Governor Kathy Hochul on Aug 12th, outlined plans for the next two phases of a transformative, mixed-use development project that is breathing new life into the former Oakdale Mall in Johnson City, Broome County. Now known as Oakdale Commons, the distressed mall is undergoing a rebirth aimed at creating a vibrant, walkable, mixed-use, mixed income, transit-oriented anchor destination for residents and visitors alike in the Southern Tier. Efforts include the adaptive reuse of an adjacent vacant site for the construction of new housing to support workforce development initiatives in the Greater Binghamton area, the creation of further commercial opportunities, and the establishment of an expansive child care center that will service targeted regional needs, which are all top priorities for the Governor. Still home to several successful retail outlets, the former Oakdale Mall, which opened in 1975, has close to 964,000 square-feet of usable space. Johnson City, which was also a round six winner in the administrations’ successful Downtown Revitalization Initiative, was among the first communities to be certified under the Governor's nation-leading Pro-Housing Communities program.

“The Oakdale Commons project is transforming a once distressed mall into a vibrant, mixed-use community asset, which will provide much-needed affordable housing, child care and ensure access to medical care,” Governor Hochul said. “This innovative project further supports the transformation already underway in Johnson City and will serve as a glowing testament to what can be accomplished when the State and local stakeholders all pull together to get things done.”

Empire State Development President, CEO & Commissioner Hope Knight said, “The Oakdale Commons project has already had a tremendous impact on the continued revitalization efforts in Johnson City. This latest funding also complements additional New York State investments that are reigniting the village’s center, including $10 million awarded in Round Six of Governor Hochul’s transformative Downtown Revitalization Initiative. ESD is proud to support Newman Development in its reimagining of this formerly distressed mall, which – with the addition of much-needed affordable housing, medical and child care facilities – will further increase this community’s economic potential.”

Secretary of State Walter T. Mosley said, “The Downtown Revitalization Initiative was created to accelerate the resurgence of downtowns across the State, and we’re seeing that happen here in Johnson City. Additional investments in projects like Oakdale Commons build on the momentum the DRI brings into a community, helping to grow the local economy and creating even more opportunities for local residents.”

Phase II and III of the adaptive reuse project will include the construction of an 85,000 square-foot, state-of-the-art, regional medical campus; the construction of a new 22,000 square-foot child care center, administered by Broome County and operated by a contracted provider, that will serve up to 208 children to include infant, toddler, preschool, Pre-K and school age slots and the creation of up to 45 new jobs; and the construction of 125 residential units, located on the adjacent parcel, that will cater to the projected job growth in the Greater Binghamton Area.

Phase I of the formerly distressed mall’s transformation included the redevelopment of the former Sears store into the Lourdes Pavilion which included a health, wellness and fitness Center, physical therapy, primary care, a drive-through pharmacy, and lab services. Other projects included an aquatic swim center featuring three pools and group studios, among other things. Also included was the addition of the two-story Beer Tree restaurant and brewery, and Broome County is utilizing on-site office space, with over 200 employees working at the location. All told, the redeveloped building now has over new 500 employees and attracts thousands of daily visitors.

Empire State Development is providing up to $18 million to support the continuing phases of this exciting transformation through the Upstate Revitalization Initiative. The total project cost has been placed at $200 million. Now underway, construction is expected to be completed in early 2026.

Governor Hochul’s commitment to increasing the housing supply across New York State includes a transformative package of programs and initiatives to address the State’s housing crisis, including incentives to create affordable housing statewide; the creation of a $500 million fund to build up to 15,000 new homes on state land; and authority to strengthen the State’s Pro-Housing Communities program and more than $600 million in capital funding to support housing statewide.

In December of 2023, the Governor also announced a $100 million commitment to address the critical shortage in the child care supply available for New York State’s families. It includes $50 million in capital grants for the construction of child care centers and $50 million in business tax credits for workplace-based child care expansion. The investment supports the historic $7 Billion, four-year investment in child care enhancements announced earlier by the Governor.

State Senator Lea Webb Said, “Governor Hochul's commitment to investing in the Oakdale Commons in Johnson City is integral in our ongoing efforts for housing, economic and community development. These projects will not only enhance our health care services and provide much-needed housing, but they will also create new opportunities for working families and contribute to the long-term economic vitality of our region. I commend Governor Hochul for her vision and leadership in making these transformative developments a reality.”

