19-03-2025
USA Niagara approves $85M capital budget with eye on South End projects
The state agency working on, and helping to fund, the redevelopment of the Falls will have a more than $85.8 million budget to draw on for capital projects in 2025/26.
That budget was approved during a Tuesday morning meeting of the board of directors of USA Niagara Development Corporation (USAN). USA Niagara is a subsidiary of Empire State Development, New York's state-wide development agency.
Its mission is to 'support and promote economic development initiatives in Niagara Falls by leveraging private investment and encouraging growth and renewal of the tourism industry in the city.'
The USA Niagara Board also approved a more than $953,000 operating budget.
USAN President Anthony Vilardo told the board that capital spending in the coming year would be focused on agency initiatives like the Rainbow Mall redevelopment. USA Niagara has already announced plans for a 'civic improvement project' to redevelop the remaining 200,000 square feet of the former mall not occupied by the Niagara Falls Culinary Institute.
The project has been described as creating 'greater public access and walkability, commercial opportunity and improving parking to support new and existing businesses at and near the site.' An agency request for proposals (RFP) calls for a plan to 'repurpose the remaining space into a high-density, mixed-use development with restored pedestrian access through the center of the building and active ground-level uses.'
Marvel Architects has been awarded the contract for the project.
Vilardo said the capital budget funding will also be directed toward the ongoing renovation of the Hotel Niagara and the Heritage Gateway and Hydraulic Plaza development projects. The Gorge Gateway seeks to transform approximately 2.27 acres of vacant land, formerly DiFranco Park, into a multi-use recreational space to act as a transition between Niagara Falls State Park and downtown Niagara Falls.
The Hydraulic Plaza will be built on vacant land between 1st and 2nd streets. The approximately 1.4-acre plaza will follow the alignment of the historic hydraulic canal that once ran through the site to provide a power source for early local industry.
The plaza and gateway are expected to be completed in 2026.
The capital budget also contains funding for the continued development of a parcel of land in the 300 block of First Street. That vacant parcel is currently being developed as a pocket park, pending a future hotel project.
USA Niagara also contracts with Destination USA Niagara to operate the Conference & Events Center Niagara Falls and programming on Old Falls Street. The USAN Board approved a budget of just over $1.2 million for those contracts and a capital budget of almost $1.5 million.
Destination USA Niagara officials told the USAN board that 2024 saw a continuing post-COVID rebound in their conference and events center operations. The operations saw 97 events at the center, which generated more than $3 million in revenue.
The center booked events for 72 'repeat groups,' while attracting bookings for '29 new groups.' As a result, the center has 'limited availability' for new bookings in the coming year.
'It's fantastic to not have enough space for everyone,' Destination USA President & CEO John Percy told the USAN board. 'Over $3 million in revenue for a building this size is incredible.'
Percy said that 'good weather' led to increased attendance at Old Falls Street programs in 2024. He also said the addition of new upscale hotels in the South End has made the city a more attractive destination for business-related conferences and meetings.
