Governor Hochul Announces Completion of Middletown Downtown Revitalization Initiative

Governor Kathy Hochul today announced the City of Middletown has completed all five of its projects funded under the State’s highly successful Downtown Revitalization Initiative (DRI). The City has also completed an additional 17 projects from the City’s Façade and Storefront Signage Improvement Program funded at $1 million through the DRI. Together, these projects further the State and City’s combined goal to create a truly vibrant, year-round downtown that serves as the economic, civic and cultural center of the community.

“The completion of Middletown’s Downtown Revitalization Initiative projects is more than just a local success story, it’s a shining example of how targeted investments and community partnerships work together to revitalize downtowns,” Governor Hochul said. “These projects are transforming Middletown into a model for a vibrant, walkable and thriving community, strengthening the heart and economic vitality of the entire Mid-Hudson region.”

New York Department of State Secretary Walter T. Mosley said, “Through the successful completion of these projects through the Downtown Revitalization Initiative, Middletown has redefined its downtown as a vibrant, welcoming hub for residents, businesses and visitors alike. From Erie Way Park to Rail Trail Commons and beyond, these investments have not only revitalized the City’s physical landscape, but have also strengthened the economic and cultural vitality of this community for years to come.”

The City of Middletown was named the Mid-Hudson Region Downtown Revitalization Initiative winner for Round One. Middletown’s Strategic Investment Plan focused on building on new and expanding businesses and educational institutions in and around the City through the following projects:

• Erie Way Park – $1,640,000 DRI Award: Transformed a derelict vacant lot into a new civic space in the heart of Downtown. The new 1.5-acre park appeals to people of all ages and includes a skateboard park, a 2,000 sq. ft community pavilion, and passive green spaces. It is the permanent home of the Farmer’s Market and the Winter Ice Skating Rink under the pavilion. The project also allowed the city to undertake remedial work to remove contaminated soil on this city-owned property.
• Transform the Woolworth Building into Rail Trail Commons – $2,500,000 DRI Award: Redeveloped the vacant Woolworth Building on North Street to bring new retail to downtown and link the downtown to the Heritage Trail. Renamed “Rail Trail Commons,” the center of the building was transformed into a covered corridor that connects the downtown spur of the city’s Heritage Trail with Erie Way Park. The reconfigured building features retail space along North Street, as well as interior retail space fronting the Heritage Trail and is home to two restaurants and one apparel shop. Adjacent parking areas were improved, landscaped and connected to the Heritage Trail. Bike racks were added to encourage bike use.
• Parking and Greenspace Improvements – $2,000,000 DRI Award: Upgraded the centrally located James Street, Henry Street and Courthouse municipal parking lots with improvements including landscaping, lighting and new circulation patterns, making them safer, increasing usability and making them more attractive. In addition, green infrastructure was incorporated to increase the aesthetic appeal of the lots while mitigating flooding. A new green path was added along the park, providing an attractive and convenient link along the Heritage Trail between North Street and Erie Way Park and improving accessibility to the King Street pedestrian path and John F. Degnan Square.
• Streetscape Improvements – $2,560,000 DRI Award: Implemented streetscape improvements that promote pedestrian activity and higher foot traffic in Downtown Middletown. The project focused on streetscapes on North, South, East Main, West Main, Fulton and Canal Streets, the key Downtown corridors for retail, restaurants and entertainment. Upgrades included trees and plantings, green infrastructure, sidewalk improvements and accessibility and lighting. Improvements were also made to multi-purposed parking lots and plazas to make them suitable for parking or as flexible event space.
• DRI Fund for Facades and Storefront Signage - $1,000,000 DRI Award: Created a Façade and Storefront Signage Improvement Program to encourage property owners and businesses to improve the exterior appearance of downtown buildings and storefronts. The program provided financial assistance for capital improvements to 17 downtown buildings. Seventy-four residential units benefited from the façade improvements, 13 of which were brand new units.

