Update: State Adds $5.8M for Peanut Line Trail and Ellicott Creek Dam Removal

This is an update. New York State has committed $5.8 million in capital funding to two Erie County projects: $2 million to remove the aging Ellicott Creek dam in the Village of Williamsville and restore water flow around Island Park, and $3.8 million for the Peanut Line Trail, a 4.9-mile paved path linking Amherst and Clarence. Governor Kathy Hochul announced the funding on Saturday, October 24, 2026, and the Dormitory Authority of the State of New York (DASNY) will administer it (Office of the Governor).

The trail money builds on a federal award earlier this month. The Peanut Line Trail, a project totaling more than $10 million, recently received $7 million through the federal Transportation Alternatives Program administered by the New York State Department of Transportation (Office of the Governor). We covered that statewide round in New York Awards $97 Million for 35 Sidewalk and Trail Projects Statewide.

What Happened

The two projects and their state funding are:

• Ellicott Creek dam removal and channel restoration, Village of Williamsville: $2 million to remove the old dam, install a passive weir system, restore natural habitat and water quality, and restore flow around Island Park.
• Peanut Line Trail, Town of Amherst: $3.8 million toward an east-west multi-use path from the Clarence Pathway Trail to the Ellicott Creek Trailway.

(Office of the Governor)

State Sen. Jeremy Zellner and Assemblymember Karen McMahon were credited with helping secure the funding (FingerLakes1.com). Hochul said the projects will "have a real, positive impact for these local communities" (Office of the Governor).

The Ellicott Creek Project

The dam's gates were removed in 2020 after they became inoperable and unsafe for village workers. Since then most of the creek's water has run through the east channel, leaving the west channel near Island Park largely dry (WKBW).

In early October the village outlined a plan of about $2 million to dredge the channel and reshape the waterway so flow splits between the west and east branches, which would also reduce erosion on the east side. At the time, village leaders were pursuing grants and said bonding was an option. They estimated the work could take about three years if funding and approvals moved forward (WKBW). Mayor Christine Hunt described the goal as a fix "for sustaining it for the next 100 years."

The state award matches that estimate. According to the governor's office, removing the dam will also eliminate ongoing maintenance costs, manual labor, and safety and liability concerns tied to the structure (Office of the Governor).

Hunt said the village launched the Ellicott Creek Corridor Waterway Restoration Project in 2023 with a FEMA grant routed through the state Division of Homeland Security and Emergency Services. The new money will fund a design study, environmental compliance and related work over the next few years (FingerLakes1.com).

The Peanut Line Trail

The trail will run mostly within a former New York Central Railroad corridor. Plans call for about 4.9 miles of 10-foot-wide paved path designed to meet ADA requirements, with signage, pavement markings, guide rail, access control and signalized crossings (Office of the Governor).

Amherst Supervisor Shawn Lavin called the route "a missing link" connecting trail systems in Clarence, Akron, Amherst and Tonawanda (FingerLakes1.com). With $7 million in federal funds and $3.8 million from the state, the announced funding now totals about $10.8 million against a project cost the state puts at more than $10 million. The release did not give construction dates for the trail.

Implications for Owners, Developers, Contractors and Subs

For heavy civil and site contractors: The trail is a classic rail-trail scope: clearing, grading, drainage, paving, guide rail and signalized road crossings across nearly five miles. With federal and state money now in place, design and bid documents are the next step to watch from the Town of Amherst.

For environmental and marine specialists: Dam removal, dredging and weir installation in an active village waterway require permitting, sediment management and in-stream work windows. The design study and environmental compliance phase will shape the eventual construction package.

For owners near the corridor: Businesses along the creek, including restaurants that face the dry west channel, have a stake in the outcome. Restored flow around Island Park could support investment in waterfront properties in the village.

What to Watch

• Selection of a design consultant for the Ellicott Creek study and the timing of environmental reviews.
• Town of Amherst bid schedule for the Peanut Line Trail.
• Additional DASNY-administered capital grants in Western New York, which also funded projects such as Millrace Park in Buffalo's Larkin District.

Bottom Line

The $5.8 million state commitment moves two long-discussed Amherst and Williamsville projects closer to construction. The Peanut Line Trail now has roughly $10.8 million in announced public funding, and the Ellicott Creek plan has the $2 million the village estimated it would need. Design and environmental work come next.

Related Coverage

• New York Awards $97 Million for 35 Sidewalk and Trail Projects Statewide
• $6M State Grant Launches Millrace Park in Buffalo's Larkin District
• NYSDOT Finishes $49M Route 20 Rebuild and Cazenovia Creek Bridge in Erie County
• State Completes $3.9 Million Rehab of Erie Canalway Trail in Rochester

Image credit: Office of the Governor. Image from the source article.

Sources

• Office of the Governor, "Governor Hochul Announces $5.8 Million to Support Community Infrastructure Projects in Western New York": https://www.governor.ny.gov/news/governor-hochul-announces-58-million-support-community-infrastructure-projects-western-new
• FingerLakes1.com, "New York commits $5.8 million to Williamsville waterway and Amherst trail projects": https://www.fingerlakes1.com/2026/10/25/new-york-commits-5-8-million-to-williamsville-waterway-and-amherst-trail-projects/
• WKBW 7 News Buffalo, "Williamsville unveils $2 million plan to bring water to dry Ellicott Creek channel": https://www.wkbw.com/news/local-news/northtowns/williamsville-unveils-2-million-plan-to-bring-water-to-dry-ellicott-creek-channel