Ithaca narrows in on downtown corridor in latest revitalization bid

The city of Ithaca is taking another crack at funding through New York state’s Downtown Revitalization Initiative (DRI) program.

This year, city officials are more determined than ever to secure $10 million for projects centered on the MLK/West State Street corridor.

“It’s going really well. We had an incredibly strong application last year, so I think this year has afforded us an opportunity to refine it further,” Ithaca Mayor Robert Cantelmo said. “I think Ithaca stands to really positively leverage its economic and population growth as a major city in the Southern Tier.”

The DRI program, launched in 2016 by former Governor Andrew Cuomo, provides funding to a municipality in each of the state’s 10 designated economic regions to assist with costs for projects.

Ithaca is putting together a DRI application as the program enters its ninth round of fund distribution. 

The 2024 contest saw Ithaca overlooked in favor of the city of Binghamton in the eighth round of the Southern Tier region. The village of Dryden won $4.5 million through the NY Forward program, an initiative aimed at revitalizing smaller communities.

“Last year’s application did a really good job of focusing on the corridor, an area of the city where there’s a lot of traffic,” Cantelmo said. “I refer to it as one of the most egalitarian corridors in the city. There are many different folks who are passing through it.”

The boundary area for the application, which is tentative based on feedback from the state, includes part of South Meadow Street, between North and South Aurora Streets, West Seneca Street, West State Street, East Green Street and other roads.

The corridor, which Cantelmo calls “the heart of the city,” is in “dire need of reinvestment and redevelopment.”

“As we finalize these projects and the application, we’re going to be presenting our best foot forward for a high-need part of the city that extends our urban core out to the West End and really maximizes those state dollars if they are awarded,” Cantelmo said.

When it comes to inflation and the DRI funding derived from a capital grant, Cantelmo said the cost of construction will be a challenge with the tariffs intact.

The mayor, however, noted that the city will navigate that issue once DRI funding becomes a reality.

“I have every confidence in our team that this is our year,” Cantelmo said. “I hope we’re able to effectively communicate how strong our application is to the state, as well as how excited this community is about revitalizing the west MLK corridor.”

Building a stronger application than last year 

Applications from previous years didn’t meet the state’s expectations, Cantelmo said.

“Over the years, the early applications really focused on the downtown core of the Commons,” he added. “It didn’t as effectively highlight or meet an acute opportunity for redevelopment and reinvestment.”

Cantelmo said the state wants to see a “continuous, well-defined and compact” area as the subject of an application. The corridor, Cantelmo added, fits the bill.

The city was able to “whittle down the boundary area” of the corridor for this year’s application, which involved refining some of the projects and absorbing more feedback from last year’s application process.

“Some of those projects are even further along on their development, readiness and feasibility,” Cantelmo said. “I think at this point we’re trying to stretch a really strong application to the finish line.”

The recent Downtown Revitalization Initiative public meeting

The city hosted a public event on July 29 at the Tompkins County Public Library, revealing potential DRI projects, providing insight to the community and engaging in discussion with residents.

“In order to develop a competitive DRI application, public input and a strong list of diverse projects are crucial,” said Emma Recckio, the city of Ithaca’s grant administrator. “The input is greatly valued in this process.”

Cantelmo saw firsthand  how strong the community involvement was when a couple dozen people attended the meeting.

“It’s always heartening to see a robust turnout from the public,” he said. “There were good questions and significant interest. I’m thrilled to see that feedback.”

Cantelmo and city officials conducted a presentation at the event, which detailed various project proposals and the vision that Ithaca has for its latest version of the DRI application.

“The MLK/West State Street Corridor will be transformed to help better connect the city’s main thoroughfare, Route 13 and Downtown Ithaca,” noted the meeting’s presentation near its beginning. “Through new housing, thriving local businesses, and enhanced public spaces, the corridor will celebrate Ithaca’s unique identity, foster economic opportunity, and support a more sustainable and welcoming future for all who live, work and visit here.”

There are 16 different project proposals, ranging from housing to commercial enhancements, city infrastructure work, improvements in transportation and more.

Ithaca could go with three different project types, including projects for public improvement, private projects for profit or nonprofit entities and projects to elevate quality of life and regional draw.

Ineligible project types, however, include planning activities, operations and maintenance, property acquisition, training and program expenses.

“Project requirements include a realistic path to implementation in terms of location, financing, sponsor experience and timing, and be transformational in scale and scope,” according to the presentation.

The DRI objectives for Ithaca, if awarded funding, will be economic development, cultural and historical assets, recreation and natural resources, infrastructure, tourism and mixed-use development.

“The more you know about what’s happening in your city, the better off you are as a constituent,” said Denise Katzman, a resident of Ithaca, via WENY News. “Especially when there is a place and a time for your opinion. A lot of people don’t believe [their opinion] helps. It sure as heck does help.”

Ithaca’s DRI Steering Committee is currently reviewing these proposals, as well as any that are submitted until the application is due.

Brief descriptions for each of the project proposals can be found on the “2025 Downtown Revitalization Initiative” page at cityofithaca.org.

“We know that we bring people from out of the area in that aren’t just coming for the show, they’re coming to spend money in the restaurants and the cafes and the shops and they’re also staying overnight,” said Michael Viselli, the director of finance and operations at the State Theatre. “So, we know that it will bring more people into the city to enjoy all the offerings that the city brings, as well as bring dollars into the city. So, it’s a win-win-win.”

Ithaca will submit its DRI application in October on a date to be determined, according to a timeline of the process. The ninth round winners will be announced between December of this year and February 2026.

If Ithaca is one of the municipalities to receive DRI funding, the city will begin its strategic improvement plan in spring 2026. Project awards would be announced during the first few months of 2027, and construction would begin in summer and fall of the same year.

Despite the timeline being past the Aug. 4 DRI community survey, Cantelmo is still encouraging residents to submit suggestions to the city.

“We hope the state sees how strong and united we are in this application.,” he said. “I hope the public takes any opportunity to weigh in on this with what’s available to them.”

To fill out a survey regarding the various design options, visit https://shorturl.at/ZNFih.