Empire State Development President, CEO & Commissioner Hope Knight said, “The completion of all five Downtown Revitalization Initiative projects in Middletown demonstrates the transformative power of strategic state investment. From Erie Way Park to Rail Trail Commons, these projects have created a walkable, connected downtown that serves as a model for communities across New York State. This $9.7 million investment has catalyzed lasting positive change and strengthened Middletown's role as a regional economic hub.”

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “The Downtown Revitalization Initiative is a vital investment in communities throughout New York. The completion of the initiative in Middletown will strengthen the local economy and help make the city a more attractive place for families to live. HCR is pleased to work with our partners to implement the Façade and Storefront Signage Improvement Program, which underscores New York's commitment to building livable communities and lays the groundwork for residential investment. Thank you to Governor Hochul for your leadership and congratulations to the city of Middletown on reaching this important milestone.”

MHREDC Co-Chairs Dr. Marsha Gordon and Dr. Kristine Young said, “Middletown's completion of its full DRI portfolio – five major projects plus 17 façade improvements – has successfully created a year-round destination that truly serves as the community's economic, civic, and cultural heart. The comprehensive scope of improvements, from innovative public spaces to enhanced connectivity and accessibility, demonstrates how strategic state investment can catalyze lasting change at the local level. This achievement reflects the powerful collaboration between state resources and local vision that drives effective revitalization in the Mid-Hudson Region.”

Assemblymember Paula Elaine Kay said, “Those of us who spend time in the City of Middletown have always recognized it as a special place with a close-knit community. Now, the resilience and creativity of this City is apparent to everyone thanks to these transformative revitalization projects. I thank Mayor Joe DeStefano and his entire economic development team, especially Maria Bruni, as well as the Governor’s Office for working together to lead and fund this investment in the City of Middletown’s future.”

Middletown Mayor Joseph DeStefano said, “Governor Hochul has been with the City of Middletown since day one of our Downtown Revitalization Initiative. The $10 million DRI grant awarded to our city in 2016 marked the beginning of a transformative journey—one that this governor not only supported but helped bring to completion. As we now celebrate the closeout of this final phase, it’s clear that Governor Hochul has made good on her promise to work with our community to revitalize our downtown. Her time, her concern, and her feedback throughout the process have directly contributed to what residents and visitors see today: a vibrant, beautiful downtown with new sidewalks, granite curbing, pedestrian-friendly brick-style crosswalks, enhanced street lighting, and more. This is what true partnership looks like. Governor Hochul implemented a vision to restore small city downtowns like ours—and here in Middletown, that vision has worked. We are grateful for her steadfast support.”

Orange County Executive Steven M. Neuhaus said, “The City of Middletown has shown that it can get the job done. I am proud to work very closely with the mayor and the City Council as well as the governor to continue to revitalize the City of Middletown, which is a true Orange County gem.”

In the FY2025 Enacted Budget, Governor Hochul made the “Pro-Housing Community” designation a requirement for cities, towns and villages to access up to $650 million in State discretionary programs, including the Downtown Revitalization Initiative and New York Forward. To date, more than 300 municipalities across the State have become certified. To further support localities that are doing their part to address the housing crisis, Governor Hochul is creating a $100 million Pro-Housing Supply fund for certified Pro-Housing Communities to assist with critical infrastructure projects necessary to create new housing, such as sewer and water infrastructure upgrades.

About the Downtown Revitalization Initiative
The Downtown Revitalization Initiative was created in 2016 to accelerate and expand the revitalization of downtowns and neighborhoods in all ten regions of the state to serve as centers of activity and catalysts for investment. Led by the Department of State with assistance from Empire State Development, Homes and Community Renewal and NYSERDA, the DRI represents an unprecedented and innovative "plan-then-act" strategy that couples strategic planning with immediate implementation and results in compact, walkable downtowns that are a key ingredient to helping New York State strengthen its economy, as well as to achieving the State's bold climate goals by promoting the use of public transit and reducing dependence on private vehicles. Through nine rounds, the DRI has awarded a total of $900 million to 91 communities across every region of the State.