Western New York's smaller cities and villages are getting a significant infusion of state construction investment in 2026. On May 8, Governor Hochul announced 21 transformational projects across three Western New York communities — the Village of Cattaraugus in Cattaraugus County, the Village of Westfield in Chautauqua County, and the Village of Angola in Erie County — through the Downtown Revitalization Initiative (DRI) and NY Forward programs. Together, the three awards total $18.7 million in state grant funding, with an expected multiplier effect in private and local matching investment.

Cattaraugus: $9.7 Million DRI, Five Projects

The Village of Cattaraugus won a $10 million Downtown Revitalization Initiative award — one of the most competitive economic development grants available to small cities in New York State. The state selected five projects totaling $9.7 million in funded investment. These projects span the full range of downtown infrastructure and building work that is typical of DRI deployments:

A $1.5 million residential-commercial conversion will redevelop the former railroad depot at 1 Mill Street into new apartments, retail, and outdoor gathering space. A $4.2 million boutique hotel restoration will fully restore the Crawford Hotel and add rooms, a restaurant, a bar, meeting rooms, and event spaces. The village's public realm will be improved through a $1.77 million streetscape project covering Main and Washington Streets, and a $1.63 million community event space will transform a vacant lot into a gateway with rail bike hub, amphitheater, and pavilion. A $600,000 small project fund will provide matching grants for smaller building renovations and capital improvements throughout the downtown. The Olean Times Herald reported that Cattaraugus officials moved quickly to align project selections with the DRI strategic investment plan following the award.

Westfield: $4.5 Million NY Forward, Nine Projects

The Village of Westfield, home to Chautauqua County's grape belt and a Welch's connection that stretches back generations, received a $4.5 million NY Forward award covering nine projects. The centerpiece is a $1 million conversion of the former Welch's Administrative Building into a mix of residential and commercial uses — a notable local adaptive reuse that connects the village's industrial heritage to its housing needs. Other projects include a $816,000 pocket park on Clinton Street with public restrooms and a bicycle repair station, an $800,000 renovation of Eason Hall (the combined village and town hall), a $589,000 rehabilitation of the Burns Block into live/work upper-floor apartments, and a $508,000 small project fund. Two smaller projects — a $149,000 covered stage structure for the creekside amphitheater and a $167,000 safety upgrade at Moore Park — round out the public realm improvements. A $328,000 community co-op makerspace in a former variety store will support small business incubation and entrepreneurship.

Angola: $4.5 Million NY Forward, Seven Projects

The Village of Angola, situated in southern Erie County along the Lake Erie shore corridor, also received a $4.5 million NY Forward award covering seven projects. A $1.246 million mixed-use infill building at 27 North Main Street will add ground-floor commercial space and upper-floor housing on a vacant downtown lot. The former 1919 Fire Department building will be converted into a $303,000 restaurant and banquet hall. The Widmer Hotel will become a $188,000 local tavern and event venue. Community green space improvements across three parks total $808,000. And a $600,000 small project fund and a $804,000 expansion of Azalia's Juicery round out the package, the latter including interior reconfiguration, exterior enhancement, a rear patio, and expansion of the Peaceful Soul Farmers Market.

What DRI and NY Forward Mean for Construction Activity

The DRI and NY Forward programs are state-funded grants structured to flow to specific construction and renovation projects once municipalities complete their strategic planning process. Unlike broader economic development awards, these grants are project-specific: each of the 21 projects listed above represents an identified building, site, or public infrastructure investment that will enter design, permitting, and construction within the program's timeline. Empire State Development administers the program and typically requires projects to be under construction within 18 to 24 months of final award.

For contractors in Western New York, these programs represent a reliable pipeline of small-to-medium construction and renovation projects in communities that often have limited local construction activity otherwise. The projects range from <$200,000 improvements to multi-million-dollar building conversions — work that fits well within the capacity of regional general contractors and specialty trades firms. The geographic spread — from Cattaraugus County in the Southern Tier to Erie County on Lake Erie — means that the work is distributed across multiple labor markets rather than concentrated in a single area.

These awards are part of a statewide deployment across multiple rounds of DRI and NY Forward; the same May 8, 2026 announcement covered 21 WNY projects, while a parallel North Country and Mohawk Valley announcement released similar awards in other regions.

What Comes Next: Preconstruction and Design Phases

For contractors interested in the Cattaraugus, Westfield, and Angola projects, the timeline is important to understand. DRI and NY Forward awards trigger a preconstruction phase — typically 6 to 18 months — during which municipalities work with Empire State Development and project developers to finalize designs, complete environmental reviews, and assemble any additional financing needed beyond the state grant. Many of the smaller projects, particularly the restaurant build-outs, park improvements, and storefront grants, are designed to move quickly through this phase. Larger projects like the Crawford Hotel restoration and the Welch's Building conversion will require more time given their scale and complexity.

Contractors in Cattaraugus County, Chautauqua County, and southern Erie County should begin monitoring these projects now. Empire State Development requires that projects comply with New York State procurement rules if public funds exceed certain thresholds, and early engagement with project developers — whether the municipality or a private developer partner — is the most effective way to position for future bid opportunities. The DRI program also has specific Davis-Bacon prevailing wage requirements for federally funded components, which affects bid pricing and workforce documentation requirements.

The 21 projects span a wide range of construction types: historic building rehabilitation, new infill construction, public realm improvements (streetscapes, parks, and plazas), and interior commercial fit-out. This breadth means the work is accessible to a range of contractor types — from large general contractors capable of handling the hotel restoration to smaller specialty contractors well suited to park improvements and storefront work.

Sources

https://www.governor.ny.gov/news/governor-hochul-announces-21-transformational-projects-western-new-york-part-downtown
https://esd.ny.gov/esd-media-center/press-releases/governor-hochul-announces-21-transformational-projects-western-new-york
https://www.oleantimesherald.com/2026/05/11/village-cattaraugus-announces-5-projects-10m-dri-funding/