Assemblymember Donna Lupardo said, “It’s been amazing to watch the transformation of the Oakdale Mall into the Oakdale Commons. With the success of Phase I, it’s exciting to see what’s coming next with new housing, child care and a medical campus in the works. A special thank you to Governor Hochul, ESD, Newman Development and all our private and government partners for their steadfast support. I know how much the community appreciates these investments.”

Broome County Executive Jason Garnar said, “Once again Governor Hochul has delivered for Broome County by securing much needed funding for Oakdale Commons, the Southern Tier’s most visible economic development project. With this important state support, we will completely transform this site from a nearly empty mall to a thriving community of new businesses, restaurants, and places to live, all while investing in daycare, housing, and healthcare for our families.”

Johnson City Mayor Marty Meaney said, “We are very grateful for the continued support from Governor Hochul and Empire State Development. We are experiencing an unprecedented amount of redevelopment and rebirth in Johnson City. All of this would not be possible without the great community partners that we have with the Matthews and Newman families, Spark LLC, the Governor’s office and the multiple state agency’s responsible for administering these valuable programs. The former Oakdale Mall is experiencing a wonderful transition into the Oakdale Commons. The new funding that is being provided by the State will enable this truly transformative project to come to fruition sooner. We are excited to see the next phase of redevelopment of the Oakdale Commons. With the many malls failing throughout country, we are fortunate that we are bucking the trend and are witnessing a rebranding. This is proof that when all necessary partners come together anything is possible!”

Partner of Spark JC LLC Marc Newman said, “We are tremendously appreciative of Empire State Development's and Governor Kathy Hochul's support of the Oakdale Commons project and their recognition that Oakdale is a transformative development for the region. With ESD and the Governor's assistance, we can continue to build on the progress we have made in our initial Phase and bring much needed child care, workforce housing and world class medical services to the Southern Tier. We are thrilled to be a part of the Community and look forward to completing a project that we all can take great pride in for many years to come.”

President & CEO of Guthrie Hospital System Dr. Edmund Sabanegh said, “This award underscores New York State’s dedication to investing in the revitalization of the Southern Tier and the commitment to improving the health of its communities. These infrastructure improvements at the Oakdale Commons will enable Guthrie to provide an orthopedic and spine center of excellence. This will be anchored by an ambulatory surgery center that will offer our community clinical excellence in a state-of-the-art facility at lower costs.”

For additional information about Oakdale Commons, visit: oakdalecommons.com.

Accelerating Economic Development in the Southern Tier

On Aug 12th's announcement advances the 2023 Southern Tier Strategic Plan and complements the “Southern Tier Soaring” strategy by facilitating economic growth and community development. These regionally designed plans focus on attracting a talented workforce, growing business and driving next-generation innovation.

About Empire State Development

Empire State Development is New York's chief economic development agency, and promotes business growth, job creation, and greater economic opportunity throughout the State. With offices in each of the State's 10 regions, ESD oversees the Regional Economic Development Councils, supports broadband equity through the ConnectALL office, and is growing the workforce of tomorrow through the Office of Strategic Workforce Development. The agency engages with emerging and next generation industries like clean energy and semiconductor manufacturing looking to grow in New York State, operates a network of assistance centers to help small businesses grow and succeed, and promotes the State's world class tourism destinations through I LOVE NY. For more information, please visit esd.ny.gov, and connect with ESD on LinkedIn, Facebook and X.

About the Downtown Revitalization Initiative

The Downtown Revitalization Initiative was created in 2016 to accelerate and expand the revitalization of downtowns and neighborhoods in all ten regions of the State to serve as centers of activity and catalysts for investment. Led by the Department of State with assistance from Empire State Development, Homes and Community Renewal and NYSERDA, the DRI represents an unprecedented and innovative "plan-then-act" strategy that couples strategic planning with immediate implementation and results in compact, walkable downtowns that are a key ingredient to helping New York State rebuild its economy from the effects of the COVID-19 pandemic, as well as to achieving the State's bold climate goals by promoting the use of public transit and reducing dependence on private vehicles. In the first six years of the program, the State committed $700 million in 69 downtowns that are ripe for revitalization and that have the potential to become magnets for redevelopment, business, job creation and greater economic and housing diversity and opportunity. Participating communities are nominated by the State's 10 Regional Economic Development Councils based on the downtown's potential for transformation. Each community is awarded $10 million to develop a downtown strategic investment plan and implement key catalytic projects that advance the community's vision for revitalization and leverage additional private and public investments. Information on the DRI is available here.