Ithaca is set to undergo a major transformation after securing a $10 million state grant aimed at revitalizing its downtown core and addressing long-standing housing and economic development needs.
The funding, awarded through New York’s Downtown Revitalization Initiative, designates Ithaca as the Southern Tier’s top recipient in the program’s latest round.
City officials say the investment will focus on connecting the Ithaca Commons with the West State Street and Martin Luther King Jr. Street corridor, turning currently disjointed areas into a more cohesive, walkable district.
Plans tied to the funding emphasize the creation of new housing, support for small businesses, and upgrades to public spaces, with a broader goal of strengthening Ithaca’s role as the economic hub of Tompkins County.
The state’s announcement highlights Ithaca’s importance as a regional employment center, drawing thousands of commuters daily, while also pointing to more than $400 million in recent public and private investment already shaping the city.
Officials say the project will target underutilized properties for redevelopment, aiming to expand housing supply — including affordable options — while improving connectivity and accessibility throughout downtown.
The award also reflects Ithaca’s certification under the state’s Pro-Housing Communities Program, which prioritizes municipalities actively working to increase housing capacity.
City leaders say the funding could help catalyze hundreds of new housing units and attract significant additional private investment, further accelerating growth in the area.
The city will now work with state officials and local stakeholders to develop a Strategic Investment Plan that will determine which projects move forward under the grant.
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