CAP Transformative Projects Fund

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Objective

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 $120 million Transformative Projects Fund will focus on catalytic projects that reshape public perception and elevate the downtown experience. These projects are intended as “big swings” to attract new residents, new investment, and more visitors.

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Overview

As part of the Transformative Projects Fund, Empire State Development (ESD) will invest up to $120 million for significant, catalytic projects intended to produce a clear and durable change. These projects are designed to reestablish activity in key areas of the city, improve the function and use of public spaces, and meaningfully change how Albany is experienced by residents, visitors, and businesses.   

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 $2.5 million 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. 

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Eligibility

Eligible Applicants 

  • For-Profit businesses and/or developers; 
  • Not-for-Profit Entities; 
  • The City of Albany; 
  • Albany County; 
  • Local Public Authorities; 
  • 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 $5M (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; 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. 

Example Projects  

  • Developing large-scale, mixed-use buildings; 
  • Creating a year-round market or event space;  
  • Establishing an innovation hub that combines community-oriented uses; or, 
  • Building or renovating an office to bring a significant number of private-sector jobs downtown. 

Program Awards 

  • Minimum award of $2.5M.     
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Project Selection Criteria

Transformative projects will be evaluated based on the following criteria: 

  • Result in a transformational impact;  
  • Drive visible, lasting change by fundamentally improving how downtown is experienced by residents and visitors; 
  • Have benefits that extend beyond the project site, contributing to Albany’s broader revitalization and strengthening its role as the capital city and regional hub; 
  • Result in clear economic benefits such as job creation, increased visitation, expanded housing or commercial activity, improved public spaces, and/or strengthened neighborhood vitality; and, 
  • Be highly visible and accessible, creating places or experiences that residents and visitors can readily engage with and that help reshape perceptions of Albany. 
  • Leverage additional investment; 
  • Projects should have a clear path to leveraging 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. 
  • Align with priorities established in the Downtown Albany Strategy (DTAS) Report; and, 
  • Demonstration of long-term operational and financial viability to ensure that CAP-funded investments remain assets in the city well beyond initial implementation.