The creation of the Downtown Albany Strategy (DTAS) serves as the implementation roadmap for the CAP initiative.  The DTAS outlines opportunities to increase the number of residents and visitors downtown, which will generate the activity, investment, and economic momentum needed to support a vibrant and sustainable city center.  

The $40 million Community & Public Spaces Investment Fund will focus on new or improved community spaces and neighborhood amenities. This fund covers all the things that help make a city a community, from beautiful parks to accessible grocery stores. 

As part of the Community and Public Spaces Investment Fund, Empire State Development (ESD) will invest up to $40 million in community-oriented and placemaking projects to revitalize downtown Albany, improve commercial corridors, activate public spaces, and create lasting community assets. By building on and amplifying other CAP-funded investments in housing and transformative projects, these community investment projects will spark renewed energy, and engagement, in downtown Albany, making it a vibrant and appealing destination for small businesses, residents, and visitors alike. 

CAP investments are funded through capital dollars, which may only be used for 'brick and mortar' projects, such as new buildings or equipment. By focusing on building these long-term assets, the CAP initiative ensures the funding creates a lasting foundation for the community’s continued growth and revitalization.  

Only minimum grant requests of $100,000 or more will be reviewed. 

Applicants are strongly encouraged to review the Downtown Albany Strategy and reach out to the ESD Capital Region office to discuss their project prior to submitting an application.

The Community Investment Fund is comprised of three project categories: 

1. Commercial District Enhancements: Proposed projects should be designed to increase the number of businesses and customers in commercial districts and to improve downtown Albany’s economic vibrancy and enhance the resident and visitor experience. 
2. Beautification and Placemaking: Proposed projects should improve the experience of visitors and residents in downtown Albany, encouraging visitation and resident engagement.  
3. Community and Cultural Anchors: Proposed projects should create or enhance “community anchors” - organizations or institutions that are permanently rooted in a community and play a vital role in its long-term stability and economic vibrancy. This category also includes other community priority projects that align with the goals of the DTAS.  

Applicants should review guidelines here.

It is also strongly recommended that applicants speak to ESD staff prior to submitting an application. 

Eligible Applicants 

• For-Profit Businesses and/or developers; 
• Not-for-Profit Entities; 
• The City of Albany; 
• Albany County; 
• Industrial Development Agencies (IDAs); 
• Local Development Corporations (LDCs); 
• Municipally Designated Economic Development Organizations (EDOs); or, 
• Business Improvement Districts (BIDs). 

Eligible Projects Must 

• Occur in the City of Albany, within a one-mile radius of the State Capitol; 
• Have a minimum total project cost of $200,000 (inclusive of ESD funding); 
• Include a minimum of 50% non-ESD funding (i.e., ESD will provide a maximum of 50% of the project cost). Projects that include a lower percentage of ESD-funding will be scored more favorably; 
• Involve the applicant either having control of the site or having written consent from the ownership entity; 
• Be achievable within two years of the award date; and 
• Involve only capital-eligible expenses, such as permanent construction, structural renovations, and long-term equipment. Operating expenses, such as supplies, salaries or administrative costs, are not eligible for grant funding. 

Eligible Costs 

• New construction, renovation or leasehold improvements; 
• Machinery and/or equipment;  
• Demolition and environmental remediation;   
• Furniture and fixtures; 
• Soft costs of up to twenty-five percent (25%) of costs related to the eligible capital expenditures; and  
• Other costs and expenditures deemed eligible by ESD.

Program Awards 

• Minimum award of $100,000.   

Community and Public Spaces projects will be evaluated based on the following criteria: 

• Community and Economic Impact; 
• Demonstrates a meaningful contribution to downtown Albany’s vibrancy, including supporting local businesses, attracting visitors, and activating public spaces. 
• Potential to stimulate long-term economic growth and enhance the city’s cultural, social, or recreational vitality. 
• Project Readiness and Feasibility; 
• Clear project plan with defined scope, timeline, and budget. 
• Evidence of required approvals, permits, or site control. 
• Demonstration of the applicant’s capacity to successfully implement and complete the project. 
• Public Access and Community Benefit; 
• Provides broad public access and benefits a wide range of residents and visitors 
• Projects creatively enhance public spaces. 
• Projects provide new amenities and new reasons to want to work, live, and visit downtown. 
• Leverages private, philanthropic, or other public funding, maximizing the impact of CAP resources. Projects that include a lower percentage of ESD-funding will be scored more favorably; 
• Aligns with priorities established in the Downtown Albany Strategy (DTAS) Report; and, 
• Demonstrates long-term financial viability to ensure that CAP-funded investments remain assets to the city well beyond initial implementation. 

ESD's Capital Region office can be reached at 518-539-4083 or by email at: [email protected]. 

The application portal will open on March 2, 2026. To access the CAP Community and Public Spaces Investment Fund please go to:  NYS Consolidated Funding Application