Downtown Albany Strategy for $200M Investment Unveiled
Governor Kathy Hochul today unveiled the Downtown Albany Strategy, a comprehensive, community-informed revitalization plan that is part of the $400 million Championing Albany’s Potential (CAP) Initiative. The strategy is backed by $200 million in public investments from New York State to guide coordinated action that will spur housing growth to attract new residents, create jobs, promote long-term redevelopment, enliven commercial corridors, and energize the public realm. Developed with input from thousands of residents, workers, students, business owners, and community leaders, the Downtown Albany Strategy reflects extensive public engagement through workshops, stakeholder meetings, and focus groups and represents a vision for new economic growth guided by community priorities.
The Downtown Albany Strategy is available here.
“Downtown Albany has been a historic hub for more than 400 years, and I am committed to renewing its prominence not only to the region, but across our state and nation. This strategy will deliver transformational change and unlock its full potential,” Governor Hochul said. “Through high-impact investments, strong partnerships, and clear growth targets, we are building a revitalized downtown worthy of the Empire State’s capital city for residents, workers, and visitors alike.”
The strategy prioritizes focused investment in Downtown’s core to build momentum and leverage private development, serving as a foundation for broader revitalization beyond Downtown’s boundaries. A central component of the plan is the redevelopment of Liberty Park, identified as a key opportunity for large-scale housing, public space, and neighborhood destinations. The strategy dedicates up to $40 million in Empire State Development funding to advance the Liberty Park district.
The Downtown Albany Strategy will be implemented through three targeted, high-impact public investments:
- Transformative Projects Fund ($120 million): Supporting major, marquee projects that elevate the downtown experience and energize public interest in downtown’s redevelopment progress
- Housing Investment Fund ($40 million): Expanding housing options to keep and expand the number of downtown residents, creating a 24/7 community to support commercial growth and city services
- Community Investment Fund ($40 million): Enhancing parks, public spaces, and neighborhood amenities
Through strategic State investment and strong private-sector partnerships, the Downtown Albany Strategy will support housing development, small business growth, job creation, and safer, more active streets. The plan is designed to deliver visible, lasting improvements that strengthen Albany’s role as the economic and cultural center of the region.
As the capital of New York State and a regional economic hub, Albany has long faced challenges intensified by post-pandemic shifts in work and living patterns, including high commercial vacancies and strained municipal resources. The Downtown Albany Strategy responds with a focused, data-driven approach to revitalization anchored by six growth targets:
- Triple the Downtown Core residential base to 3,500 by 2035
- Add 1,500 jobs Downtown in five years; 3,000 in 10 years
- Reach five million annual visitors, 90-minute stays, 150+ event days
- Achieve $3 in private investment for every dollar in CAP funding
- Put three catalytic sites under construction within three years
- Improve positive safety ratings for Downtown Albany
ESD will be seeking board approval for program guidelines at its Board of Directors meeting on February 19, with applications for program funds to open in March.
Empire State Development President, CEO, and Commissioner Hope Knight said, “This strategy is not a list of projects, but reflects what is possible when we combine community voices with smart, targeted investments. By focusing on housing, jobs, and quality of life, we are laying the foundation for sustained growth and renewed confidence in Downtown Albany.”
New York State Office of General Services Commissioner Jeanette Moy said, “The revitalization of Downtown Albany, led by Governor Hochul, is building a more inclusive and vibrant future for the capital city that reflects and serves New Yorkers and visitors alike. We are committed to strengthening the Empire State Plaza's ties with its surrounding communities and modernizing our public spaces, making Downtown Albany a destination everyone wants to be.”
New York State Department of Transportation Commissioner Marie Therese Dominguez said, “The Downtown Albany Strategy is a comprehensive blueprint that will turn Governor Hochul’s vision into a brilliant new reality for our Capital City. The State Department of Transportation is proud to be working with the community on this initiative, which will have a multi-faceted, generational impact on the City of Albany and its residents. Through transformative projects like the new Livingston Avenue Bridge and the re-imagining of the Interstate 787 corridor, we are already hard at work making it happen for the people who live and work in Downtown Albany.”
State Senator Patricia Fahy said, “Albany isn't just turning the page on a new chapter in its history — we're writing an entirely new book as we look to the future. Revitalizing Downtown Albany, the core of our Capital Region, begins with three key tenets: building more housing units that are truly accessible and affordable to address the housing crisis, turning the lights back on for downtown's small businesses and creating a destination-location, and investing in community improvements and upgrades for downtown's neighborhoods, including redeveloping Liberty Park. Thanks to the transformative $400 million we secured last year, a new day for Albany is dawning, and I want to thank Governor Hochul, my legislative colleagues, Capital Region delegation, Mayor Applyrs, and former Mayor Sheehan for their continued partnership. Albany's future is bright.”
Assemblymember John T. McDonald III, RPh said, “Revitalizing Downtown Albany requires a comprehensive plan that addresses housing, economic opportunity, and public safety together. This strategy takes steps to bring in new residents, support small businesses, and help improve quality of life. I am encouraged by the strong community input behind this plan and look forward to working with our partners to ensure these investments deliver lasting results for the Capital Region.”
Assemblymember Gabriella A. Romero said, “Downtown Albany is the heart of our capital city, and this strategy for the historic $200 million investment shows that we are moving beyond conversation and into real, transformative action for our community. From expanding housing and creating good-paying jobs to supporting small businesses and revitalizing our public spaces, this strategy marks an exciting step forward for Albany. I’m especially proud that thousands of community members helped shape this plan, because lasting progress only happens when the people who live and work here have a seat at the table. I look forward to continued community collaboration as we work to build a vibrant, thriving downtown for all to enjoy.”
Albany County Executive Daniel P. McCoy said, “Albany has always been the center of the Capital Region’s civic and economic life, and this plan is about building on that foundation. The Downtown Albany Strategy is a practical, action-oriented roadmap focused on long-term impact, ensuring downtown remains a place where people want to live, work, and spend time. I thank Governor Hochul for her historic $400 million investment through the Championing Albany’s Potential (CAP) Initiative and her ambitious targets for the results it will deliver. This plan will help reshape not only our downtown, but also the future of Albany County.”
City of Albany Mayor Dr. Dorcey Applyrs said, “Downtown Albany is the heart of our Capital City and this announcement of the Downtown Albany Strategy gives us a clear, coordinated path to strengthen it. The defined timeline keeps all stakeholders accountable, with measurable goals built in to ensure we stay on target. With the Governor's work and investment, we are looking to add thousands of jobs over the next decade, unlock private investment, and improve safety ratings so that residents and visitors can feel relaxed in our downtown. This level of coordination is how we rebuild confidence and bring sustained growth to our downtown, something residents, visitors, and business owners told us they want to see. I am grateful for the Governor's leadership and look forward to our partnership as we work to make this plan a reality.”
For more information on the Downtown Albany Strategy and the CAP Initiative, visit downtownalbanystrategy.com.
