Western New York has been awarded $28.5 million in state funding through Governor Kathy Hochul's 2025 Regional Economic Development Council (REDC) Initiative to support 41 construction and development projects across five counties. The announcement, made on January 5, 2026, represents a significant investment in regional economic growth, affordable housing, and infrastructure improvements.
Empire State Development announced the awards on behalf of the state, recognizing projects that align with the Western New York region's strategic economic development plan. According to ESD President, CEO and Commissioner Hope Knight, "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."
The $28.5M in state funding will leverage an additional $56.2 million in public and private investments, dramatically multiplying the regional economic impact. Western New York was also awarded an additional $10 million for future high-impact projects, bringing the total commitment to $38.5 million for the region.
The REDC awards target three major initiatives that will transform communities across Western New York:
Project Overview: Allegany County will construct a wastewater package plant at the county-owned S-Curves property and install a comprehensive wastewater collection system. These critical infrastructure improvements will enable construction of a 220-unit residential housing development on adjacent property.
Housing Features: The development will feature one-to-three-bedroom units designed to address the county's housing shortage and attract trained professionals to the region. This addresses a critical gap in affordable and workforce housing in rural Western New York.
Bridge Street Landing Mixed-Use Project: The City of North Tonawanda received $2.5 million to complete infrastructure upgrades for Bridge Street Landing, a transformative mixed-use development project on Tonawanda Island in downtown North Tonawanda.
Infrastructure Improvements Include:
Housing & Public Space: The completed infrastructure will support an 80-unit residential development. The project also includes a public benefit area featuring passive recreation amenities to activate North Tonawanda's waterfront and provide gathering spaces for residents and visitors.
Historic Theater Revival: The Niagara Orleans Regional Land Improvement Corporation received $1 million in Regional Council Capital Fund grants to support the restoration of the historic Rapid's Theatre in Niagara Falls.
Renovation Scope: The comprehensive restoration includes extensive exterior and interior renovations, utility system upgrades, and HVAC improvements designed to modernize the theater while preserving its historic character.
Economic Impact: The renovated theater will provide capacity to welcome major headlining entertainment events, supporting the broader Niagara Falls Main Street redevelopment initiative and facilitating downtown revitalization and tourism efforts.
The REDC initiative is a cornerstone of New York's economic development strategy. Established in 2011, the Regional Councils function as public-private partnerships bringing together local experts from business, academia, local government, and non-governmental organizations to develop long-term strategic plans for regional growth.
Western New York REDC co-chairs Eric Reich and Steve Stoute stated: "Our council remains steadfast in its commitment to building a more prosperous, sustainable and equitable region. Through strategic public-private partnerships, we are investing in our people, our places, and our most innovative industries. These REDC awarded projects reinforce our core strategies and will deliver a meaningful impact across urban neighborhoods, suburban towns and rural villages in Western New York."
The full list of 41 funded projects spans across Erie, Niagara, Orleans, Genesee, Allegany, and Cattaraugus counties, addressing priorities including affordable housing development, infrastructure modernization, downtown revitalization, and workforce development.
These awards will generate significant construction activity across Western New York over the next 2-4 years. The housing development projects alone will create hundreds of construction jobs, while infrastructure improvements provide opportunities for contractors specializing in water systems, utilities, and site development.
Timeline Expectations: Most infrastructure work is expected to begin during 2026, with housing construction following as infrastructure is completed. The Rapid's Theatre restoration is anticipated to span 12-18 months.
Contractors bidding on these projects should note that funding comes from state sources and typically requires prevailing wage compliance, strong safety records, and experience with public sector projects.
Industry Insight: Westside Construction Group brings 30+ years of experience managing complex regional development and infrastructure projects across Upstate New York. WCG specializes in mixed-use development, housing construction, and public infrastructure work. For consultation on your project: (585) 440-0304 or www.buildwcg.com
For more on Western New York development, see our previous coverage of Buffalo commercial development projects.
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