Governor Hochul Announces Power Authority Economic Development Awards That Will Spur Nearly $267 Million in Private Capital Investments

Governor Kathy Hochul today announced economic development awards from the New York Power Authority (NYPA) that will spur nearly $267 million in private capital investments. Included among the awards, approved today by the NYPA Board of Trustees, is a low-cost Niagara hydropower allocation to Upstate Niagara that will support New York dairy farms and create 125 jobs. Additionally, the NYPA board approved nearly $12 million in Power Proceeds funding that will be directed to four organizations—three in Western New York and one in Northern New York.

“The Power Authority’s economic development awards are a dynamic engine that stimulates growth across New York State, fueled by the availability of NYPA's low-cost power,” Governor Hochul said. “Through a variety of programs, the Power Authority is driving job creation, encouraging capital investments and supporting the maintenance and enhancement of important cultural institutions. The awards approved at today’s NYPA board meeting will enrich local communities by leveraging New York’s abundant hydropower resources.”

Western New York Hydropower

At today’s meeting, the NYPA Board of Trustees approved a nearly 4.2-megawatt low-cost Niagara hydropower allocation to Upstate Niagara, a dairy cooperative, comprising approximately 260 dairy farms located in New York State.

Upstate Niagara will build a $215 million, 165,000-square-foot expansion at its West Seneca facility to increase its manufacturing and storage capacity. The new space will help the cooperative meet its growing demand and streamline its yogurt and cottage cheese production processes. The firm will spend nearly $84 million on site preparation and construction and expend more than $131 million to outfit it with new machinery and equipment. The expansion will lead to the creation of 125 jobs at the site, and the ensuing increase in production volume is expected to grow the number of dairy farm workers throughout the state.

Upstate Niagara is an existing NYPA customer, utilizing nearly 1,400 kilowatts of low-cost power, with 226 current employees at its West Seneca plant. Low-cost Niagara hydropower is available for eligible companies located within a 30-mile radius of the Power Authority's Niagara Power Project and in Chautauqua County.

New York Power Authority Chairman and Western New York resident John R. Koelmel said, “The low-cost hydropower allocation to Upstate Niagara will create 125 jobs and bolster New York’s dairy industry, which is the cornerstone of our state’s agricultural economy. The impact of Niagara hydropower allocations extends far beyond the immediate beneficiaries, supporting vital sectors and strengthening communities across the region.”

Western New York Power Proceeds

The NYPA board also approved three funding awards through the Western New York Power Proceeds program.

Shea’s Performing Arts Center was awarded $7.5 million in Power Proceeds funding—the largest single award approved under the program—to support an ongoing $30 million renovation and restoration project at Shea’s Buffalo Theatre. The project is a 24,000-square-foot vertical expansion that will address essential accessibility and capacity issues, supporting increased attendance. Key upgrades outlined in the project’s scope-of-work include the installation of new elevators, restrooms, digital signage, expanded lobbies and the construction of a new outdoor patio.

More than $2.3 million in Western New York Power Proceeds funding will support the Ralph C. Wilson Park Conservancy’s project with the City of Buffalo to redevelop Ralph Wilson Park, formerly known as LaSalle Park. The NYPA funds will support the construction of a $11.6 million, 10,000-square-foot multi-use space that will augment the $200 million redevelopment of the park. The new structure will include offices, storage spaces, public restrooms, and a maintenance facility. The new space will serve as a base for the conservancy’s operations, maintenance, security, administration and programming teams and feature a comfort station for park visitors.

The Buffalo Society of Natural Sciences, a non-profit organization that operates the Buffalo Museum of Science located at Martin Luther King Jr. Park was awarded $562,000 in Power Proceeds funding to support a new, $2.8 million exhibit focused on the science of sport. The interactive exhibit will explore wellness, physics and psychology as they relate to various sports. The Buffalo Bills, Buffalo Sabres and Buffalo Bandits are partnering with the museum on the project that aims to highlight STEM applications in sports industries.

New York Power Authority President and CEO Justin E. Driscoll said, “The $7.5 million Power Proceeds funding award to Shea’s reflects the Power Authority’s support for Western New York cultural institutions. The renovation and improvement project will enhance the theater’s accessibility and capacity, ensuring that Shea’s remains a dynamic hub for the performing arts. Investments like these not only preserve our cultural heritage but also stimulate economic growth and enrich the community.”

Northern New York Power Proceeds

At today’s meeting the NYPA trustees awarded $1.5 million in Northern New York Power Proceeds funding to Vecino Group New York, a firm leading the Midtown Plaza redevelopment in downtown Canton. The funds will support a $7.5 million project to develop the Innovation Center, an entrepreneur accelerator that will be located on the first floor of the redeveloped plaza. The center will provide emerging entrepreneurs with end-to-end support to launch and grow new ventures in St. Lawrence County. The Innovation Center is expected to create 150 new jobs and grow the region’s gross domestic product by close to $7 million within five years. The NYPA funding will offset costs for machinery, equipment, furniture and fixtures, among other items.

NYPA Trustee and North Country Resident Cecily L. Morris said, “The development of the Innovation Center in Canton, supported by $1.5 million in NYPA Power Proceeds funding, is an important project that will drive economic growth and job creation in the North Country. Facilities like this are vital for fostering innovation, supporting entrepreneurs, and ensuring that our region remains competitive in New York’s dynamic economy.”

The NYPA funding awards are made possible through the Western New York and North New York Power Proceeds Funds, comprised of net earnings resulting from the sale of unused hydropower generated at the Power Authority’s Niagara Power Project and St. Lawrence-FDR Power Project and stem from power proceeds legislation signed into law in 2012 and 2014, respectively.

New York State Assembly Majority Leader Crystal Peoples-Stokes said, “We here in Western New York are greatly appreciative of this incredible investment to our region through NYPA. Supporting the ongoing renovations to Buffalo’s premier performing arts center is a big deal. But I want to highlight the funding for the Buffalo Museum of Science and the funding going towards the creation of an exhibit focused on sports science. We are a sports-crazy town and this exhibit will open eyes, hopefully of our young people, to a different side of sports. Thank you to Governor Hochul and NYPA for these investments.”

State Senator Patrick M. Gallivan said, “NYPA’s low-cost hydropower allocations are a significant part of the state’s economic development efforts for both businesses and cultural institutions. The award to Upstate Niagara supports the cooperative’s aggressive expansion plans in West Seneca, helps secure hundreds of existing jobs, and will lead to the creation of 125 new positions. The continued growth of Upstate Niagara further supports New York’s dairy farmers and others who work in the agriculture industry.”

Assemblymember Jon D. Rivera said, “The monumental capital investments unveiled today demonstrate how New York’s public power can be leveraged to strengthen our economy while improving the quality of life in our communities. By supporting local employers and driving forward transformative projects such as the Ralph C. Wilson Park redevelopment, we are creating good-paying jobs, sustaining family farms, and building public spaces that will serve Western New Yorkers for generations to come.”

About NYPA

NYPA is the largest state public power organization in the nation, operating 17 generating facilities and more than 1,550 circuit-miles of transmission lines. More than 80 percent of the electricity NYPA produces is clean renewable hydropower. NYPA finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. For more information visit www.nypa.gov and follow us on Twitter, Facebook, Instagram and LinkedIn.