction professionals, the news matters because demolition, abatement, site preparation and future vertical work could turn a dormant institutional property into one of the region’s more visible redevelopment sites. The state described the demolition as a step toward a multi-phase, mixed-use project with more than 500 housing units HCR.

What happened

The state’s FY 2027 budget includes $20 million to advance demolition of the Terrence Building, the vacant former home of the Rochester Psychiatric Center HCR. Governor Hochul highlighted the commitment during a June 9, 2026 visit to Rochester, where the Terrence Building was discussed alongside broader regional investments WXXI News.

The demolition money sits within a larger regional package. HCR said the enacted budget also includes $300 million for the Rochester-Monroe Transformation Initiative, including $75 million for High Falls State Park construction on roughly 40 acres of Genesee River brownfield and $225 million for economic development and revitalization projects in Rochester and the surrounding region HCR.

The building and site conditions

The Terrence Building has been vacant since 1995 and has long been viewed as a barrier to redeveloping the Elmwood Avenue property. WXXI described it as an asbestos-laden 17-story tower at the Rochester-Brighton border WXXI News. 13WHAM also reported that the vacant structure has been targeted by vandals since its closure and requires demolition before the larger site can move forward 13WHAM.

One detail should be treated carefully in estimating and public communication. WXXI called the building 17 stories, while RochesterFirst described a 16-story former psychiatric hospital built in 1959 in coverage of related redevelopment applications RochesterFirst. Until demolition bid documents, abatement surveys or owner-issued drawings are public, contractors should avoid deriving quantities from either story count alone.

What the $20 million may unlock

Local reporting shows the demolition has been discussed for years because the existing building is the main obstacle to reuse. WXXI reported that prior demolition estimates ranged from $15 million to $20 million and that the work could take roughly two years WXXI News. That puts the state commitment at the high end of the previously reported range, which is notable for a high-rise structure with asbestos concerns.

Redevelopment concepts have included a substantial housing component. WXXI reported that a recent proposal by Whitestone Development Partners contemplated 522 housing units, several apartment buildings, duplex rentals, commercial buildings, a community building and a three-story hotel component associated with developer Bob Morgan WXXI News. RochesterFirst reported that a separate hotel application called for a 134-room Hyatt House extended-stay hotel with 132 on-site parking spaces, a private internal road network and future commercial spaces RochesterFirst.

Why it matters for contractors and owners

For contractors, the first opportunity is not conventional building construction. It is regulated-material abatement, demolition planning, environmental monitoring, site logistics, hauling, crushing, recycling, backfill, grading and utility coordination. Large vertical demolitions are uncommon in the Rochester market, and an asbestos-laden institutional tower narrows the qualified bidder pool.

For owners and developers, the project is an example of how public funding can solve the part of a redevelopment that private financing struggles to carry. Demolition does not create revenue by itself, but it can convert a stalled site into developable land. That is why Rochester Mayor Malik Evans said that if the building did not come down, “any of the plans don’t mean anything,” according to 13WHAM 13WHAM.

What to watch next

• Procurement path: Watch for the public agency, owner representative, demolition manager or bid package that will control abatement and demolition scope.
• Environmental documentation: The asbestos condition makes surveys, containment requirements and disposal logistics central to schedule and cost.
• Site plan approvals: Housing, hotel, road, parking and commercial components may move on separate review tracks before vertical construction begins.
• Infrastructure scope: A cleared site may still require utility relocation, stormwater work, access roads, sidewalks and grading before new construction is financeable.

Bottom line

The $20 million state commitment does not mean construction starts tomorrow, but it does move a long-stalled Rochester redevelopment site closer to a buildable condition. For the local construction market, the near-term work is likely to be specialized demolition and environmental scope. The longer-term opportunity is housing, hospitality, commercial and infrastructure work on a prominent Elmwood Avenue property.

Image credit: Thumbnail image, “Construction cranes against a bright blue sky,” from Unsplash and used under the Unsplash License Unsplash.

Sources

• New York State Homes and Community Renewal: https://hcr.ny.gov/news/governor-hochul-announces-major-rochester-investments-and-highlights-affordability-agenda
• WXXI News: https://www.wxxinews.org/local-news/2026-06-09/gov-hochul-announces-20m-for-terrence-building-demolition
• 13WHAM: https://13wham.com/news/local/new-york-state-budget-includes-20-million-for-demolition-of-former-rochester-psychiatric-center-terrence-building-elmwood-avenue-psych-brighton-new-york-ny-governor-kathy-hochul-mayor-malik-evans-affordable-housing-funding
• RochesterFirst: https://www.rochesterfirst.com/news/redevelopment-of-abandoned-psych-center-in-works-plans-under-review/
• Unsplash image source: https://unsplash.com/photos/construction-cranes-against-a-bright-blue-sky-ekyidP1g9Jo